Allegheny Power 2010 Annual Report Download - page 49

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34
The increase in non-cash charges and other adjustments is primarily due to increased impairment charges on long lived
assets ($378 million) combined with higher deferred income taxes and investment tax credits ($86 million), partially offset
by lower net amortization of regulatory assets of ($297 million), including the impact of CEI’s $216 million regulatory
asset impairment recorded during the first quarter of 2009, and reduced charges relating to debt redemptions, primarily
caused by a $142 million charge relating to debt redemptions during the third quarter of 2009.
The change in working capital and other is primarily due to cash proceeds of $129 million received on the termination of
fixed-for-floating interest rate swaps during the second and third quarters of 2010, changes in investment securities of
$121 million, increased accrued taxes and decreased prepayments primarily related to prepaid taxes ($279 million) and
changes in uncertain tax positions ($176 million), partially offset by increased accounts receivable ($252 million),
decreased accrued interest ($60 million) and increased cash collateral paid to third parties ($56 million).
Cash Flows From Financing Activities
In 2010, cash used for financing activities was $983 million compared to cash provided from financing activities of
$49 million in 2009. The change was primarily due to reduced long-term debt issued in 2010 compared to 2009, partially
offset by reduced long-term debt redemptions and reduced payments on short-term borrowings in 2010 as compared to
2009. The following table summarizes security issuances (net of any discounts) and redemptions:
Securities Issued or Redeemed 2010 2009 2008
(In millions)
New Issues
First mortgage bonds $ - $ 398 $ 592
Pollution control notes 740 940 692
Senior secured notes 350 297 -
Unsecured Notes 9 2,997 83
$ 1,099 $ 4,632 $ 1,367
Redemptions
First mortgage bonds $ 32 $ 1 $ 126
Pollution control notes 741 884 698
Senior secured notes 141 217 35
Unsecured notes 101 1,508 175
$ 1,015 $ 2,610 $ 1,034
Short-term borrowings, net $ (378) $ (1,246) $ 1,494