Leases (Tables)

12 Months Ended

Dec. 31, 2019

Leases [Abstract]

Schedule of balance sheet impact of leases

For lease agreements entered into or reassessed after the adoption of the new leases standard, we combine lease and nonlease components.

Classification	2019		2018
	(dollars in thousands)
Right-of-Use Assets - Finance leases
Right-of-use assets	$	302,732	$	302,732
Less: Accumulated provision for depreciation	$	(257,504)	$	(252,233)
Total finance lease assets	$	45,228	$	50,499
Lease liabilities - Finance leases
Obligations under finance leases	$	75,649	$	81,730
Long-term debt and finance leases due within one year	$	6,081	$	5,461
Total finance lease liabilities	$	81,730	$	87,191

Classification	2019		2018
	(dollars in thousands)
Right-of-Use Assets - Operating leases
Electric plant in service	$	3,237	$	—
Total operating lease assets	$	3,237	$	—
Lease liabilities - Operating leases
Capitalization - Other	$	2,293	$	—
Other current liabilities	$	1,252	—
Total operating lease liabilities	$	3,545	$	—

Schedule of lease cost

		2019		2018
		(dollars in thousands)
Lease Cost	Classification
Finance lease cost:
Amortization of leased assets	Depreciation and amortization	$	4,756	$	4,199
Interest on lease liabilities	Interest expense	$	9,488	$	10,045
Operating lease cost	Inventory(1) & production expense	$	3,179	$	4,562
Total lease cost		$	17,423	$	18,806

⁽¹⁾The majority of our operating lease costs relate to our railcar leases and such costs are added to the cost of our fossil inventories and are recognized in fuel expense as the inventories are consumed.

Summary of lease terms and discount rates

	December 31, 2019		December 31, 2018
Lease Term and Discount Rate
Weighted-average remaining lease term (in years):
Finance leases	8.84		9.82
Operating leases	7.39		n/a
Weighted-average discount rate:
Finance leases	11.05	%	11.05	%
Operating leases	5.12	%	n/a

Schedule of cash paid for amounts included in the measurement of lease liabilities

	2019		2018
	(dollars in thousands)
Other Information
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases	$	9,488	$	15,258
Operating cash flows from operating leases	$	3,710	$	—
Financing cash flows from finance leases	$	5,461	$	7,166
Right-of-use assets obtained in exchange for new operating lease liabilities	$	6,983	$	—

Schedule of maturities of finance and operating lease liabilities

Maturity analysis of our finance and operating lease liabilities as of December 31, 2019 is as follows:

	(dollars in thousands)
Year Ending December 31,	Finance Leases		Operating Leases		Total
2020	$	14,949	$	1,399	$	16,348
2021	$	14,949	$	795	$	15,744
2022	$	14,949	$	605	$	15,554
2023	$	14,949	$	384	$	15,333
2024	$	14,949	$	72	$	15,021
Thereafter	$	55,532	$	1,085	$	56,617
Total lease payments	$	130,277	$	4,340	$	134,617
Less: imputed interest	$	(48,547)	$	(795)	$	(49,342)
Present value of lease liabilities	$	81,730	$	3,545	$	85,275

Schedule of lessor's income from leases

Lease income recognized during 2019 and 2018 was as follows:

	2019		2018
Lease income	$	6,071	$	4,969