Leases

12 Months Ended

Dec. 31, 2021

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):

	2021		2020
Right-of-use assets:
Operating leases	$	524	$	517
Finance leases	448		501
Total right-of-use assets	$	972	$	1,018
Lease liabilities:
Operating leases	$	577	$	569
Finance leases	463		514
Total lease liabilities	$	1,040	$	1,083

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

	2021			2020			2019
Variable	$	611		$	592		$	623
Operating	161			151			170
Finance:
Amortization	23			18			16
Interest	38			40			41
Short-term	15			20			7
Total lease costs	$	848		$	821		$	857
Weighted-average remaining lease term (years):
Operating leases	7.6			7.4			7.6
Finance leases	28.1			27.5			28.8
Weighted-average discount rate:
Operating leases	4.3		%	4.5		%	5.2		%
Finance leases	8.6		%	8.5		%	8.6		%

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

	2021		2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	(163)	$	(152)	$	(153)
Operating cash flows from finance leases	(38)		(40)		(42)
Financing cash flows from finance leases	(28)		(24)		(19)
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	119	$	83	$	82
Finance leases	2		19		14

The Company has the following remaining lease commitments as of December 31, 2021 (in millions):

	Operating		Finance		Total
2022	$	157	$	72	$	229
2023	124		62		186
2024	93		62		155
2025	71		60		131
2026	55		60		115
Thereafter	186		607		793
Total undiscounted lease payments	686		923		1,609
Less - amounts representing interest	(109)		(460)		(569)
Lease liabilities	$	577	$	463	$	1,040

Leases

Leases

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

	2021		2020
Right-of-use assets:
Operating leases	$	524	$	517
Finance leases	448		501
Total right-of-use assets	$	972	$	1,018
Lease liabilities:
Operating leases	$	577	$	569
Finance leases	463		514
Total lease liabilities	$	1,040	$	1,083

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

	2021			2020			2019
Variable	$	611		$	592		$	623
Operating	161			151			170
Finance:
Amortization	23			18			16
Interest	38			40			41
Short-term	15			20			7
Total lease costs	$	848		$	821		$	857
Weighted-average remaining lease term (years):
Operating leases	7.6			7.4			7.6
Finance leases	28.1			27.5			28.8
Weighted-average discount rate:
Operating leases	4.3		%	4.5		%	5.2		%
Finance leases	8.6		%	8.5		%	8.6		%

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

	2021		2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	(163)	$	(152)	$	(153)
Operating cash flows from finance leases	(38)		(40)		(42)
Financing cash flows from finance leases	(28)		(24)		(19)
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	119	$	83	$	82
Finance leases	2		19		14

The Company has the following remaining lease commitments as of December 31, 2021 (in millions):

	Operating		Finance		Total
2022	$	157	$	72	$	229
2023	124		62		186
2024	93		62		155
2025	71		60		131
2026	55		60		115
Thereafter	186		607		793
Total undiscounted lease payments	686		923		1,609
Less - amounts representing interest	(109)		(460)		(569)
Lease liabilities	$	577	$	463	$	1,040

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):

	2021		2020
Right-of-use assets:
Operating leases	$	11	$	11
Finance leases	11		17
Total right-of-use assets	$	22	$	28
Lease liabilities:
Operating leases	$	11	$	11
Finance leases	12		17
Total lease liabilities	$	23	$	28

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

	2021			2020			2019
Variable	$	56		$	60		$	77
Operating	3			3			3
Finance:
Amortization	5			2			1
Interest	2			2			2
Short-term	3			1			2
Total lease costs	$	69		$	68		$	85
Weighted-average remaining lease term (years):
Operating leases	12.7			13.9			14.0
Finance leases	10.1			8.4			9.1
Weighted-average discount rate:
Operating leases	3.7		%	3.8		%	3.7		%
Finance leases	11.1		%	10.5		%	10.6		%

Cash payments associated with operating and finance lease liabilities approximated lease cost for the years ended December 31, 2021, 2020 and 2019.

