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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Edison International | NYSE:EIX | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
-0.45 | -0.60% | 74.44 | 75.34 | 74.32 | 74.95 | 1,262,548 | 01:00:00 |
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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, 2016
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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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Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of "accelerated filer," "large accelerated filer," and "smaller reporting company" in Rule 12b-12 of the Exchange Act. (Check One):
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Edison International
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Large Accelerated Filer
þ
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Accelerated Filer
¨
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Non-accelerated Filer
¨
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Smaller Reporting Company
¨
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Southern California Edison Company
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Large Accelerated Filer
¨
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Accelerated Filer
¨
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Non-accelerated Filer
þ
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Smaller Reporting Company
¨
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Common Stock outstanding as of July 26, 2016:
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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 1A
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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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AFUDC
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allowance for funds used during construction
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2015 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, 2015
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ALJ
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administrative law judge
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APS
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Arizona Public Service Company
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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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CAA
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Clean Air Act
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CAISO
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California Independent System Operator
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CARB
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California Air Resources Board
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Competitive Businesses
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businesses focused on providing energy solutions, including distributed generation and/or storage, to commercial and industrial customers; engaging in competitive transmission opportunities; and exploring distributed water treatment and recycling.
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CPUC
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California Public Utilities Commission
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CRRs
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congestion revenue rights
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DOE
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U.S. Department of Energy
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Edison Energy
|
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Edison Energy, LLC, a wholly-owned subsidiary of Edison Energy Group and one of the Competitive Businesses
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Edison Energy Group
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Edison Energy Group, Inc., the holding company for the Competitive Businesses
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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 entered into by Edison International, EME, and the Consenting Noteholders in February 2014
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EMG
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Edison Mission Group Inc.
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EPS
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earnings per share
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ERRA
|
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energy resource recovery account
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FERC
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Federal Energy Regulatory Commission
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Four Corners
|
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coal fueled electric generating facility located in Farmington, New Mexico in
which SCE held a 48% ownership interest
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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 28, 2016
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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, Ltd. and a related company
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Moody's
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Moody's Investors Service
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MW
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megawatts
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MWh
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megawatt-hours
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NAAQS
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national ambient air quality standards
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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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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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Palo Verde
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large pressurized water 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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PG&E
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Pacific Gas & Electric Company
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QF(s)
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qualifying facility(ies)
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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, The Utility Reform Network, the CPUC's Office of Ratepayer Advocates and SDG&E, which was later joined by the Coalition of California Utility Employees and Friends of the Earth, (together, the "Settling Parties"), 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, formerly known as the Consumer Protection and Safety Division or CPSD
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SoCalGas
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Southern California Gas Company
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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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VIE(s)
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variable interest entity(ies)
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•
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ability of SCE to recover its costs in a timely manner from its customers through regulated rates, including regulatory assets related to San Onofre;
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•
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decisions and other actions by the CPUC, the FERC, the NRC and other regulatory authorities, including the determinations of authorized rates of return or return on equity, outcome of San Onofre CPUC proceedings 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 capital markets on reasonable terms;
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•
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ability of cities, counties and certain other public agencies to generate and/or purchase electricity for their local residents and businesses, along with other possible customer bypass or departure due to technological advancements in the generation, storage, transmission, distribution and use of electricity, and supported by public policy, government regulations and incentives;
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•
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risks inherent in the construction of transmission and distribution infrastructure replacement and expansion projects, 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), 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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risks associated with the retirement and decommissioning of nuclear generating facilities;
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•
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physical security of SCE's critical assets and personnel and the cybersecurity of SCE's critical information technology systems for grid control, and business and customer data;
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•
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ability of Edison International to develop its 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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cost and availability of electricity, including the ability to procure sufficient resources to meet expected customer needs in the event of power plant outages or significant counterparty defaults under power-purchase agreements;
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•
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environmental laws and regulations, at both the state and federal levels, or changes in the application of those laws, that could require additional expenditures or otherwise affect the cost and manner of doing business;
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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 CAISO, WECC, NERC, and 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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ability to obtain sufficient insurance, including insurance relating to SCE's nuclear facilities and wildfire-related liability, 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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potential for penalties or disallowance for non-compliance with applicable laws and regulations;
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•
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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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disruption of natural gas supply due to unavailability of storage facilities, which could lead to electricity service interruptions; and
|
•
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weather conditions and natural disasters.
|
(in millions)
|
|
2016
|
2017
|
2016 – 2017 Total
|
||||||
Transmission
|
|
$
|
534
|
|
$
|
1,000
|
|
$
|
1,534
|
|
Distribution
|
|
2,984
|
|
3,079
|
|
6,063
|
|
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Generation
|
|
244
|
|
217
|
|
461
|
|
|||
Total estimated capital expenditures
|
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$
|
3,762
|
|
$
|
4,296
|
|
$
|
8,058
|
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Total estimated capital expenditures for 2016 – 2017 (using the range discussed above)
|
|
$
|
3,694
|
|
$
|
4,174
|
|
$
|
7,868
|
|
(in millions)
|
2016
|
|
2017
|
||||
Based on total estimated capital expenditures
|
$
|
25,012
|
|
|
$
|
26,615
|
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Based on total estimated capital expenditures for 2016 – 2017 (using the range discussed above)
|
24,944
|
|
|
26,425
|
|
•
|
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 revenue 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.
|
|
Three months ended June 30, 2016
|
Three months ended June 30, 2015
|
||||||||||||||||
(in millions)
|
Earning
Activities |
Cost-
Recovery Activities |
Total
Consolidated |
Earning
Activities |
Cost-
Recovery Activities |
Total
Consolidated |
||||||||||||
Operating revenue
|
$
|
1,509
|
|
$
|
1,259
|
|
$
|
2,768
|
|
$
|
1,596
|
|
$
|
1,305
|
|
$
|
2,901
|
|
Purchased power and fuel
|
—
|
|
1,064
|
|
1,064
|
|
—
|
|
1,078
|
|
1,078
|
|
||||||
Operation and maintenance
|
492
|
|
195
|
|
687
|
|
495
|
|
229
|
|
724
|
|
||||||
Depreciation, decommissioning and amortization
|
503
|
|
—
|
|
503
|
|
481
|
|
—
|
|
481
|
|
||||||
Property and other taxes
|
85
|
|
—
|
|
85
|
|
82
|
|
—
|
|
82
|
|
||||||
Total operating expenses
|
1,080
|
|
1,259
|
|
2,339
|
|
1,058
|
|
1,307
|
|
2,365
|
|
||||||
Operating income
|
429
|
|
—
|
|
429
|
|
538
|
|
(2
|
)
|
536
|
|
||||||
Interest expense
|
(134
|
)
|
—
|
|
(134
|
)
|
(132
|
)
|
1
|
|
(131
|
)
|
||||||
Other income and expenses
|
22
|
|
—
|
|
22
|
|
13
|
|
1
|
|
14
|
|
||||||
Income before income taxes
|
317
|
|
—
|
|
317
|
|
419
|
|
—
|
|
419
|
|
||||||
Income tax expense
|
(29
|
)
|
—
|
|
(29
|
)
|
7
|
|
—
|
|
7
|
|
||||||
Net income
|
346
|
|
—
|
|
346
|
|
412
|
|
—
|
|
412
|
|
||||||
Preferred and preference stock dividend requirements
|
31
|
|
—
|
|
31
|
|
28
|
|
—
|
|
28
|
|
||||||
Net income available for common stock
|
$
|
315
|
|
$
|
—
|
|
$
|
315
|
|
$
|
384
|
|
$
|
—
|
|
$
|
384
|
|
Core earnings
1
|
|
|
$
|
315
|
|
|
|
$
|
384
|
|
||||||||
Non-core earnings
|
|
|
—
|
|
|
|
—
|
|
||||||||||
Total SCE GAAP earnings
|
|
|
$
|
315
|
|
|
|
$
|
384
|
|
1
|
See use of non-GAAP financial measures in "Management Overview—Highlights of Operating Results."
|
•
|
Lower operating revenue of $87 million primarily due to the following:
|
•
|
During the second quarter of 2016, SCE recorded a revenue refund to customers of $133 million for 2012 – 2014 incremental tax benefits related to repair deductions (offset in income taxes as discussed below). This revenue refund resulted from the CPUC's approval of SCE's request to refund incremental tax repair deductions that were not addressed in SCE's 2015 GRC decision. See "Liquidity and Capital Resources—Regulatory Proceedings—Tax Repair Deductions and Memorandum Account" for further information.
|
•
|
A decrease in revenue of approximately $20 million for 2016 incremental tax benefits recognized through the tax accounting memorandum account ("TAMA") and the pole loading balancing account (offset in income taxes as discussed below). In addition, in 2016, SCE recorded $15 million ($9 million after-tax) of incremental return on the pole loading rate base in this balancing account. During the second quarter of 2015, there was no incremental return on pole loading rate base due to the timing of the final GRC decision.
|
•
|
An increase in FERC-related revenue of $19 million primarily due to higher operating costs including amortization of the regulatory asset associated with the Coolwater-Lugo transmission project (see "Liquidity and Capital Resources—Capital Investment Plan—Major Transmission Projects—Coolwater-Lugo" for further information) and rate base growth partially offset by a $15 million increase in 2015 revenue due to a change in estimate under the FERC formula rate mechanism.
|
•
|
An increase in CPUC revenue of approximately $15 million primarily due to the implementation of the 2015 GRC decision. During the second quarter of 2016, SCE increased authorized revenue approximately $50 million based on the escalation mechanism set forth in the 2015 GRC decision. This increase was partially offset by approximately $35 million of the refund to customers attributable to the second quarter of 2015 as a result of the finalization of the 2015 GRC decision (see "Highlights of Operating Results" for further information).
|
•
|
An increase of $9 million primarily due to tax benefits recognized in 2015 related to net operating loss carrybacks for San Onofre decommissioning costs resulting in a reduction in revenue in 2015 (offset in income taxes).
|
•
|
Lower operation and maintenance costs of $3 million primarily related to lower labor costs due to the workforce reductions and lower legal costs. These lower costs were partially offset by a planned outage and upgrades at the Mountainview plant and costs associated with the pole loading program. The pole loading program costs are recovered in revenue (for further information see the year-ended 2015 MD&A, "Management Overview—Regulatory Proceedings—2015 General Rate Case").
|
•
|
Higher depreciation, decommissioning and amortization expense of $22 million primarily related to depreciation on transmission and distribution investments and amortization of the regulatory asset related to the Coolwater-Lugo, as discussed above.
|
•
|
Higher other income and expenses of $9 million primarily due to higher insurance benefits in 2016. See "Notes to Consolidated Financial Statements—Note 14. Interest and Other Income and Other Expenses" for further details.
|
•
|
Lower income taxes of $36 million primarily due to lower pre-tax income and the following discrete items:
|
•
|
Higher income tax benefits in 2016 primarily related to $79 million of flow-through incremental tax benefits for 2012 – 2014 to customers and $12 million of repair deductions for TAMA and pole loading balancing accounts (both offset in revenue above).
|
•
|
A change in liabilities related to uncertain tax positions related to repair deductions, which resulted in income tax benefits of $100 million during the second quarter of 2015.
|
•
|
Lower operation and maintenance expense of
$34 million
primarily due to lower transmission access charges and lower spending on various public purpose programs.
