Leases (Notes)

6 Months Ended

Jun. 30, 2020

Lessor, Lease, Description [Line Items]

Leases of Lessor Disclosure [Text Block]

LESSOR — The Company has operating leases for certain generation contracts that contain provisions to provide capacity to a customer, which is a stand-ready obligation to deliver energy when required by the customer. Capacity payments are generally considered lease elements as they cover the majority of available output from a facility. The allocation of contract payments between the lease and non-lease elements is made at the inception of the lease. Lease payments from such contracts are recognized as lease revenue on a straight-line basis over the lease term, whereas variable lease payments are recognized when earned.

The following table presents lease revenue from operating leases in which the Company is the lessor for the six months ended June 30, 2020:

	Three Months Ended June 30,				Six Months Ended June 30,
Lease Income	2020		2019		2020		2019
Total Lease Revenue	$	153	$	155	$	288	$	308
Less: Variable Lease Payments	23		24		34		36
Total Non-Variable Lease Revenue	$	130	$	131	$	254	$	272

The option to extend or terminate a lease is based on customary early termination provisions in the contract, such as payment defaults, bankruptcy, and lack of performance on energy delivery. The Company has not recognized any early terminations as of June 30, 2020. Certain leases may provide for variable lease payments based on usage or index-based (e.g., the U.S. Consumer Price Index) adjustments to lease payments.

The following table shows the future lease receipts as of June 30, 2020 for the remainder of 2020 through 2024 and thereafter (in millions):

	Future Cash Receipts for
	Sales-Type Leases			Operating Leases
2020	$	1		$	255
2021	2			475
2022	2			459
2023	2			396
2024	2			396
Thereafter	38			1,425
Total	$	47		$	3,406
Less: Imputed interest	(25		)
Present value of total lease receipts	$	22