PacifiCorp has the following remaining lease commitments as of December 31, 2021 (in millions):

	Operating		Finance		Total
2022	$	3	$	3	$	6
2023	2		2		4
2024	1		2		3
2025	1		2		3
2026	1		2		3
Thereafter	6		10		16
Total undiscounted lease payments	14		21		35
Less - amounts representing interest	(3)		(9)		(12)
Lease liabilities	$	11	$	12	$	23

Leases

Leases

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

	2021		2020
Right-of-use assets:
Operating leases	$	11	$	11
Finance leases	11		17
Total right-of-use assets	$	22	$	28
Lease liabilities:
Operating leases	$	11	$	11
Finance leases	12		17
Total lease liabilities	$	23	$	28

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

	2021			2020			2019
Variable	$	56		$	60		$	77
Operating	3			3			3
Finance:
Amortization	5			2			1
Interest	2			2			2
Short-term	3			1			2
Total lease costs	$	69		$	68		$	85
Weighted-average remaining lease term (years):
Operating leases	12.7			13.9			14.0
Finance leases	10.1			8.4			9.1
Weighted-average discount rate:
Operating leases	3.7		%	3.8		%	3.7		%
Finance leases	11.1		%	10.5		%	10.6		%

Cash payments associated with operating and finance lease liabilities approximated lease cost for the years ended December 31, 2021, 2020 and 2019.

PacifiCorp has the following remaining lease commitments as of December 31, 2021 (in millions):

	Operating		Finance		Total
2022	$	3	$	3	$	6
2023	2		2		4
2024	1		2		3
2025	1		2		3
2026	1		2		3
Thereafter	6		10		16
Total undiscounted lease payments	14		21		35
Less - amounts representing interest	(3)		(9)		(12)
Lease liabilities	$	11	$	12	$	23

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):

	2021		2020
Right-of-use assets:
Operating leases	$	10	$	12
Finance leases	326		351
Total right-of-use assets	$	336	$	363
Lease liabilities:
Operating leases	$	13	$	15
Finance leases	336		361
Total lease liabilities	$	349	$	376

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

	2021			2020			2019
Variable	$	449		$	434		$	434
Operating	2			3			3
Finance:
Amortization	13			12			13
Interest	28			29			37
Total lease costs	$	492		$	478		$	487
Weighted-average remaining lease term (years):
Operating leases	5.7			6.5			7.5
Finance leases	28.7			28.7			30.6
Weighted-average discount rate:
Operating leases	4.5		%	4.5		%	4.5		%
Finance leases	8.6		%	8.6		%	8.7		%

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

	2021		2020		2019
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	(29)		(34)		(37)
Financing cash flows from finance leases	(16)		(15)		(14)
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	—	$	1	$	—
Finance leases	1		9		9

Nevada Power has the following remaining lease commitments as of December 31, 2021 (in millions):

	Operating		Finance		Total
2022	$	3	$	54	$	57
2023	2		44		46
2024	3		44		47
2025	2		43		45
2026	3		43		46
Thereafter	2		448		450
Total undiscounted lease payments	15		676		691
Less - amounts representing interest	(2)		(340)		(342)
Lease liabilities	$	13	$	336	$	349

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 $286 million and $295 million were included on the Consolidated Balance Sheets as of December 31, 2021 and 2020, 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):

	2021		2020
Right-of-use assets:
Operating leases	$	10	$	12
Finance leases	326		351
Total right-of-use assets	$	336	$	363
Lease liabilities:
Operating leases	$	13	$	15
Finance leases	336		361
Total lease liabilities	$	349	$	376

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

	2021			2020			2019
Variable	$	449		$	434		$	434
Operating	2			3			3
Finance:
Amortization	13			12			13
Interest	28			29			37
Total lease costs	$	492		$	478		$	487
Weighted-average remaining lease term (years):
Operating leases	5.7			6.5			7.5
Finance leases	28.7			28.7			30.6
Weighted-average discount rate:
Operating leases	4.5		%	4.5		%	4.5		%
Finance leases	8.6		%	8.6		%	8.7		%

