Leases (Tables)

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Lease cost

Amounts related to the Company’s total lease cost and cash flows arising from lease transaction are as follows:

	HEI consolidated									Hawaiian Electric consolidated
Year ended December 31, 2019	Other leases			PPAs classified as leases			Total			Other leases			PPAs classified as leases			Total
(dollars in thousands)
Operating lease cost	$	10,265		$	63,319		$	73,584		$	4,955		$	63,319		$	68,274
Variable lease cost	13,034			192,138			205,172			10,272			192,138			202,410
Total lease cost	$	23,299		$	255,457		$	278,756		$	15,227		$	255,457		$	270,684
Other information
Cash paid for amounts included in the measurement of lease liabilities—Operating cash flows from operating leases	$	10,447		$	62,594		$	73,041		$	5,768		$	62,594		$	68,362
Weighted-average remaining lease term—operating leases (in years)	6.5			2.8			3.5			4.5			2.8			2.9
Weighted-average discount rate—operating leases	3.50		%	4.08		%	3.96		%	4.11		%	4.08		%	4.08		%

Schedule of operating lease liabilities

The following table summarizes the maturity of our operating lease liabilities as of December 31, 2019:

	HEI consolidated									Hawaiian Electric consolidated
(in millions)	Other leases			PPAs classified as leases			Total			Other leases			PPAs classified as leases			Total
2020	$	12		$	63		$	75		$	7		$	63		$	70
2021	10			63			73			5			63			68
2022	6			42			48			3			42			45
2023	5			—			5			2			—			2
2024	4			—			4			1			—			1
Thereafter	9			—			9			2			—			2
Total lease payments	46			168			214			20			168			188
Less: Imputed interest	(5		)	(9		)	(14		)	(2		)	(9		)	(11		)
Total present value of lease payments1	$	41		$	159		$	200		$	18		$	159		$	177

¹ 

The fixed capacity payment related to the existing PPA with PGV, which will expire on December 31, 2027, is not included as a lease liability as of December 31, 2019 as the facility has been offline since May 2018 due to lava flow on Hawaii Island. The annual capacity payment is approximately $7 million. The lease liability will be remeasured when PGV is back in service.

Schedule of future minimum rental payments for operating leases under 842

The future minimum lease obligations under operating leases in effect as of December 31, 2018, having a term in excess of one year as determined prior to the adoption of ASC 842 are as follows:

	HEI consolidated						Hawaiian Electric consolidated
(in millions)	Other leases		PPAs classified as leases		Total		Other leases		PPAs classified as leases		Total
2019	$	11	$	63	$	74	$	6	$	63	$	69
2020	9		63		72		6		63		69
2021	8		63		71		5		63		68
2022	5		42		47		2		42		44
2023	4		—		4		2		—		2
Thereafter	12		—		12		3		—		3
Total lease payments	$	49	$	231	$	280	$	24	$	231	$	255

HEI’s consolidated operating lease expense prior to the adoption of ASC 842 was $21 million and $20 million in 2018 and 2017, respectively. The Utilities’ operating lease expense prior to the adoption of ASC 842 was $11 million each year for 2018 and 2017.