Leases (Tables)

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Summary of Finance Lease Payments

The following table summarizes SCE's lease payments for operating and finance leases as of December 31, 2021:

	PPA Operating		Other Operating		PPA Finance
(in millions)	Leases1		Leases2		Leases1
2022	$	579	$	44	$	1
2023		482		36		1
2024		73		30		—
2025		73		27		—
2026		70		24		—
Thereafter		698		110		5
Total lease payments		1,975		271		7
Amount representing interest		262		59		4
Lease liabilities	$	1,713	$	212	$	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.

Summary of Operating Lease Payments

The following table summarizes SCE's lease payments for operating and finance leases as of December 31, 2021:

	PPA Operating		Other Operating		PPA Finance
(in millions)	Leases1		Leases2		Leases1
2022	$	579	$	44	$	1
2023		482		36		1
2024		73		30		—
2025		73		27		—
2026		70		24		—
Thereafter		698		110		5
Total lease payments		1,975		271		7
Amount representing interest		262		59		4
Lease liabilities	$	1,713	$	212	$	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.

Supplemental Balance Sheet Information

Supplemental balance sheet information related to SCE's leases was as follows:

	December 31,		December 31,
(in millions)	2021		2020
Operating leases:
Operating lease ROU assets1	$	1,925	$	1,085
Current portion of operating lease liabilities		582		214
Operating lease liabilities		1,343		871
Total operating lease liabilities1	$	1,925	$	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 long-term liabilities		3		4
Total finance lease liabilities	$	3	$	4

1 During the year ended December 31, 2021, three SCE PPA operating lease contracts commenced and three power contracts were amended resulting in a total of $1.1 billion additions in ROU assets and lease liabilities.

Summary of Lease Expense Components

	Years ended December 31,
(in millions)	2021		2020			2019
PPA leases:
Operating lease cost	$	305	$	111	$	118
Finance lease cost		1		1		1
Variable lease cost1		2,097		1,917		2,087
Short term lease cost		539		—		—
Total PPA lease cost		2,942		2,029		2,206
Other operating leases cost		47		47		46
Total lease cost	$	2,989	$	2,076	$	2,252

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:

	Years ended December 31,
(in millions, except lease term and discount rate)	2021			2020			2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases
PPA leases	$	305		$	111		$	118
Other leases		45			44			44
Financing cash flows from PPA finance leases		1			1			1
ROU assets obtained in exchange for lease obligations:
PPA operating leases	$	1,084		$	463		$	—
Other operating leases		71			58			34
Weighted average remaining lease term (in years):
Operating leases
PPA leases		8.16			9.75			16.05
Other leases		11.14			12.13			12.73
PPA Finance leases		15.67			16.67			11.51
Weighted average discount rate:
Operating leases
PPA leases		2.43	%		3.12	%		4.46	%
Other leases		3.34	%		3.63	%		3.88	%
PPA Finance leases		11.29	%		11.29	%		8.76	%

Schedule of Undiscounted Cash Flow Expected from Lease Payments

(in millions)
2022	$	11
2023		10
2024		8
2025		7
2026		6
Thereafter		124
Total	$	166