Leases

12 Months Ended

Dec. 31, 2022

Lessee, Lease, Description [Line Items]

Leases

Leases

The following table summarizes the Company's leases recorded on the Consolidated Balance Sheet as of December 31 (in millions):

	2022		2021
Right-of-use assets:
Operating leases	$	545	$	524
Finance leases	418		448
Total right-of-use assets	$	963	$	972
Lease liabilities:
Operating leases	$	605	$	577
Finance leases	432		463
Total lease liabilities	$	1,037	$	1,040

The following table summarizes the Company's lease costs for the years ended December 31 (in millions):

	2022			2021			2020
Variable	$	552		$	611		$	592
Operating	136			161			151
Finance:
Amortization	20			23			18
Interest	36			38			40
Short-term	44			15			20
Total lease costs	$	788		$	848		$	821
Weighted-average remaining lease term (years):
Operating leases	7.4			7.6			7.4
Finance leases	28.1			28.1			27.5
Weighted-average discount rate:
Operating leases	4.1		%	4.3		%	4.5		%
Finance leases	8.6		%	8.6		%	8.5		%

The following table summarizes the Company's supplemental cash flow information relating to leases for the years ended December 31 (in millions):

	2022		2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	(141)	$	(163)	$	(152)
Operating cash flows from finance leases	(36)		(38)		(40)
Financing cash flows from finance leases	(25)		(28)		(24)
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	131	$	119	$	83
Finance leases	3		2		19

The Company has the following remaining lease commitments as of December 31, 2022 (in millions):

	Operating		Finance		Total
2023	$	158	$	63	$	221
2024	126		62		188
2025	101		61		162
2026	78		60		138
2027	53		56		109
Thereafter	189		559		748
Total undiscounted lease payments	705		861		1,566
Less - amounts representing interest	(100)		(429)		(529)
Lease liabilities	$	605	$	432	$	1,037

Leases

Leases

The following table summarizes the Company's leases recorded on the Consolidated Balance Sheet as of December 31 (in millions):

	2022		2021
Right-of-use assets:
Operating leases	$	545	$	524
Finance leases	418		448
Total right-of-use assets	$	963	$	972
Lease liabilities:
Operating leases	$	605	$	577
Finance leases	432		463
Total lease liabilities	$	1,037	$	1,040

The following table summarizes the Company's lease costs for the years ended December 31 (in millions):

	2022			2021			2020
Variable	$	552		$	611		$	592
Operating	136			161			151
Finance:
Amortization	20			23			18
Interest	36			38			40
Short-term	44			15			20
Total lease costs	$	788		$	848		$	821
Weighted-average remaining lease term (years):
Operating leases	7.4			7.6			7.4
Finance leases	28.1			28.1			27.5
Weighted-average discount rate:
Operating leases	4.1		%	4.3		%	4.5		%
Finance leases	8.6		%	8.6		%	8.5		%

The following table summarizes the Company's supplemental cash flow information relating to leases for the years ended December 31 (in millions):

	2022		2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	(141)	$	(163)	$	(152)
Operating cash flows from finance leases	(36)		(38)		(40)
Financing cash flows from finance leases	(25)		(28)		(24)
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	131	$	119	$	83
Finance leases	3		2		19

The Company has the following remaining lease commitments as of December 31, 2022 (in millions):

	Operating		Finance		Total
2023	$	158	$	63	$	221
2024	126		62		188
2025	101		61		162
2026	78		60		138
2027	53		56		109
Thereafter	189		559		748
Total undiscounted lease payments	705		861		1,566
Less - amounts representing interest	(100)		(429)		(529)
Lease liabilities	$	605	$	432	$	1,037

PAC

Lessee, Lease, Description [Line Items]

Leases

Leases

The following table summarizes PacifiCorp's leases recorded on the Consolidated Balance Sheets as of December 31 (in millions):

	2022		2021
Right-of-use assets:
Operating leases	$	11	$	11
Finance leases	9		11
Total right-of-use assets	$	20	$	22
Lease liabilities:
Operating leases	$	11	$	11
Finance leases	11		12
Total lease liabilities	$	22	$	23

The following table summarizes PacifiCorp's lease costs for the years ended December 31 (in millions):

	2022			2021			2020
Variable	$	61		$	56		$	60
Operating	3			3			3
Finance:
Amortization	1			5			2
Interest	1			2			2
Short-term	5			3			1
Total lease costs	$	71		$	69		$	68
Weighted-average remaining lease term (years):
Operating leases	11.4			12.7			13.9
Finance leases	9.7			10.1			8.4
Weighted-average discount rate:
Operating leases	3.9		%	3.7		%	3.8		%
Finance leases	11.4		%	11.1		%	10.5		%

Cash payments associated with operating and finance lease liabilities approximated lease cost for the years ended December 31, 2022, 2021 and 2020.

