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Leases (Notes)
 6 Months Ended
Jun. 30, 2020
Leases [Abstract]  
Leases LeasesPSE has operating leases for buildings for corporate offices and operations, real estate for operating facilities and the Tacoma LNG facility, land for our wind farms, and vehicles for PSE’s fleet. The finance leases are for office printers. The leases have remaining lease terms of less than a year to 50 years. PSE's ROU assets and lease liabilities include options to extend leases when it is reasonably certain that PSE will exercise that option.
During the fourth quarter of 2019, PSE became reasonably certain to exercise an option to extend its lease at the Port of Tacoma for an additional 25 years as a result of the approval of the Notice of Construction permit for the Tacoma LNG facility. This remeasurement resulted in an increase of the Operating lease right-of-use asset and Operating lease liabilities of
$14.7 million.
The components of lease cost were as follows:
Puget Energy and
Puget Sound Energy		Three Months Ended
June 30,		Six Months Ended
June 30,
(Dollars in Thousands)2020201920202019
Finance lease cost:
Amortization of right-of-use asset$152  $124  $304  $282  
Interest on lease liabilities9  10  19  19  
Total finance lease cost$161  $134  $323  $301  
Operating lease cost1
$5,669  $5,223  $11,149  $10,007  
_______________
1 Includes $0.2 million allocated to PLNG at Puget Energy related to the Port of Tacoma lease for each of the three months ended June 30, 2020 and 2019, respectively and $0.5 million for each of the six months ended June 30, 2020 and 2019, respectively.



Supplemental cash flow information related to leases was as follows:

Puget Energy and
Puget Sound Energy		Six Months Ended
June 30,
(Dollars in Thousands)20202019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flow for operating leases$7,726  $9,131  
Investing cash flow for operating leases1
3,423  876  
Operating cash flow for finance leases19  19  
Financing cash flow for finance leases304  282  
Non-cash disclosure upon commencement of new lease
Right-of-use assets obtained in exchange for new operating lease liabilities4,996  1,840  
_______________
1 Includes $0.5 million allocated to PLNG at Puget Energy related to the Port of Tacoma lease for each of the six months ended June 30, 2020 and 2019, respectively.
Supplemental balance sheet information related to leases was as follows:

Puget Sound Energy
(Dollars in Thousands)June 30,December 31,
Operating Leases20202019
Operating lease right-of-use asset$179,658  $183,048  
Operating leases liabilities current16,609  15,862  
Operating lease liabilities long-term170,250  174,327  
Total Operating lease liabilities:$186,859  $190,189  
Finance Leases
Common Plant$1,185  $1,488  
Other current liabilities616  669  
Other deferred credits519  811  
Total finance lease liabilities$1,135  $1,480  
Weighted Average Remaining Lease Term
Operating leases18.93 Years19.24 Years
Finance leases2.29 Years2.76 Years
Weighted Average Discount Rate
Operating leases3.59 %3.59 %
Finance leases2.98 %2.98 %

The following tables summarize the Company’s estimated future minimum lease payments as of June 30, 2020, and December 31, 2019, respectively

Maturities of lease liabilitiesFuture Minimum Lease Payments
(Dollars in Thousands)
At June 30,Operating LeasesFinance Leases
2020 (remaining six months)$11,653  $320  
202123,222  508  
202222,578  279  
202322,140  98  
202421,415  —  
Thereafter162,810  —  
Total lease payments$263,818  $1,205  
Less imputed interest(76,959) (70) 
Total$186,859  $1,135  
Maturities of lease liabilitiesFuture Minimum Lease
Payments
(Dollars in Thousands)
At December 31,Operating LeasesFinance Leases
2020$22,500  $643  
202122,527  508  
202221,856  279  
202321,415  98  
202420,690  —  
Thereafter160,410  —  
Total lease payments$269,398  $1,528  
Less imputed interest(79,209) (48) 
Total net present value$190,189  $1,480  
Leases LeasesPSE has operating leases for buildings for corporate offices and operations, real estate for operating facilities and the Tacoma LNG facility, land for our wind farms, and vehicles for PSE’s fleet. The finance leases are for office printers. The leases have remaining lease terms of less than a year to 50 years. PSE's ROU assets and lease liabilities include options to extend leases when it is reasonably certain that PSE will exercise that option.
During the fourth quarter of 2019, PSE became reasonably certain to exercise an option to extend its lease at the Port of Tacoma for an additional 25 years as a result of the approval of the Notice of Construction permit for the Tacoma LNG facility. This remeasurement resulted in an increase of the Operating lease right-of-use asset and Operating lease liabilities of
$14.7 million.
The components of lease cost were as follows:
Puget Energy and
Puget Sound Energy		Three Months Ended
June 30,		Six Months Ended
June 30,
(Dollars in Thousands)2020201920202019
Finance lease cost:
Amortization of right-of-use asset$152  $124  $304  $282  
Interest on lease liabilities9  10  19  19  
Total finance lease cost$161  $134  $323  $301  
Operating lease cost1
$5,669  $5,223  $11,149  $10,007  
_______________
1 Includes $0.2 million allocated to PLNG at Puget Energy related to the Port of Tacoma lease for each of the three months ended June 30, 2020 and 2019, respectively and $0.5 million for each of the six months ended June 30, 2020 and 2019, respectively.



Supplemental cash flow information related to leases was as follows:

Puget Energy and
Puget Sound Energy		Six Months Ended
June 30,
(Dollars in Thousands)20202019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flow for operating leases$7,726  $9,131  
Investing cash flow for operating leases1
3,423  876  
Operating cash flow for finance leases19  19  
Financing cash flow for finance leases304  282  
Non-cash disclosure upon commencement of new lease
Right-of-use assets obtained in exchange for new operating lease liabilities4,996  1,840  
_______________
1 Includes $0.5 million allocated to PLNG at Puget Energy related to the Port of Tacoma lease for each of the six months ended June 30, 2020 and 2019, respectively.
Supplemental balance sheet information related to leases was as follows:

Puget Sound Energy
(Dollars in Thousands)June 30,December 31,
Operating Leases20202019
Operating lease right-of-use asset$179,658  $183,048  
Operating leases liabilities current16,609  15,862  
Operating lease liabilities long-term170,250  174,327  
Total Operating lease liabilities:$186,859  $190,189  
Finance Leases
Common Plant$1,185  $1,488  
Other current liabilities616  669  
Other deferred credits519  811  
Total finance lease liabilities$1,135  $1,480  
Weighted Average Remaining Lease Term
Operating leases18.93 Years19.24 Years
Finance leases2.29 Years2.76 Years
Weighted Average Discount Rate
Operating leases3.59 %3.59 %
Finance leases2.98 %2.98 %

The following tables summarize the Company’s estimated future minimum lease payments as of June 30, 2020, and December 31, 2019, respectively

Maturities of lease liabilitiesFuture Minimum Lease Payments
(Dollars in Thousands)
At June 30,Operating LeasesFinance Leases
2020 (remaining six months)$11,653  $320  
202123,222  508  
202222,578  279  
202322,140  98  
202421,415  —  
Thereafter162,810  —  
Total lease payments$263,818  $1,205  
Less imputed interest(76,959) (70) 
Total$186,859  $1,135  
Maturities of lease liabilitiesFuture Minimum Lease
Payments
(Dollars in Thousands)
At December 31,Operating LeasesFinance Leases
2020$22,500  $643  
202122,527  508  
202221,856  279  
202321,415  98  
202420,690  —  
Thereafter160,410  —  
Total lease payments$269,398  $1,528  
Less imputed interest(79,209) (48) 
Total net present value$190,189  $1,480