XML 40 R17.htm IDEA: XBRL DOCUMENT v3.20.2
Leases (Notes)
 9 Months Ended
Sep. 30, 2020
Leases [Abstract]  
Leases Leases
PSE 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
September 30,		Nine Months Ended
September 30,
(Dollars in Thousands)2020201920202019
Finance lease cost:
Amortization of right-of-use asset$151 $128 $455 $410 
Interest on lease liabilities8 10 27 29 
Total finance lease cost$159 $138 $482 $439 
Operating lease cost1
$4,902 $5,311 $16,051 $15,318 
_______________
1 Includes $0.3 million allocated to PLNG at Puget Energy related to the Port of Tacoma lease for each of the three months ended September 30, 2020 and 2019, respectively and $0.8 million for each of the nine months ended September 30, 2020 and 2019, respectively.
Supplemental cash flow information related to leases was as follows:

Puget Energy and
Puget Sound Energy		Nine Months Ended
September 30,
(Dollars in Thousands)20202019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flow for operating leases$11,152 $10,437 
Investing cash flow for operating leases1
4,899 4,881 
Operating cash flow for finance leases27 29 
Financing cash flow for finance leases455 410 
Non-cash disclosure upon commencement of new lease
Right-of-use assets obtained in exchange for new operating lease liabilities4,996 2,032 
_______________
1 Includes $0.8 million allocated to PLNG at Puget Energy related to the Port of Tacoma lease for each of the nine months ended September 30, 2020 and 2019, respectively.

Supplemental balance sheet information related to leases was as follows:

Puget Sound Energy
(Dollars in Thousands)September 30,December 31,
Operating Leases20202019
Operating lease right-of-use asset$175,091 $183,048 
Operating leases liabilities current19,400 15,862 
Operating lease liabilities long-term163,453 174,327 
Total Operating lease liabilities:$182,853 $190,189 
Finance Leases
Common Plant$1,033 $1,488 
Other current liabilities546 669 
Other deferred credits420 811 
Total finance lease liabilities$966 $1,480 
Weighted Average Remaining Lease Term
Operating leases19.00 Years19.24 Years
Finance leases2.10 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 September 30, 2020, and December 31, 2019, respectively:

Maturities of lease liabilitiesFuture Minimum Lease Payments
(Dollars in Thousands)
At September 30,Operating LeasesFinance Leases
2020 (remaining three months)$5,329 $160 
202123,171 508 
202222,522 279 
202322,082 98 
202421,349 — 
Thereafter162,578 — 
Total lease payments$257,031 $1,045 
Less imputed interest(74,178)(79)
Total$182,853 $966 


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 Leases
PSE 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
September 30,		Nine Months Ended
September 30,
(Dollars in Thousands)2020201920202019
Finance lease cost:
Amortization of right-of-use asset$151 $128 $455 $410 
Interest on lease liabilities8 10 27 29 
Total finance lease cost$159 $138 $482 $439 
Operating lease cost1
$4,902 $5,311 $16,051 $15,318 
_______________
1 Includes $0.3 million allocated to PLNG at Puget Energy related to the Port of Tacoma lease for each of the three months ended September 30, 2020 and 2019, respectively and $0.8 million for each of the nine months ended September 30, 2020 and 2019, respectively.
Supplemental cash flow information related to leases was as follows:

Puget Energy and
Puget Sound Energy		Nine Months Ended
September 30,
(Dollars in Thousands)20202019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flow for operating leases$11,152 $10,437 
Investing cash flow for operating leases1
4,899 4,881 
Operating cash flow for finance leases27 29 
Financing cash flow for finance leases455 410 
Non-cash disclosure upon commencement of new lease
Right-of-use assets obtained in exchange for new operating lease liabilities4,996 2,032 
_______________
1 Includes $0.8 million allocated to PLNG at Puget Energy related to the Port of Tacoma lease for each of the nine months ended September 30, 2020 and 2019, respectively.

Supplemental balance sheet information related to leases was as follows:

Puget Sound Energy
(Dollars in Thousands)September 30,December 31,
Operating Leases20202019
Operating lease right-of-use asset$175,091 $183,048 
Operating leases liabilities current19,400 15,862 
Operating lease liabilities long-term163,453 174,327 
Total Operating lease liabilities:$182,853 $190,189 
Finance Leases
Common Plant$1,033 $1,488 
Other current liabilities546 669 
Other deferred credits420 811 
Total finance lease liabilities$966 $1,480 
Weighted Average Remaining Lease Term
Operating leases19.00 Years19.24 Years
Finance leases2.10 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 September 30, 2020, and December 31, 2019, respectively:

Maturities of lease liabilitiesFuture Minimum Lease Payments
(Dollars in Thousands)
At September 30,Operating LeasesFinance Leases
2020 (remaining three months)$5,329 $160 
202123,171 508 
202222,522 279 
202322,082 98 
202421,349 — 
Thereafter162,578 — 
Total lease payments$257,031 $1,045 
Less imputed interest(74,178)(79)
Total$182,853 $966 


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