PacifiCorp has the following remaining lease commitments as of December 31, 2022 (in millions):

	Operating		Finance		Total
2023	$	3	$	2	$	5
2024	2		2		4
2025	2		2		4
2026	1		2		3
2027	1		2		3
Thereafter	5		8		13
Total undiscounted lease payments	14		18		32
Less - amounts representing interest	(3)		(7)		(10)
Lease liabilities	$	11	$	11	$	22

Leases

Leases

The following table summarizes PacifiCorp's leases recorded on the Consolidated Balance Sheets as of December 31 (in millions):

	2022		2021
Right-of-use assets:
Operating leases	$	11	$	11
Finance leases	9		11
Total right-of-use assets	$	20	$	22
Lease liabilities:
Operating leases	$	11	$	11
Finance leases	11		12
Total lease liabilities	$	22	$	23

The following table summarizes PacifiCorp's lease costs for the years ended December 31 (in millions):

	2022			2021			2020
Variable	$	61		$	56		$	60
Operating	3			3			3
Finance:
Amortization	1			5			2
Interest	1			2			2
Short-term	5			3			1
Total lease costs	$	71		$	69		$	68
Weighted-average remaining lease term (years):
Operating leases	11.4			12.7			13.9
Finance leases	9.7			10.1			8.4
Weighted-average discount rate:
Operating leases	3.9		%	3.7		%	3.8		%
Finance leases	11.4		%	11.1		%	10.5		%

Cash payments associated with operating and finance lease liabilities approximated lease cost for the years ended December 31, 2022, 2021 and 2020.

PacifiCorp has the following remaining lease commitments as of December 31, 2022 (in millions):

	Operating		Finance		Total
2023	$	3	$	2	$	5
2024	2		2		4
2025	2		2		4
2026	1		2		3
2027	1		2		3
Thereafter	5		8		13
Total undiscounted lease payments	14		18		32
Less - amounts representing interest	(3)		(7)		(10)
Lease liabilities	$	11	$	11	$	22

NPC

Lessee, Lease, Description [Line Items]

Leases

Leases

The following table summarizes Nevada Power's leases recorded on the Consolidated Balance Sheet as of December 31 (in millions):

	2022		2021
Right-of-use assets:
Operating leases	$	9	$	10
Finance leases	303		326
Total right-of-use assets	$	312	$	336
Lease liabilities:
Operating leases	$	11	$	13
Finance leases	313		336
Total lease liabilities	$	324	$	349

The following table summarizes Nevada Power's lease costs for the years ended December 31 (in millions):

	2022			2021			2020
Variable	$	369		$	449		$	434
Operating	2			2			3
Finance:
Amortization	14			13			12
Interest	27			28			29
Total lease costs	$	412		$	492		$	478
Weighted-average remaining lease term (years):
Operating leases	4.8			5.7			6.5
Finance leases	29.1			28.7			28.7
Weighted-average discount rate:
Operating leases	4.5		%	4.5		%	4.5		%
Finance leases	8.6		%	8.6		%	8.6		%

The following table summarizes Nevada Power's supplemental cash flow information relating to leases for the years ended December 31 (in millions):

	2022		2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	(3)	$	(3)	$	(3)
Operating cash flows from finance leases	(28)		(29)		(34)
Financing cash flows from finance leases	(17)		(16)		(15)
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	—	$	—	$	1
Finance leases	3		1		9

Nevada Power has the following remaining lease commitments as of December 31, 2022 (in millions):

	Operating		Finance		Total
2023	$	2	$	44	$	46
2024	3		44		47
2025	3		43		46
2026	3		44		47
2027	2		42		44
Thereafter	—		414		414
Total undiscounted lease payments	13		631		644
Less - amounts representing interest	(2)		(318)		(320)
Lease liabilities	$	11	$	313	$	324

