v3.25.2
Fair Value Measurements
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements
Note 4.  Fair Value Measurements
Recurring Fair Value Measurements
Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date (referred to as an "exit price"). Fair value of an asset or liability considers assumptions that market participants would use in pricing the asset or liability, including assumptions about nonperformance risk. As of June 30, 2025 and December 31, 2024, nonperformance risk was not material for Edison International or SCE.
Assets and liabilities are categorized into a three-level fair value hierarchy based on valuation inputs used to determine fair value.
Level 1 – The fair value of Edison International's and SCE's Level 1 assets and liabilities is determined using unadjusted quoted prices in active markets that are available at the measurement date for identical assets and liabilities. This level includes exchange-traded equity securities, U.S. treasury securities, mutual funds, and money market funds.
Level 2 – Edison International's and SCE's Level 2 assets and liabilities include fixed income securities, primarily consisting of U.S. government and agency bonds, municipal bonds and corporate bonds, and over-the-counter commodity derivatives. The fair value of fixed income securities is determined using a market approach by obtaining quoted prices for similar assets and liabilities in active markets and inputs that are observable, either directly or indirectly, for substantially the full term of the instrument.
The fair value of SCE's over-the-counter commodity derivative contracts is determined using an income approach. SCE uses standard pricing models to determine the net present value of estimated future cash flows. Inputs to the pricing models include forward published or posted clearing prices from an exchange (Intercontinental Exchange) for similar instruments and discount rates. A primary price source that best represents trade activity for each market is used to develop observable forward market prices in determining the fair value of these positions. Broker quotes, prices from exchanges, or comparison to executed trades are used to validate and corroborate the primary price source. These price quotations reflect mid-market prices (average of bid and ask) and are obtained from sources believed to provide the most liquid market for the commodity.
Level 3 – This level primarily consists of congestion revenue rights ("CRRs"), which are derivative contracts that trade infrequently with significant unobservable inputs (CAISO CRR auction prices). SCE employs a market valuation approach of utilizing historical CRR prices as a proxy for forward prices. SCE also enters into certain physically settled resource adequacy contracts with a financially settled electricity component ("Fin Toll arrangements"). For these Fin Toll arrangements, SCE uses an income model valuation approach to estimate the significant unobservable inputs (hourly power prices). Edison International Parent and Other does not have any Level 3 assets and liabilities.
Assumptions are made in order to value derivative contracts in which observable inputs are not available. In circumstances where fair value cannot be verified with observable market transactions, it is possible that a different valuation model could produce a materially different estimate of fair value. Modeling methodologies, inputs, and techniques are reviewed and assessed as markets continue to develop and more pricing information becomes available, and the fair value is adjusted when it is concluded that a change in inputs or techniques would result in a new valuation that better reflects the fair value of those derivative contracts. See Note 6 for a discussion of derivative instruments.
SCE
The following table sets forth assets and liabilities of SCE that were accounted for at fair value by level within the fair value hierarchy:
June 30, 2025
(in millions)Level 1Level 2Level 3
Netting
and
Collateral1
Total
Assets at fair value
Derivative contracts$— $12 $184 $(17)$179 
Money market funds and other6 22 — — 28 
Nuclear decommissioning trusts:
Stocks2
1,721 — — — 1,721 
Fixed Income3
858 1,706 — — 2,564 
Short-term investments, primarily cash equivalents79 140 — — 219 
Subtotal of nuclear decommissioning trusts4
2,658 1,846 — — 4,504 
Total assets2,664 1,880 184 (17)4,711 
Liabilities at fair value
Derivative contracts— 15 5 (20)— 
Total liabilities— 15 5 (20)— 
Net assets $2,664 $1,865 $179 $3 $4,711 
December 31, 2024
(in millions)Level 1Level 2Level 3
Netting
and
Collateral1
Total
Assets at fair value
Derivative contracts$— $1 $212 $(1)$212 
Other— 22 — — 22 
Nuclear decommissioning trusts:
Stocks2
1,631 — — — 1,631 
Fixed Income3
975 1,618 — — 2,593 
Short-term investments, primarily cash equivalents128 39 — — 167 
Subtotal of nuclear decommissioning trusts4
2,734 1,657 — — 4,391 
Total assets2,734 1,680 212 (1)4,625 
Liabilities at fair value
Derivative contracts— 47 — (47)— 
Total liabilities— 47 — (47)— 
Net assets$2,734 $1,633 $212 $46 $4,625 
1Represents the netting of assets and liabilities under master netting agreements and cash collateral.
