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Compensation and Benefit Plans
 9 Months Ended
Sep. 30, 2012
Compensation and Retirement Disclosure [Abstract]  
Compensation and Benefit Plans
Compensation and Benefit Plans
Pension Plans
As part of the pension funding provisions contained in the Surface Transportation Extension Act of 2012 passed by Congress, SCE's projected 2012 plan contributions have been reduced to $154 million from $263 million, which resulted in a third quarter regulatory adjustment reflected in the table below. SCE made contributions of $136 million during the nine months ended September 30, 2012. The 2012 GRC proposed decision authorized contributions of $168 million with recovery of any undercollection through the continuation of the existing balancing account mechanism. A final GRC decision is expected by year-end. Annual contributions to these plans are expected to be, at a minimum, equal to the related annual expense.
Expense components are:
 
Three months ended
September 30,
 
Nine months ended
September 30,
(in millions)
2012
 
2011
 
2012
 
2011
Service cost
$
46

 
$
38

 
$
120

 
$
114

Interest cost
45

 
47

 
135

 
141

Expected return on plan assets
(52
)
 
(56
)
 
(162
)
 
(168
)
Amortization of prior service cost
1

 
2

 
3

 
6

Amortization of net loss
15

 
4

 
45

 
12

Expense under accounting standards
$
55

 
$
35

 
$
141

 
$
105

Regulatory adjustment (deferred)
(57
)
 
(6
)
 
(3
)
 
(18
)
Total expense recognized
$
(2
)
 
$
29

 
$
138

 
$
87


Postretirement Benefits Other Than Pensions
SCE made contributions of $15 million during the nine months ended September 30, 2012 and expects to make $47 million of additional contributions during the remainder of 2012. SCE's 2012 annual contributions are expected to be recovered through CPUC-approved regulatory mechanisms. Annual contributions are expected to be, at a minimum, equal to the total annual expense for these plans. Benefits under these plans, with some exceptions, are generally unvested and subject to change.
Expense components are:
 
Three months ended
September 30,
 
Nine months ended
September 30,
(in millions)
2012
 
2011
 
2012
 
2011
Service cost
$
12

 
$
10

 
$
36

 
$
30

Interest cost
28

 
31

 
84

 
93

Expected return on plan assets
(27
)
 
(27
)
 
(81
)
 
(81
)
Special termination benefits1
3

 
—

 
3

 
—

Amortization of prior service credit
(9
)
 
(9
)
 
(27
)
 
(27
)
Amortization of net loss
11

 
9

 
33

 
27

Total expense
$
18

 
$
14

 
$
48

 
$
42

1 
Due to the reduction in the workforce at San Onofre, SCE has incurred costs for enhanced retiree health care coverage. See below for further information.
Transfer of Certain Postretirement Benefits to Edison International
In March 2012, Edison International agreed to assume the liabilities for active employees of SCE and its subsidiaries under the specified plans related to deferred compensation and executive postretirement benefits. SCE is obligated to reimburse Edison International upon settlement of liabilities on an after tax basis. Included in the consolidated balance sheet at September 30, 2012 was $116 million related to this obligation.
San Onofre Workforce Reduction
In August 2012, SCE announced plans for downsizing to bring the San Onofre organization and cost structure in line with industry peers. SCE plans to reduce the San Onofre workforce by 730 employees to 1,500 employees beginning in the fourth quarter of 2012 and continuing in 2013. At September 30, 2012, SCE had recorded $30 million in estimated cash severance costs (SCE's share) related to the non-represented employee workforce reduction.