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Leases (Notes)
 3 Months Ended
Mar. 31, 2025
Lessor, Lease, Description [Line Items]  
Lessor, Operating Leases LEASES
LESSOR — The Company has operating leases for certain generation contracts that contain provisions to provide capacity to a customer, which is a stand-ready obligation to deliver energy when required by the customer. Capacity obligations are generally considered lease elements as they cover the majority of available output from a facility. The allocation of contract payments between the lease and non-lease elements is made at the inception of the lease. Lease receipts from such contracts are recognized as lease revenue on a straight-line basis over the lease term, whereas variable lease receipts are recognized when earned.
The following table presents lease revenue from operating leases in which the Company is the lessor, recognized in Revenue on the Condensed Consolidated Statements of Operations for the periods indicated (in millions):
Three Months Ended March 31,
Operating Lease Revenue20252024
Non-variable lease revenue$76 $102 
Variable lease revenue15 13 
Total lease revenue$91 $115 
The following table presents the underlying gross assets and accumulated depreciation of operating leases included in Property, plant and equipment, net on the Condensed Consolidated Balance Sheets as of the dates indicated (in millions):
Property, Plant and Equipment, NetMarch 31, 2025December 31, 2024
Gross assets$2,119 $1,085 
Less: Accumulated depreciation(240)(218)
Net assets$1,879 $867 
The option to extend or terminate a lease is based on customary early termination provisions in the contract, such as payment defaults, bankruptcy, or lack of performance on energy delivery. The Company has not recognized any early terminations as of March 31, 2025. Certain leases may provide for variable lease payments based on usage or index-based (e.g., the U.S. Consumer Price Index) adjustments to lease payments.
The following table shows the future lease receipts as of March 31, 2025 for the remainder of 2025 through 2029 and thereafter (in millions):
Future Cash Receipts for
Sales-Type Leases
Operating Leases
2025$33 $223 
202644 136 
202744 65 
202844 — 
202944 — 
Thereafter602 1 
Total$811 $425 
Less: Imputed interest(362)
Present value of total lease receipts$449 
Battery Storage Lease Arrangements — The Company constructs and operates projects consisting only of a stand-alone BESS facility, as well as projects that pair a BESS with solar energy systems. These projects allow more flexibility on when to provide energy to the grid. The Company will enter into PPAs for the full output of the facility that allow customers the ability to determine when to charge and discharge the BESS. Generally, these arrangements include both lease and non-lease elements under ASC 842, with the BESS component typically constituting a sales-type lease.
The following table presents variable lease revenue, interest income, and gains (losses) on commencement of sales-type leases in which the Company is the lessor, for the periods indicated (in millions):