Leases (Tables)

12 Months Ended

Dec. 31, 2022

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


	HEI consolidated									Hawaiian Electric consolidated
Year ended December 31, 2022	Other leases			PPAs classified as leases			Total			Other leases			PPAs classified as leases			Total
(dollars in thousands)
Operating lease cost	$	20,811		$	46,160		$	66,971		$	15,030		$	46,160		$	61,190

Variable lease cost	8,931			241,199			250,130			6,152			241,199			247,351
Sublease income	(2,675)			—			(2,675)			(2,675)			—			(2,675)
Total operating lease cost	$	27,067		$	287,359		$	314,426		$	18,507		$	287,359		$	305,866
Finance lease costs:
Amortization of right-of-use assets	$	188		$	1,008		$	1,196		$	—		$	1,008		$	1,008
Interest on lease liabilities	20			786			806			—			786			786
Total finance lease cost	$	208		$	1,794		$	2,002		$	—		$	1,794		$	1,794
Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	19,143		$	40,050		$	59,193		$	14,068		$	40,050		$	54,118
Operating cash flows from financing leases	$	20		$	786		$	806		$	—		$	786		$	786
Financing cash flows from financing leases	$	179		$	670		$	849		$	—		$	670		$	670
Weighted-average remaining lease term (in years):
Operating leases	8.1			5.0			7.7			7.3			5.0			6.8
Finance leases	2.4			19.6			19.2			—			19.6			19.6
Weighted-average discount rate:
Operating leases	2.96		%	3.50		%	3.04		%	2.94		%	3.50		%	3.05		%
Finance leases	3.77		%	3.92		%	3.92		%	—			3.92		%	3.92		%


	HEI consolidated									Hawaiian Electric consolidated
Year ended December 31, 2021	Other leases			PPAs classified as leases			Total			Other leases			PPAs classified as leases			Total
(dollars in thousands)
Operating lease cost	$	14,184		$	66,070		$	80,254		$	8,578		$	66,070		$	74,648

Variable lease cost	14,360			257,472			271,832			11,586			257,472			269,058
Sublease income	(2,515)			—			(2,515)			(2,515)			—			(2,515)
Total lease cost	$	26,029		$	323,542		$	349,571		$	17,649		$	323,542		$	341,191
Other information
Cash paid for amounts included in the measurement of lease liabilities—Operating cash flows from operating leases	$	11,239		$	62,136		$	73,375		$	6,168		$	62,136		$	68,304
Weighted-average remaining lease term—operating leases (in years)	9.1			2.5			6.1			10.0			2.5			5.9
Weighted-average discount rate—operating leases	2.84		%	3.63		%	3.18		%	2.98		%	3.63		%	3.31		%

Schedule of operating lease liabilities

The following table summarizes the maturity of our operating lease liabilities as of December 31, 2022:


	HEI consolidated						Hawaiian Electric consolidated
(in millions)	Other leases		PPAs classified as leases		Total		Other leases		PPAs classified as leases		Total
2023	$	24	$	4	$	28	$	18	$	4	$	22
2024	21		4		25		15		4		19
2025	16		4		20		12		4		16
2026	15		4		19		12		4		16
2027	9		4		13		6		4		10
Thereafter	38		—		38		25		—		25
Total lease payments	123		20		143		88		20		108
Less: Imputed interest	(15)		(1)		(16)		(9)		(1)		(10)
Total present value of lease payments1	$	108	$	19	$	127	$	79	$	19	$	98

1The fixed capacity payment related to the existing PPA with PGV, which will expire on December 31, 2027, is included as a lease liability as of December 31, 2021. The PGV facility returned to service with firm capacity in the first quarter of 2021. The annual capacity payment based on the most recent accepted output is approximately $4 million. The lease liability will be remeasured when PGV ramps back up to the original contracted firm capacity.

The following table summarizes the maturity of our finance lease liabilities for PPAs as of December 31, 2022:


	HEI consolidated		Hawaiian Electric consolidated
(in millions)	PPAs classified as leases		PPAs classified as leases
2023	3		$	3
2024	3		3
2025	3		3
2026	4		4
2027	4		4
Thereafter	52		52
Total lease payments	69		69
Less: Imputed interest	(21)		(21)
Total present value of lease payments	$	48	$	48