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Leases | 9 Months Ended
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Sep. 30, 2021
Leases [Abstract] |
Leases | Note 13. Leases Leases as Lessee SCE enters into various agreements to purchase power, electric capacity and other energy products that may be accounted for as leases when SCE has dispatch rights that determine when and how a plant runs. SCE also leases property and equipment primarily related to vehicles, office space and other equipment. The terms of the contracts included in the table below are primarily 3 to 20 years for PPA leases, 5 to 72 years for office leases, and 5 to 13 years for the remaining other operating leases. The following table summarizes SCE's lease payments for operating and finance leases as of September 30, 2021: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | PPA Operating | ​ | Other Operating | ​ | PPA Finance
(in millions) |  | Leases1 |  | Leases2 |  | Leases1
2021 | ​ | $ | 74 | ​ | $ | 10 | ​ | $ | —
2022 | ​ |  | 355 | ​ |  | 38 | ​ |  | 1
2023 | ​ |  | 258 | ​ |  | 31 | ​ |  | 1
2024 | ​ |  | 73 | ​ |  | 26 | ​ |  | —
2025 | ​ |  | 73 | ​ |  | 23 | ​ |  | —
Thereafter | ​ |  | 768 | ​ |  | 119 | ​ |  | 5
Total lease payments | ​ | $ | 1,601 | ​ | $ | 247 | ​ | $ | 7
Amount representing interest3 | ​ |  | 265 | ​ |  | 58 | ​ |  | 4
Lease liabilities | ​ | $ | 1,336 | ​ | $ | 189 | ​ | $ | 3
1 | Excludes expected purchases from most renewable energy contracts, which do not meet the definition of a lease payment since renewable power generation is contingent on external factors.
2 | Excludes escalation clauses based on consumer price or other indices and residual value guarantees that are not considered probable at the commencement date of the lease.
3 | Lease payments are discounted to their present value SCE's incremental borrowing rates.
Supplemental balance sheet information related to SCE's leases was as follows:
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | September 30, |  | December 31, | ​
(in millions) | ​ | 2021 |  | 2020 | ​
Operating leases: |  | ​ |  |  | ​ |  | ​
Operating lease right-of-use ("ROU") assets1 | ​ | $ | 1,525 | ​ | $ | 1,085 | ​
Current portion of operating lease liabilities | ​ |  | 355 | ​ |  | 214 | ​
Operating lease liabilities | ​ |  | 1,170 | ​ |  | 871 | ​
Total operating lease liabilities1 | ​ | $ | 1,525 | ​ | $ | 1,085 | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Finance leases included in: | ​ |  |  | ​ |  |  | ​
Utility property, plant and equipment, gross | ​ | $ | 4 | ​ | $ | 4 | ​
Accumulated depreciation | ​ |  | (1) | ​ |  | — | ​
Utility property, plant and equipment, net | ​ | $ | 3 | ​ | $ | 4 | ​
Other current liabilities | ​ | $ | — | ​ | $ | — | ​
Other long-term liabilities | ​ |  | 3 | ​ |  | 4 | ​
Total finance lease liabilities | ​ | $ | 3 | ​ | $ | 4 | ​
1 | During the nine months ended September 30, 2021, three SCE PPA operating lease contracts commenced and one power contract was amended resulting in a total of $610 million additions in ROU assets and lease liabilities.
The timing of SCE's recognition of the lease expense conforms to ratemaking treatment for SCE's recovery of the cost of electricity and is included in purchased power for operating leases and interest and amortization expense for finance leases. The following table summarizes the components of SCE's lease expense:
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three months ended September 30, | ​ | Nine months ended September 30, | ​
(in millions) |  | 2021 |  | 2020 |  | 2021 |  | 2020 | ​
PPA leases: |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  | ​
Operating lease cost | ​ | $ | 136 | ​ | $ | 35 | ​ | $ | 199 | ​ | $ | 74 | ​
Finance lease cost | ​ |  | — | ​ | ​ | 1 | ​ | ​ | — | ​ | ​ | 2 | ​
Variable lease cost1 | ​ |  | 893 | ​ | ​ | 676 | ​ | ​ | 2,163 | ​ | ​ | 1,582 | ​
Total PPA lease cost | ​ | $ | 1,029 | ​ | $ | 712 | ​ | $ | 2,362 | ​ | $ | 1,658 | ​
Other operating leases cost | ​ |  | 12 | ​ | ​ | 11 | ​ | ​ | 35 | ​ | ​ | 35 | ​
Total lease cost | ​ | $ | 1,041 | ​ | $ | 723 | ​ | $ | 2,397 | ​ | $ | 1,693 | ​
1 | Includes lease costs from renewable energy contracts where payments are based on contingent external factors such as wind, hydro and solar power generation.
​ Other information related to leases was as follows:
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Nine months ended |  | ​ | Nine months ended |  | ​
(in millions, except lease term and discount rate) |  | September 30, 2021 |  |  | September 30, 2020 |  | ​
Cash paid for amounts included in the measurement of lease liabilities: |  | ​ |  | ​ |  | ​ |  | ​ | ​
Operating cash flows from operating leases |  | ​ |  | ​ |  | ​ |  | ​ | ​
PPA leases | ​ | $ | 199 | ​ | ​ | $ | 74 | ​ | ​
Other leases | ​ |  | 33 | ​ | ​ |  | 33 | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
ROU assets obtained in exchange for lease obligations: | ​ |  |  | ​ | ​ |  |  | ​ | ​
PPA operating leases | ​ | $ | 610 | ​ | ​ | $ | 463 | ​ | ​
Other operating leases | ​ |  | 38 | ​ | ​ |  | 42 | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Weighted average remaining lease term (in years): | ​ |  |  | ​ | ​ |  |  | ​ | ​
Operating leases | ​ |  |  | ​ | ​ |  |  | ​ | ​
PPA leases | ​ |  | 10.26 | ​ | ​ |  | 9.83 | ​ | ​
Other leases | ​ |  | 11.67 | ​ | ​ |  | 12.35 | ​ | ​
PPA Finance leases | ​ |  | 15.92 | ​ | ​ |  | 10.90 | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Weighted average discount rate: | ​ |  |  | ​ | ​ |  |  | ​ | ​
Operating leases | ​ |  |  | ​ | ​ |  |  | ​ | ​
PPA leases | ​ |  | 2.82 | % | ​ |  | 3.08 | % | ​
Other leases | ​ |  | 3.47 | % | ​ |  | 3.74 | % | ​
PPA Finance leases | ​ |  | 11.29 | % | ​ |  | 8.83 | % | ​
​

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- Definition The entire disclosure for lessor's operating leases. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -SubTopic 10 -Section 55 -Paragraph 40 -Subparagraph Note 1 -URI http://asc.fasb.org/extlink&oid=121580752&loc=d3e38371-112697 Reference 2: http://www.xbrl.org/2003/role/exampleRef -Publisher FASB -Name Accounting Standards Codification -Topic 840 -SubTopic 10 -Section 55 -Paragraph 40 -Subparagraph Note 3 -URI http://asc.fasb.org/extlink&oid=121580752&loc=d3e38371-112697 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 30 -URI http://asc.fasb.org/subtopic&trid=77888252 + Details
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