Allegheny Power 2010 Annual Report Download - page 124

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109
(C) LONG-TERM DEBT AND OTHER LONG-TERM OBLIGATIONS
The following table presents the outstanding consolidated long-term debt and other long-term obligations of FirstEnergy
as of December 31, 2010 and 2009:
Weighted Average December 31,
Interest
R
ate (%) 2010 2009
(in millions)
FMBs:
Due 2010-2013 9.74 $ 3 $ 28
Due 2014-2018 8.84 330 330
Due 2019-2023 6.13 101 107
Due 2024-2028 8.75 314 314
Due 2038 8.25 275 275
Total FMBs 1,023 1,054
Secured Notes:
Due 2010-2013 4.46 732 456
Due 2014-2018 6.87 638 777
Due 2019-2023 5.60 622 481
Due 2029-2033 5.41 276 510
Due 2034-2038 4.13 459 322
Due 2041 0.30 57 57
Total Secured Notes 2,784 2,603
Unsecured Notes:
Due 2010-2013 5.80 712 878
Due 2014-2018 5.43 2,467 2,473
Due 2019-2023 5.72 2,435 2,435
Due 2024-2028 3.95 65 65
Due 2029-2033 6.25 1,971 1,737
Due 2034-2038 5.47 1,727 1,864
Due 2039-2043 5.25 698 698
Due 2047 3.00 46 46
Total Unsecured Notes 10,121 10,196
Capital lease obligations 54 13
Net unamortized premium (discount) on debt 83 (24)
Long-term debt due within one year (1,486) (1,834)
Total long-term debt and other long term obligations $ 12,579 $ 12,008
Securitized Transition Bonds
The consolidated financial statements of FirstEnergy and JCP&L include the accounts of JCP&L Transition Funding and
JCP&L Transition Funding II, wholly owned limited liability companies of JCP&L. In June 2002, JCP&L Transition
Funding sold transition bonds to securitize the recovery of JCP&L's bondable stranded costs associated with the
previously divested Oyster Creek Nuclear Generating Station. In August 2006, JCP&L Transition Funding II sold
transition bonds to securitize the recovery of deferred costs associated with JCP&L’s supply of BGS.
JCP&L did not purchase and does not own any of the transition bonds, which are included as long-term debt on
FirstEnergy's and JCP&L's Consolidated Balance Sheets. As of December 31, 2010, $310 million of the transition bonds
were outstanding. The transition bonds are the sole obligations of JCP&L Transition Funding and JCP&L Transition
Funding II and are collateralized by each company’s equity and assets, which consist primarily of bondable transition
property.
Bondable transition property represents the irrevocable right under New Jersey law of a utility company to charge, collect
and receive from its customers, through a non-bypassable TBC, the principal amount and interest on transition bonds
and other fees and expenses associated with their issuance. JCP&L sold its bondable transition property to JCP&L
Transition Funding and JCP&L Transition Funding II and, as servicer, manages and administers the bondable transition
property, including the billing, collection and remittance of the TBC, pursuant to separate servicing agreements with
JCP&L Transition Funding and JCP&L Transition Funding II. For the two series of transition bonds, JCP&L is entitled to
aggregate annual servicing fees of up to $628,000 that are payable from TBC collections.