Allegheny Power 2010 Annual Report Download - page 50

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35
Cash Flows From Investing Activities
Net cash flows used in investing activities resulted primarily from property additions. Additions for the energy delivery
services segment primarily represent expenditures related to transmission and distribution facilities. Capital spending by the
competitive energy services segment is principally generation-related. The following table summarizes investing activities for
2010, 2009 and 2008 by business segment:
Summary of Cash Flows Propert
y
Provided from (Used for) Investing Activities Additions Investments Other Total
Sources (Uses) (In millions)
2010
Energy delivery services $ (745) $ 96 $ 13 $ (636)
Competitive energy services (1,129) (43) (51) (1,223)
Other (24) (7) 30 (1)
Inter-Segment reconciling items (65) (23) - (88)
Total $ (1,963) $ 23 $ (8) $ (1,948)
2009
Energy delivery services $ (750) $ 39 $ (46) $ (757)
Competitive energy services (1,262) (8) (19) (1,289)
Other (149) (3) 72 (80)
Inter-Segment reconciling items (42) (24) 7 (59)
Total $ (2,203) $ 4 $ 14 $ (2,185)
2008
Energy delivery services $ (839) $ (41) $ (17) $ (897)
Competitive energy services (1,835) (14) (56) (1,905)
Other (176) 106 (61) (131)
Inter-Segment reconciling items (38) (12) - (50)
Total $ (2,888) $ 39 $ (134) $ (2,983)
Net cash used for investing activities in 2010 decreased by $237 million compared to 2009. The decrease was principally
due to a $240 million decrease in property additions (principally lower AQC system expenditures) and an increase in
cash proceeds from the sale of assets of $96 million, partially offset by $113 million spent by FES in the customer
acquisition process.
During 2011 through 2013 we anticipate average annual baseline capital expenditures of approximately $1.2 billion,
exclusive of any additional opportunities or future mandated spending. This includes approximately $133 million, $300
million and $183 million in nuclear fuel expenditures for 2011, 2012 and 2013, respectively.
CONTRACTUAL OBLIGATIONS
As of December 31, 2010, our estimated cash payments under existing contractual obligations that we consider firm
obligations are as follows:
2012- 2014-
Contractual Obligations Total 2011 2013 2015 Thereafter
(In millions)
Long-term debt $ 13,928 $ 437 $ 995 $ 1,165 $ 11,331
Short-term borrowings 700 700 - - -
Interest on long-term debt(1) 10,978 793 1,518 1,379 7,288
Operating leases(2) 3,314 213 477 506 2,118
Fuel and purchased power(3) 16,851 2,660 4,015 3,923 6,253
Capital expenditures 1,109 340 463 306 -
Pension funding 1,076 250 74 543 209
Other(4) 112 31 14 14 53
Total $ 48,068 $ 5,424 $ 7,556 $ 7,836 $ 27,252
(1)Interest on variable-rate debt based on rates as of December 31, 2010.
(2)See Note 7 to the consolidated financial statements.
(3)Amounts under contract with fixed or minimum quantities based on estimated annual requirements.
(4)Includes amounts for capital leases (see Note 7) and contingent tax liabilities (see Note 9).
Excluded from the data shown above are estimates for the cash outlays stemming from the power purchase contracts
entered into by the Utilities and under which they procure the power supply necessary to provide generation service to
their customers who do not choose an alternative supplier. The exact amount of outlay will be determined by future