|
|
Six months ended June 30, 2016
|
Six months ended June 30, 2015
|
||||||||||||||||
(in millions)
|
Earning
Activities
|
Cost-
Recovery
Activities
|
Total
Consolidated
|
Earning
Activities
|
Cost-
Recovery
Activities
|
Total
Consolidated
|
||||||||||||
Operating revenue
|
$
|
3,031
|
|
$
|
2,173
|
|
$
|
5,204
|
|
$
|
3,159
|
|
$
|
2,250
|
|
$
|
5,409
|
|
Purchased power and fuel
|
—
|
|
1,858
|
|
1,858
|
|
—
|
|
1,864
|
|
1,864
|
|
||||||
Operation and maintenance
|
975
|
|
315
|
|
1,290
|
|
958
|
|
388
|
|
1,346
|
|
||||||
Depreciation, decommissioning and amortization
|
978
|
|
—
|
|
978
|
|
943
|
|
—
|
|
943
|
|
||||||
Property and other taxes
|
176
|
|
—
|
|
176
|
|
170
|
|
—
|
|
170
|
|
||||||
Total operating expenses
|
2,129
|
|
2,173
|
|
4,302
|
|
2,071
|
|
2,252
|
|
4,323
|
|
||||||
Operating income
|
902
|
|
—
|
|
902
|
|
1,088
|
|
(2
|
)
|
1,086
|
|
||||||
Interest expense
|
(265
|
)
|
—
|
|
(265
|
)
|
(267
|
)
|
1
|
|
(266
|
)
|
||||||
Other income and expenses
|
46
|
|
—
|
|
46
|
|
39
|
|
1
|
|
40
|
|
||||||
Income before income taxes
|
683
|
|
—
|
|
683
|
|
860
|
|
—
|
|
860
|
|
||||||
Income tax expense
|
21
|
|
—
|
|
21
|
|
115
|
|
—
|
|
115
|
|
||||||
Net income
|
662
|
|
—
|
|
662
|
|
745
|
|
—
|
|
745
|
|
||||||
Preferred and preference stock dividend requirements
|
61
|
|
—
|
|
61
|
|
56
|
|
—
|
|
56
|
|
||||||
Net income available for common stock
|
$
|
601
|
|
$
|
—
|
|
$
|
601
|
|
$
|
689
|
|
$
|
—
|
|
$
|
689
|
|
Core earnings
1
|
|
|
|
|
$
|
601
|
|
|
|
|
|
$
|
689
|
|
||||
Non-core earnings
|
|
|
|
|
—
|
|
|
|
|
|
—
|
|
||||||
Total SCE GAAP earnings
|
|
|
|
|
$
|
601
|
|
|
|
|
|
$
|
689
|
|
1
|
See use of non-GAAP financial measures in "Management Overview—Highlights of Operating Results."
|
•
|
Lower operating revenue of $128 million primarily due to the following:
|
•
|
During the second quarter of 2016, SCE recorded a revenue refund to customers of $133 million for 2012 – 2014 incremental tax benefits related to repair deductions, as discussed above (offset in income taxes below).
|
•
|
A decrease in revenue of approximately $95 million for 2016 incremental tax benefits recognized through the tax accounting memorandum account ("TAMA") and the pole loading balancing account (offset in income taxes as discussed below). In addition, SCE recorded $26 million ($15 million after-tax) of incremental return on the pole loading rate base recorded through this balancing account. During the first six months of 2015, there was no incremental return on pole loading rate base due to the timing of the final 2015 GRC decision.
|
•
|
An increase in CPUC revenue of approximately $26 million primarily due to the implementation of the 2015 GRC decision. During the first six months of 2016, SCE increased authorized revenue approximately $96 million based on the escalation mechanism set forth in the 2015 GRC decision. This increase was partially offset by approximately $70 million of the refund to customers attributable to the second quarter of 2015 as a result of the finalization of the 2015 GRC decision (see "Highlights of Operating Results" for further information).
|
•
|
An increase in FERC-related revenue of $32 million primarily related to higher operating costs including amortization of the regulatory asset associated with the Coolwater-Lugo transmission project and rate base growth partially offset by a $15 million increase in 2015 revenue due to a change in estimate under the FERC formula rate mechanism.
|
•
|
An increase of $15 million primarily due to tax benefits recognized in 2015 related to net operating loss carrybacks for San Onofre decommissioning costs resulting in a reduction in revenue in 2015 (offset in income taxes).
|
•
|
Higher operation and maintenance expense of $17 million primarily due:
|
•
|
An increase of $10 million related to transmission and distribution costs for storm-related activities.
|
•
|
An increase of $10 million related to the pole loading program, which is recovered in revenue.
|
•
|
An increase of $8 million related to a planned outage and upgrades at the Mountainview plant.
|
•
|
A decrease of $11 million of lower operating costs primarily related to lower labor costs due to the workforce reductions.
|
•
|
Higher depreciation, decommissioning and amortization expense of $35 million primarily related to depreciation on transmission and distribution investments and amortization of the regulatory asset related to the Coolwater-Lugo plant, as discussed above.
|
•
|
Higher other income and expenses of $7 million, see "Notes to Consolidated Financial Statements—Note 14. Interest and Other Income and Other Expenses" for details.
|
•
|
Lower income taxes of $94 million primarily due to lower pre-tax income and the following discrete items:
|
•
|
Higher income tax benefits in 2016 primarily related to $79 million related to the flow-through of incremental tax benefits for 2012 – 2014 to customers and $56 million of repair deductions for TAMA and pole loading balancing accounts (both offset in revenue above). These items were partially offset by lower tax benefits on other property-related items in 2016.
|
•
|
A change in liabilities related to uncertain tax positions related to repair deductions, which resulted in income tax benefits of $100 million during the second quarter of 2015.
|
•
|
Lower operation and maintenance expense of
$73 million
primarily due to lower transmission access charges, lower benefit costs, and lower spending on various public purpose programs.
|
•
|
Retail billed and unbilled revenue for the three months ended June 30, 2016 were lower compared to the same period last year primarily due to a rate decrease of $264 million. The decrease was due to implementations of the 2016 ERRA rate decrease and the 2015 GRC decision in January 2016.
|
•
|
Retail billed and unbilled revenue for the six months ended June 30, 2016 reflects a rate decrease of $400 million and a sales volume decrease of $40 million. The rate decrease is primarily due to implementations of the 2016 ERRA rate decrease and the 2015 GRC decision in January 2016. The sales volume decrease is primarily due to lower load requirements related to solar generation and energy efficiency programs.
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(in millions)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Edison Energy Group and subsidiaries
1
|
$
|
(17
|
)
|
|
$
|
(2
|
)
|
|
$
|
(23
|
)
|
|
$
|
—
|
|
Edison Mission Group and subsidiaries
|
(4
|
)
|
|
8
|
|
|
(4
|
)
|
|
11
|
|
||||
Corporate expenses and Other
2
|
(16
|
)
|
|
(11
|
)
|
|
(27
|
)
|
|
(22
|
)
|
||||
Total Edison International Parent and Other
|
$
|
(37
|
)
|
|
$
|
(5
|
)
|
|
$
|
(54
|
)
|
|
$
|
(11
|
)
|
1
|
Includes income of $2 million and $4 million for the three and six months ended June 30, 2016, respectively, compared to income of $1 million and $6 million for the same periods in 2015 related to losses (net of distributions) allocated to tax equity investors under the HLBV accounting method.
|
2
|
Includes interest expense (pre-tax) of $9 million and $7 million for the three months ended June 30, 2016 and 2015, respectively, and $17 million and $14 million for the six months ended June 30, 2016 and 2015, respectively.
|
•
|
An increase in losses of Edison Energy Group from a $13 million after-tax charge from a buy-out of an earn-out provision contained in one of the 2015 acquisitions, higher operating and development expenses and lower revenue and gross margin from the sale of solar systems. The buy-out was completed, together with modification to employment contracts, in order to align long-term incentive compensation. The results during the first half of 2016 include the three businesses acquired by Edison Energy in December 2015. Revenue for Edison Energy Group for the three and six months ended June 30, 2016 were $9 million and $15 million, respectively, compared to $6 million and $9 million for the respective periods in 2015.
|
•
|
A decrease in income from Edison Mission Group and subsidiaries of $12 million and $15 million for the three and six months ended June 30, 2016, respectively, primarily due to income related to affordable housing projects in 2015. In December 2015, EMG's subsidiary, Edison Capital completed the sale of its remaining affordable housing investments portfolio which represents the exit from this business activity.
|
(in millions)
|
|
|
||
Collateral posted as of June 30, 2016
1
|
|
$
|
91
|
|
Incremental collateral requirements for power procurement contracts resulting from a potential downgrade of SCE's credit rating to below investment grade
|
|
55
|
|
|
Incremental collateral requirements for power procurement contracts resulting from adverse market price movement
2
|
|
6
|
|
|
Posted and potential collateral requirements
|
|
$
|
152
|
|
1
|
Net collateral provided to counterparties and other brokers consisted of $95 million in letters of credit and surety bonds and
$4 million
of cash reflected in "Other current liabilities" on the consolidated balance sheets.
|
2
|
Incremental collateral requirements were based on potential changes in SCE's forward positions as of June 30, 2016 due to adverse market price movements over the remaining lives of the existing power procurement contracts using a 95% confidence level.
|
|
Six months ended June 30,
|
||||||
(in millions)
|
2016
|
|
2015
|
||||
Net cash provided by operating activities
|
$
|
1,514
|
|
|
$
|
1,689
|
|
Net cash provided by financing activities
|
151
|
|
|
539
|
|
||
Net cash used in investing activities
|
(1,671
|
)
|
|
(2,213
|
)
|
||
Net (decrease) increase in cash and cash equivalents
|
$
|
(6
|
)
|
|
$
|
15
|
|
|
Six months ended June 30,
|
|
Change in cash flows
|
|||||||
(in millions)
|
2016
|
2015
|
|
2016/2015
|
||||||
Net income
|
$
|
662
|
|
$
|
745
|
|
|
|
||
Non-cash items
1
|
989
|
|
995
|
|
|
|
||||
Subtotal
|
$
|
1,651
|
|
$
|
1,740
|
|
|
$
|
(89
|
)
|
Changes in cash flow resulting from working capital
2
|
(120
|
)
|
(311
|
)
|
|
191
|
|
|||
Derivative assets and liabilities, net
|
15
|
|
33
|
|
|
(18
|
)
|
|||
Regulatory assets and liabilities, net
|
90
|
|
241
|
|
|
(151
|
)
|
|||
Other noncurrent assets and liabilities, net
3
|
(122
|
)
|
(14
|
)
|
|
(108
|
)
|
|||
Net cash provided by operating activities
|
$
|
1,514
|
|
$
|
1,689
|
|
|
$
|
(175
|
)
|
1
|
Non-cash items include depreciation, decommissioning and amortization, allowance for equity during construction, impairment and other charges, 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.
|
•
|
Net cash used for working capital was
$120 million
and
$311 million
during the six months ended June 30, 2016 and 2015, respectively. The cash outflow for each period was primarily related to the timing of receipts from customers and timing of disbursements, including payments for payroll, payroll-related costs and income taxes. During the first six months of the 2016 and 2015, SCE had net tax payments of
$32 million
and $125 million, respectively.
|
•
|
Net cash provided by regulatory assets and liabilities, including changes in over (under) collections of balancing accounts. SCE has a number of balancing accounts, which impact cash flows based on differences between timing of collection of amounts through rates and accrual expenditures. During the first six months of 2016 and 2015, cash flows were impacted by the following principal balancing accounts:
|
•
|
ERRA overcollections for fuel and purchased power decreased
$187 million
during the first six months of 2016 primarily due to the implementation of the 2016 ERRA rate decrease in January 2016 partially offset by lower than forecasted power and gas prices experienced in 2016. ERRA undercollections for fuel and purchased power decreased $485 million in the first six months of 2015 primarily due to lower power and gas prices experienced in 2015.
|
•
|
The base rate revenue balancing account ("BRRBA") tracks differences between amounts authorized by the CPUC in the GRC proceedings and amounts billed to customers. BRRBA overcollections increased
$216 million
in the first six months of 2016 primarily due to a reclassification of $206 million from TAMA to BRRBA to refund customers as required by the CPUC, partially offset by the implementation of the 2015 GRC decision in January 2016. In addition, during the second quarter of 2016, SCE recorded a revenue refund to customers of $133 million for 2012 – 2014
|
•
|
The public purpose and energy efficiency programs track the differences between amounts authorized by the CPUC and amounts incurred to fund programs established by the CPUC. Overcollections increased by $
145 million
during the first six months of 2016 due to higher funding and lower spending for these programs. Overcollections decreased by $122 million during the first six months of 2015 due to increased spending for these programs.
