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Leases | 12 Months Ended
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Dec. 31, 2022
Leases [Abstract] |
Leases | Leases The Companies lease land, office buildings, equipment and access rights to support electric transmission facilities. The Companies recognize lease right-of-use assets and lease liabilities on their consolidated balance sheets for virtually all of their leases (other than leases that meet the definition of a short-term lease, the expense for which was immaterial). A lease right-of-use asset represents a right to use an identifiable underlying asset and obtain substantially all of the economic benefits from the use of that asset for the lease term. A lease liability represents an obligation to make lease payments arising from the lease. Leases are classified as either operating leases or finance leases. Operating leases of the Utilities, and in 2021 of the Clean Energy Businesses, are included in operating lease right-of-use asset and operating lease liabilities on the Companies’ consolidated balance sheets. Operating leases of the Clean Energy businesses are included in assets held for sale and liabilities held for sale on Con Edison's consolidated balance sheet as of December 31,2022. See "Assets and Liabilities Held for Sale" in Note A and Note X. Finance leases are included in other noncurrent assets, other current liabilities and other noncurrent liabilities. The Utilities, as regulated entities, are permitted to continue to recognize expense for operating leases using the timing that conforms to the regulatory rate treatment as rental payments are recovered from our customers and to account the same way for finance leases. For new operating leases, the Companies recognize operating lease right-of-use assets and operating lease liabilities based on the present value of the future minimum lease payments over the lease term at commencement date. As most of the Companies’ leases do not provide an implicit rate, the Companies used their collateralized incremental borrowing rate based on the information available at the commencement date to determine the present value of future payments. Most of the Companies’ leases have remaining lease terms of one year to 20 years and may include options to renew or extend the leases for up to five years at the fair rental value. The Companies' lease terms include options to renew, extend or terminate the lease when it is reasonably certain that the Companies will exercise that option. There were no leases with material variable lease payments or residual value guarantees. The Companies account for lease and non-lease components as a single lease component. Operating lease cost and cash paid for amounts included in the measurement of lease liabilities for the twelve months ended December 31, 2022 and 2021 were as follows:
| Con Edison | CECONY
(Millions of Dollars) | 2022 | 2021 | 2022 | 2021
Operating lease cost | $88 |  | $86 |  | $67 |  | $66 |
Operating lease cash flows | $83 |  | $80 |  | $64 |  | $63 |
As of December 31, 2022 and 2021, assets recorded as finance leases for Con Edison and CECONY were $2 million and $1 million, respectively. The accumulated amortization associated with finance leases for Con Edison and CECONY were $5 million and $2 million, respectively, at December 31, 2022 and $4 million and $2 million, respectively, at December 31, 2021. For the twelve months ended December 31, 2022 and 2021, finance lease costs and cash flows for Con Edison and CECONY were immaterial. Right-of-use assets obtained in exchange for lease obligations for Con Edison and CECONY were $79 million and $68 million, respectively, for the twelve months ended December 31, 2022, of which $10 million for Con Edison related to the Clean Energy Businesses which were classified as held for sale, see "Assets and Liabilities Held for Sale" in Note A and Note X, and were $58 million and $12 million, respectively, for the twelve months ended December 31, 2021. Other information related to leases for Con Edison and CECONY at December 31, 2022 and 2021 was as follows:
| Con Edison | CECONY
| 2022 | 2021 | 2022 | 2021
Weighted Average Remaining Lease Term: |  |  |  |
Operating leases, (a) | 12.3 years | 18.5 years | 12.4 years | 12.1 years
Finance leases | 7.2 years | 7.1 years | 2.3 years | 3.1 years
Weighted Average Discount Rate: |  |  |  |
Operating leases, (a) | 3.7% | 4.3% | 3.7% | 3.5%
Finance leases | 1.9% | 1.8% | 1.0% | 1.1%
(a)Amounts for Con Edison in 2022 exclude operating leases of the Clean Energy Businesses, which were classified as held for sale as of December 31, 2022, see "Assets and Liabilities Held for Sale" in Note A and Note X. Including the operating leases of the Clean Energy Businesses would result in a weighted average remaining lease term of 18.3 years and a weighted average discount rate of 4.4% as of December 31, 2022. Future minimum lease payments under non-cancellable leases at December 31, 2022 were as follows:
