Leases

The Company’s lease population is composed of operating leases. The Company leases land in El Paso, Texas, adjacent to Newman under a lease that expires in June 2033 with a renewal option of 25 years. The Company also has several other leases for offices, parking facilities and equipment that expire within the next 5 years. The Company has transmission and distribution lines that are operated under various land rights agreements, including easements, leases, permits and franchises. The components of lease expense are as follows:



	Three Months Ended March 31, 2019
Lease cost (in thousands):
Operating lease cost	$	253
Short-term lease cost	274
Variable lease cost	34
Total lease cost	$	561

Supplemental balance sheet information related to leases was as follows (in thousands, except lease term and discount rate):



	March 31, 2019
Operating leases:
Operating lease ROU assets (included in electric plant in service)	$	6,217

Operating lease liabilities (current included in other current liabilities)	552
Operating lease liabilities (net of current included in deferred credits and other liabilities)	5,336
Total lease liabilities	$	5,888

Weighted average remaining lease terms (in years)	12.22
Weighted average discount rate	4.63		%

Supplemental cash flow information related to leases was as follows (in thousands):



	Three Months Ended March 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used for operating leases	$	557

ROU assets obtained in exchange for lease obligations (in thousands):



	Three Months Ended March 31, 2019
Operating leases	$	6,217

Maturities of operating lease liabilities at March 31, 2019 were as follows (in thousands):



Year ending December 31,
2019	$	306
2020	770
2021	696
2022	639
2023	590
Thereafter	4,829
Total lease payments	7,830
Less imputed interest	(1,942		)
Total	$	5,888

Disclosures related to periods prior to adoption of the new lease standard

The Company’s total rental expense related to operating leases was $1.7 million and $2.4 million for the twelve months ended December 31, 2018 and 2017, respectively. As of December 31, 2018, the Company’s minimum future rental payments for the next five years were as follows (in thousands):



Year ending December 31,
2019	$	923
2020	820
2021	700
2022	544
2023	526