(7) 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):



	2013						2012
					Average				Average
	Principal		Carrying		Interest		Carrying		Interest
	Amount		Value		Rate		Value		Rate

First mortgage bonds:
5.0% to 8.7%, due through 2018	$	721	$	721	5.5	%	$	941	5.6	%
3.0% to 8.5%, due 2019 to 2023	1,824		1,821		4.5		1,522		4.8
6.7% due 2026	100		100		6.7		100		6.7
7.7% due 2031	300		299		7.7		299		7.7
5.3% to 6.4%, due 2034 to 2038	2,350		2,346		6.0		2,346		6.0
4.1% to 6.0%, due 2039 to 2042	950		944		5.4		943		5.4
Tax-exempt bond obligations:
Variable rates, due 2013⁽¹⁾⁽²⁾	—		—		—		41		0.14
Variable rates, due 2014 to 2025⁽²⁾	325		325		0.17		325		0.15
Variable rates, due 2016 to 2024⁽¹⁾⁽²⁾	221		221		0.06		221		0.15
Variable rates, due 2014 to 2025⁽¹⁾⁽³⁾	51		51		0.22		68		4.02
Total long-term debt	6,842		6,828				6,806
Capital lease obligations:
8.75% to 14.61%, due through 2036	49		49		11.47		55		11.30
Total long-term debt and capital lease
obligations	$	6,891	$	6,877			$	6,861



Reflected as:
	2013		2012

Current portion of long-term debt and capital lease obligations	$	238	$	267
Long-term debt and capital lease obligations	6,639		6,594
Total long-term debt and capital lease obligations	$	6,877	$	6,861


(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 $559 million and $601 million of fully available letters of credit issued under committed bank arrangements as of December 31, 2013 and 2012, respectively.


(3)	Interest rates were fixed at 3.90% to 4.13% as of December 31, 2012 and were scheduled to reset to variable or fixed in June 2013. In June 2013, $17 million of these tax-exempt bond obligations were redeemed and retired prior to their scheduled 2014 maturity date. The interest rates for the remaining $51 million were reset to variable interest rates.

PacifiCorp's long-term debt generally includes provisions that allow PacifiCorp to redeem the first mortgage bonds in whole or in part at any time through the payment of a make-whole premium. Variable-rate tax-exempt bond obligations are generally redeemable at par value.

In June 2013, PacifiCorp issued $300 million of 2.95% First Mortgage Bonds due June 2023. The net proceeds were used to fund capital expenditures and for general corporate purposes, including a portion of the common stock dividend paid to PPW Holdings LLC, a wholly owned subsidiary of MEHC and PacifiCorp's direct parent company ("PPW Holdings"), in June 2013.

PacifiCorp currently has regulatory authority from the OPUC and the IPUC to issue an additional $550 million of long-term debt. PacifiCorp must make a notice filing with the WUTC 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 October 2016.

The issuance of PacifiCorp's first mortgage bonds is limited by available property, earnings tests and other provisions of PacifiCorp's mortgage. Approximately $24 billion of PacifiCorp's eligible property (based on original cost) was subject to the lien of the mortgage as of December 31, 2013.

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 $49 million and $55 million as of December 31, 2013 and 2012, respectively, were included in property, plant and equipment, net in the Consolidated Balance Sheets.

As of December 31, 2013, the annual maturities of long-term debt and capital lease obligations, excluding unamortized discounts and including interest on capital lease obligations, for 2014 and thereafter are as follows (in millions):



	Long-term			Capital Lease
	Debt			Obligations			Total

2014	$	236		$	8		$	244
2015	122			7			129
2016	57			7			64
2017	52			11			63
2018	586			7			593
Thereafter	5,789			61			5,850
Total	6,842			101			6,943
Unamortized discount	(14		)	—			(14		)
Amounts representing interest	—			(52		)	(52		)
Total	$	6,828		$	49		$	6,877