Member Power Bill Prepayments

6 Months Ended

Jun. 30, 2012

Member Power Bill Prepayments

Member Power Bill Prepayments

(K)

Member Power Bill Prepayments.    We have a power bill prepayment program pursuant to which members can prepay their power bills from us at a discount based on our avoided cost of borrowing. The prepayments are credited against the participating members' power bills in the month(s) agreed upon in advance. The discounts are credited against the power bills and are recorded as a reduction to member revenues. At June 30, 2012, member power bill prepayments as reflected on the unaudited condensed balance sheet, including unpaid discounts, were $93,988,000, of which, $56,763,000 is classified as a current liability and $37,225,000 as deferred credits and other liabilities. The prepayments are being applied against members' power bills through November 2017, with the majority of the remaining balance scheduled to be applied by the end of 2013.