Operating and Finance Lease Obligations

Nevada Power's lease obligation primarily consists of a transmission line, One Nevada Transmission Line ("ON Line"), which was placed in-service on December 31, 2013. Nevada Power and Sierra Pacific, collectively the ("Nevada Utilities"), entered into a long-term transmission use agreement, in which the Nevada Utilities have a 25% interest and Great Basin Transmission South, LLC has a 75% interest. The Nevada Utilities' share of the long-term transmission use agreement and ownership interest is split at 75% for Nevada Power and 25% for Sierra Pacific, previously split 95% for Nevada Power and 5% for Sierra Pacific. In December 2019, the PUCN ordered the Nevada Utilities to complete the necessary procedures to change the ownership split to 75% for Nevada Power and 25% for Sierra Pacific, effective January 1, 2020. In August 2020, the FERC approved the amended agreement between the Nevada Utilities and Great Basin Transmission, LLC that reallocated the PUCN-approved ownership percentage change from Nevada Power to Sierra Pacific. The term of the lease is 41 years with the agreement ending December 31, 2054. Total ON Line finance lease obligations of $276 million and $286 million were included on the Consolidated Balance Sheets as of December 31, 2022 and 2021, respectively. See Note 2 for further discussion of Nevada Power's other lease obligations.

Leases

Leases

The following table summarizes Nevada Power's leases recorded on the Consolidated Balance Sheet as of December 31 (in millions):

	2022		2021
Right-of-use assets:
Operating leases	$	9	$	10
Finance leases	303		326
Total right-of-use assets	$	312	$	336
Lease liabilities:
Operating leases	$	11	$	13
Finance leases	313		336
Total lease liabilities	$	324	$	349

The following table summarizes Nevada Power's lease costs for the years ended December 31 (in millions):

	2022			2021			2020
Variable	$	369		$	449		$	434
Operating	2			2			3
Finance:
Amortization	14			13			12
Interest	27			28			29
Total lease costs	$	412		$	492		$	478
Weighted-average remaining lease term (years):
Operating leases	4.8			5.7			6.5
Finance leases	29.1			28.7			28.7
Weighted-average discount rate:
Operating leases	4.5		%	4.5		%	4.5		%
Finance leases	8.6		%	8.6		%	8.6		%

The following table summarizes Nevada Power's supplemental cash flow information relating to leases for the years ended December 31 (in millions):

	2022		2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	(3)	$	(3)	$	(3)
Operating cash flows from finance leases	(28)		(29)		(34)
Financing cash flows from finance leases	(17)		(16)		(15)
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	—	$	—	$	1
Finance leases	3		1		9

Nevada Power has the following remaining lease commitments as of December 31, 2022 (in millions):

	Operating		Finance		Total
2023	$	2	$	44	$	46
2024	3		44		47
2025	3		43		46
2026	3		44		47
2027	2		42		44
Thereafter	—		414		414
Total undiscounted lease payments	13		631		644
Less - amounts representing interest	(2)		(318)		(320)
Lease liabilities	$	11	$	313	$	324

Operating and Finance Lease Obligations

Nevada Power's lease obligation primarily consists of a transmission line, One Nevada Transmission Line ("ON Line"), which was placed in-service on December 31, 2013. Nevada Power and Sierra Pacific, collectively the ("Nevada Utilities"), entered into a long-term transmission use agreement, in which the Nevada Utilities have a 25% interest and Great Basin Transmission South, LLC has a 75% interest. The Nevada Utilities' share of the long-term transmission use agreement and ownership interest is split at 75% for Nevada Power and 25% for Sierra Pacific, previously split 95% for Nevada Power and 5% for Sierra Pacific. In December 2019, the PUCN ordered the Nevada Utilities to complete the necessary procedures to change the ownership split to 75% for Nevada Power and 25% for Sierra Pacific, effective January 1, 2020. In August 2020, the FERC approved the amended agreement between the Nevada Utilities and Great Basin Transmission, LLC that reallocated the PUCN-approved ownership percentage change from Nevada Power to Sierra Pacific. The term of the lease is 41 years with the agreement ending December 31, 2054. Total ON Line finance lease obligations of $276 million and $286 million were included on the Consolidated Balance Sheets as of December 31, 2022 and 2021, respectively. See Note 2 for further discussion of Nevada Power's other lease obligations.

