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 lease contracts included in the table below are primarily 2 to 20 years for PPA leases, 3 to 72 years for office leases, and 5 to 13 years for the remaining other operating leases. Finance leases are immaterial to the periods presented.

The following table summarizes SCE's future lease payments for operating leases as of December 31, 2022:

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.

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. The following table summarizes the components of SCE's lease expense:


	Years ended December 31,
(in millions)	2022		2021			2020
PPA leases:
Operating lease cost	$	580	$	305	$	111
Variable lease cost¹		2,661		2,098		1,918
Short term lease cost		—		539		—
Total PPA lease cost		3,241		2,942		2,029
Other operating leases cost		52		47		47
Total lease cost	$	3,293	$	2,989	$	2,076

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)	2022			2021			2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from:
PPA operating leases	$	580		$	305		$	111
Other operating leases		50			45			44

ROU assets obtained in exchange for lease obligations:
PPA operating leases	$	20		$	1,084		$	463
Other operating leases		76			71			58

Weighted average remaining lease term (in years):
PPA operating leases		9.42			8.16			9.75
Other operating leases		10.38			11.14			12.13

Weighted average discount rate:
PPA operating leases		2.95	%		2.43	%		3.12	%
Other operating leases		3.78	%		3.34	%		3.63	%

Leases as Lessor

SCE also enters into operating leases to rent certain land and facilities as a lessor. These leases primarily have terms that range from 15 to 65 years. During the years ended December 31, 2022, 2021 and 2020, SCE recognized lease income of $18 million, $16 million and $17 million, respectively, which is included in operating revenue on the consolidated statements of income. At December 31, 2022, the undiscounted cash flow expected to be received from lease payments for the remaining years is as follows:


(in millions)
2023	$	13
2024		12
2025		11
2026		6
2027		6
Thereafter		120
Total	$	168