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

	2021		2020		2019
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	(29)		(34)		(37)
Financing cash flows from finance leases	(16)		(15)		(14)
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	—	$	1	$	—
Finance leases	1		9		9

Nevada Power has the following remaining lease commitments as of December 31, 2021 (in millions):

	Operating		Finance		Total
2022	$	3	$	54	$	57
2023	2		44		46
2024	3		44		47
2025	2		43		45
2026	3		43		46
Thereafter	2		448		450
Total undiscounted lease payments	15		676		691
Less - amounts representing interest	(2)		(340)		(342)
Lease liabilities	$	13	$	336	$	349

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 $286 million and $295 million were included on the Consolidated Balance Sheets as of December 31, 2021 and 2020, 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):

	2021		2020
Right-of-use assets:
Operating leases	$	15	$	16
Finance leases	111		126
Total right-of-use assets	$	126	$	142
Lease liabilities:
Operating leases	$	15	$	16
Finance leases	115		130
Total lease liabilities	$	130	$	146

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

	2021			2020			2019
Variable	$	86		$	78		$	69
Operating	1			2			1
Finance:
Amortization	5			4			2
Interest	9			9			2
Total lease costs	$	101		$	93		$	74
Weighted-average remaining lease term (years):
Operating leases	27.4			27.2			26.3
Finance leases	28.4			27.8			20.9
Weighted-average discount rate:
Operating leases	5.0		%	5.0		%	5.0		%
Finance leases	8.2		%	8.1		%	7.1		%

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

	2021		2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	(1)	$	(2)	$	(3)
Operating cash flows from finance leases	(9)		(6)		(3)
Financing cash flows from finance leases	(7)		(5)		(3)
Right-of-use assets obtained in exchange for lease liabilities:
Finance leases	$	1	$	89	$	5

Sierra Pacific has the following remaining lease commitments as of December 31, 2021 (in millions):

	Operating		Finance		Total
2022	$	1	$	16	$	17
2023	1		16		17
2024	1		15		16
2025	1		15		16
2026	1		15		16
Thereafter	24		149		173
Total undiscounted lease payments	29		226		255
Less - amounts representing interest	(14)		(111)		(125)
Lease liabilities	$	15	$	115	$	130

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 $110 million and $122 million were included on the Consolidated Balance Sheets as of December 31, 2021 and 2020, 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):

	2021		2020
Right-of-use assets:
Operating leases	$	15	$	16
Finance leases	111		126
Total right-of-use assets	$	126	$	142
Lease liabilities:
Operating leases	$	15	$	16
Finance leases	115		130
Total lease liabilities	$	130	$	146

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

	2021			2020			2019
Variable	$	86		$	78		$	69
Operating	1			2			1
Finance:
Amortization	5			4			2
Interest	9			9			2
Total lease costs	$	101		$	93		$	74
Weighted-average remaining lease term (years):
Operating leases	27.4			27.2			26.3
Finance leases	28.4			27.8			20.9
Weighted-average discount rate:
Operating leases	5.0		%	5.0		%	5.0		%
Finance leases	8.2		%	8.1		%	7.1		%

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

	2021		2020		2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	(1)	$	(2)	$	(3)
Operating cash flows from finance leases	(9)		(6)		(3)
Financing cash flows from finance leases	(7)		(5)		(3)
Right-of-use assets obtained in exchange for lease liabilities:
Finance leases	$	1	$	89	$	5

Sierra Pacific has the following remaining lease commitments as of December 31, 2021 (in millions):

	Operating		Finance		Total
2022	$	1	$	16	$	17
2023	1		16		17
2024	1		15		16
2025	1		15		16
2026	1		15		16
Thereafter	24		149		173
Total undiscounted lease payments	29		226		255
Less - amounts representing interest	(14)		(111)		(125)
Lease liabilities	$	15	$	115	$	130

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 $110 million and $122 million were included on the Consolidated Balance Sheets as of December 31, 2021 and 2020, respectively, for these leases. See Note 2 for further discussion of Sierra Pacific's remaining lease obligations.