Leases (Tables)

12 Months Ended

Dec. 31, 2024

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, 2024	Other leases			PPAs classified as leases			Total			Other leases			PPAs classified as leases			Total
(dollars in thousands)
Operating lease cost	$	13,736		$	4,163		$	17,899		$	12,821		$	4,163		$	16,984

Variable lease cost	5,378			222,189			227,567			5,191			222,189			227,380
Sublease income	(3,280)			—			(3,280)			(3,280)			—			(3,280)
Total operating lease cost	$	15,834		$	226,352		$	242,186		$	14,732		$	226,352		$	241,084
Finance lease costs:
Amortization of right-of-use assets	$	574		$	19,498		$	20,072		$	—		$	19,498		$	19,498
Interest on lease liabilities	33			32,344			32,377			—			32,344			32,344
Total finance lease cost	$	607		$	51,842		$	52,449		$	—		$	51,842		$	51,842
Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	15,604		$	3,871		$	19,475		$	14,739		$	3,871		$	18,610
Operating cash flows from finance leases	33			30,939			30,972			—			30,939			30,939
Financing cash flows from finance leases	559			4,119			4,678			—			4,119			4,119
Weighted-average remaining lease term (in years):
Operating leases	8.2			3.0			7.2			6.4			3.0			5.6
Finance leases	3.7			19.9			19.9			—			19.9			19.9
Weighted-average discount rate:
Operating leases	3.08		%	8.78		%	4.11		%	2.95		%	8.78		%	4.21		%
Finance leases	2.23		%	8.50		%	8.49		%	—			8.50		%	8.50		%


	HEI consolidated									Hawaiian Electric consolidated
Year ended December 31, 2023	Other leases			PPAs classified as leases			Total			Other leases			PPAs classified as leases			Total
(dollars in thousands)
Operating lease cost	$	16,853		$	4,071		$	20,924		$	15,947		$	4,071		$	20,018

Variable lease cost	5,813			202,556			208,369			5,605			202,556			208,161
Sublease income	(3,031)			—			(3,031)			(3,031)			—			(3,031)
Total operating lease cost	$	19,635		$	206,627		$	226,262		$	18,521		$	206,627		$	225,148
Finance lease costs:
Amortization of right-of-use assets	$	390		$	5,591		$	5,981		$	—		$	5,591		$	5,591
Interest on lease liabilities	32			6,350			6,382			—			6,350			6,350
Total finance lease cost	$	422		$	11,941		$	12,363		$	—		$	11,941		$	11,941
Other information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	18,560		$	4,071		$	22,631		$	17,729		$	4,071		$	21,800
Operating cash flows from finance leases	32			6,350			6,382			—			6,350			6,350
Financing cash flows from finance leases	391			3,128			3,519			—			3,128			3,128
Weighted-average remaining lease term (in years):
Operating leases	8.3			4.0			7.5			6.8			4.0			6.3
Finance leases	1.5			20.1			20.0			—			20.1			20.1
Weighted-average discount rate:
Operating leases	3.03		%	3.50		%	3.11		%	2.92		%	3.50		%	3.03		%
Finance leases	3.77		%	8.18		%	8.18		%	—			8.18		%	8.18		%

Schedule of Maturity of Operating Lease Liabilities

The following table summarizes the maturity of our operating lease liabilities as of December 31, 2024:


	HEI consolidated						Hawaiian Electric consolidated
(in millions)	Other leases		PPAs classified as leases		Total		Other leases		PPAs classified as leases		Total
2025	$	13	$	5	$	18	$	12	$	5	$	17
2026	13		5		18		12		5		17
2027	7		5		12		6		5		11
2028	5		—		5		5		—		5
2029	5		—		5		5		—		5
Thereafter	24		—		24		16		—		16
Total lease payments	67		15		82		56		15		71
Less: Imputed interest	(9)		(2)		(11)		(5)		(2)		(7)
Total present value of lease payments1	$	58	$	13	$	71	$	51	$	13	$	64

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, 2024. The annual capacity payment based on the most recent accepted output is approximately $5.2 million for 2025. 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, 2024:


	HEI consolidated		Hawaiian Electric consolidated
(in millions)	PPAs classified as leases		PPAs classified as leases
2025	$	45	$	45
2026	45		45
2027	45		45
2028	45		45
2029	45		45
Thereafter	672		672
Total lease payments	897		897
Less: Imputed interest	(462)		(462)
Total present value of lease payments	$	435	$	435

Note: Other finance leases are not material.