APS 2013 Annual Report Download - page 71
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Table of Contents
Off-Balance Sheet Arrangements
See Note 19 for a discussion of the impacts on our financial statements of consolidating certain VIEs.
Contractual Obligations
The following table summarizes Pinnacle West’s consolidated contractual requirements as of December 31, 2013 (dollars in millions):
2014
2015-
2016
2017-
2018 Thereafter Total
Long-term debt payments, including interest:
(a)
APS $710 $986 $270 $3,374 $5,340
Pinnacle West 2 127 — — 129
Total long-term debt payments, including
interest 712 1,113 270 3,374 5,469
Short-term debt payments, including interest
(b) 153 — — — 153
Fuel and purchased power commitments (c) 644 1,229 1,154 8,471 11,498
Renewable energy credits (d) 48 84 84 453 669
Purchase obligations (e) 85 37 39 246 407
Coal reclamation 1 9 28 170 208
Nuclear decommissioning funding
requirements 17 19 466 106
Noncontrolling interests (f) 20 35 — — 55
Operating lease payments 20 23 959 111
Total contractual commitments $1,700 $2,549 $1,588 $12,839 $18,676
(a) The long-term debt matures at various dates through 2042 and bears interest principally at fixed rates. Interest on variable-rate long-term debt is
determined by using average rates at December 31, 2013 (see Note 6).
(b) The short-term debt represents commercial paper borrowings at APS (see Note 5).
(c) Our fuel and purchased power commitments include purchases of coal, electricity, natural gas, renewable energy, nuclear fuel, and natural gas
transportation (see Notes 3 and 11). These amounts include commitments incurred from acquiring SCE’s interest in Four Corners.
(d) Contracts to purchase renewable energy credits in compliance with the RES (see Note 3).
(e) These contractual obligations include commitments for capital expenditures and other obligations.
(f) Payments to the noncontrolling interests relate to the Palo Verde Sale Leaseback (see Note 19). We have committed to retain the assets relating to
the noncontrolling interests beyond 2015, either through lease extensions or by purchasing the assets. If we elect to purchase the assets, the
purchase price will be based on the fair value of the assets at the end of 2015. Such value is unknown at this time and is subject to an
appraisal process.
68