|
•
|
The 2015 GRC decision established the TAMA. As a result of this memorandum account, together with a balancing account for pole loading expenditures, any differences between the authorized tax repair deductions and actual tax repair deductions will be adjusted through customer rates. Overcollections decreased by $
180 million
during the first six months of 2016 primarily due to a $206 million reclassification from TAMA to BRRBA to refund customers as discussed above, partially offset by higher tax repairs deductions than forecasted in rates.
|
•
|
SCE received $122 million in May 2016 from the federal government related to Department of Energy's failure to meet its obligation to begin accepting spent nuclear fuel from San Onofre. These damages recovered by SCE are subject to CPUC review as to how these amounts would be distributed among customers, shareholders, or to offset fuel decommissioning or storage costs. See "Notes to Consolidated Financial Statements—Note 11. Commitments and Contingencies—Contingencies—Spent Nuclear Fuel" for further discussion.
|
•
|
Cash flows used in other noncurrent assets and liabilities were
$122 million
and
$14 million
in the first six months of 2016 and 2015, respectively. Major factors affecting cash flow related to noncurrent assets and liabilities were activities related to SCE's nuclear decommissioning trusts (principally related to the payment of decommissioning costs). Decommissioning costs of San Onofre were approximately $88 million and $80 million for the six months ended June 30, 2016 and 2015, respectively (such costs were recorded as a reduction of SCE's asset retirement obligation).
|
|
Six months ended June 30,
|
||||||
(in millions)
|
2016
|
|
2015
|
||||
Issuances of first and refunding mortgage bonds, net
|
$
|
—
|
|
|
$
|
1,287
|
|
Issuances of pollution control bonds, net
|
—
|
|
|
128
|
|
||
Long-term debt matured or repurchased
|
(41
|
)
|
|
(721
|
)
|
||
Issuances of preference stock, net
|
294
|
|
|
—
|
|
||
Redemptions of preference stock
|
(125
|
)
|
|
—
|
|
||
Short-term debt financing, net
|
457
|
|
|
184
|
|
||
Payments of common stock dividends to Edison International
|
(340
|
)
|
|
(294
|
)
|
||
Payments of preferred and preference stock dividends
|
(61
|
)
|
|
(56
|
)
|
||
Other
|
(33
|
)
|
|
11
|
|
||
Net cash provided by financing activities
|
$
|
151
|
|
|
$
|
539
|
|
|
Six months ended June 30,
|
||||||
(in millions)
|
2016
|
|
2015
|
||||
Net cash (used in) provided by operating activities:
Nuclear decommissioning trusts
|
$
|
(144
|
)
|
|
$
|
41
|
|
Net cash flow from investing activities:
Proceeds from sale of investments
|
1,391
|
|
|
1,455
|
|
||
Purchases of investments
|
(1,247
|
)
|
|
(1,503
|
)
|
||
Net cash impact
|
$
|
—
|
|
|
$
|
(7
|
)
|
|
Six months ended June 30,
|
||||||
(in millions)
|
2016
|
|
2015
|
||||
Net cash (used in) provided by operating activities
|
$
|
(85
|
)
|
|
$
|
79
|
|
Net cash provided by (used in) financing activities
|
51
|
|
|
(66
|
)
|
||
Net cash used in investing activities
|
(10
|
)
|
|
(21
|
)
|
||
Net decrease in cash and cash equivalents
|
$
|
(44
|
)
|
|
$
|
(8
|
)
|
•
|
$122 million receipt of intercompany tax-allocation payments in 2015.
|
•
|
$21 million outflow in June 2016 related to the buy-out of an earn-out provision with the former shareholders of a company acquired by Edison Energy in 2015. See "Results of Operations—Edison International Parent and Other—Income from Continuing Operations" for further information.
|
•
|
approximately $64 million cash outflow from operating activities in 2016 compared to $43 million cash outflow in 2015 due to the timing of payments and receipts relating to interest and operating costs.
|
|
Six months ended June 30,
|
||||||
(in millions)
|
2016
|
|
2015
|
||||
Dividends paid to Edison International common shareholders
|
$
|
(313
|
)
|
|
$
|
(272
|
)
|
Dividends received from SCE
|
340
|
|
|
294
|
|
||
Payment for stock-based compensation
|
(47
|
)
|
|
(108
|
)
|
||
Receipt from stock option exercises
|
26
|
|
|
63
|
|
||
Long-term debt issuance, net
|
397
|
|
|
—
|
|
||
Short-term debt financing, net
|
(351
|
)
|
|
(60
|
)
|
||
Other
|
(1
|
)
|
|
17
|
|
||
Net cash provided by (used in) financing activities
|
$
|
51
|
|
|
$
|
(66
|
)
|
|
June 30, 2016
|
||||||||||
(in millions)
|
Exposure
2
|
|
Collateral
|
|
Net Exposure
|
||||||
S&P Credit Rating
1
|
|
|
|
|
|
||||||
A or higher
|
$
|
124
|
|
|
$
|
(4
|
)
|
|
$
|
120
|
|
BBB
|
2
|
|
|
—
|
|
|
2
|
|
|||
Not rated
|
5
|
|
|
(14
|
)
|
|
—
|
|
|||
Total
|
$
|
131
|
|
|
$
|
(18
|
)
|
|
$
|
122
|
|
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 two credit ratings.
|
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.
|
Consolidated Statements of Income
|
Edison International
|
|
|||||||||||||
|
|
|
|
||||||||||||
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(in millions, except per-share amounts, unaudited)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Total operating revenue
|
$
|
2,777
|
|
|
$
|
2,908
|
|
|
$
|
5,218
|
|
|
$
|
5,420
|
|
Purchased power and fuel
|
1,064
|
|
|
1,078
|
|
|
1,858
|
|
|
1,864
|
|
||||
Operation and maintenance
|
721
|
|
|
743
|
|
|
1,350
|
|
|
1,380
|
|
||||
Depreciation, decommissioning and amortization
|
505
|
|
|
481
|
|
|
982
|
|
|
945
|
|
||||
Property and other taxes
|
85
|
|
|
82
|
|
|
178
|
|
|
171
|
|
||||
Impairment and other charges
|
21
|
|
|
—
|
|
|
21
|
|
|
—
|
|
||||
Total operating expenses
|
2,396
|
|
|
2,384
|
|
|
4,389
|
|
|
4,360
|
|
||||
Operating income
|
381
|
|
|
524
|
|
|
829
|
|
|
1,060
|
|
||||
Interest and other income
|
33
|
|
|
43
|
|
|
65
|
|
|
82
|
|
||||
Interest expense
|
(144
|
)
|
|
(138
|
)
|
|
(284
|
)
|
|
(281
|
)
|
||||
Other expenses
|
(11
|
)
|
|
(17
|
)
|
|
(19
|
)
|
|
(24
|
)
|
||||
Income from continuing operations before income taxes
|
259
|
|
|
412
|
|
|
591
|
|
|
837
|
|
||||
Income tax (benefit) expense
|
(47
|
)
|
|
6
|
|
|
(9
|
)
|
|
113
|
|
||||
Income from continuing operations
|
306
|
|
|
406
|
|
|
600
|
|
|
724
|
|
||||
Loss from discontinued operations, net of tax
|
(2
|
)
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
||||
Net income
|
304
|
|
|
406
|
|
|
599
|
|
|
724
|
|
||||
Preferred and preference stock dividend requirements of SCE
|
31
|
|
|
28
|
|
|
61
|
|
|
56
|
|
||||
Other noncontrolling interests
|
(3
|
)
|
|
(1
|
)
|
|
(8
|
)
|
|
(10
|
)
|
||||
Net income attributable to Edison International common shareholders
|
$
|
276
|
|
|
$
|
379
|
|
|
$
|
546
|
|
|
$
|
678
|
|
Amounts attributable to Edison International common shareholders:
|
|
|
|
|
|
|
|
||||||||
Income from continuing operations, net of tax
|
$
|
278
|
|
|
$
|
379
|
|
|
$
|
547
|
|
|
$
|
678
|
|
Loss from discontinued operations, net of tax
|
(2
|
)
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
||||
Net income attributable to Edison International common shareholders
|
$
|
276
|
|
|
$
|
379
|
|
|
$
|
546
|
|
|
$
|
678
|
|
Basic earnings per common share attributable to Edison International common shareholders:
|
|
|
|
|
|
|
|
||||||||
Weighted-average shares of common stock outstanding
|
326
|
|
|
326
|
|
|
326
|
|
|
326
|
|
||||
Continuing operations
|
$
|
0.86
|
|
|
$
|
1.16
|
|
|
$
|
1.68
|
|
|
$
|
2.08
|
|
Discontinued operations
|
(0.01
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total
|
$
|
0.85
|
|
|
$
|
1.16
|
|
|
$
|
1.68
|
|
|
$
|
2.08
|
|
Diluted earnings per common share attributable to Edison International common shareholders:
|
|
|
|
|
|
|
|
||||||||
Weighted-average shares of common stock outstanding, including effect of dilutive securities
|
329
|
|
|
328
|
|
|
329
|
|
|
329
|
|
||||
Continuing operations
|
$
|
0.85
|
|
|
$
|
1.15
|
|
|
$
|
1.66
|
|
|
$
|
2.06
|
|
Discontinued operations
|
(0.01
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total
|
$
|
0.84
|
|
|
$
|
1.15
|
|
|
$
|
1.66
|
|
|
$
|
2.06
|
|
Dividends declared per common share
|
$
|
0.4800
|
|
|
$
|
0.4175
|
|
|
$
|
0.9600
|
|
|
$
|
0.8350
|
|
Consolidated Statements of Comprehensive Income
|
|
|
|
Edison International
|
|
|||||||||||
|
|
|
|
|
||||||||||||
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(in millions, unaudited)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Net income
|
|
$
|
304
|
|
|
$
|
406
|
|
|
$
|
599
|
|
|
$
|
724
|
|
Other comprehensive income, net of tax:
|
|
|
|
|
|
|
|
|
||||||||
Pension and postretirement benefits other than pensions:
|
|
|
|
|
|
|
|
|
||||||||
Net loss arising during the period plus amortization included in net income
|
|
1
|
|
|
3
|
|
|
3
|
|
|
2
|
|
||||
Other comprehensive income, net of tax
|
|
1
|
|
|
3
|
|
|
3
|
|
|
2
|
|
||||
Comprehensive income
|
|
305
|
|
|
409
|
|
|
602
|
|
|
726
|
|
||||
Less: Comprehensive income attributable to noncontrolling interests
|
|
28
|
|
|
27
|
|
|
53
|
|
|
46
|
|
||||
Comprehensive income attributable to Edison International
|
|
$
|
277
|
|
|
$
|
382
|
|
|
$
|
549
|
|
|
$
|
680
|
|
Consolidated Balance Sheets
|
Edison International
|
|
|||||
|
|
|
|
|
|
||
(in millions, unaudited)
|
June 30,
2016 |
|
December 31,
2015 |
||||
ASSETS
|
|
|
|
||||
Cash and cash equivalents
|
$
|
111
|
|
|
$
|
161
|
|
Receivables, less allowances of $56 and $62 for uncollectible accounts at respective dates
|
801
|
|
|
771
