Leases (Tables)

9 Months Ended

Sep. 30, 2019

Leases [Abstract]

Summary of Lease Assets and Liabilities

(millions)	Classification	September 30, 2019
Right-of-use asset	Other deferred debits	$	28
Lease liabilities
Current	Other current liabilities	$	1
Long-term	Deferred credits and other liabilities		28
Total lease liabilities		$	29

Future Minimum Lease Payments

Future minimum lease payments under non-cancellable operating leases for each of the next five years and in aggregate thereafter consisted of the following at September 30, 2019: 

(millions)	2019		2020		2021		2022		2023		Thereafter		Total
Minimum lease payments	$	1	$	2	$	3	$	3	$	3	$	53	$	65
Less imputed interest														(36	)
Total future minimum payments													$	29

Additional Information Related to Leases

Additional information related to TEC’s leases is as follows: 

Nine months ended September 30,	2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases (millions)	$	3
Right-of-use assets obtained in exchange for lease obligations:
Operating leases (millions)	$	11
Weighted average remaining lease term (years)		43
Weighted average discount rate - operating leases		4.3	%

Net Investment in Direct Finance Leases

The net investment in direct finance leases consists of the following:

(millions)	September 30, 2019
Total minimum lease payments to be received	$	34
Less amounts representing estimated executory costs		(13	)
Minimum lease payments receivable	$	21
Less unearned finance lease income		(11	)
Net investment in direct finance leases	$	10
Principal due within one year (included in "Receivables")		(2	)
Net investment in direct finance leases - long-term (included in "Other deferred debits")	$	8

Future Minimum Direct Finance Lease Payments to be Received

As of September 30, 2019, future minimum direct finance lease payments to be received for each of the next five years and in aggregate thereafter consisted of the following:

(millions)	2019		2020		2021		2022		2023		Thereafter		Total
Minimum lease payments to be received	$	1	$	2	$	2	$	2	$	2	$	25	$	34
Less executory costs														(13	)
Total minimum lease payments receivable													$	21