SPPC

Lessee, Lease, Description [Line Items]

Leases

Leases

The following table summarizes Sierra Pacific's leases recorded on the Consolidated Balance Sheet as of December 31 (in millions):

	2022		2021
Right-of-use assets:
Operating leases	$	16	$	15
Finance leases	105		111
Total right-of-use assets	$	121	$	126
Lease liabilities:
Operating leases	$	15	$	15
Finance leases	108		115
Total lease liabilities	$	123	$	130

The following table summarizes Sierra Pacific's lease costs for the years ended December 31 (in millions):

	2022			2021			2020
Variable	$	103		$	86		$	78
Operating	1			1			2
Finance:
Amortization	5			5			4
Interest	8			9			9
Total lease costs	$	117		$	101		$	93
Weighted-average remaining lease term (years):
Operating leases	26.0			27.4			27.2
Finance leases	28.2			28.4			27.8
Weighted-average discount rate:
Operating leases	5.0		%	5.0		%	5.0		%
Finance leases	8.4		%	8.2		%	8.1		%

The following table summarizes Sierra Pacific's supplemental cash flow information relating to leases for the years ended December 31 (in millions):

	2022		2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	(1)	$	(1)	$	(2)
Operating cash flows from finance leases	(9)		(9)		(6)
Financing cash flows from finance leases	(7)		(7)		(5)
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	1	$	—	$	—
Finance leases	1		1		89

Sierra Pacific has the following remaining lease commitments as of December 31, 2022 (in millions):

	Operating		Finance		Total
2023	$	1	$	16	$	17
2024	1		15		16
2025	1		16		17
2026	1		15		16
2027	1		13		14
Thereafter	23		137		160
Total undiscounted lease payments	28		212		240
Less - amounts representing interest	(13)		(104)		(117)
Lease liabilities	$	15	$	108	$	123

Operating and Finance Lease Obligations

Sierra Pacific's operating and finance lease obligations consist mainly of ON Line and Truckee-Carson Irrigation District ("TCID"). ON Line was placed in-service on December 31, 2013. Sierra Pacific and Nevada Power, collectively the ("Nevada Utilities"), entered into a long-term transmission use agreement, in which the Nevada Utilities have a 25% interest and Great Basin Transmission South, LLC has a 75% interest. The Nevada Utilities' share of the long-term transmission use agreement and ownership interest is split at 75% for Nevada Power and 25% for Sierra Pacific, previously split 95% for Nevada Power and 5% for Sierra Pacific. In December 2019, the PUCN ordered the Nevada Utilities to complete the necessary procedures to change the ownership split to 75% for Nevada Power and 25% for Sierra Pacific, effective January 1, 2020. In August 2020, the FERC approved the amended agreement between the Nevada Utilities and Great Basin Transmission, LLC that reallocated the PUCN-approved ownership percentage change from Nevada Power to Sierra Pacific. The term of the lease is 41 years with the agreement ending December 31, 2054. In 1999, Sierra Pacific entered into a 50-year agreement with TCID to lease electric distribution facilities. Total finance lease obligations of $107 million and $110 million were included on the Consolidated Balance Sheets as of December 31, 2022 and 2021, respectively, for these leases. See Note 2 for further discussion of Sierra Pacific's remaining lease obligations.

Leases

Leases

The following table summarizes Sierra Pacific's leases recorded on the Consolidated Balance Sheet as of December 31 (in millions):

	2022		2021
Right-of-use assets:
Operating leases	$	16	$	15
Finance leases	105		111
Total right-of-use assets	$	121	$	126
Lease liabilities:
Operating leases	$	15	$	15
Finance leases	108		115
Total lease liabilities	$	123	$	130

The following table summarizes Sierra Pacific's lease costs for the years ended December 31 (in millions):

	2022			2021			2020
Variable	$	103		$	86		$	78
Operating	1			1			2
Finance:
Amortization	5			5			4
Interest	8			9			9
Total lease costs	$	117		$	101		$	93
Weighted-average remaining lease term (years):
Operating leases	26.0			27.4			27.2
Finance leases	28.2			28.4			27.8
Weighted-average discount rate:
Operating leases	5.0		%	5.0		%	5.0		%
Finance leases	8.4		%	8.2		%	8.1		%

The following table summarizes Sierra Pacific's supplemental cash flow information relating to leases for the years ended December 31 (in millions):

	2022		2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	(1)	$	(1)	$	(2)
Operating cash flows from finance leases	(9)		(9)		(6)
Financing cash flows from finance leases	(7)		(7)		(5)
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	1	$	—	$	—
Finance leases	1		1		89

Sierra Pacific has the following remaining lease commitments as of December 31, 2022 (in millions):

	Operating		Finance		Total
2023	$	1	$	16	$	17
2024	1		15		16
2025	1		16		17
2026	1		15		16
2027	1		13		14
Thereafter	23		137		160
Total undiscounted lease payments	28		212		240
Less - amounts representing interest	(13)		(104)		(117)
Lease liabilities	$	15	$	108	$	123

