During the six months ended June 30, 2011, SCE made contributions of $51 million and during the remainder of 2011, expects to make $54 million of additional contributions. SCE's annual contributions made to most of its pension plans are recovered through CPUC-approved regulatory mechanisms and are expected to be, at a minimum, equal to the annual expense.

	Three months ended June 30,						Six months ended June 30,

(in millions)	2011			2010			2011			2010

Service cost	$	38		$	29		$	76		$	58
Interest cost		47			49			94			98
Expected return on plan assets		(56	)		(49	)		(112	)		(98	)
Amortization of prior service cost		2			2			4			4
Amortization of net loss		4			6			8			12

Expense under accounting standards		35			37			70			74
Regulatory adjustment – deferred		(6	)		(14	)		(12	)		(28	)

Total expense recognized	$	29		$	23		$	58		$	46

During the six months ended June 30, 2011, SCE made contributions of $11 million and during the remainder of 2011, expects to make $43 million of additional contributions. SCE's annual contributions are recovered through CPUC-approved regulatory mechanisms and are expected to be, at a minimum, equal to the annual expense.

	Three months ended June 30,						Six months ended June 30,

(in millions)	2011			2010			2011			2010

Service cost	$	10		$	7		$	20		$	14
Interest cost		31			30			62			60
Expected return on plan assets		(27	)		(25	)		(54	)		(50	)
Amortization of prior service cost (credit)		(9	)		(9	)		(18	)		(18	)
Amortization of net loss		9			8			18			16

Total expense	$	14		$	11		$	28		$	22

During the six months ended June 30, 2011, Edison International granted its 2011 stock-based compensation awards to SCE employees, which included stock options, performance shares and restricted stock units.

The following is a summary of the status of Edison International stock options granted to SCE employees:

				Weighted-Average

	Stock Options			Exercise Price		Remaining Contractual Term (Years)		Aggregate Intrinsic Value (in millions)

Outstanding at December 31, 2010		10,064,736		$	32.86
Granted		1,806,425			37.98
Expired		(25,104	)		47.24
Forfeited		(163,575	)		33.16
Exercised		(571,051	)		24.42
Affiliate transfers – net		106,728			32.61

Outstanding at June 30, 2011		11,218,159			34.07		6.37

Vested and expected to vest at June 30, 2011		10,953,452			34.08		6.32	$	75

Exercisable at June 30, 2011		6,424,920			34.32		4.78		49

At June 30, 2011, there was $15 million of total unrecognized compensation cost related to stock options, net of expected forfeitures. That cost is expected to be recognized over a weighted-average period of approximately three years.

The following is a summary of the status of Edison International nonvested performance shares granted to SCE employees:

	Equity Awards

	Equity Awards					Liability Awards
				Weighted-Average Grant Date Fair Value		Liability Awards
	Shares			Weighted-Average Grant Date Fair Value		Shares			Weighted-Average Fair Value

Nonvested at December 31, 2010		219,904		$	32.15		219,904		$	37.68
Granted		80,828			30.81		80,828
Forfeited		(48,580	)		52.68		(48,580	)
Affiliate transfers – net		3,097			27.15		3,097

Nonvested at June 30, 2011		255,249			28.04		255,249			29.46

The current portion of nonvested performance shares classified as liability awards is reflected in "Other current liabilities" and the long-term portion is reflected in "Pensions and benefits" on the consolidated balance sheets.

At June 30, 2011, there was $3 million of total unrecognized compensation cost related to performance shares. That cost is expected to be recognized over a weighted-average period of approximately two years.

The following is a summary of the status of Edison International nonvested restricted stock units granted to SCE employees:

			Weighted-Average Grant Date Fair Value


Nonvested at December 31, 2010	385,877		$	32.90
Granted	134,942			37.98
Forfeited	(12,597	)		31.75
Paid Out	(75,161	)		53.01
Affiliate transfers – net	5,657			29.74

Nonvested at June 30, 2011	438,718			31.88

At June 30, 2011, there was $6 million of total unrecognized compensation cost related to restricted stock units, net of expected forfeitures, which is expected to be recognized as follows: $2 million in 2011, $3 million in 2012 and $1 million in 2013.

		Three months ended June 30,				Six months ended June 30,

in millions)		2011		2010		2011		2010

Stock based compensation expense¹		$	7	$	5	$	9	$	10
Income tax benefits related to stock compensation expense			3		2		4		4
Excess tax benefits²			1		1		3		2
Stock options
	Cash used to purchase shares to settle options		11		4		22		7
	Cash from participants to exercise stock options		7		2		14		5
	Value of options exercised		4		2		8		2
Restricted stock units
	Value of shares settled		—		—		4		—
	Tax benefits realized from settlement of awards		—		—		2		—

No performance shares were settled for both the six month periods ended June 30, 2011 and 2010.