Recent Debt Transactions

6 Months Ended

Jun. 30, 2011


(8)	Recent Debt Transactions

In conjunction with the construction of wind-powered generating facilities, MidAmerican Energy has accrued as construction work-in-progress certain amounts for which it is not contractually obligated to pay until December 2013. The amounts ultimately payable are discounted at 1.46% and recognized upon delivery of the equipment as long-term debt. The discount is amortized as interest expense over the period until payment is due using the effective interest method. As of June 30, 2011, $94 million of such debt, net of associated discount, was outstanding.

In May 2011, PacifiCorp issued $400 million of 3.85% First Mortgage Bonds due June 15, 2021. The net proceeds are being used to fund capital expenditures, for the repayment of short-term debt and for general corporate purposes.

In April 2011, Northern Natural Gas issued $200 million of 4.25% Senior Notes due June 1, 2021. The net proceeds were used to partially repay its $250 million, 7.0% Senior Notes due June 1, 2011.

In January and February 2011, Northern Electric issued £119 million of notes with maturity dates ranging from 2018 to 2020 at interest rates ranging from 3.901% to 4.586% under its finance contract with the European Investment Bank.