Leases

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

Leases

Leases

Lessee

We have operating leases for which we are the lessee. The significant types of leases are contracted generation, real estate, and vehicles and equipment. The following table outlines other terms and conditions of the lease agreements as of December 31, 2023. We did not have material finance leases in 2023, 2022, or 2021.

	In Years
Remaining lease terms	1-32
Options to extend the term	2-30
Options to terminate within	1

The components of operating lease costs were as follows:

	For the Years Ended December 31,
	2023		2022		2021
Operating lease costs	$	96	$	109	$	161
Variable lease costs	146		169		168
Total lease costs(a)	$	242	$	278	$	329

__________

(a)Excludes $50 million, $49 million, $44 million of sublease income recorded for each of the years ended December 31, 2023, 2022, and 2021, respectively.

The following table provides additional information regarding the presentation of operating lease ROU assets and lease liabilities in the Consolidated Balance Sheets:

	As of December 31,
	2023		2022
Operating lease ROU assets(a)
Other deferred debits and other assets	$	494	$	545
Operating lease liabilities(a)
Other current liabilities	67		67
Other deferred credits and other liabilities	583		643
Total operating lease liabilities	$	650	$	710

__________

(a)The operating ROU assets and lease liabilities include $212 million and $334 million, respectively, related to contracted generation as of December 31, 2023, and $248 million and $377 million, respectively, as of December 31, 2022.

The weighted average remaining lease terms, in years, and the weighted average discount rates for operating leases were as follows:

	As of December 31,
	2023		2022		2021
Weighted average remaining lease term	8.4		9.3		10.1
Weighted average discount rate	5.0	%	5.0	%	5.0	%

The following table reconciles the undiscounted cash flows for our operating leases to the operating lease liabilities recorded on our consolidated balance sheet as of December 31, 2023:

2024	$	101
2025	104
2026	104
2027	102
2028	103
Thereafter	325
Total lease payments	839
Less: Imputed interest	189
Operating lease liabilities	$	650

Supplemental cash flow information related to operating leases was as follows:

	For the Years Ended December 31,
	2023		2022		2021
Cash paid for amounts included in the measurement of operating lease liabilities	$	102	$	114	$	162
ROU assets obtained in exchange for operating lease obligations	13		14		2

Lessor

We have operating leases for which we are the lessor. The significant types of leases are contracted generation and real estate. The following table outlines other terms and conditions of the lease agreements as of December 31, 2023.

	In Years
Remaining lease terms	1-17
Options to extend the term	1-20

The components of lease income were as follows:

	For the Years Ended December 31,
	2023		2022		2021
Operating lease income	$	51	$	51	$	47
Variable lease income	248		258		261

The following table presents maturity analysis of the lease payments we expect to receive as of December 31, 2023:

2024	$	48
2025	48
2026	49
2027	49
2028	48
Thereafter	85
Total	$	327

Leases

Leases

Lessee

We have operating leases for which we are the lessee. The significant types of leases are contracted generation, real estate, and vehicles and equipment. The following table outlines other terms and conditions of the lease agreements as of December 31, 2023. We did not have material finance leases in 2023, 2022, or 2021.

	In Years
Remaining lease terms	1-32
Options to extend the term	2-30
Options to terminate within	1

The components of operating lease costs were as follows:

	For the Years Ended December 31,
	2023		2022		2021
Operating lease costs	$	96	$	109	$	161
Variable lease costs	146		169		168
Total lease costs(a)	$	242	$	278	$	329

__________

(a)Excludes $50 million, $49 million, $44 million of sublease income recorded for each of the years ended December 31, 2023, 2022, and 2021, respectively.

The following table provides additional information regarding the presentation of operating lease ROU assets and lease liabilities in the Consolidated Balance Sheets:

	As of December 31,
	2023		2022
Operating lease ROU assets(a)
Other deferred debits and other assets	$	494	$	545
Operating lease liabilities(a)
Other current liabilities	67		67
Other deferred credits and other liabilities	583		643
Total operating lease liabilities	$	650	$	710

__________

(a)The operating ROU assets and lease liabilities include $212 million and $334 million, respectively, related to contracted generation as of December 31, 2023, and $248 million and $377 million, respectively, as of December 31, 2022.

The weighted average remaining lease terms, in years, and the weighted average discount rates for operating leases were as follows:

	As of December 31,
	2023		2022		2021
Weighted average remaining lease term	8.4		9.3		10.1
Weighted average discount rate	5.0	%	5.0	%	5.0	%

The following table reconciles the undiscounted cash flows for our operating leases to the operating lease liabilities recorded on our consolidated balance sheet as of December 31, 2023:

2024	$	101
2025	104
2026	104
2027	102
2028	103
Thereafter	325
Total lease payments	839
Less: Imputed interest	189
Operating lease liabilities	$	650

Supplemental cash flow information related to operating leases was as follows:

	For the Years Ended December 31,
	2023		2022		2021
Cash paid for amounts included in the measurement of operating lease liabilities	$	102	$	114	$	162
ROU assets obtained in exchange for operating lease obligations	13		14		2

Lessor

We have operating leases for which we are the lessor. The significant types of leases are contracted generation and real estate. The following table outlines other terms and conditions of the lease agreements as of December 31, 2023.

	In Years
Remaining lease terms	1-17
Options to extend the term	1-20

The components of lease income were as follows:

	For the Years Ended December 31,
	2023		2022		2021
Operating lease income	$	51	$	51	$	47
Variable lease income	248		258		261

The following table presents maturity analysis of the lease payments we expect to receive as of December 31, 2023:

2024	$	48
2025	48
2026	49
2027	49
2028	48
Thereafter	85
Total	$	327