2Approximately 72% and 75% of SCE's equity investments were in companies located in the United States at June 30, 2025 and December 31, 2024, respectively.
3Includes corporate bonds, which were diversified by the inclusion of collateralized mortgage obligations and other asset backed securities, of $62 million and $94 million at June 30, 2025 and December 31, 2024, respectively.
4Excludes net payables of $180 million and $105 million at June 30, 2025 and December 31, 2024, respectively, which consist of interest and dividend receivables as well as receivables and payables related to SCE's pending securities sales and purchases.
SCE Fair Value of Level 3
The following table sets forth a summary of changes in SCE's fair value of Level 3 net derivative assets and liabilities:
Three months ended June 30,Six months ended June 30,
(in millions)2025202420252024
Fair value of net assets at beginning of period$156 $80 $212 $91 
Settlements(4)4 (14)4 
Total realized/unrealized gains (losses)1
27 (5)(19)(16)
Fair value of net assets at end of period$179 $79 $179 $79 
1Due to regulatory mechanisms, SCE's realized and unrealized gains and losses are recorded as regulatory assets and liabilities.
There were no material transfers into or out of Level 3 during 2025 and 2024.
The following table sets forth the significant unobservable inputs used to determine fair value for Level 3 assets and liabilities:
Fair Value
(in millions)		Significant
Unobservable
Input		Range
($ per MWh)		Weighted
Average
($ per MWh)
AssetsLiabilities
June 30, 2025
CRRs$173 $5 CAISO CRR auction prices
$(10.95) - $36,279.67
$42.24 
Fin Toll arrangements11 — Hourly Forecast Power Prices
(2.70) - 174.67
63.00 
December 31, 2024
CRRs$212 $— CAISO CRR auction prices
$(4.64) - $50,048.16
$27.20 
Level 3 Fair Value Uncertainty
For CRRs, increases or decreases in CAISO auction prices would result in higher or lower fair value, respectively.
For Fin Toll arrangements, the fair value measurements are sensitive to the spread between daily high and daily low hourly power prices. Increases or decreases in this spread would result in higher or lower fair value, respectively.
Nuclear Decommissioning Trusts
SCE's nuclear decommissioning trust investments include equity securities, U.S. treasury securities, and other fixed income securities. Equity and treasury securities are classified as Level 1 as fair value is determined by observable market prices in active or highly liquid and transparent markets. The remaining fixed income securities are classified as Level 2. There are no securities classified as Level 3 in the nuclear decommissioning trusts. See Note 10 for more information on nuclear decommissioning trusts.
Edison International Parent and Other
Edison International Parent and Other assets measured at fair value and classified as Level 1 consisted of money market funds of $53 million and $101 million at June 30, 2025 and December 31, 2024, respectively. Assets measured at fair value and classified as Level 2 were immaterial at June 30, 2025 and December 31, 2024, respectively. There were no securities classified as Level 3 for Edison International Parent and Other at June 30, 2025 and December 31, 2024, respectively.
Fair Value of Debt Recorded at Carrying Value
The carrying value and fair value of Edison International's and SCE's long-term debt (including the current portion of long-term debt) are as follows:
June 30, 2025December 31, 2024
(in millions)
Carrying
Value1
Fair
Value2
Carrying
Value1
Fair
Value2
Edison International$37,670 $34,369 $35,583 $33,160 
SCE32,458 29,178 30,515 27,994 
1Carrying value is net of debt issuance costs.
2The fair value of long-term debt is classified as Level 2.