Leases (Tables)

12 Months Ended

Dec. 31, 2020

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, 2020	Other leases			PPAs classified as leases			Total			Other leases			PPAs classified as leases			Total
(dollars in thousands)
Operating lease cost	$	11,201		$	63,319		$	74,520		$	6,022		$	63,319		$	69,341

Variable lease cost	12,765			217,173			229,938			9,842			217,173			227,015
Total lease cost	$	23,966		$	280,492		$	304,458		$	15,864		$	280,492		$	296,356
Other information
Cash paid for amounts included in the measurement of lease liabilities—Operating cash flows from operating leases	$	10,783		$	60,801		$	71,584		$	6,223		$	60,801		$	67,024
Weighted-average remaining lease term—operating leases (in years)	8.9			1.8			4.4			10.1			1.8			3.8
Weighted-average discount rate—operating leases	2.87		%	4.08		%	3.61		%	3.20		%	4.08		%	3.84		%


	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, 2020:


	HEI consolidated						Hawaiian Electric consolidated
(in millions)	Other leases		PPAs classified as leases		Total		Other leases		PPAs classified as leases		Total
2021	$	11	$	63	$	74	$	6	$	63	$	69
2022	9		42		51		4		42		46
2023	8		—		8		4		—		4
2024	7		—		7		3		—		3
2025	5		—		5		3		—		3
Thereafter	27		—		27		19		—		19
Total lease payments	67		105		172		39		105		144
Less: Imputed interest	(8)		(4)		(12)		(6)		(4)		(10)
Total present value of lease payments1	$	59	$	101	$	160	$	33	$	101	$	134

1The 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, 2020. While the facility returned to service in the fourth quarter of 2020, it has been operating at a level providing only limited output, which does not provide firm capacity and does not obligate the Utility to make firm capacity payments. The contractual annual capacity payment is approximately $7 million. The lease liability will be remeasured when PGV returns to operating with firm capacity, at which time contractual firm capacity payments are reestablished.