(Millions of Dollars) | Con Edison | CECONY
Year Ending December 31, (b) | Operating Leases | Finance Leases | Operating Leases | Finance Leases
2023 | $64 |  | $— |  | $64 |  | $— |
2024 | 65 |  | 1 |  | 64 |  | 1 |
2025 | 65 |  | — |  | 64 |  | — |
2026 | 64 |  | — |  | 64 |  | — |
2027 | 64 |  | — |  | 64 |  | — |
All years thereafter | 419 |  | 1 |  | 419 |  | — |
Total future minimum lease payments | $741 |  | $2 |  | $739 |  | $1 |
Less: imputed interest | (162) | — |  | (161) | — |
Total | $579 |  | $2 |  | $578 |  | $1 |
Reported as of December 31, 2022 |  |  |  |
Operating lease liabilities (current) (a) | $103 |  | $— |  | $103 |  | $— |
Operating lease liabilities held for sale (current) | 33 |  | — |  | — |  | — |
Operating lease liabilities (noncurrent) (a) | 476 |  | — |  | 475 |  | — |
Operating lease liabilities held for sale (noncurrent) | 249 |  | — |  | — |  | — |
Other current liabilities | — |  | — |  | — |  | — |
Other noncurrent liabilities | — |  | 2 |  | — |  | 1 |
Total | $861 |  | $2 |  | $578 |  | $1 |
(a)Amounts exclude operating lease liabilities of the Clean Energy Businesses ($281 million), which are classified as current liabilities held for sale on Con Edison's consolidated balance sheet as of December 31, 2022. See "Assets and Liabilities Held for Sale" in Note A and Note X. (b)Amounts exclude operating lease future minimum lease payments of the Clean Energy Businesses, of $19 million, $18 million, $19 million, $17 million, $17 million, and $492 million for the 12 months ended December 31, 2023, 2024, 2025, 2026, 2027, and all years thereafter, respectively, and imputed interest of $301 million. At December 31, 2022, the Companies had an additional operating lease agreement that had not yet commenced, for a solar electric facility under construction by the Clean Energy Businesses, the amount of which was not material. The Clean Energy Businesses were classified as held for sale as of December 31, 2022. See "Assets and Liabilities Held for Sale" in Note A and Note X. The Companies are lessors under certain leases whereby the Companies own real estate and distribution poles and lease portions of them to others. Revenue under such leases was immaterial for Con Edison and CECONY for the twelve months ended December 31, 2022 and 2021.
Leases | Leases The Companies lease land, office buildings, equipment and access rights to support electric transmission facilities. The Companies recognize lease right-of-use assets and lease liabilities on their consolidated balance sheets for virtually all of their leases (other than leases that meet the definition of a short-term lease, the expense for which was immaterial). A lease right-of-use asset represents a right to use an identifiable underlying asset and obtain substantially all of the economic benefits from the use of that asset for the lease term. A lease liability represents an obligation to make lease payments arising from the lease. Leases are classified as either operating leases or finance leases. Operating leases of the Utilities, and in 2021 of the Clean Energy Businesses, are included in operating lease right-of-use asset and operating lease liabilities on the Companies’ consolidated balance sheets. Operating leases of the Clean Energy businesses are included in assets held for sale and liabilities held for sale on Con Edison's consolidated balance sheet as of December 31,2022. See "Assets and Liabilities Held for Sale" in Note A and Note X. Finance leases are included in other noncurrent assets, other current liabilities and other noncurrent liabilities. The Utilities, as regulated entities, are permitted to continue to recognize expense for operating leases using the timing that conforms to the regulatory rate treatment as rental payments are recovered from our customers and to account the same way for finance leases. For new operating leases, the Companies recognize operating lease right-of-use assets and operating lease liabilities based on the present value of the future minimum lease payments over the lease term at commencement date. As most of the Companies’ leases do not provide an implicit rate, the Companies used their collateralized incremental borrowing rate based on the information available at the commencement date to determine the present value of future payments. Most of the Companies’ leases have remaining lease terms of one year to 20 years and may include options to renew or extend the leases for up to five years at the fair rental value. The Companies' lease terms include options to renew, extend or terminate the lease when it is reasonably certain that the Companies will exercise that option. There were no leases with material variable lease payments or residual value guarantees. The Companies account for lease and non-lease components as a single lease component. Operating lease cost and cash paid for amounts included in the measurement of lease liabilities for the twelve months ended December 31, 2022 and 2021 were as follows:
