Leases (Tables)

12 Months Ended

Dec. 31, 2022

Leases

Summary of Finance Lease Payments

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

	PPA Operating		Other Operating
(in millions)	Leases1		Leases2
2023	$	493	$	49
2024		82		42
2025		73		38
2026		70		35
2027		65		31
Thereafter		633		117
Total lease payments		1,416		312
Amount representing interest		227		68
Lease liabilities	$	1,189	$	244

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 Lease Expense Components

	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	%

Schedule of Undiscounted Cash Flow Expected from Lease Payments

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