Leases (Tables)

12 Months Ended

Dec. 31, 2023

Leases

Summary of Finance Lease Payments

The following table summarizes SCE's future lease payments for operating leases as of December 31, 2023:

	PPA Operating		Other Operating
(in millions)	Leases1		Leases2
2024	$	111	$	55
2025		99		50
2026		89		46
2027		84		41
2028		84		36
Thereafter		782		111
Total lease payments		1,249		339
Amount representing interest		302		72
Lease liabilities	$	947	$	267

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)	2023		2022			2021
PPA leases:
Operating lease cost	$	503	$	580	$	305
Variable lease cost1		2,277		2,661		2,098
Short term lease cost		—		—		539
Total PPA lease cost		2,780		3,241		2,942
Other operating leases cost		56		52		47
Total lease cost	$	2,836	$	3,293	$	2,989

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)	2023			2022			2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from:
PPA operating leases	$	503		$	580		$	305
Other operating leases		55			50			45
ROU assets obtained in exchange for lease obligations:
PPA operating leases	$	226		$	20		$	1,084
Other operating leases		69			76			71
Weighted average remaining lease term (in years):
PPA operating leases		13.37			9.42			8.16
Other operating leases		9.56			10.38			11.14
Weighted average discount rate:
PPA operating leases		4.30	%		2.95	%		2.43	%
Other operating leases		4.22	%		3.78	%		3.34	%

Schedule of Undiscounted Cash Flow Expected from Lease Payments

(in millions)
2024	$	13
2025		12
2026		8
2027		8
2028		7
Thereafter		124
Total	$	172