(9) Long-term Debt and Capital Lease Obligations

PacifiCorp's long-term debt and capital lease obligations were as follows as of December 31 (in millions):



	2011						2010
					Average				Average
					Interest				Interest
	Par Value		Amount		Rate		Amount		Rate

First mortgage bonds:
5.0% to 8.8%, due through 2016	$	457	$	457	5.6	%	$	1,043	6.5	%
3.9% to 8.5%, due 2017 to 2021	1,271		1,268		5.1		869		5.7
6.7% to 8.3%, due 2022 to 2026	404		404		7.4		404		7.4
7.7% due 2031	300		299		7.7		299		7.7
5.3% to 6.1% due 2034 to 2036	850		848		5.8		848		5.8
5.8 % to 6.4%, due 2037 to 2039	2,150		2,142		6.0		2,142		6.0
Tax-exempt bond obligations:
Variable rates, due 2013⁽¹⁾⁽²⁾	41		41		0.1		41		0.4
Variable rates, due 2014 to 2025 ⁽²⁾	325		325		0.2		325		0.3
Variable rates, due 2016 to 2024 ⁽¹⁾⁽²⁾	221		221		0.1		221		0.3
Variable rates, due 2014 to 2025 ⁽¹⁾⁽³⁾	68		68		4.0		68		4.0
5.6 to 5.7%, due 2021 to 2023 ⁽¹⁾	71		71		5.6		71		5.6
6.2%, due 2030	13		13		6.2		13		6.2
Total long-term debt	6,171		6,157				6,344
Capital lease obligations:
8.8% to 14.8%, due through 2036	56		56		11.4		57		11.4
Total long-term debt and capital lease
obligations	$	6,227	$	6,213			$	6,401



Reflected as:
	2011		2010

Current portion of long-term debt and capital lease obligations	$	19	$	588
Long-term debt and capital lease obligations	6,194		5,813
Total long-term debt and capital lease obligations	$	6,213	$	6,401


(1)	Secured by pledged first mortgage bonds registered to and held by the tax-exempt bond trustee generally with the same interest rates, maturity dates and redemption provisions as the tax-exempt bond obligations.


(2)	Supported by $601 million of letters of credit issued under committed bank arrangements. These letters of credit were undrawn as of December 31, 2011 and expire periodically through November 2012.


(3)	Interest rates are currently fixed at 3.9% to 4.1% and are scheduled to reset in 2013.

PacifiCorp's long-term debt may include provisions that allow PacifiCorp to redeem the long-term debt in whole or in part at any time. These provisions generally include make-whole premiums.

In January 2012, PacifiCorp issued $350 million of its 2.95% First Mortgage Bonds due February 1, 2022 and $300 million of its 4.10% First Mortgage Bonds due February 1, 2042. The net proceeds were used to repay short-term debt, fund capital expenditures and for general corporate purposes. PacifiCorp currently has regulatory authority from the Oregon Public Utility Commission ("OPUC") and the Idaho Public Utilities Commission to issue an additional $950 million of long-term debt. PacifiCorp must make a notice filing with the Washington Utilities and Transportation Commission prior to any future issuance. PacifiCorp currently has an effective shelf registration statement filed with the United States Securities and Exchange Commission expected to provide for future first mortgage bond issuances through November 2013.

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

In September 2010, PacifiCorp completed a re-offering of variable-rate tax-exempt bond obligations totaling $38 million. Letters of credit totaling $39 million were issued under one of PacifiCorp's unsecured revolving credit facilities to provide credit enhancement and liquidity support for these previously unenhanced obligations.

In June 2010, PacifiCorp completed a re-offering of a $45 million series of tax-exempt bond obligations. The interest rate for this obligation was previously fixed for a term which, upon scheduled expiration, was converted to a variable rate with credit enhancement and liquidity support provided by a $46 million letter of credit issued under one of PacifiCorp's unsecured revolving credit facilities.

The issuance of PacifiCorp's first mortgage bonds is limited by available property, earnings tests and other provisions of PacifiCorp's mortgage. Approximately $22 billion of PacifiCorp's eligible property (based on original cost) was subject to the lien of the mortgage as of December 31, 2011.

PacifiCorp's letters of credit agreements generally contain similar covenants and default provisions as those contained in PacifiCorp's revolving credit facilities, including a covenant not to exceed a specified debt-to-capitalization ratio of 0.65 to 1.0. PacifiCorp monitors these covenants on a regular basis in order to ensure that events of default do not occur. As of December 31, 2011, PacifiCorp was in compliance with these covenants.

PacifiCorp has entered into long-term agreements that qualify as capital leases and expire at various dates through October 2036 for transportation services, power purchase agreements, real estate and for the use of certain equipment. The transportation services agreements included as capital leases are for the right to use pipeline facilities to provide natural gas to three of PacifiCorp's generating facilities. Net capital lease assets of $56 million and $57 million as of December 31, 2011 and 2010, respectively, were included in property, plant and equipment, net in the Consolidated Balance Sheets.

As of December 31, 2011, the annual maturities of long-term debt and capital lease obligations, excluding unamortized discounts and including interest on capital lease obligations, for 2012 and thereafter are as follows (in millions):



	Long-term			Capital Lease
	Debt			Obligations			Total

2012	$	17		$	7		$	24
2013	261			12			273
2014	253			8			261
2015	122			7			129
2016	57			7			64
Thereafter	5,461			80			5,541
Total	6,171			121			6,292
Unamortized discount	(14		)	—			(14		)
Amounts representing interest	—			(65		)	(65		)
Total	$	6,157		$	56		$	6,213