XML 77 R17.htm IDEA: XBRL DOCUMENT v3.25.0.1
Intangible Assets
 12 Months Ended
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Assets Intangible Assets
Intangible Assets — The Company’s intangible assets as of December 31, 2024 and 2023 primarily reflect intangible assets established from its business acquisitions and are comprised of the following:
•PPAs — Established predominantly with the acquisitions of the Alta Wind Portfolio, Tapestry, Laredo Ridge, Carlsbad Energy Center, Agua Caliente, the Utah Solar Portfolio and the Capistrano Wind Portfolio. These represent the fair value of the PPAs acquired. These are amortized on a straight-line basis, over the term of the PPA.
•Leasehold Rights — Established with the acquisition of the Alta Wind Portfolio, this represents the fair value of contractual rights to receive royalty payments equal to a percentage of PPA revenue from certain facilities. These are amortized as a reduction to operating revenue on a straight-line basis over the term of the PPAs.
•Emission Allowances — These intangibles primarily consist of SO2 and NOx emission allowances established with the El Segundo, Walnut Creek and Carlsbad Energy Center acquisitions. These emission allowances are held-for-use and are amortized to cost of operations, with NOx allowances amortized on a straight-line basis and SO2 allowances amortized based on units of production.
•Other — Consists of a) the acquisition date fair value of the contractual rights to a ground lease for South Trent and to utilize certain interconnection facilities for Blythe as well as land rights acquired in connection with the acquisition of Elbow Creek; b) development rights related to certain solar business acquisitions; c) purchased software for certain solar facilities; d) RECs acquired in connection with the acquisition of the Utah Solar Portfolio; and e) favorable land leases acquired in connection with the acquisition of the Utah Star Portfolio.
The following tables summarize the components of intangible assets subject to amortization:
Year ended December 31, 2024PPAsLeasehold RightsEmission AllowancesOtherTotal
(In millions)
January 1, 2024$3,265 $86 $17 $15 $3,383 
Other— — — 4 4 
December 31, 20243,265 86 17 19 3,387 
Less accumulated amortization(1,140)(42)(5)(7)(1,194)
Net carrying amount$2,125 $44 $12 $12 $2,193 
Year ended December 31, 2023PPAsLeasehold RightsEmission AllowancesOtherTotal
(In millions)
January 1, 2023$3,321 $86 $17 $18 $3,442 
Walnut Creek PPA expiration(50)— — — (50)
Other(6)— — (3)(9)
December 31, 20233,265 86 17 15 3,383 
Less accumulated amortization(962)(38)(4)(5)(1,009)
Net carrying amount$2,303 $48 $13 $10 $2,374 
The Company recorded amortization expense of $184 million, $186 million and $174 million during the years ended December 31, 2024, 2023 and 2022, respectively. Of these amounts, $178 million, $181 million and $168 million during the years ended December 31, 2024, 2023 and 2022, respectively, were related to the amortization of intangible assets for PPAs and were recorded to contract amortization expense, which reduced operating revenues in the consolidated statements of income. The Company estimates the future amortization expense for its intangibles for the next five years as follows:
 (In millions)
2025$185 
2026185 
2027185 
2028185 
2029185