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Leases (Tables)
 9 Months Ended
Sep. 30, 2020
Leases [Abstract]  
Summary of Finance Lease Payments
The following table summarizes SCE's lease payments for operating and finance leases as of September 30, 2020:
(in millions)
PPA Operating Leases1
Other Operating Leases2,3
PPA Finance Leases1
2020$37 $10 $— 
2021205 36 1 
2022208 30 1 
2023159 24 2 
202447 19 2 
Thereafter489 114 8 
Total lease payments1,145 233 14 
Amount representing interest3
209 60 5 
Lease liabilities$936 $173 $9 
1Excludes 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.
2Excludes 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.
3Lease payments are discounted to their present value using SCE's incremental borrowing rates.
Summary of Operating Lease Payments
The following table summarizes SCE's lease payments for operating and finance leases as of September 30, 2020:
(in millions)
PPA Operating Leases1
Other Operating Leases2,3
PPA Finance Leases1
2020$37 $10 $— 
2021205 36 1 
2022208 30 1 
2023159 24 2 
202447 19 2 
Thereafter489 114 8 
Total lease payments1,145 233 14 
Amount representing interest3
209 60 5 
Lease liabilities$936 $173 $9 
1Excludes 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.
2Excludes 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.
3Lease payments are discounted to their present value using SCE's incremental borrowing rates.
Supplemental Balance Sheet Information
Supplemental balance sheet information related to SCE's leases was as follows:
(in millions)September 30, 2020December 31, 2019
Operating leases:
Operating lease right-of-use ("ROU") assets1
$1,109 $689 
Current portion of operating lease liabilities210 79 
Operating lease liabilities899 610 
Total operating lease liabilities1
$1,109 $689 
Finance leases included in:
Utility property, plant and equipment, gross$10 $14 
Accumulated depreciation(1)(5)
Utility property, plant and equipment, net9 9 
Other current liabilities1 1 
Other long-term liabilities8 8 
Total finance lease liabilities$9 $9 
1 During the third quarter of 2020, a PPA operating lease contract commenced and one PPA contract was amended that resulted in a total of $463 million additions in ROU assets and lease liabilities.
Summary of Lease Expense Components The following table summarizes the components of SCE's lease expense:
Three months ended September 30,Nine months ended September 30,
(in millions)2020201920202019
PPA leases:
Operating lease cost35 38 74 98 
Finance lease cost1 1 2 1 
Variable lease cost1
676 751 1,582 1,742 
Total PPA lease cost712 790 1,658 1,841 
Other operating leases cost11 12 35 35 
Total lease cost$723 $802 $1,693 $1,876 
1Includes 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:
(in millions, except lease term and discount rate)Nine month ended September 30, 2020Nine month ended September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases
PPA leases$74 $98 
Other leases33 34 
ROU assets obtained in exchange for lease obligations:
PPA operating leases463 — 
Other operating leases42 23 
Weighted average remaining lease term (in years):
Operating leases
PPA leases9.8316.03
Other leases12.3512.75
PPA Finance leases10.9011.71
Weighted average discount rate:
Operating leases
PPA leases3.08 %4.44 %
Other leases3.74 %3.89 %
PPA Finance leases8.83 %8.74 %