Hydro One has operating lease contracts for buildings used in administrative and service-related functions and storing telecommunications equipment. These leases have terms between three and five years with renewal options of additional three- to five-year terms at prevailing market rates at the time of extension. All leases include a clause to enable upward revision of the rental charge on an annual basis or on renewal according to prevailing market conditions or pre-established rents. There are no restrictions placed upon Hydro One by entering into these leases. Renewal options are included in the lease term when their exercise is reasonably certain. The Company also has a few finance lease arrangements, all of which were fully prepaid at commencement and are immaterial to the consolidated financial statements. Other information related to the Company's operating leases was as follows:


Year ended December 31 (millions of dollars)	2025		2024
Lease expense	17		17
Lease payments made	17		16

As at December 31	2025		2024
Weighted-average remaining lease term1 (years)	3		4
Weighted-average discount rate	2.8	%	2.9	%


(millions of dollars)
2026						16
2027						14
2028						10
2029						3
2030						1
Thereafter						1
Total undiscounted minimum lease payments						45
Less: discounting minimum lease payments to present value						(2)
Total discounted minimum lease payments						43


(millions of dollars)
2025						17
2026						15
2027						13
2028						10
2029						2
Thereafter						2
Total undiscounted minimum lease payments						59
Less: discounting minimum lease payments to present value						(4)
Total discounted minimum lease payments						55


As at December 31 (millions of dollars)	2025	2024
Other long-term assets (Note 12)	47	55
Accounts payable and other current liabilities (Note 13)	14	14
Other long-term liabilities (Note 14)	29	41