|
|
||
Accrued unbilled revenue
|
682
|
|
|
565
|
|
||
Inventory
|
308
|
|
|
267
|
|
||
Derivative assets
|
65
|
|
|
79
|
|
||
Regulatory assets
|
478
|
|
|
560
|
|
||
Other current assets
|
214
|
|
|
251
|
|
||
Total current assets
|
2,659
|
|
|
2,654
|
|
||
Nuclear decommissioning trusts
|
4,344
|
|
|
4,331
|
|
||
Other investments
|
203
|
|
|
203
|
|
||
Total investments
|
4,547
|
|
|
4,534
|
|
||
Utility property, plant and equipment, less accumulated depreciation and amortization of $8,531 and $8,548 at respective dates
|
35,629
|
|
|
34,945
|
|
||
Nonutility property, plant and equipment, less accumulated depreciation of $92 and $85 at respective dates
|
148
|
|
|
140
|
|
||
Total property, plant and equipment
|
35,777
|
|
|
35,085
|
|
||
Derivative assets
|
69
|
|
|
84
|
|
||
Regulatory assets
|
7,792
|
|
|
7,512
|
|
||
Other long-term assets
|
353
|
|
|
360
|
|
||
Total long-term assets
|
8,214
|
|
|
7,956
|
|
||
|
|
|
|
|
|
||
|
|
|
|
|
|
||
|
|
|
|
|
|
||
|
|
|
|
|
|
||
|
|
|
|
|
|
||
|
|
|
|
|
|
||
|
|
|
|
|
|
||
|
|
|
|
|
|
||
|
|
|
|
||||
Total assets
|
$
|
51,197
|
|
|
$
|
50,229
|
|
Consolidated Balance Sheets
|
|
Edison International
|
|
|||||
|
|
|
|
|
||||
(in millions, except share amounts, unaudited)
|
|
June 30,
2016 |
|
December 31,
2015 |
||||
LIABILITIES AND EQUITY
|
|
|
|
|
||||
Short-term debt
|
|
$
|
800
|
|
|
$
|
695
|
|
Current portion of long-term debt
|
|
696
|
|
|
295
|
|
||
Accounts payable
|
|
1,166
|
|
|
1,310
|
|
||
Accrued taxes
|
|
74
|
|
|
72
|
|
||
Customer deposits
|
|
257
|
|
|
242
|
|
||
Derivative liabilities
|
|
195
|
|
|
218
|
|
||
Regulatory liabilities
|
|
1,072
|
|
|
1,128
|
|
||
Other current liabilities
|
|
889
|
|
|
967
|
|
||
Total current liabilities
|
|
5,149
|
|
|
4,927
|
|
||
Long-term debt
|
|
10,845
|
|
|
10,883
|
|
||
Deferred income taxes and credits
|
|
7,892
|
|
|
7,480
|
|
||
Derivative liabilities
|
|
1,101
|
|
|
1,100
|
|
||
Pensions and benefits
|
|
1,774
|
|
|
1,759
|
|
||
Asset retirement obligations
|
|
2,590
|
|
|
2,764
|
|
||
Regulatory liabilities
|
|
6,017
|
|
|
5,676
|
|
||
Other deferred credits and other long-term liabilities
|
|
2,081
|
|
|
2,246
|
|
||
Total deferred credits and other liabilities
|
|
21,455
|
|
|
21,025
|
|
||
Total liabilities
|
|
37,449
|
|
|
36,835
|
|
||
Commitments and contingencies (Note 11)
|
|
|
|
|
|
|
||
Redeemable noncontrolling interest
|
|
—
|
|
|
6
|
|
||
Common stock, no par value (800,000,000 shares authorized; 325,811,206 shares issued and outstanding at respective dates)
|
|
2,499
|
|
|
2,484
|
|
||
Accumulated other comprehensive loss
|
|
(53
|
)
|
|
(56
|
)
|
||
Retained earnings
|
|
9,111
|
|
|
8,940
|
|
||
Total Edison International's common shareholders' equity
|
|
11,557
|
|
|
11,368
|
|
||
Noncontrolling interests
–
preferred and preference stock of SCE
|
|
2,191
|
|
|
2,020
|
|
||
Total equity
|
|
13,748
|
|
|
13,388
|
|
||
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
||
Total liabilities and equity
|
|
$
|
51,197
|
|
|
$
|
50,229
|
|
Consolidated Statements of Cash Flows
|
Edison International
|
|
|||||
|
|
||||||
|
Six months ended June 30,
|
||||||
(in millions, unaudited)
|
2016
|
|
2015
|
||||
Cash flows from operating activities:
|
|
|
|
||||
Net income
|
$
|
599
|
|
|
$
|
724
|
|
Less: Loss from discontinued operations
|
(1
|
)
|
|
—
|
|
||
Income from continuing operations
|
600
|
|
|
724
|
|
||
Adjustments to reconcile to net cash provided by operating activities:
|
|
|
|
||||
Depreciation, decommissioning and amortization
|
1,025
|
|
|
987
|
|
||
Allowance for equity during construction
|
(42
|
)
|
|
(42
|
)
|
||
Deferred income taxes and investment tax credits
|
(28
|
)
|
|
101
|
|
||
Other
|
11
|
|
|
11
|
|
||
Nuclear decommissioning trusts
|
(144
|
)
|
|
41
|
|
||
EME insurance proceeds
|
1
|
|
|
—
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
||||
Receivables
|
(33
|
)
|
|
32
|
|
||
Inventory
|
(41
|
)
|
|
5
|
|
||
Accounts payable
|
67
|
|
|
130
|
|
||
Prepaid and accrued taxes
|
1
|
|
|
(50
|
)
|
||
Other current assets and liabilities
|
(135
|
)
|
|
(411
|
)
|
||
Derivative assets and liabilities, net
|
15
|
|
|
33
|
|
||
Regulatory assets and liabilities, net
|
90
|
|
|
241
|
|
||
Other noncurrent assets and liabilities
|
42
|
|
|
(34
|
)
|
||
Net cash provided by operating activities
|
1,429
|
|
|
1,768
|
|
||
Cash flows from financing activities:
|
|
|
|
||||
Long-term debt issued, net of discount and issuance costs of $3 and $16 for
respective periods |
397
|
|
|
1,415
|
|
||
Long-term debt matured
|
(41
|
)
|
|
(721
|
)
|
||
Preference stock issued, net
|
294
|
|
|
—
|
|
||
Preference stock redeemed
|
(125
|
)
|
|
—
|
|
||
Short-term debt financing, net
|
106
|
|
|
125
|
|
||
Dividends to noncontrolling interests
|
(61
|
)
|
|
(56
|
)
|
||
Dividends paid
|
(313
|
)
|
|
(272
|
)
|
||
Other
|
(55
|
)
|
|
(18
|
)
|
||
Net cash provided by financing activities
|
202
|
|
|
473
|
|
||
Cash flows from investing activities:
|
|
|
|
||||
Capital expenditures
|
(1,828
|
)
|
|
(2,197
|
)
|
||
Proceeds from sale of nuclear decommissioning trust investments
|
1,391
|
|
|
1,455
|
|
||
Purchases of nuclear decommissioning trust investments
|
(1,247
|
)
|
|
(1,503
|
)
|
||
Other
|
3
|
|
|
11
|
|
||
Net cash used in investing activities
|
(1,681
|
)
|
|
(2,234
|
)
|
||
Net (decrease) increase in cash and cash equivalents
|
(50
|
)
|
|
7
|
|
||
Cash and cash equivalents at beginning of period
|
161
|
|
|
132
|
|
||
Cash and cash equivalents at end of period
|
$
|
111
|
|
|
$
|
139
|
|
Consolidated Statements of Income
|
|
Southern California Edison Company
|
|
|||||||||||||
|
|
|
|
|
|
|
||||||||||
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(in millions, unaudited)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Operating revenue
|
|
$
|
2,768
|
|
|
$
|
2,901
|
|
|
$
|
5,204
|
|
|
$
|
5,409
|
|
Purchased power and fuel
|
|
1,064
|
|
|
1,078
|
|
|
1,858
|
|
|
1,864
|
|
||||
Operation and maintenance
|
|
687
|
|
|
724
|
|
|
1,290
|
|
|
1,346
|
|
||||
Depreciation, decommissioning and amortization
|
|
503
|
|
|
481
|
|
|
978
|
|
|
943
|
|
||||
Property and other taxes
|
|
85
|
|
|
82
|
|
|
176
|
|
|
170
|
|
||||
Total operating expenses
|
|
2,339
|
|
|
2,365
|
|
|
4,302
|
|
|
4,323
|
|
||||
Operating income
|
|
429
|
|
|
536
|
|
|
902
|
|
|
1,086
|
|
||||
Interest and other income
|
|
33
|
|
|
31
|
|
|
65
|
|
|
64
|
|
||||
Interest expense
|
|
(134
|
)
|
|
(131
|
)
|
|
(265
|
)
|
|
(266
|
)
|
||||
Other expenses
|
|
(11
|
)
|
|
(17
|
)
|
|
(19
|
)
|
|
(24
|
)
|
||||
Income before income taxes
|
|
317
|
|
|
419
|
|
|
683
|
|
|
860
|
|
||||
Income tax (benefit) expense
|
|
(29
|
)
|
|
7
|
|
|
21
|
|
|
115
|
|
||||
Net income
|
|
346
|
|
|
412
|
|
|
662
|
|
|
745
|
|
||||
Less: Preferred and preference stock dividend requirements
|
|
31
|
|
|
28
|
|
|
61
|
|
|
56
|
|
||||
Net income available for common stock
|
|
$
|
315
|
|
|
$
|
384
|
|
|
$
|
601
|
|
|
$
|
689
|
|
Consolidated Statements of Comprehensive Income
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(in millions, unaudited)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Net income
|
|
$
|
346
|
|
|
$
|
412
|
|
|
$
|
662
|
|
|
$
|
745
|
|
Other comprehensive income, net of tax:
|
|
|
|
|
|
|
|
|
||||||||
Pension and postretirement benefits other than pensions:
|
|
|
|
|
|
|
|
|
||||||||
Amortization of net loss included in net income
|
|
1
|
|
|
1
|
|
|
2
|
|
|
2
|
|
||||
Other comprehensive income, net of tax
|
|
1
|
|
|
1
|
|
|
2
|
|
|
2
|
|
||||
Comprehensive income
|
|
$
|
347
|
|
|
$
|
413
|
|
|
$
|
664
|
|
|
$
|
747
|
|
Consolidated Balance Sheets
|
Southern California Edison Company
|
(in millions, unaudited)
|
|
June 30,
2016 |
|
December 31, 2015
|
||||
ASSETS
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
20
|
|
|
$
|
26
|
|
Receivables, less allowances of $56 and $62 for uncollectible accounts at respective dates
|
|
784
|
|
|
724
|
|
||
Accrued unbilled revenue
|
|
681
|
|
|
564
|
|
||
Inventory
|
|
254
|
|
|
256
|
|
||
Derivative assets
|
|
65
|
|
|
79
|
|
||
Regulatory assets
|
|
478
|
|
|
560
|
|
||
Other current assets
|
|
192
|
|
|
234
|
|
||
Total current assets
|
|
2,474
|
|
|
2,443
|
|
||
Nuclear decommissioning trusts
|
|
4,344
|
|
|
4,331
|
|
||
Other investments
|
|
170
|
|
|
168
|
|
||
Total investments
|
|
4,514
|
|
|
4,499
|
|
||
Utility property, plant and equipment, less accumulated depreciation and amortization of $8,531 and $8,548 at respective dates
|
|
35,629
|
|
|
34,945
|
|
||
Nonutility property, plant and equipment, less accumulated depreciation of $85 and $81 at respective dates
|
|
76
|
|
|
73
|
|
||
Total property, plant and equipment
|
|
35,705
|
|
|
35,018
|
|
||
Derivative assets
|
|
69
|
|
|
84
|
|
||
Regulatory assets
|
|
7,792
|
|
|
7,512
|
|
||
Other long-term assets
|
|
227
|
|
|
239
|
|
||
Total long-term assets
|
|
8,088
|
|
|
7,835
|
|
||
|
|
|
|
|
||||
|
|
|
|
|
||||
|
|
|
|
|
||||
|
|
|
|
|
||||
|
|
|
|
|
||||
|
|
|
|
|
||||
|
|
|
|
|
||||
Total assets
|
|
$
|
50,781
|
|
|
$
|
49,795
|
|
Consolidated Balance Sheets
|
Southern California Edison Company
|
(in millions, except share amounts, unaudited)
|
|
June 30,
2016 |
|
December 31, 2015
|
||||
LIABILITIES AND EQUITY
|
|
|
|
|
||||
Short-term debt
|
|
$
|
506
|
|
|
$
