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Leases | 12 Months Ended
--- | ---
Dec. 31, 2024
Leases [Abstract] |
Leases | LEASES The Corporation and its subsidiaries lease office facilities, utility equipment, land, and communication tower space with remaining terms of up to 23 years, with optional renewal terms. Certain lease agreements include rental payments adjusted periodically for inflation or require the payment of real estate taxes, insurance, maintenance, or other operating expenses associated with the leased premises. The Corporation's subsidiaries also have finance leases related to generating facilities with remaining terms of up to 31 years. Leases were presented on the consolidated balance sheets as follows.
($ millions) | 2024 |  | 2023 |
Operating leases |  |  |
Other assets | 64 |  |  | 51 |
Accounts payable and other current liabilities | (17) |  |  | (12) |
Other liabilities | (47) |  |  | (39) |
Finance leases (1) |  |  |
Regulatory assets | 142 |  |  | 137 |
PPE, net | 205 |  |  | 205 |
Accounts payable and other current liabilities | (4) |  |  | (3) |
Finance leases | (343) |  |  | (339) |
(1) FortisBC Electric has a finance lease for the BPPA (Note 8), which relates to the sale of the output of the Brilliant hydroelectric plant, and for the Brilliant Terminal Station ("BTS"), which relates to the use of the station. Both agreements expire in 2056. In exchange for the specified take-or-pay amounts of power, the BPPA requires semi-annual payments based on a return on capital, which includes the original and ongoing capital cost, and related variable power purchase costs. The BTS requires semi-annual payments based on a charge related to the recovery of the capital cost of the BTS, and related variable operating costs. The components of lease expense were as follows.
($ millions) | 2024 |  | 2023 |
Operating lease cost | 19 |  |  | 12 |
Finance lease cost: |  |  |
Amortization | 2 |  |  | 3 |
Interest | 33 |  |  | 33 |
Variable lease cost | 21 |  |  | 23 |
Total lease cost | 75 |  |  | 71 |
As at December 31, 2024, the present value of minimum lease payments was as follows.
($ millions) | Operating Leases | Finance Leases | Total
2025 | 18 |  | 37 |  | 55 |
2026 | 15 |  | 37 |  | 52 |
2027 | 12 |  | 37 |  | 49 |
2028 | 6 |  | 37 |  | 43 |
2029 | 4 |  | 37 |  | 41 |
Thereafter | 19 |  | 954 |  | 973 |
| 74 |  | 1,139 |  | 1,213 |
Less: Imputed interest | (10) |  | (792) |  | (802) |
Total lease obligations | 64 |  | 347 |  | 411 |
Less: Current installments | (17) |  | (4) |  | (21) |
| 47 |  | 343 |  | 390 |
Supplemental lease information follows. |  |  |
($ millions, except as indicated) | 2024 |  |  | 2023 |
Weighted average remaining lease term (years) |  |  |
Operating leases | 7 |  | 7
Finance leases | 31 |  | 32
Weighted average discount rate (%) |  |  |
Operating leases | 4.6 |  |  | 4.5 |
Finance leases | 5.0 |  |  | 5.0 |
Leases | LEASES The Corporation and its subsidiaries lease office facilities, utility equipment, land, and communication tower space with remaining terms of up to 23 years, with optional renewal terms. Certain lease agreements include rental payments adjusted periodically for inflation or require the payment of real estate taxes, insurance, maintenance, or other operating expenses associated with the leased premises. The Corporation's subsidiaries also have finance leases related to generating facilities with remaining terms of up to 31 years. Leases were presented on the consolidated balance sheets as follows.
($ millions) | 2024 |  | 2023 |
Operating leases |  |  |
Other assets | 64 |  |  | 51 |
Accounts payable and other current liabilities | (17) |  |  | (12) |
Other liabilities | (47) |  |  | (39) |
Finance leases (1) |  |  |
Regulatory assets | 142 |  |  | 137 |
PPE, net | 205 |  |  | 205 |
Accounts payable and other current liabilities | (4) |  |  | (3) |
Finance leases | (343) |  |  | (339) |
(1) FortisBC Electric has a finance lease for the BPPA (Note 8), which relates to the sale of the output of the Brilliant hydroelectric plant, and for the Brilliant Terminal Station ("BTS"), which relates to the use of the station. Both agreements expire in 2056. In exchange for the specified take-or-pay amounts of power, the BPPA requires semi-annual payments based on a return on capital, which includes the original and ongoing capital cost, and related variable power purchase costs. The BTS requires semi-annual payments based on a charge related to the recovery of the capital cost of the BTS, and related variable operating costs. The components of lease expense were as follows.
($ millions) | 2024 |  | 2023 |
Operating lease cost | 19 |  |  | 12 |
Finance lease cost: |  |  |
Amortization | 2 |  |  | 3 |
Interest | 33 |  |  | 33 |
Variable lease cost | 21 |  |  | 23 |
Total lease cost | 75 |  |  | 71 |
As at December 31, 2024, the present value of minimum lease payments was as follows.
($ millions) | Operating Leases | Finance Leases | Total
2025 | 18 |  | 37 |  | 55 |
2026 | 15 |  | 37 |  | 52 |
2027 | 12 |  | 37 |  | 49 |
2028 | 6 |  | 37 |  | 43 |
2029 | 4 |  | 37 |  | 41 |
Thereafter | 19 |  | 954 |  | 973 |
| 74 |  | 1,139 |  | 1,213 |
Less: Imputed interest | (10) |  | (792) |  | (802) |
Total lease obligations | 64 |  | 347 |  | 411 |
Less: Current installments | (17) |  | (4) |  | (21) |
| 47 |  | 343 |  | 390 |
Supplemental lease information follows. |  |  |
($ millions, except as indicated) | 2024 |  |  | 2023 |
Weighted average remaining lease term (years) |  |  |
Operating leases | 7 |  | 7
Finance leases | 31 |  | 32
Weighted average discount rate (%) |  |  |
Operating leases | 4.6 |  |  | 4.5 |
Finance leases | 5.0 |  |  | 5.0 |

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- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
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