Leases (Tables)

12 Months Ended

Dec. 31, 2021

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,		Year Ended December 31,
(Dollars in Thousands)	2021		2020
Finance lease cost:
Amortization of right-of-use asset	$	1,291	$	607
Interest on lease liabilities	358		34
Total finance lease cost	$	1,649	$	641
Operating lease cost1	$	23,983	$	21,983

_______________

1.Includes $1.4 million and $1.0 million allocated to PLNG at Puget Energy related to the Port of Tacoma lease or both of the years ended December 31, 2021 and December 31, 2020, respectively.

Supplemental cash flow information related to leases was as follows:

Puget Energy and Puget Sound Energy	Year Ended December 31,		Year Ended December 31,
(Dollars in Thousands)	2021		2020
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flow for operating leases	$	16,440	$	15,305
Investing cash flow for operating leases1	7,543		6,678
Operating cash flow for finance leases	358		34
Financing cash flow for finance leases	1,291		607
Non-cash disclosure upon commencement of new lease
Right-of-use assets obtained in exchange for new operating lease liabilities	$	4,820	$	6,302
Right-of-use assets obtained in exchange for new finance lease liabilities	105,176		—
Non-cash disclosure upon modification of existing lease
Modification of operating lease right-of-use assets	$	26,287	$	—

_______________

1 Includes $1.4 million and $1.0 million allocated to PLNG at Puget Energy related to the Port of Tacoma lease for both of the years ended December 31, 2021 and December 31, 2020, respectively.

Balance Sheet of Leases

Supplemental balance sheet information related to leases was as follows:

Puget Sound Energy
(Dollars in Thousands)	At December 31,			At December 31,
Operating Leases	2021			2020
Operating lease right-of-use asset	$	184,957		$	172,167
Operating leases liabilities current	$	20,398		$	19,204
Operating lease liabilities long-term	172,510			160,980
Total operating lease liabilities:	$	192,908		$	180,184
Finance Leases
Common plant	$	61,227		$	881
Electric plant	43,793			—
Total finance lease assets	$	105,020		$	881
Other current liabilities	$	1,742		$	475
Finance lease liabilities	105,303			320
Total finance lease liabilities	$	107,045		$	795
Weighted Average Remaining Lease Term
Operating leases	22.80 Years			18.97 Years
Finance leases	20.15 Years			2.00 Years
Weighted Average Discount Rate
Operating leases	3.27		%	3.59		%
Finance leases	3.07		%	2.98		%

Finance Lease, Liability, Maturity

The following tables summarize the Company’s estimated future minimum lease payments as of December 31, 2021:

Maturities of lease liabilities	Future Minimum Lease Payments
(Dollars in Thousands)
At December 31,	Operating Leases		Finance Leases
2022	$	23,945	$	4,881
2023	23,717		6,260
2024	23,000		6,286
2025	19,636		6,411
2026	17,126		6,540
Thereafter	164,797		116,553
Total lease payments	$	272,221	$	146,931
Less imputed interest	(79,313)		(39,886)
Total net present value	$	192,908	$	107,045

Lessee, Operating Lease, Liability, Maturity

The following tables summarize the Company’s estimated future minimum lease payments as of December 31, 2021:

Maturities of lease liabilities	Future Minimum Lease Payments
(Dollars in Thousands)
At December 31,	Operating Leases		Finance Leases
2022	$	23,945	$	4,881
2023	23,717		6,260
2024	23,000		6,286
2025	19,636		6,411
2026	17,126		6,540
Thereafter	164,797		116,553
Total lease payments	$	272,221	$	146,931
Less imputed interest	(79,313)		(39,886)
Total net present value	$	192,908	$	107,045

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,			At December 31,
Operating Leases	2021			2020
Operating lease right-of-use asset	$	184,957		$	172,167
Operating leases liabilities current	$	20,398		$	19,204
Operating lease liabilities long-term	172,510			160,980
Total operating lease liabilities:	$	192,908		$	180,184
Finance Leases
Common plant	$	61,227		$	881
Electric plant	43,793			—
Total finance lease assets	$	105,020		$	881
Other current liabilities	$	1,742		$	475
Finance lease liabilities	105,303			320
Total finance lease liabilities	$	107,045		$	795
Weighted Average Remaining Lease Term
Operating leases	22.80 Years			18.97 Years
Finance leases	20.15 Years			2.00 Years
Weighted Average Discount Rate
Operating leases	3.27		%	3.59		%
Finance leases	3.07		%	2.98		%