Leases

12 Months Ended

Dec. 31, 2023

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):

	2023		2022
Right-of-use assets:
Operating leases	$	501	$	545
Finance leases	399		418
Total right-of-use assets	$	900	$	963
Lease liabilities:
Operating leases	$	555	$	605
Finance leases	413		432
Total lease liabilities	$	968	$	1,037

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

	2023			2022			2021
Variable	$	439		$	552		$	611
Operating	136			136			161
Finance:
Amortization	21			20			23
Interest	35			36			38
Short-term	46			44			15
Total lease costs	$	677		$	788		$	848
Weighted-average remaining lease term (years):
Operating leases	7.4			7.4			7.6
Finance leases	27.5			28.1			28.1
Weighted-average discount rate:
Operating leases	4.5		%	4.1		%	4.3		%
Finance leases	8.6		%	8.6		%	8.6		%

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

	2023		2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	(138)	$	(141)	$	(163)
Operating cash flows from finance leases	(35)		(36)		(38)
Financing cash flows from finance leases	(27)		(25)		(28)
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	71	$	131	$	119
Finance leases	6		3		2

The Company has the following remaining lease commitments as of December 31, 2023 (in millions):

	Operating		Finance		Total
2024	$	148	$	63	$	211
2025	122		62		184
2026	97		62		159
2027	71		58		129
2028	45		52		97
Thereafter	170		512		682
Total undiscounted lease payments	653		809		1,462
Less - amounts representing interest	(98)		(396)		(494)
Lease liabilities	$	555	$	413	$	968

Leases

Leases

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

	2023		2022
Right-of-use assets:
Operating leases	$	501	$	545
Finance leases	399		418
Total right-of-use assets	$	900	$	963
Lease liabilities:
Operating leases	$	555	$	605
Finance leases	413		432
Total lease liabilities	$	968	$	1,037

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

	2023			2022			2021
Variable	$	439		$	552		$	611
Operating	136			136			161
Finance:
Amortization	21			20			23
Interest	35			36			38
Short-term	46			44			15
Total lease costs	$	677		$	788		$	848
Weighted-average remaining lease term (years):
Operating leases	7.4			7.4			7.6
Finance leases	27.5			28.1			28.1
Weighted-average discount rate:
Operating leases	4.5		%	4.1		%	4.3		%
Finance leases	8.6		%	8.6		%	8.6		%

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

	2023		2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	(138)	$	(141)	$	(163)
Operating cash flows from finance leases	(35)		(36)		(38)
Financing cash flows from finance leases	(27)		(25)		(28)
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	71	$	131	$	119
Finance leases	6		3		2

The Company has the following remaining lease commitments as of December 31, 2023 (in millions):

	Operating		Finance		Total
2024	$	148	$	63	$	211
2025	122		62		184
2026	97		62		159
2027	71		58		129
2028	45		52		97
Thereafter	170		512		682
Total undiscounted lease payments	653		809		1,462
Less - amounts representing interest	(98)		(396)		(494)
Lease liabilities	$	555	$	413	$	968

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):

	2023		2022
Right-of-use assets:
Operating leases	$	12	$	11
Finance leases	10		9
Total right-of-use assets	$	22	$	20
Lease liabilities:
Operating leases	$	12	$	11
Finance leases	12		11
Total lease liabilities	$	24	$	22

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

	2023			2022			2021
Variable	$	57		$	61		$	56
Operating	4			3			3
Finance:
Amortization	1			1			5
Interest	1			1			2
Short-term	6			5			3
Total lease costs	$	69		$	71		$	69
Weighted-average remaining lease term (years):
Operating leases	12.3			11.4			12.7
Finance leases	8.8			9.7			10.1
Weighted-average discount rate:
Operating leases	3.8		%	3.9		%	3.7		%
Finance leases	10.6		%	11.4		%	11.1		%

Cash payments associated with operating and finance lease liabilities approximated lease cost for the years ended December 31, 2023, 2022 and 2021.

