Company: SCE-PL
Filing Date: 2025-02-27
Form Type: 10-K
Source: 0000827052-25-000022
Chunk: 678

Company: SOUTHERN CALIFORNIA EDISON Co
Filing Date: 2025-02-27
Form: 10-K
Item: Item 8
Chunk 678
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 exceed the accumulated funds for these insurance programs, SCE could be assessed retrospective premium adjustments of up to approximately $17 million per year. Insurance premiums are charged to operating expense.

Note 13. Leases

Leases as LesseeSCE enters into various agreements to purchase power, electric capacity and other energy products that may be accounted for as leases when SCE has dispatch rights that determine when and how a plant runs. SCE also leases property and equipment primarily related to vehicles, office space and other equipment. The terms of the lease contracts included in the table below are primarily 15 to 20 years for PPA leases, 3 to 72 years for office leases, and 5 to 13 years for the remaining other operating leases. Finance leases are immaterial to the periods presented.The following table summarizes SCE's future lease payments for operating leases as of December 31, 2024:

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(in millions)PPA Operating LeasesOther Operating Leases12025$106 $64 202689 58 202784 54 202884 48 202985 41 Thereafter698 104 Total lease payments1,146 369 Amount representing interest265 76 Lease liabilities$881 $293 1Excludes 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.The timing of SCE's recognition of the lease expense conforms to ratemaking treatment for SCE's recovery of the cost of electricity and is included in purchased power for PPA operating leases. The following table summarizes the components of SCE's lease expense:Years ended December 31,(in millions)202420232022PPA leases:Operating lease cost$115 $503 $580 Variable lease cost11,700 2,277 2,661 Total PPA lease cost1,815 2,780 3,241 Other operating leases cost64 56 52 Total lease cost$1,879 $2,836 $3,293 1Includes lease costs from legacy renewable energy contracts where payments are based on contingent external factors such as wind, hydro and solar power generation.

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Other information related to leases was as follows:Years ended December 31,(in millions, except lease term and discount rate)202420232022Cash paid for amounts included in the measurement of lease liabilities:Operating cash flows from:PPA operating leases$115 $503 $