Operating and Finance Lease Obligations

Sierra Pacific's operating and finance lease obligations consist mainly of ON Line and Truckee-Carson Irrigation District ("TCID"). ON Line was placed in-service on December 31, 2013. Sierra Pacific and Nevada Power, collectively the ("Nevada Utilities"), entered into a long-term transmission use agreement, in which the Nevada Utilities have a 25% interest and Great Basin Transmission South, LLC has a 75% interest. The Nevada Utilities' share of the long-term transmission use agreement and ownership interest is split at 75% for Nevada Power and 25% for Sierra Pacific, previously split 95% for Nevada Power and 5% for Sierra Pacific. In December 2019, the PUCN ordered the Nevada Utilities to complete the necessary procedures to change the ownership split to 75% for Nevada Power and 25% for Sierra Pacific, effective January 1, 2020. In August 2020, the FERC approved the amended agreement between the Nevada Utilities and Great Basin Transmission, LLC that reallocated the PUCN-approved ownership percentage change from Nevada Power to Sierra Pacific. The term of the lease is 41 years with the agreement ending December 31, 2054. In 1999, Sierra Pacific entered into a 50-year agreement with TCID to lease electric distribution facilities. Total finance lease obligations of $107 million and $110 million were included on the Consolidated Balance Sheets as of December 31, 2022 and 2021, respectively, for these leases. See Note 2 for further discussion of Sierra Pacific's remaining lease obligations.

EGTS

Lessee, Lease, Description [Line Items]

Leases

Leases

The following table summarizes EGTS' leases recorded on the Consolidated Balance Sheets as of December 31 (in millions):

	2022		2021
Right-of-use assets:
Operating leases	$	19	$	20
Total right-of-use assets	$	19	$	20
Lease liabilities:
Operating leases	$	18	$	18
Total lease liabilities	$	18	$	18

The following table summarizes EGTS' lease costs for the years ended December 31 (in millions):

	2022			2021			2020
Operating	$	2		$	3		$	6
Short-term	—			—			3
Total lease costs	$	2		$	3		$	9
Weighted-average remaining lease term (years):
Operating leases	13.7			14.7			11.7
Finance leases	0.0			0.0			4.6
Weighted-average discount rate:
Operating leases	4.3		%	4.3		%	4.4		%
Finance leases	—		%	—		%	2.6		%

The following table summarizes EGTS' supplemental cash flow information relating to leases for the years ended December 31 (in millions):

	2022		2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	2	$	3	$	9
Operating cash flows from finance leases	—		1		—
Right-of-use assets obtained in exchange for lease liabilities:
Finance leases	$	—	$	—	$	1

EGTS has the following remaining operating lease commitments as of December 31, 2022 (in millions):

2023	$	2
2024	2
2025	2
2026	2
2027	2
Thereafter	14
Total undiscounted lease payments	24
Less - amounts representing interest	(6)
Lease liabilities	$	18

Leases

Leases

The following table summarizes EGTS' leases recorded on the Consolidated Balance Sheets as of December 31 (in millions):

	2022		2021
Right-of-use assets:
Operating leases	$	19	$	20
Total right-of-use assets	$	19	$	20
Lease liabilities:
Operating leases	$	18	$	18
Total lease liabilities	$	18	$	18

The following table summarizes EGTS' lease costs for the years ended December 31 (in millions):

	2022			2021			2020
Operating	$	2		$	3		$	6
Short-term	—			—			3
Total lease costs	$	2		$	3		$	9
Weighted-average remaining lease term (years):
Operating leases	13.7			14.7			11.7
Finance leases	0.0			0.0			4.6
Weighted-average discount rate:
Operating leases	4.3		%	4.3		%	4.4		%
Finance leases	—		%	—		%	2.6		%

The following table summarizes EGTS' supplemental cash flow information relating to leases for the years ended December 31 (in millions):

	2022		2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	2	$	3	$	9
Operating cash flows from finance leases	—		1		—
Right-of-use assets obtained in exchange for lease liabilities:
Finance leases	$	—	$	—	$	1

EGTS has the following remaining operating lease commitments as of December 31, 2022 (in millions):

2023	$	2
2024	2
2025	2
2026	2
2027	2
Thereafter	14
Total undiscounted lease payments	24
Less - amounts representing interest	(6)
Lease liabilities	$	18