Allegheny Power 2010 Annual Report Download - page 107
Download and view the complete annual report
Please find page 107 of the 2010 Allegheny Power annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.-
1 -
2
-
3
-
4
-
5
-
6
-
7
-
8
-
9
-
10
-
11
-
12
-
13
-
14
-
15
-
16
-
17
-
18
-
19
-
20
-
21
-
22
-
23
-
24
-
25
-
26
-
27
-
28
-
29
-
30
-
31
-
32
-
33
-
34
-
35
-
36
-
37
-
38
-
39
-
40
-
41
-
42
-
43
-
44
-
45
-
46
-
47
-
48
-
49
-
50
-
51
-
52
-
53
-
54
-
55
-
56
-
57
-
58
-
59
-
60
-
61
-
62
-
63
-
64
-
65
-
66
-
67
-
68
-
69
-
70
-
71
-
72
-
73
-
74
-
75
-
76
-
77
-
78
-
79
-
80
-
81
-
82
-
83
-
84
-
85
-
86
-
87
-
88
-
89
-
90
-
91
-
92
-
93
-
94
-
95
-
96
-
97 -
98 -
99 -
100 -
101 -
102 -
103 -
104 -
105 -
106 -
107 -
108 -
109 -
110 -
111 -
112 -
113 -
114 -
115 -
116 -
117 -
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
-
127
-
128
-
129
-
130
-
131
-
132
-
133
-
134
-
135
-
136
-
137
-
138
-
139
-
140
-
141
-
142
-
143
-
144
-
145
-
146
-
147
-
148
-
149
-
150
-
151
-
152
-
153
-
154
 |
 |
92
Effective October 16, 2007 CEI and TE assigned their leasehold interests in the Bruce Mansfield Plant to FGCO and
FGCO assumed all of CEI’s and TE’s obligations arising under those leases. FGCO subsequently transferred the Unit 1
portion of these leasehold interests, as well as FGCO’s leasehold interests under its July 13, 2007 Bruce Mansfield Unit
1 sale and leaseback transaction, to a newly formed wholly-owned subsidiary on December 17, 2007. The subsidiary
assumed all of the lessee obligations associated with the assigned interests. However, CEI and TE remain primarily
liable on the 1987 leases and related agreements. FGCO remains primarily liable on the 2007 leases and related
agreements, and FES remains primarily liable as a guarantor under the related 2007 guarantees, as to the lessors and
other parties to the respective agreements. These assignments terminate automatically upon the termination of the
underlying leases.
In 2007, FGCO completed a sale and leaseback transaction for its 93.825% undivided interest in Bruce Mansfield Unit 1
and entered into operating leases for basic lease terms of approximately 33 years. FES has unconditionally and
irrevocably guaranteed all of FGCO’s obligations under each of the leases.
During 2008, NGC purchased 56.8 MW of lessor equity interests in the OE 1987 sale and leaseback of the Perry Plant
and approximately 43.5 MW of lessor equity interests in the OE 1987 sale and leaseback of Beaver Valley Unit 2. In
addition, NGC purchased 158.5 MW of lessor equity interests in the TE and CEI 1987 sale and leaseback of Beaver
Valley Unit 2. The Ohio Companies continue to lease these MW under their respective sale and leaseback arrangements
and the related lease debt remains outstanding.
Rentals for capital and operating leases for the three years ended December 31, 2010 are summarized as follows:
FE FES OE CEI TE JCP&L Met-Ed Penelec
2010 (In millions)
Operating leases $ 228 $ 202 $ 147 $ 4 $ 64 $ 9 $ 7 $ 4
Capital leases
Interest element 2 1 - 1 - - - -
Other(1) 11 10 - - - - 1 -
Total rentals $ 241 $ 213 $ 147 $ 5 $ 64 $ 9 $ 8 $ 4
2009
Operating leases $ 236 $ 202 $ 146 $ 4 $ 64 $ 9 $ 7 $ 4
Capital leases
Interest element 1 2 1 1 - - - -
Other(1) 6 10 - - - - - -
Total rentals $ 243 $ 214 $ 147 $ 5 $ 64 $ 9 $ 7 $ 4
2008
Operating leases $ 381 $ 173 $ 146 $ 5 $ 65 $ 8 $ 4 $ 4
Capital leases
Interest element 1 1 - - - - - -
Other(1) 6 8 - 1 - - - -
Total rentals $ 388 $ 182 $ 146 $ 6 $ 65 $ 8 $ 4 $ 4
(1) Includes $6 million in 2010 and 2009, respectively, and $5 million in 2008, at FE and FES for wind purchased power
agreements classified as capital leases.