|
49
|
|
Current portion of long-term debt
|
|
479
|
|
|
79
|
|
||
Accounts payable
|
|
1,163
|
|
|
1,299
|
|
||
Accrued taxes
|
|
37
|
|
|
46
|
|
||
Customer deposits
|
|
257
|
|
|
242
|
|
||
Derivative liabilities
|
|
195
|
|
|
218
|
|
||
Regulatory liabilities
|
|
1,072
|
|
|
1,128
|
|
||
Other current liabilities
|
|
684
|
|
|
760
|
|
||
Total current liabilities
|
|
4,393
|
|
|
3,821
|
|
||
Long-term debt
|
|
10,024
|
|
|
10,460
|
|
||
Deferred income taxes and credits
|
|
9,509
|
|
|
9,073
|
|
||
Derivative liabilities
|
|
1,100
|
|
|
1,100
|
|
||
Pensions and benefits
|
|
1,292
|
|
|
1,284
|
|
||
Asset retirement obligations
|
|
2,588
|
|
|
2,762
|
|
||
Regulatory liabilities
|
|
6,017
|
|
|
5,676
|
|
||
Other deferred credits and other long-term liabilities
|
|
1,786
|
|
|
1,947
|
|
||
Total deferred credits and other liabilities
|
|
22,292
|
|
|
21,842
|
|
||
Total liabilities
|
|
36,709
|
|
|
36,123
|
|
||
Commitments and contingencies (Note 11)
|
|
|
|
|
|
|
||
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
|
|
656
|
|
|
652
|
|
||
Accumulated other comprehensive loss
|
|
(20
|
)
|
|
(22
|
)
|
||
Retained earnings
|
|
9,023
|
|
|
8,804
|
|
||
Total common shareholder's equity
|
|
11,827
|
|
|
11,602
|
|
||
Preferred and preference stock
|
|
2,245
|
|
|
2,070
|
|
||
Total equity
|
|
14,072
|
|
|
13,672
|
|
||
Total liabilities and equity
|
|
$
|
50,781
|
|
|
$
|
49,795
|
|
Consolidated Statements of Cash Flows
|
Southern California Edison Company
|
|
|
Six months ended June 30,
|
||||||
(in millions, unaudited)
|
|
2016
|
|
2015
|
||||
Cash flows from operating activities:
|
|
|
|
|
||||
Net income
|
|
$
|
662
|
|
|
$
|
745
|
|
Adjustments to reconcile to net cash provided by operating activities:
|
|
|
|
|
||||
Depreciation, decommissioning and amortization
|
|
1,017
|
|
|
982
|
|
||
Allowance for equity during construction
|
|
(42
|
)
|
|
(42
|
)
|
||
Deferred income taxes and investment tax credits
|
|
9
|
|
|
48
|
|
||
Other
|
|
5
|
|
|
7
|
|
||
Nuclear decommissioning trusts
|
|
(144
|
)
|
|
41
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
|
||||
Receivables
|
|
(59
|
)
|
|
4
|
|
||
Inventory
|
|
2
|
|
|
14
|
|
||
Accounts payable
|
|
73
|
|
|
146
|
|
||
Prepaid and accrued taxes
|
|
(13
|
)
|
|
(87
|
)
|
||
Other current assets and liabilities
|
|
(123
|
)
|
|
(388
|
)
|
||
Derivative assets and liabilities, net
|
|
15
|
|
|
33
|
|
||
Regulatory assets and liabilities, net
|
|
90
|
|
|
241
|
|
||
Other noncurrent assets and liabilities
|
|
22
|
|
|
(55
|
)
|
||
Net cash provided by operating activities
|
|
1,514
|
|
|
1,689
|
|
||
Cash flows from financing activities:
|
|
|
|
|
||||
Long-term debt issued, net of discount and issuance costs of $16 for the six months ended June 30, 2015
|
|
—
|
|
|
1,415
|
|
||
Long-term debt matured
|
|
(41
|
)
|
|
(721
|
)
|
||
Preference stock issued, net
|
|
294
|
|
|
—
|
|
||
Preference stock redeemed
|
|
(125
|
)
|
|
—
|
|
||
Short-term debt financing, net
|
|
457
|
|
|
184
|
|
||
Dividends paid
|
|
(401
|
)
|
|
(350
|
)
|
||
Other
|
|
(33
|
)
|
|
11
|
|
||
Net cash provided by financing activities
|
|
151
|
|
|
539
|
|
||
Cash flows from investing activities:
|
|
|
|
|
||||
Capital expenditures
|
|
(1,822
|
)
|
|
(2,187
|
)
|
||
Proceeds from sale of nuclear decommissioning trust investments
|
|
1,391
|
|
|
1,455
|
|
||
Purchases of nuclear decommissioning trust investments
|
|
(1,247
|
)
|
|
(1,503
|
)
|
||
Other
|
|
7
|
|
|
22
|
|
||
Net cash used in investing activities
|
|
(1,671
|
)
|
|
(2,213
|
)
|
||
Net (decrease) increase in cash and cash equivalents
|
|
(6
|
)
|
|
15
|
|
||
Cash and cash equivalents, beginning of period
|
|
26
|
|
|
38
|
|
||
Cash and cash equivalents, end of period
|
|
$
|
20
|
|
|
$
|
53
|
|
|
|
Edison International
|
|
SCE
|
||||||||||||
(in millions)
|
|
June 30,
2016 |
|
December 31, 2015
|
|
June 30,
2016 |
|
December 31, 2015
|
||||||||
Money market funds
|
|
$
|
36
|
|
|
$
|
37
|
|
|
$
|
4
|
|
|
$
|
8
|
|
|
|
Edison International
|
|
SCE
|
||||||||||||
(in millions)
|
|
June 30,
2016 |
|
December 31, 2015
|
|
June 30,
2016 |
|
December 31, 2015
|
||||||||
Book balances reclassified to accounts payable
|
|
$
|
99
|
|
|
$
|
162
|
|
|
$
|
99
|
|
|
$
|
158
|
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(in millions, except per-share amounts)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Basic earnings per share – continuing operations:
|
|
|
|
|
|
|
|
|
||||||||
Income from continuing operations attributable to common shareholders
|
|
$
|
278
|
|
|
$
|
379
|
|
|
$
|
547
|
|
|
$
|
678
|
|
Participating securities dividends
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Income from continuing operations available to common shareholders
|
|
$
|
278
|
|
|
$
|
379
|
|
|
$
|
547
|
|
|
$
|
678
|
|
Weighted average common shares outstanding
|
|
326
|
|
|
326
|
|
|
326
|
|
|
326
|
|
||||
Basic earnings per share – continuing operations
|
|
$
|
0.86
|
|
|
$
|
1.16
|
|
|
$
|
1.68
|
|
|
$
|
2.08
|
|
Diluted earnings per share – continuing operations:
|
|
|
|
|
|
|
|
|
||||||||
Income from continuing operations available to common shareholders
|
|
$
|
278
|
|
|
$
|
379
|
|
|
$
|
547
|
|
|
$
|
678
|
|
Income impact of assumed conversions
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Income from continuing operations available to common shareholders and assumed conversions
|
|
$
|
278
|
|
|
$
|
379
|
|
|
$
|
547
|
|
|
$
|
678
|
|
Weighted average common shares outstanding
|
|
326
|
|
|
326
|
|
|
326
|
|
|
326
|
|
||||
Incremental shares from assumed conversions
|
|
3
|
|
|
2
|
|
|
3
|
|
|
3
|
|
||||
Adjusted weighted average shares – diluted
|
|
329
|
|
|
328
|
|
|
329
|
|
|
329
|
|
||||
Diluted earnings per share – continuing operations
|
|
$
|
0.85
|
|
|
$
|
1.15
|
|
|
$
|
1.66
|
|
|
$
|
2.06
|
|
|
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, 2015
|
$
|
2,484
|
|
|
$
|
(56
|
)
|
|
$
|
8,940
|
|
|
$
|
11,368
|
|
|
$
|
2,020
|
|
|
$
|
13,388
|
|
Net income
|
—
|
|
|
—
|
|
|
546
|
|
|
546
|
|
|
61
|
|
|
607
|
|
||||||
Other comprehensive income
|
—
|
|
|
3
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
3
|
|
||||||
Common stock dividends declared ($0.96 per share)
|
—
|
|
|
—
|
|
|
(313
|
)
|
|
(313
|
)
|
|
—
|
|
|
(313
|
)
|
||||||
Dividends to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(61
|
)
|
|
(61
|
)
|
||||||
Stock-based compensation
|
3
|
|
|
—
|
|
|
(60
|
)
|
|
(57
|
)
|
|
—
|
|
|
(57
|
)
|
||||||
Non-cash stock-based compensation
|
12
|
|
|
—
|
|
|
—
|
|
|
12
|
|
|
—
|
|
|
12
|
|
||||||
Issuance of preference stock
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
294
|
|
|
294
|
|
||||||
Redemption of preference stock
|
—
|
|
|
—
|
|
|
(2
|
)
|
|
(2
|
)
|
|
(123
|
)
|
|
(125
|
)
|
||||||
Balance at June 30, 2016
|
$
|
2,499
|
|
|
$
|
(53
|
)
|
|
$
|
9,111
|
|
|
$
|
11,557
|
|
|
$
|
2,191
|
|
|
$
|
13,748
|
|
|
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, 2014
|
$
|
2,445
|
|
|
$
|
(58
|
)
|
|
$
|
8,573
|
|
|
$
|
10,960
|
|
|
$
|
2,022
|
|
|
$
|
12,982
|
|
Net income
|
—
|
|
|
—
|
|
|
678
|
|
|
678
|
|
|
56
|
|
|
734
|
|
||||||
Other comprehensive loss
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
2
|
|
||||||
Common stock dividends declared ($0.835 per share)
|
—
|
|
|
—
|
|
|
(272
|
)
|
|
(272
|
)
|
|
—
|
|
|
(272
|
)
|
||||||
Dividends to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(56
|
)
|
|
(56
|
)
|
||||||
Stock-based compensation
|
15
|
|
|
—
|
|
|
(70
|
)
|
|
(55
|
)
|
|
—
|
|
|
(55
|
)
|
||||||
Non-cash stock-based compensation
|
12
|
|
|
—
|
|
|
—
|
|
|
12
|
|
|
—
|
|
|
12
|
|
||||||
Balance at June 30, 2015
|
$
|
2,472
|
|
|
$
|
(56
|
)
|
|
$
|
8,909
|
|
|
$
|
11,325
|
|
|
$
|
2,022
|
|
|
$
|
13,347
|
|
|
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, 2015
|
$
|
2,168
|
|
|
$
|
652
|
|
|
$
|
(22
|
)
|
|
$
|
8,804
|
|
|
$
|
2,070
|
|
|
$
|
13,672
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
662
|
|
|
—
|
|
|
662
|
|
||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
||||||
Dividends declared on common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
(340
|
)
|
|
—
|
|
|
(340
|
)
|
||||||
Dividends declared on preferred and preference stock
|
—
|
|
|
—
|
|
|
—
|
|
|
(61
|
)
|
|
—
|
|
|
(61
|
)
|
||||||
Stock-based compensation
|
—
|
|
|
2
|
|
|
—
|
|
|
(40
|
)
|
|
—
|
|
|
(38
|
)
|
||||||
Non-cash stock-based compensation
|
—
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
||||||
Issuance of preference stock
|
—
|
|
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
300
|
|
|
294
|
|
||||||
Redemption of preference stock
|
—
|
|
|
2
|
|
|
—
|
|
|
(2
|
)
|
|
(125
|
)
|
|
(125
|
)
|
||||||
Balance at June 30, 2016
|
$
|
2,168
|
|
|
$
|
656
|
|
|
$
|
(20
|
)
|
|
$
|
9,023
|
|
|
$
|
2,245
|
|
|
$
|
14,072
|
|
|
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, 2014
|
$
|
2,168
|
|
|
$
|
618
|
|
|
$
|
(28
|
)
|
|
$
|
8,454
|
|
|
$
|
2,070
|
|
|
$
|
13,282
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
745
|
|
|
—
|
|
|
745
|
|
||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
2
|
|
||||||
Dividends declared on common stock
|
—
|
|
|
—
|
|
|
—
|
|
|
(294
|
)
|
|
—
|
|
|
(294
|
)
|
||||||
Dividends declared on preferred and preference stock
|
—
|
|
|
—
|
|
|
—
|
|
