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Commitments and Contingencies
 12 Months Ended
Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
For the year ended December 31, 2021, approximately 13.3% of the Company’s energy output was obtained at an average cost of approximately $0.034 per Kilowatt Hour (kWh) through long-term contracts with three of the Washington Public Utility Districts (PUDs) that own hydroelectric projects on the Columbia River.  The purchase of power from the Columbia River projects is on a pro rata share basis under which the Company pays a proportionate share of the annual debt service, operating and maintenance costs and other expenses associated with each project, in proportion to the contractual share of power that PSE obtains from that project.  In these instances, PSE’s payments are not contingent upon the projects being operable; therefore, PSE is required to make the payments even if power is not delivered.  These projects are financed substantially through debt service payments and their annual costs should not vary significantly over the term of the contracts unless additional financing is required to meet the costs of major maintenance, repairs or replacements, or license requirements.  The Company’s share of the costs and the output of the projects is subject to reduction due to various withdrawal rights of the PUDs and others over the contract lives.
The Company's expenses under these PUD contracts were as follows for the years ended December 31, :
(Dollars in Thousands)202120202019
PUD contract costs$117,812 $116,874 $87,135 

As of December 31, 2021, the Company purchased portions of the power output of the PUDs' projects as set forth in the following table:
Company's Current Share of
(Dollars in Thousands)Contract
Expiration		Percent of
Output		Megawatt CapacityEstimated 2022 Costs2022 Debt Service CostsInterest included in 2022 Debt Service CostsDebt Outstanding
Chelan County PUD:
Rock Island Project203130.0 %187$43,568 $12,074 $5,484 $99,510 
Rocky Reach Project203130.0 39043,942 5,056 2,090 36,723 
Douglas County PUD:
Wells Project1
202831.1 26143,095 — — — 
Grant County PUD:
Priest Rapids Development20520.6 61,749 894 450 11,276 
Wanapum Development20520.6 71,749 894 450 11,276 
Total851$134,103 $18,918 $8,474 $158,785 
_______________
1.In March 2017, PSE entered a new PPA with Douglas County PUD for Wells Project output that begins upon expiration of the existing contract on August 31, 2018, and continues through September 30, 2028.
2.In March 2021, PSE entered into a new PPA with Chelan County PUD for additional Rocky Reach and Rock Island output. The contract begins on January 1, 2022, and continues through December 31, 2026. This agreement increases PSE’s share of output by 5% for each project, which equates to additional capacity of 31MW for Rock Island and 65MW for Rocky Reach.
The following table summarizes the Company’s estimated payment obligations for power purchases from the Columbia River projects, electric portfolio contracts and electric wholesale market transactions.  These contracts have varying terms and may include escalation and termination provisions.
(Dollars in Thousands)20222023202420252026ThereafterTotal
Columbia River projects$151,378 $136,635 $134,188 $124,724 $123,243 $421,272 $1,091,440 
Electric portfolio contracts330,189 377,331 384,655 344,021 142,903 1,755,102 3,334,201 
Electric wholesale market transactions300,027 62,821 62,761 11,616 11,616 — 448,841 
Total$781,594 $576,787 $581,604 $480,361 $277,762 $2,176,374 $4,874,482 

Total purchased power contracts provided the Company with approximately 13.1 million, 13.2 million and 12.5 million MWhs of firm energy at a cost of approximately $631.4 million, $491.7 million and $550.6 million for the years 2021, 2020, and 2019, respectively.

Natural Gas Supply Obligations
The Company has entered into various firm supply, transportation and storage service contracts in order to ensure adequate availability of natural gas supply for its customers and generation requirements.  The Company contracts for its long-term natural gas supply on a firm basis, which means the Company has a 100% daily take obligation and the supplier has a 100% daily delivery obligation to ensure service to PSE’s customers and generation requirements. The transportation and storage contracts, which have remaining terms from 1 to 23 years, provide that the Company must pay a fixed demand charge each month, regardless of actual usage. The Company incurred demand charges of $136.4 million, $135.8 million, and $125.1 million for firm transportation, storage and peaking services for its natural gas customers for the years 2021, 2020, and 2019. The Company incurred demand charges of $52.8 million, $51.2 million, and $51.2 million for firm transportation, storage and peaking services for the natural gas supply for its combustion turbines for the years 2021, 2020, and 2019.
The following table summarizes the Company’s obligations for future natural gas supply and demand charges through the primary terms of its existing contracts.  The quantified obligations are based on the FERC and Canadian Energy Regulator currently authorized rates, which are subject to change.
Natural Gas Supply and Demand Charge Obligations
(Dollars in Thousands)		20222023202420252026ThereafterTotal
Natural gas wholesale market transactions$564,580 $299,400 $210,198 $153,054 $98,725 $— $1,325,957 
Firm transportation service177,185 166,153 131,611 114,470 98,847 694,279 1,382,545 
Firm storage service8,899 2,270 68 67 56 — 11,360 
Total$750,664 $467,823 $341,877 $267,591 $197,628 $694,279 $2,719,862 

Service Contracts
The following table summarizes the Company’s estimated obligations for service contracts through the terms of its existing contracts.
Service Contract Obligations
(Dollars in Thousands)		20222023202420252026ThereafterTotal
Energy production service contracts$31,167 $31,916 $32,699 $33,468 $17,087 $81,854 $228,191 
Automated meter reading system46,455 47,517 47,526 48,249 49,098 — 238,845 
Total$77,622 $79,433 $80,225 $81,717 $66,185 $81,854 $467,036 

Other Commitments and Contingencies
For information regarding PSE's environmental remediation obligations, see Note 4, "Regulation and Rates," to the consolidated financial statements included in Item 8 of this report.