PacifiCorp has the following remaining lease commitments as of December 31, 2023 (in millions):

	Operating		Finance		Total
2024	$	3	$	2	$	5
2025	2		2		4
2026	2		2		4
2027	1		2		3
2028	1		2		3
Thereafter	7		8		15
Total undiscounted lease payments	16		18		34
Less - amounts representing interest	(4)		(6)		(10)
Lease liabilities	$	12	$	12	$	24

Leases

Leases

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

	2023		2022
Right-of-use assets:
Operating leases	$	12	$	11
Finance leases	10		9
Total right-of-use assets	$	22	$	20
Lease liabilities:
Operating leases	$	12	$	11
Finance leases	12		11
Total lease liabilities	$	24	$	22

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

	2023			2022			2021
Variable	$	57		$	61		$	56
Operating	4			3			3
Finance:
Amortization	1			1			5
Interest	1			1			2
Short-term	6			5			3
Total lease costs	$	69		$	71		$	69
Weighted-average remaining lease term (years):
Operating leases	12.3			11.4			12.7
Finance leases	8.8			9.7			10.1
Weighted-average discount rate:
Operating leases	3.8		%	3.9		%	3.7		%
Finance leases	10.6		%	11.4		%	11.1		%

Cash payments associated with operating and finance lease liabilities approximated lease cost for the years ended December 31, 2023, 2022 and 2021.

PacifiCorp has the following remaining lease commitments as of December 31, 2023 (in millions):

	Operating		Finance		Total
2024	$	3	$	2	$	5
2025	2		2		4
2026	2		2		4
2027	1		2		3
2028	1		2		3
Thereafter	7		8		15
Total undiscounted lease payments	16		18		34
Less - amounts representing interest	(4)		(6)		(10)
Lease liabilities	$	12	$	12	$	24

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):

	2023		2022
Right-of-use assets:
Operating leases	$	7	$	9
Finance leases	289		303
Total right-of-use assets	$	296	$	312
Lease liabilities:
Operating leases	$	9	$	11
Finance leases	298		313
Total lease liabilities	$	307	$	324

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

	2023			2022			2021
Variable	$	264		$	369		$	449
Operating	2			2			2
Finance:
Amortization	15			14			13
Interest	26			27			28
Total lease costs	$	307		$	412		$	492
Weighted-average remaining lease term (years):
Operating leases	3.7			4.8			5.7
Finance leases	28.2			29.1			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):

	2023		2022		2021
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	(26)		(28)		(29)
Financing cash flows from finance leases	(18)		(17)		(16)
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	1	$	—	$	—
Finance leases	4		3		1

Nevada Power has the following remaining lease commitments as of December 31, 2023 (in millions):

	Operating		Finance		Total
2024	$	3	$	45	$	48
2025	3		44		47
2026	3		44		47
2027	2		42		44
2028	—		39		39
Thereafter	—		377		377
Total undiscounted lease payments	11		591		602
Less - amounts representing interest	(2)		(293)		(295)
Lease liabilities	$	9	$	298	$	307

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. The term of the lease is 41 years with the agreement ending December 31, 2054. Total ON Line finance lease obligations of $264 million and $276 million were included on the Consolidated Balance Sheets as of December 31, 2023 and 2022, 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):

	2023		2022
Right-of-use assets:
Operating leases	$	7	$	9
Finance leases	289		303
Total right-of-use assets	$	296	$	312
Lease liabilities:
Operating leases	$	9	$	11
Finance leases	298		313
Total lease liabilities	$	307	$	324

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

	2023			2022			2021
Variable	$	264		$	369		$	449
Operating	2			2			2
Finance:
Amortization	15			14			13
Interest	26			27			28
Total lease costs	$	307		$	412		$	492
Weighted-average remaining lease term (years):
Operating leases	3.7			4.8			5.7
Finance leases	28.2			29.1			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):

	2023		2022		2021
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	(26)		(28)		(29)
Financing cash flows from finance leases	(18)		(17)		(16)
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	1	$	—	$	—
Finance leases	4		3		1

Nevada Power has the following remaining lease commitments as of December 31, 2023 (in millions):

	Operating		Finance		Total
2024	$	3	$	45	$	48
2025	3		44		47
2026	3		44		47
2027	2		42		44
2028	—		39		39
Thereafter	—		377		377
Total undiscounted lease payments	11		591		602
Less - amounts representing interest	(2)		(293)		(295)
Lease liabilities	$	9	$	298	$	307