|
(56
|
)
|
|
—
|
|
|
(56
|
)
|
||||||
Stock-based compensation
|
—
|
|
|
6
|
|
|
—
|
|
|
(23
|
)
|
|
—
|
|
|
(17
|
)
|
||||||
Non-cash stock-based compensation
|
—
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6
|
|
||||||
Balance at June 30, 2015
|
$
|
2,168
|
|
|
$
|
630
|
|
|
$
|
(26
|
)
|
|
$
|
8,826
|
|
|
$
|
2,070
|
|
|
$
|
13,668
|
|
|
|
Three months ended June 30,
|
||||||||||||||||||
(in millions)
|
|
Trust I
|
|
Trust II
|
|
Trust III
|
|
Trust IV
|
|
Trust V
|
||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Dividend income
|
|
$
|
6
|
|
|
$
|
5
|
|
|
$
|
4
|
|
|
$
|
5
|
|
|
$
|
4
|
|
Dividend distributions
|
|
6
|
|
|
5
|
|
|
4
|
|
|
5
|
|
|
4
|
|
|||||
2015
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Dividend income
|
|
$
|
6
|
|
|
$
|
5
|
|
|
$
|
4
|
|
|
*
|
|
|
*
|
|
||
Dividend distributions
|
|
6
|
|
|
5
|
|
|
4
|
|
|
*
|
|
|
*
|
|
|
|
Six months ended June 30,
|
||||||||||||||||||
(in millions)
|
|
Trust I
|
|
Trust II
|
|
Trust III
|
|
Trust IV
|
|
Trust V
|
||||||||||
2016
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Dividend income
|
|
$
|
13
|
|
|
$
|
10
|
|
|
$
|
8
|
|
|
$
|
9
|
|
|
$
|
5
|
|
Dividend distributions
|
|
13
|
|
|
10
|
|
|
8
|
|
|
9
|
|
|
5
|
|
|||||
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Dividend income
|
|
$
|
13
|
|
|
$
|
10
|
|
|
$
|
8
|
|
|
*
|
|
|
*
|
|
||
Dividend distributions
|
|
13
|
|
|
10
|
|
|
8
|
|
|
*
|
|
|
*
|
|
|
June 30, 2016
|
||||||||||||||||||
(in millions)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Netting
and
Collateral
1
|
|
Total
|
||||||||||
Assets at fair value
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivative contracts
|
$
|
—
|
|
|
$
|
9
|
|
|
$
|
125
|
|
|
$
|
—
|
|
|
$
|
134
|
|
Other
|
18
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
18
|
|
|||||
Nuclear decommissioning trusts:
|
|
|
|
|
|
|
|
|
|
||||||||||
Stocks
2
|
1,488
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,488
|
|
|||||
Fixed Income
3
|
830
|
|
|
1,902
|
|
|
—
|
|
|
—
|
|
|
2,732
|
|
|||||
Short-term investments, primarily cash equivalents
|
57
|
|
|
117
|
|
|
—
|
|
|
—
|
|
|
174
|
|
|||||
Subtotal of nuclear decommissioning trusts
4
|
2,375
|
|
|
2,019
|
|
|
—
|
|
|
—
|
|
|
4,394
|
|
|||||
Total assets
|
2,393
|
|
|
2,028
|
|
|
125
|
|
|
—
|
|
|
4,546
|
|
|||||
Liabilities at fair value
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivative contracts
|
—
|
|
|
—
|
|
|
1,295
|
|
|
—
|
|
|
1,295
|
|
|||||
Total liabilities
|
—
|
|
|
—
|
|
|
1,295
|
|
|
—
|
|
|
1,295
|
|
|||||
Net assets (liabilities)
|
$
|
2,393
|
|
|
$
|
2,028
|
|
|
$
|
(1,170
|
)
|
|
$
|
—
|
|
|
$
|
3,251
|
|
|
December 31, 2015
|
||||||||||||||||||
(in millions)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Netting
and
Collateral
1
|
|
Total
|
||||||||||
Assets at fair value
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivative contracts
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
163
|
|
|
$
|
—
|
|
|
$
|
163
|
|
Other
|
28
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
28
|
|
|||||
Nuclear decommissioning trusts:
|
|
|
|
|
|
|
|
|
|
||||||||||
Stocks
2
|
1,460
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,460
|
|
|||||
Fixed Income
3
|
947
|
|
|
1,776
|
|
|
—
|
|
|
—
|
|
|
2,723
|
|
|||||
Short-term investments, primarily cash equivalents
|
91
|
|
|
81
|
|
|
—
|
|
|
—
|
|
|
172
|
|
|||||
Subtotal of nuclear decommissioning trusts
4
|
2,498
|
|
|
1,857
|
|
|
—
|
|
|
—
|
|
|
4,355
|
|
|||||
Total assets
|
2,526
|
|
|
1,857
|
|
|
163
|
|
|
—
|
|
|
4,546
|
|
|||||
Liabilities at fair value
|
|
|
|
|
|
|
|
|
|
||||||||||
Derivative contracts
|
—
|
|
|
22
|
|
|
1,311
|
|
|
(15
|
)
|
|
1,318
|
|
|||||
Total liabilities
|
—
|
|
|
22
|
|
|
1,311
|
|
|
(15
|
)
|
|
1,318
|
|
|||||
Net assets (liabilities)
|
$
|
2,526
|
|
|
$
|
1,835
|
|
|
$
|
(1,148
|
)
|
|
$
|
15
|
|
|
$
|
3,228
|
|
1
|
Represents the netting of assets and liabilities under master netting agreements and cash collateral across the levels of the fair value hierarchy. Netting among positions classified within the same level is included in that level.
|
2
|
Approximately
71%
and
70%
of SCE's equity investments were located in the United States at
June 30, 2016
and
December 31, 2015
, respectively.
|
3
|
Includes corporate bonds, which were diversified and included collateralized mortgage obligations and other asset backed securities of
$89 million
and
$111 million
at
June 30, 2016
and
December 31, 2015
, respectively.
|
4
|
Excludes net payables of
$50 million
and net payables of
$24 million
at
June 30, 2016
and
December 31, 2015
, which consist of interest and dividend receivables as well as receivables and payables related to SCE's pending securities sales and purchases.
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(in millions)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Fair value of net liabilities at beginning of period
|
|
$
|
(1,213
|
)
|
|
$
|
(976
|
)
|
|
$
|
(1,148
|
)
|
|
$
|
(902
|
)
|
Total realized/unrealized gains (losses):
|
|
|
|
|
|
|
|
|
||||||||
Included in regulatory assets and liabilities
1
|
|
43
|
|
|
(68
|
)
|
|
(22
|
)
|
|
(142
|
)
|
||||
Fair value of net liabilities at end of period
|
|
$
|
(1,170
|
)
|
|
$
|
(1,044
|
)
|
|
$
|
(1,170
|
)
|
|
$
|
(1,044
|
)
|
Change during the period in unrealized gains and losses related to assets and liabilities held at the end of the period
|
|
$
|
19
|
|
|
$
|
(65
|
)
|
|
$
|
(54
|
)
|
|
$
|
(148
|
)
|
1
|
Due to regulatory mechanisms, SCE's realized and unrealized gains and losses are recorded as regulatory assets and liabilities.
|
|
Fair Value (in millions)
|
|
Significant
|
Range
|
||||||
|
Assets
|
|
Liabilities
|
Valuation Technique(s)
|
Unobservable Input
|
(Weighted Average)
|
||||
Congestion revenue rights
|
|
|
|
|
|
|||||
June 30, 2016
|
$
|
119
|
|
|
$
|
—
|
|
Market simulation model and auction prices
|
Load forecast
|
6,289 MW - 24,349 MW
|
|
|
|
|
|
Power prices
1
|
$0 - $110.44
|
||||
|
|
|
|
|
Gas prices
2
|
$1.98 - $5.72
|
||||
December 31, 2015
|
152
|
|
|
—
|
|
Market simulation model and auction prices
|
Load forecast
|
6,289 MW - 24,349 MW
|
||
|
|
|
|
|
Power prices
1
|
$0 - $110.44
|
||||
|
|
|
|
|
Gas prices
2
|
$1.98 - $5.72
|
||||
Tolling
|
|
|
|
|
|
|
||||
June 30, 2016
|
3
|
|
|
1,293
|
|
Option model
|
Volatility of gas prices
|
15% - 41% (20%)
|
||
|
|
|
|
|
Volatility of power prices
|
26% - 86% (30%)
|
||||
|
|
|
|
|
Power prices
|
$25.77 - $50.38 ($37.50)
|
||||
December 31, 2015
|
10
|
|
|
1,297
|
|
Option model
|
Volatility of gas prices
|
15% - 58% (20%)
|
||
|
|
|
|
|
Volatility of power prices
|
26% - 38% (30%)
|
||||
|
|
|
|
|
Power prices
|
$24.15 - $46.93 ($34.80)
|
1
|
Prices are in dollars per megawatt-hour.
|
2
|
Prices are in dollars per million British thermal units.
|
|
|
June 30, 2016
|
|
December 31, 2015
|
||||||||||||
(in millions)
|
|
Carrying
Value
|
|
Fair
Value
|
|
Carrying
Value
|
|
Fair
Value
|
||||||||
SCE
|
|
$
|
10,503
|
|
|
$
|
12,457
|
|
|
$
|
10,539
|
|
|
$
|
11,592
|
|
Edison International
|
|
11,541
|
|
|
13,521
|
|
|
11,178
|
|
|
12,252
|
|
|
|
June 30, 2016
|
|
|
||||||||||||||||||||||||
|
|
Derivative Assets
|
|
Derivative Liabilities
|
|
Net
Liability |
||||||||||||||||||||||
(in millions)
|
|
Short-Term
|
|
Long-Term
|
|
Subtotal
|
|
Short-Term
|
|
Long-Term
|
|
Subtotal
|
|
|||||||||||||||
Commodity derivative contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Gross amounts recognized
|
|
$
|
66
|
|
|
$
|
69
|
|
|
$
|
135
|
|
|
$
|
196
|
|
|
$
|
1,100
|
|
|
$
|
1,296
|
|
|
$
|
1,161
|
|
Gross amounts offset in the consolidated balance sheets
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
|
—
|
|
|||||||
Cash collateral posted
1
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Net amounts presented in the consolidated balance sheets
|
|
$
|
65
|
|
|
$
|
69
|
|
|
$
|
134
|
|
|
$
|
195
|
|
|
$
|
1,100
|
|
|
$
|
1,295
|
|
|
$
|
1,161
|
|
|
|
December 31, 2015
|
|
|
||||||||||||||||||||||||
|
|
Derivative Assets
|
|
Derivative Liabilities
|
|
Net
Liability |
||||||||||||||||||||||
(in millions)
|
|
Short-Term
|
|
Long-Term
|
|
Subtotal
|
|
Short-Term
|
|
Long-Term
|
|
Subtotal
|
|
|||||||||||||||
Commodity derivative contracts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Gross amounts recognized
|
|
$
|
81
|
|
|
$
|
84
|
|
|
$
|
165
|
|
|
$
|
235
|
|
|
$
|
1,100
|
|
|
$
|
1,335
|
|
|
$
|
1,170
|
|
Gross amounts offset in the consolidated balance sheets
|
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
|
(2
|
)
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|||||||
Cash collateral posted
1
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(15
|
)
|
|
—
|
|
|
(15
|
)
|
|
(15
|
)
|
|||||||
Net amounts presented in the consolidated balance sheets
|
|
$
|
79
|
|
|
$
|
84
|
|
|
$
|
163
|
|
|
$
|
218
|
|
|
$
|
1,100
|
|
|
$
|
1,318
|
|
|
$
|
1,155
|
|
1
|
In addition, at
June 30, 2016
, SCE received
$4 million
of collateral that is not offset against derivative assets and is reflected in "Other current liabilities" on the consolidated balance sheets. At
December 31, 2015
, SCE had posted
$31 million
of collateral that is not offset against derivative liabilities and is reflected in "Other current assets" on the consolidated balance sheets.
