Leases	12 Months Ended
Leases	Dec. 31, 2023
Leases [Abstract]
Leases, Lessee	19. LEASES Lessee The Company has operating leases for buildings, land, telecommunication services, and rail cars. Emera’s leases have remaining lease terms of 1 year to 62 years, some of which include options to extend the leases for up to 65 years. These options are included as part of the lease term when it is considered reasonably certain they will be exercised. As at December 31 December 31 millions of dollars Classification 2023 2022 Right-of-use asset Other long-term assets $ 54 $ 58 Lease liabilities Current Other current liabilities 3 3 Long-term Other long-term liabilities 55 59 Total lease liabilities $ 58 $ 62 The Company recorded lease expense of $ 127 million for the year ended December 31, 2023 (2022 – $ 138 million), of which $ 119 million (2022 – $ 131 million) related to variable costs for power generation facility finance leases, recorded in “Regulated fuel for generation and purchased power” in the Consolidated Statements of Income. Future minimum lease payments under non-cancellable operating leases for each of the next five years and in aggregate thereafter are as follows: millions of dollars 2024 2025 2026 2027 2028 Thereafter Total Minimum lease payments $ 6 $ 5 $ 3 $ 3 $ 3 $ 111 $ 131 Less imputed interest (73) Total $ 58 Additional information related to Emera's leases is as follows: Year ended December 31 For the 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows for operating leases (millions of dollars) $ 8 $ 8 Right-of-use assets obtained in exchange for lease obligations: Operating leases (millions of dollars) $ 1 $ 1 Weighted average remaining lease term (years) 44 44 Weighted average discount rate- operating leases 3.93% 3.98% Lessor The Company’s net investment in direct finance and sales-type leases primarily relates to Brunswick Pipeline, Seacoast, compressed natural gas (“CNG”) stations, a renewable natural gas (“RNG”) facility and heat pumps. The Company manages its risk associated with the residual value of the Brunswick Pipeline lease through proper routine maintenance of the asset. Customers have the option to purchase CNG station assets by paying a make-whole payment at the date of the purchase based on a targeted internal rate of return or may take possession of the CNG station asset at the end of the lease term for no cost. Customers have the option to purchase heat pumps at the end of the lease term for a nominal fee. Commencing in October 2023, the Company leased a RNG facility to a biogas producer that is classified as a sales-type lease. The term of the facility lease is 15 years , with a nominal value purchase at the end of the term and a net investment of approximately $ 35 million USD. Commencing in January 2022, the Company leased Seacoast pipeline, a 21-mile, 30-inch lateral that is classified as a sales-type lease. The term of the pipeline lateral lease is 34 years with a net investment of $ 100 million USD. The lessee of the pipeline lateral has renewal options for an additional 16 years. These renewal options have not been included as part of the pipeline lateral lease term as it is not reasonably certain that they will be exercised. Direct finance and sales-type lease unearned income is recognized in income over the life of the lease using a constant rate of interest equal to the internal rate of return on the lease and is recorded as “Operating revenues – regulated gas” and “Other income, net” on the Consolidated Statements of Income. The total net investment in direct finance and sales-type leases consist of the following: As at December 31 December 31 millions of dollars 2023 2022 Total minimum lease payment to be received $ 1,360 $ 1,393 Less: amounts representing estimated executory costs (190) (205) Minimum lease payments receivable $ 1,170 $ 1,188 Estimated residual value of leased property (unguaranteed) 183 183 Less: Credit loss reserve (2) - Less: unearned finance lease income (693) (733) Net investment in direct finance and sales-type leases $ 658 $ 638 Principal due within one year (included in "Receivables and other current assets") 37 34 Net Investment in direct finance and sales type leases - long-term $ 621 $ 604 As at December 31, 2023, future minimum lease payments to be received for each of the next five years and in aggregate thereafter were as follows: millions of dollars 2024 2025 2026 2027 2028 Thereafter Total Minimum lease payments to be received $ 97 $ 99 $ 98 $ 97 $ 96 $ 873 $ 1,360 Less: executory costs (190) Total $ 1,170