Leases (Tables)

12 Months Ended

Dec. 31, 2019

Dec. 31, 2018

Lessee, Lease, Description [Line Items]

Lease, Cost

The components of lease cost were as follows:

Puget Energy and Puget Sound Energy	Year Ended December 31,
(Dollars in Thousands)	2019
Finance lease cost:
Amortization of right-of-use asset	$	562
Interest on lease liabilities	40
Total finance lease cost	$	602
Operating lease cost1	$	20,639

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^1.Includes $1.0 million allocated to PLNG at PE related to the Port of Tacoma lease.

Supplemental cash flow information related to leases was as follows:

Puget Energy and Puget Sound Energy	Year Ended December 31,
(Dollars in Thousands)	2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flow for operating leases	$	14,104
Investing cash flow for operating leases1	6,535
Operating cash flow for finance leases	40
Financing cash flow for finance leases	562
Non-cash disclosure upon commencement of new lease
Right-of-use assets obtained in exchange for new operating lease liabilities	$	5,976
Right-of-use assets obtained in exchange for new finance lease liabilities	745
Non-cash disclosure upon modification of existing lease
Modification of operating lease right-of-use assets	$	14,712

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¹ Includes $1.0 million allocated to PLNG at PE related to the Port of Tacoma lease.

Balance Sheet of Leases

Supplemental balance sheet information related to leases was as follows:

Puget Sound Energy
(Dollars in Thousands)	At December 31,
Operating Leases	2019
Operating lease right-of-use asset	$	183,048
Operating leases liabilities current	15,862
Operating lease liabilities long-term	174,327
Total Operating lease liabilities:	$	190,189
Finance Leases
Common Plant	$	1,488
Other current liabilities	669
Other deferred credits	811
Total finance lease liabilities	$	1,480
Weighted Average Remaining Lease Term
Operating leases	19.24 Years
Finance leases	2.76 Years
Weighted Average Discount Rate
Operating leases	3.59		%
Finance leases	2.98		%

Finance Lease, Liability, Maturity

The following tables summarize the Company’s estimated future minimum lease payments as of December 31, 2019, and December 31, 2018, respectively:

Maturities of lease liabilities	Future Minimum Lease Payments
(Dollars in Thousands)
At December 31,	Operating Leases		Finance Leases
2020	$	22,500	$	643
2021	22,527		508
2022	21,856		279
2023	21,415		98
2024	20,690		—
Thereafter	160,410		—
Total lease payments	$	269,398	$	1,528
Less imputed interest	(79,209)		(48)
Total net present value	$	190,189	$	1,480

Maturities of lease liabilities	Future Minimum Lease Payments
(Dollars in Thousands)
At December 31,	Operating Leases		Finance Leases
2019	$	20,635	$	495
2020	20,704		446
2021	20,630		311
2022	20,202		82
2023	19,223		—
Thereafter	132,889		—
Total lease payments	$	234,283	$	1,334

Lessee, Operating Lease, Liability, Maturity

The following tables summarize the Company’s estimated future minimum lease payments as of December 31, 2019, and December 31, 2018, respectively:

Maturities of lease liabilities	Future Minimum Lease Payments
(Dollars in Thousands)
At December 31,	Operating Leases		Finance Leases
2020	$	22,500	$	643
2021	22,527		508
2022	21,856		279
2023	21,415		98
2024	20,690		—
Thereafter	160,410		—
Total lease payments	$	269,398	$	1,528
Less imputed interest	(79,209)		(48)
Total net present value	$	190,189	$	1,480

Maturities of lease liabilities	Future Minimum Lease Payments
(Dollars in Thousands)
At December 31,	Operating Leases		Finance Leases
2019	$	20,635	$	495
2020	20,704		446
2021	20,630		311
2022	20,202		82
2023	19,223		—
Thereafter	132,889		—
Total lease payments	$	234,283	$	1,334

Schedule of Operating Lease Expense

PSE adopted ASU 2016-02 and elected the modified transition method practical expedient. Consequently, comparative period disclosures are presented in accordance with ASC 840. For further details see Note 2, "New Accounting Pronouncements" to the consolidated financial statements included in Item 8 of this report. Operating lease expense, which includes both cancellable and non-cancellable leases, net of sublease receipts are presented in the following table.

(Dollars in Thousands)	Operating Lease Expense
Year Ended December 31,
2018	$	34,093
2017	35,198

Subsidiaries [Member]

Lessee, Lease, Description [Line Items]

Assets and Liabilities, Lessee

Supplemental balance sheet information related to leases was as follows:

Puget Sound Energy
(Dollars in Thousands)	At December 31,
Operating Leases	2019
Operating lease right-of-use asset	$	183,048
Operating leases liabilities current	15,862
Operating lease liabilities long-term	174,327
Total Operating lease liabilities:	$	190,189
Finance Leases
Common Plant	$	1,488
Other current liabilities	669
Other deferred credits	811
Total finance lease liabilities	$	1,480
Weighted Average Remaining Lease Term
Operating leases	19.24 Years
Finance leases	2.76 Years
Weighted Average Discount Rate
Operating leases	3.59		%
Finance leases	2.98		%