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(in millions)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Realized losses
|
|
$
|
(25
|
)
|
|
$
|
(39
|
)
|
|
$
|
(52
|
)
|
|
$
|
(75
|
)
|
Unrealized gains (losses)
|
|
72
|
|
|
(16
|
)
|
|
8
|
|
|
(85
|
)
|
|
|
|
|
Economic Hedges
|
|||
Commodity
|
|
Unit of Measure
|
|
June 30, 2016
|
|
December 31, 2015
|
|
Electricity options, swaps and forwards
|
|
GWh
|
|
4,980
|
|
|
6,221
|
Natural gas options, swaps and forwards
|
|
Bcf
|
|
4
|
|
|
32
|
Congestion revenue rights
|
|
GWh
|
|
80,094
|
|
|
109,740
|
Tolling arrangements
|
|
GWh
|
|
65,998
|
|
|
70,663
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(in millions)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Edison International:
|
|
|
|
|
|
|
|
||||||||
Income from continuing operations before income taxes
|
$
|
259
|
|
|
$
|
412
|
|
|
$
|
591
|
|
|
$
|
837
|
|
Provision for income tax at federal statutory rate of 35%
|
91
|
|
|
144
|
|
|
207
|
|
|
293
|
|
||||
Increase in income tax from:
|
|
|
|
|
|
|
|
||||||||
State tax, net of federal benefit
|
4
|
|
|
5
|
|
|
11
|
|
|
16
|
|
||||
Property-related
1
|
(138
|
)
|
|
(69
|
)
|
|
(217
|
)
|
|
(129
|
)
|
||||
Change related to uncertain tax positions
|
2
|
|
|
(77
|
)
|
|
1
|
|
|
(62
|
)
|
||||
Other
|
(6
|
)
|
|
3
|
|
|
(11
|
)
|
|
(5
|
)
|
||||
Total income tax (benefit) expense from continuing operations
|
$
|
(47
|
)
|
|
$
|
6
|
|
|
$
|
(9
|
)
|
|
$
|
113
|
|
Effective tax rate
|
(18.1
|
)%
|
|
1.5
|
%
|
|
(1.5
|
)%
|
|
13.5
|
%
|
||||
SCE:
|
|
|
|
|
|
|
|
||||||||
Income from continuing operations before income taxes
|
$
|
317
|
|
|
$
|
419
|
|
|
$
|
683
|
|
|
$
|
860
|
|
Provision for income tax at federal statutory rate of 35%
|
111
|
|
|
147
|
|
|
239
|
|
|
301
|
|
||||
Increase in income tax from:
|
|
|
|
|
|
|
|
||||||||
State tax, net of federal benefit
|
6
|
|
|
2
|
|
|
15
|
|
|
16
|
|
||||
Property-related
1
|
(138
|
)
|
|
(69
|
)
|
|
(217
|
)
|
|
(129
|
)
|
||||
Change related to uncertain tax positions
|
(1
|
)
|
|
(75
|
)
|
|
(2
|
)
|
|
(65
|
)
|
||||
Other
|
(7
|
)
|
|
2
|
|
|
(14
|
)
|
|
(8
|
)
|
||||
Total income tax (benefit) expense from continuing operations
|
$
|
(29
|
)
|
|
$
|
7
|
|
|
$
|
21
|
|
|
$
|
115
|
|
Effective tax rate
|
(9.1
|
)%
|
|
1.7
|
%
|
|
3.1
|
%
|
|
13.4
|
%
|
1
|
During the second quarter of 2016, SCE recorded
$79 million
for 2012 – 2014 incremental tax benefits related to repair deductions, which were flowed-through to customers (
$133 million
pre-tax).
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(in millions)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Edison International:
|
|
|
|
|
|
|
|
||||||||
Service cost
|
$
|
39
|
|
|
$
|
35
|
|
|
$
|
78
|
|
|
$
|
70
|
|
Interest cost
|
44
|
|
|
42
|
|
|
88
|
|
|
83
|
|
||||
Expected return on plan assets
|
(56
|
)
|
|
(57
|
)
|
|
(112
|
)
|
|
(114
|
)
|
||||
Amortization of prior service cost
|
1
|
|
|
1
|
|
|
2
|
|
|
2
|
|
||||
Amortization of net loss
1
|
9
|
|
|
9
|
|
|
18
|
|
|
18
|
|
||||
Expense under accounting standards
|
$
|
37
|
|
|
$
|
30
|
|
|
$
|
74
|
|
|
$
|
59
|
|
Regulatory adjustment
|
(9
|
)
|
|
(1
|
)
|
|
(18
|
)
|
|
(2
|
)
|
||||
Total expense recognized
|
$
|
28
|
|
|
$
|
29
|
|
|
$
|
56
|
|
|
$
|
57
|
|
SCE:
|
|
|
|
|
|
|
|
||||||||
Service cost
|
$
|
38
|
|
|
$
|
34
|
|
|
$
|
76
|
|
|
$
|
69
|
|
Interest cost
|
41
|
|
|
37
|
|
|
82
|
|
|
75
|
|
||||
Expected return on plan assets
|
(53
|
)
|
|
(54
|
)
|
|
(106
|
)
|
|
(107
|
)
|
||||
Amortization of prior service cost
|
1
|
|
|
2
|
|
|
2
|
|
|
3
|
|
||||
Amortization of net loss
1
|
8
|
|
|
8
|
|
|
16
|
|
|
15
|
|
||||
Expense under accounting standards
|
$
|
35
|
|
|
$
|
27
|
|
|
$
|
70
|
|
|
$
|
55
|
|
Regulatory adjustment
|
(9
|
)
|
|
(1
|
)
|
|
(18
|
)
|
|
(2
|
)
|
||||
Total expense recognized
|
$
|
26
|
|
|
$
|
26
|
|
|
$
|
52
|
|
|
$
|
53
|
|
1
|
Includes the amount of net loss reclassified from other comprehensive loss. The amount reclassified for Edison International and SCE was
$3 million
and
$1 million
, respectively, for the three months ended June 30, 2016, and
$6 million
and
$3 million
, respectively, for the six months ended June 30, 2016. The amount reclassified for Edison International and SCE was
$4 million
and
$2 million
, respectively, for the three months ended June 30, 2015 and
$7 million
and
$4 million
, respectively, for the six months ended June 30, 2015.
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(in millions)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Edison International:
|
|
|
|
|
|
|
|
||||||||
Service cost
|
$
|
10
|
|
|
$
|
12
|
|
|
$
|
20
|
|
|
$
|
24
|
|
Interest cost
|
26
|
|
|
28
|
|
|
52
|
|
|
57
|
|
||||
Expected return on plan assets
|
(28
|
)
|
|
(29
|
)
|
|
(56
|
)
|
|
(57
|
)
|
||||
Amortization of prior service cost
|
(1
|
)
|
|
(3
|
)
|
|
(2
|
)
|
|
(6
|
)
|
||||
Amortization of net loss
|
—
|
|
|
6
|
|
|
—
|
|
|
12
|
|
||||
Total expense
|
$
|
7
|
|
|
$
|
14
|
|
|
$
|
14
|
|
|
$
|
30
|
|
SCE:
|
|
|
|
|
|
|
|
||||||||
Service cost
|
$
|
10
|
|
|
$
|
12
|
|
|
$
|
20
|
|
|
$
|
24
|
|
Interest cost
|
26
|
|
|
28
|
|
|
52
|
|
|
56
|
|
||||
Expected return on plan assets
|
(28
|
)
|
|
(28
|
)
|
|
(56
|
)
|
|
(56
|
)
|
||||
Amortization of prior service cost
|
(1
|
)
|
|
(3
|
)
|
|
(2
|
)
|
|
(6
|
)
|
||||
Amortization of net loss
|
—
|
|
|
5
|
|
|
—
|
|
|
11
|
|
||||
Total expense
|
$
|
7
|
|
|
$
|
14
|
|
|
$
|
14
|
|
|
$
|
29
|
|
(in millions)
|
|
|
||
Balance at January 1, 2016
|
|
$
|
22
|
|
Additions
|
|
13
|
|
|
Payments
|
|
(23
|
)
|
|
Balance at June 30, 2016
|
|
$
|
12
|
|
|
Longest
Maturity
Dates
|
|
Amortized Cost
|
|
Fair Value
|
||||||||||||
(in millions)
|
|
June 30,
2016 |
|
December 31,
2015 |
|
June 30,
2016 |
|
December 31, 2015
|
|||||||||
Stocks
|
—
|
|
$
|
329
|
|
|
$
|
304
|
|
|
$
|
1,488
|
|
|
$
|
1,460
|
|
Municipal bonds
|
2054
|
|
675
|
|
|
691
|
|
|
854
|
|
|
840
|
|
||||
U.S. government and agency securities
|
2046
|
|
1,002
|
|
|
1,070
|
|
|
1,107
|
|
|
1,128
|
|
||||
Corporate bonds
|
2057
|
|
683
|
|
|
708
|
|
|
771
|
|
|
755
|
|
||||
Short-term investments and receivables/payables
1
|
One-year
|
|
121
|
|
|
144
|
|
|
124
|
|
|
148
|
|
||||
Total
|
|
|
$
|
2,810
|
|
|
$
|
2,917
|
|
|
$
|
4,344
|
|
|
$
|
4,331
|
|
1
|
Short-term investments include
$85 million
and
$81 million
of repurchase agreements payable by financial institutions which earn interest, are fully secured by U.S. Treasury securities and matured by July 5, 2016 and January 5, 2016 as of
June 30, 2016
and
December 31, 2015
, respectively.
