Leases (Notes)

9 Months Ended

Sep. 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 periods indicated (in millions):

	Three Months Ended September 30,				Nine Months Ended September 30,
Lease Income	2020		2019		2020		2019
Total Lease Revenue	$	154	$	152	$	442	$	460
Less: Variable Lease Payments	24		23		58		59
Total Non-Variable Lease Revenue	$	130	$	129	$	384	$	401

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 September 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 September 30, 2020 for the remainder of 2020 through 2024 and thereafter (in millions):

	Future Cash Receipts for
	Sales-Type Leases		Operating Leases
2020	$	1	$	126
2021	2		483
2022	2		467
2023	2		403
2024	2		404
Thereafter	38		1,436
Total	$	47	$	3,319
Less: Imputed interest	(25)
Present value of total lease receipts	$	22