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. The term of the lease is 41 years with the agreement ending December 31, 2054. Total ON Line finance lease obligations of $264 million and $276 million were included on the Consolidated Balance Sheets as of December 31, 2023 and 2022, 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):

	2023		2022
Right-of-use assets:
Operating leases	$	16	$	16
Finance leases	100		105
Total right-of-use assets	$	116	$	121
Lease liabilities:
Operating leases	$	15	$	15
Finance leases	103		108
Total lease liabilities	$	118	$	123

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

	2023			2022			2021
Variable	$	99		$	103		$	86
Operating	2			1			1
Finance:
Amortization	5			5			5
Interest	8			8			9
Total lease costs	$	114		$	117		$	101
Weighted-average remaining lease term (years):
Operating leases	24.6			26.0			27.4
Finance leases	27.6			28.2			28.4
Weighted-average discount rate:
Operating leases	5.0		%	5.0		%	5.0		%
Finance leases	8.4		%	8.4		%	8.2		%

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

	2023		2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	(2)	$	(1)	$	(1)
Operating cash flows from finance leases	(8)		(9)		(9)
Financing cash flows from finance leases	(7)		(7)		(7)
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	1	$	1	$	—
Finance leases	3		1		1

Sierra Pacific has the following remaining lease commitments as of December 31, 2023 (in millions):

	Operating		Finance		Total
2024	$	1	$	16	$	17
2025	1		16		17
2026	1		15		16
2027	1		13		14
2028	1		12		13
Thereafter	23		127		150
Total undiscounted lease payments	28		199		227
Less - amounts representing interest	(13)		(96)		(109)
Lease liabilities	$	15	$	103	$	118

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. 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 $117 million and $107 million were included on the Consolidated Balance Sheets as of December 31, 2023 and 2022, 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):

	2023		2022
Right-of-use assets:
Operating leases	$	16	$	16
Finance leases	100		105
Total right-of-use assets	$	116	$	121
Lease liabilities:
Operating leases	$	15	$	15
Finance leases	103		108
Total lease liabilities	$	118	$	123

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

	2023			2022			2021
Variable	$	99		$	103		$	86
Operating	2			1			1
Finance:
Amortization	5			5			5
Interest	8			8			9
Total lease costs	$	114		$	117		$	101
Weighted-average remaining lease term (years):
Operating leases	24.6			26.0			27.4
Finance leases	27.6			28.2			28.4
Weighted-average discount rate:
Operating leases	5.0		%	5.0		%	5.0		%
Finance leases	8.4		%	8.4		%	8.2		%

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

	2023		2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	(2)	$	(1)	$	(1)
Operating cash flows from finance leases	(8)		(9)		(9)
Financing cash flows from finance leases	(7)		(7)		(7)
Right-of-use assets obtained in exchange for lease liabilities:
Operating leases	$	1	$	1	$	—
Finance leases	3		1		1

Sierra Pacific has the following remaining lease commitments as of December 31, 2023 (in millions):

	Operating		Finance		Total
2024	$	1	$	16	$	17
2025	1		16		17
2026	1		15		16
2027	1		13		14
2028	1		12		13
Thereafter	23		127		150
Total undiscounted lease payments	28		199		227
Less - amounts representing interest	(13)		(96)		(109)
Lease liabilities	$	15	$	103	$	118

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. 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 $117 million and $107 million were included on the Consolidated Balance Sheets as of December 31, 2023 and 2022, 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):

	2023		2022
Right-of-use assets:
Operating leases	$	18	$	19
Total right-of-use assets	$	18	$	19
Lease liabilities:
Operating leases	$	17	$	18
Total lease liabilities	$	17	$	18

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

	2023			2022			2021
Total operating lease costs	$	2		$	2		$	3
Weighted-average remaining operating lease term (years)	12.7			13.7			14.7
Weighted-average operating lease discount rate	4.3		%	4.3		%	4.3		%

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

	2023		2022		2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	2	$	2	$	3
Operating cash flows from finance leases	—		—		1

EGTS has the following remaining operating lease commitments as of December 31, 2023 (in millions):

2024	$	2
2025	2
2026	2
2027	2
2028	2
Thereafter	12
Total undiscounted lease payments	22
Less - amounts representing interest	(5)
Lease liabilities	$	17