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(in millions)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Balance at beginning of period
|
|
$
|
4,290
|
|
|
$
|
4,896
|
|
|
$
|
4,331
|
|
|
$
|
4,799
|
|
Gross realized gains
|
|
22
|
|
|
5
|
|
|
75
|
|
|
32
|
|
||||
Gross realized losses
|
|
(1
|
)
|
|
(3
|
)
|
|
(4
|
)
|
|
(5
|
)
|
||||
Unrealized gains (losses), net
|
|
72
|
|
|
(71
|
)
|
|
113
|
|
|
(27
|
)
|
||||
Other-than-temporary impairments
|
|
(8
|
)
|
|
(8
|
)
|
|
(33
|
)
|
|
(12
|
)
|
||||
Interest and dividends
|
|
32
|
|
|
32
|
|
|
60
|
|
|
60
|
|
||||
Contributions
|
|
—
|
|
|
—
|
|
|
—
|
|
|
7
|
|
||||
Income taxes
|
|
(24
|
)
|
|
(14
|
)
|
|
(42
|
)
|
|
(14
|
)
|
||||
Decommissioning disbursements
|
|
(38
|
)
|
|
—
|
|
|
(154
|
)
|
|
—
|
|
||||
Administrative expenses and other
|
|
(1
|
)
|
|
(1
|
)
|
|
(2
|
)
|
|
(4
|
)
|
||||
Balance at end of period
|
|
$
|
4,344
|
|
|
$
|
4,836
|
|
|
$
|
4,344
|
|
|
$
|
4,836
|
|
(in millions)
|
June 30,
2016 |
|
December 31,
2015 |
||||
Current:
|
|
|
|
||||
Regulatory balancing accounts
|
$
|
309
|
|
|
$
|
382
|
|
Energy derivatives
|
135
|
|
|
159
|
|
||
Other
|
34
|
|
|
19
|
|
||
Total current
|
478
|
|
|
560
|
|
||
Long-term:
|
|
|
|
||||
Deferred income taxes, net
|
4,176
|
|
|
3,757
|
|
||
Pensions and other postretirement benefits
|
836
|
|
|
849
|
|
||
Energy derivatives
|
1,041
|
|
|
1,027
|
|
||
Unamortized investments, net
|
156
|
|
|
182
|
|
||
San Onofre
|
942
|
|
|
1,043
|
|
||
Unamortized loss on reacquired debt
|
193
|
|
|
201
|
|
||
Regulatory balancing accounts
|
49
|
|
|
36
|
|
||
Environmental remediation
|
128
|
|
|
129
|
|
||
Other
|
271
|
|
|
288
|
|
||
Total long-term
|
7,792
|
|
|
7,512
|
|
||
Total regulatory assets
|
$
|
8,270
|
|
|
$
|
8,072
|
|
(in millions)
|
June 30,
2016 |
|
December 31,
2015 |
||||
Current:
|
|
|
|
||||
Regulatory balancing accounts
|
$
|
1,050
|
|
|
$
|
1,106
|
|
Other
|
22
|
|
|
22
|
|
||
Total current
|
1,072
|
|
|
1,128
|
|
||
Long-term:
|
|
|
|
||||
Costs of removal
|
2,825
|
|
|
2,781
|
|
||
Recoveries in excess of ARO liabilities
1
|
1,740
|
|
|
1,502
|
|
||
Regulatory balancing accounts
|
1,392
|
|
|
1,314
|
|
||
Other
|
60
|
|
|
79
|
|
||
Total long-term
|
6,017
|
|
|
5,676
|
|
||
Total regulatory liabilities
|
$
|
7,089
|
|
|
$
|
6,804
|
|
1
|
Represents the cumulative differences between ARO expenses and amounts collected in rates primarily for the decommissioning of the SCE's nuclear generation facilities. Decommissioning costs recovered through rates are primarily placed in nuclear decommissioning trusts. This regulatory liability also represents the deferral of realized and unrealized gains and losses on the nuclear decommissioning trust investments. See Note 9.
|
(in millions)
|
June 30,
2016 |
|
December 31,
2015 |
||||
Asset (liability)
|
|
|
|
||||
Energy resource recovery account
|
$
|
(252
|
)
|
|
$
|
(439
|
)
|
New system generation balancing account
|
(195
|
)
|
|
(171
|
)
|
||
Public purpose programs and energy efficiency programs
|
(828
|
)
|
|
(683
|
)
|
||
Tax accounting memorandum account and pole loading balancing account
|
(68
|
)
|
|
(248
|
)
|
||
Base rate recovery balancing account
|
(535
|
)
|
|
(319
|
)
|
||
Department of Energy litigation memorandum account
1
|
(122
|
)
|
|
—
|
|
||
Greenhouse gas auction revenue
|
(4
|
)
|
|
(75
|
)
|
||
FERC balancing accounts
|
40
|
|
|
74
|
|
||
Other
|
(120
|
)
|
|
(141
|
)
|
||
Liability
|
$
|
(2,084
|
)
|
|
$
|
(2,002
|
)
|
1
|
Represents a refund from the Department of Energy's failure to meet its obligation to begin accepting spent nuclear fuel from San Onofre. See "Note 11. Commitments and Contingencies—Contingencies—Spent Nuclear Fuel" for further discussion.
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(in millions)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Beginning balance
|
$
|
(54
|
)
|
|
$
|
(59
|
)
|
|
$
|
(56
|
)
|
|
$
|
(58
|
)
|
Pension and PBOP – net loss:
|
|
|
|
|
|
|
|
||||||||
Other comprehensive loss before reclassifications
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(4
|
)
|
||||
Reclassified from accumulated other comprehensive loss
1
|
1
|
|
|
4
|
|
|
3
|
|
|
6
|
|
||||
Change
|
1
|
|
|
3
|
|
|
3
|
|
|
2
|
|
||||
Ending Balance
|
$
|
(53
|
)
|
|
$
|
(56
|
)
|
|
$
|
(53
|
)
|
|
$
|
(56
|
)
|
1
|
These items are included in the computation of net periodic pension and PBOP expense. See Note 8 for additional information.
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(in millions)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Beginning balance
|
$
|
(21
|
)
|
|
$
|
(27
|
)
|
|
$
|
(22
|
)
|
|
$
|
(28
|
)
|
Pension and PBOP – net loss:
|
|
|
|
|
|
|
|
||||||||
Other comprehensive loss before reclassifications
|
—
|
|
|
(1
|
)
|
|
—
|
|
|
(1
|
)
|
||||
Reclassified from accumulated other comprehensive loss
1
|
1
|
|
|
2
|
|
|
2
|
|
|
3
|
|
||||
Change
|
1
|
|
|
1
|
|
|
2
|
|
|
2
|
|
||||
Ending Balance
|
$
|
(20
|
)
|
|
$
|
(26
|
)
|
|
$
|
(20
|
)
|
|
$
|
(26
|
)
|
1
|
These items are included in the computation of net periodic pension and PBOP expense. See Note 8 for additional information.
|
|
|
Three months ended June 30,
|
|
Six months ended June 30,
|
||||||||||||
(in millions)
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
SCE interest and other income:
|
|
|
|
|
|
|
|
|
||||||||
Equity allowance for funds used during construction
|
|
$
|
19
|
|
|
$
|
21
|
|
|
$
|
42
|
|
|
$
|
42
|
|
Increase in cash surrender value of life insurance policies and life insurance benefits
|
|
11
|
|
|
7
|
|
|
17
|
|
|
17
|
|
||||
Interest income
|
|
2
|
|
|
2
|
|
|
3
|
|
|
3
|
|
||||
Other
|
|
1
|
|
|
1
|
|
|
3
|
|
|
2
|
|
||||
Total SCE interest and other income
|
|
33
|
|
|
31
|
|
|
65
|
|
|
64
|
|
||||
Other income of Edison International Parent and Other
1
|
|
—
|
|
|
12
|
|
|
—
|
|
|
18
|
|
||||
Total Edison International interest and other income
|
|
$
|
33
|
|
|
$
|
43
|
|
|
$
|
65
|
|
|
$
|
82
|
|
SCE other expenses:
|
|
|
|
|
|
|
|
|
||||||||
Civic, political and related activities and donations
|
|
8
|
|
|
9
|
|
|
$
|
12
|
|
|
$
|
14
|
|
||
Other
|
|
3
|
|
|
8
|
|
|
7
|
|
|
10
|
|
||||
Total SCE other expenses
|
|
11
|
|
|
17
|
|
|
19
|
|
|
24
|
|
||||
Total Edison International other expenses
|
|
$
|
11
|
|
|
$
|
17
|
|
|
$
|
19
|
|
|
$
|
24
|
|
1
|
Reflects Edison Capital's income related to the sale of affordable housing projects for the three and six months ended June 30, 2015.
|
|
Edison International
|
|
SCE
|
||||||||||||
|
Six months ended June 30,
|
||||||||||||||
(in millions)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
||||||||
Cash payments for interest and taxes:
|
|
|
|
|
|
|
|
||||||||
Interest, net of amounts capitalized
|
$
|
228
|
|
|
$
|
230
|
|
|
$
|
221
|
|
|
$
|
222
|
|
Tax payments, net
|
12
|
|
|
3
|
|
|
32
|
|
|
125
|
|
||||
Non-cash financing and investing activities:
|
|
|
|
|
|
|
|
||||||||
Dividends declared but not paid:
|
|
|
|
|
|
|
|
||||||||
Common stock
|
$
|
156
|
|
|
$
|
136
|
|
|
$
|
—
|
|
|
$
|
147
|
|
Preferred and preference stock
|
12
|
|
|
18
|
|
|
12
|
|
|
18
|
|
||||
Details of debt exchange:
|
|
|
|
|
|
|
|
||||||||
Pollution-control bonds redeemed (2.875%)
|
$
|
—
|
|
|
$
|
(203
|
)
|
|
$
|
—
|
|
|
$
|
(203
|
)
|
Pollution-control bonds issued (1.875%)
|
—
|
|
|
203
|
|
|
—
|
|
|
203
|
|
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, 2016 to April 30, 2016
|
175,895
|
|
|
|
$
|
69.79
|
|
|
|
—
|
|
—
|
May 1, 2016 to May 31, 2016
|
311,408
|
|
|
|
70.99
|
|
|
|
—
|
|
—
|
|
June 1, 2016 to June 30, 2016
|
244,477
|
|
|
|
75.44
|
|
|
|
—
|
|
—
|
|
Total
|
731,780
|
|
|
|
$
|
72.19
|
|
|
|
—
|
|
—
|
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
|
|
|
|
3.1
|
|
Edison International Bylaws, as amended effective September 30, 2016 (File No. 1-9936, filed as Exhibit 3.1 to Edison International's Form 8-K dated May 25, 2016 and filed May 25, 2016)*
|
|
|
|
3.2
|
|
Southern California Edison Company Bylaws, as amended effective June 1, 2016 (File No. 1-2313, filed as Exhibit 3.2 to Southern California Edison Company's Form 8-K dated May 25, 2016 and filed May 25, 2016)*
|
|
|
|
10.1**
|
|
Edison International 2007 Performance Incentive Plan, as amended and restated effective May 2, 2016 (File No. 1-9936, filed as Exhibit 10.1 to Edison International's Form 8-K dated April 28, 2016 and filed April 29, 2016)
|
|
|
|
|
|
|
31.1
|
|
Certifications of the Chief Executive Officer and Chief Financial Officer of Edison International pursuant to Section 302 of the Sarbanes-Oxley Act
|
|
|
|
31.2
|
|
Certifications of the Chief Executive Officer and Chief Financial Officer of Southern California Edison Company pursuant to Section 302 of the Sarbanes-Oxley Act
|
|
|
|
32.1
|
|
Certifications of the Chief Executive Officer and the Chief Financial Officer of Edison International required by Section 906 of the Sarbanes-Oxley Act
|
|
|
|
32.2
|
|
Certifications of the Chief Executive Officer and the Chief Financial Officer of Southern California Edison Company required by Section 906 of the Sarbanes-Oxley Act
|
|
|
|
101.1
|
|
Financial statements from the quarterly report on Form 10-Q of Edison International for the quarter ended June 30, 2016, filed on July 28, 2016, 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, 2016, filed on July 28, 2016, 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
|
*
|
Incorporated by reference pursuant to Rule 12b-32.
|
**
|
Indicates a management contract or compensatory plan or arrangement, as required by Item 15(a)(3) of Form 10-K.
|
|
EDISON INTERNATIONAL
|
|
|
SOUTHERN CALIFORNIA EDISON COMPANY
|
|
|
|
|
|
By:
|
/s/ Aaron D. Moss
|
|
By:
|
/s/ Connie J. Erickson
|
|
|
|
|
|
|
Aaron D. Moss
Vice President and Controller
(Duly Authorized Officer and
Principal Accounting Officer)
|
|
|
Connie J. Erickson
Vice President and Controller
(Duly Authorized Officer and
Principal Accounting Officer)
|
|
|
|
|
|
Date:
|
July 28, 2016
|
|
Date:
|
July 28, 2016
|
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