| Con Edison | CECONY
(Millions of Dollars) | 2022 | 2021 | 2022 | 2021
Operating lease cost | $88 |  | $86 |  | $67 |  | $66 |
Operating lease cash flows | $83 |  | $80 |  | $64 |  | $63 |
As of December 31, 2022 and 2021, assets recorded as finance leases for Con Edison and CECONY were $2 million and $1 million, respectively. The accumulated amortization associated with finance leases for Con Edison and CECONY were $5 million and $2 million, respectively, at December 31, 2022 and $4 million and $2 million, respectively, at December 31, 2021. For the twelve months ended December 31, 2022 and 2021, finance lease costs and cash flows for Con Edison and CECONY were immaterial. Right-of-use assets obtained in exchange for lease obligations for Con Edison and CECONY were $79 million and $68 million, respectively, for the twelve months ended December 31, 2022, of which $10 million for Con Edison related to the Clean Energy Businesses which were classified as held for sale, see "Assets and Liabilities Held for Sale" in Note A and Note X, and were $58 million and $12 million, respectively, for the twelve months ended December 31, 2021. Other information related to leases for Con Edison and CECONY at December 31, 2022 and 2021 was as follows:
| Con Edison | CECONY
| 2022 | 2021 | 2022 | 2021
Weighted Average Remaining Lease Term: |  |  |  |
Operating leases, (a) | 12.3 years | 18.5 years | 12.4 years | 12.1 years
Finance leases | 7.2 years | 7.1 years | 2.3 years | 3.1 years
Weighted Average Discount Rate: |  |  |  |
Operating leases, (a) | 3.7% | 4.3% | 3.7% | 3.5%
Finance leases | 1.9% | 1.8% | 1.0% | 1.1%
(a)Amounts for Con Edison in 2022 exclude operating leases of the Clean Energy Businesses, which were classified as held for sale as of December 31, 2022, see "Assets and Liabilities Held for Sale" in Note A and Note X. Including the operating leases of the Clean Energy Businesses would result in a weighted average remaining lease term of 18.3 years and a weighted average discount rate of 4.4% as of December 31, 2022. Future minimum lease payments under non-cancellable leases at December 31, 2022 were as follows:
(Millions of Dollars) | Con Edison | CECONY
Year Ending December 31, (b) | Operating Leases | Finance Leases | Operating Leases | Finance Leases
2023 | $64 |  | $— |  | $64 |  | $— |
2024 | 65 |  | 1 |  | 64 |  | 1 |
2025 | 65 |  | — |  | 64 |  | — |
2026 | 64 |  | — |  | 64 |  | — |
2027 | 64 |  | — |  | 64 |  | — |
All years thereafter | 419 |  | 1 |  | 419 |  | — |
Total future minimum lease payments | $741 |  | $2 |  | $739 |  | $1 |
Less: imputed interest | (162) | — |  | (161) | — |
Total | $579 |  | $2 |  | $578 |  | $1 |
Reported as of December 31, 2022 |  |  |  |
Operating lease liabilities (current) (a) | $103 |  | $— |  | $103 |  | $— |
Operating lease liabilities held for sale (current) | 33 |  | — |  | — |  | — |
Operating lease liabilities (noncurrent) (a) | 476 |  | — |  | 475 |  | — |
Operating lease liabilities held for sale (noncurrent) | 249 |  | — |  | — |  | — |
Other current liabilities | — |  | — |  | — |  | — |
Other noncurrent liabilities | — |  | 2 |  | — |  | 1 |
Total | $861 |  | $2 |  | $578 |  | $1 |
(a)Amounts exclude operating lease liabilities of the Clean Energy Businesses ($281 million), which are classified as current liabilities held for sale on Con Edison's consolidated balance sheet as of December 31, 2022. See "Assets and Liabilities Held for Sale" in Note A and Note X. (b)Amounts exclude operating lease future minimum lease payments of the Clean Energy Businesses, of $19 million, $18 million, $19 million, $17 million, $17 million, and $492 million for the 12 months ended December 31, 2023, 2024, 2025, 2026, 2027, and all years thereafter, respectively, and imputed interest of $301 million. At December 31, 2022, the Companies had an additional operating lease agreement that had not yet commenced, for a solar electric facility under construction by the Clean Energy Businesses, the amount of which was not material. The Clean Energy Businesses were classified as held for sale as of December 31, 2022. See "Assets and Liabilities Held for Sale" in Note A and Note X. The Companies are lessors under certain leases whereby the Companies own real estate and distribution poles and lease portions of them to others. Revenue under such leases was immaterial for Con Edison and CECONY for the twelve months ended December 31, 2022 and 2021.

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