Leasing Activities (Tables)

9 Months Ended

Sep. 30, 2011

Leasing Activities

Cross-Border Energy Lease Investments

	September 30, 2011			December 31, 2010
	(millions of dollars)
Scheduled lease payments to PHI, net of non-recourse debt	$	2,120		$	2,265
Less: Unearned and deferred income		(784	)		(842	)
Investment in finance leases held in trust		1,336			1,423
Less: Deferred income tax liabilities		(742	)		(816	)
Net investment in finance leases held in trust	$	594		$	607

Income Recognized From Cross-Border Energy Lease Investments

	Three Months  Ended September 30,					Nine Months  Ended September 30,
	2011			2010		2011		2010
	(millions of dollars)
Pre-tax income from PHI's cross-border energy lease investments (included in "Other Operating Revenue")	$	7		$	15	$	35	$	41
Income tax (benefit) expense related to cross-border energy lease investments		(3	)		4		7		11
Net income from PHI's cross-border energy lease investments	$	10		$	11	$	28	$	30

Net Investment In Leases By The Published Credit Ratings

Lessee Rating (a)	September 30, 2011		December 31, 2010
	(millions of dollars)
Rated Entities
AA/Aa and above	$	730	$	709
A		533		549
Total		1,263		1,258
Non Rated Entities		73		165
Total	$	1,336	$	1,423

(a) Excludes the credit ratings associated with collateral posted by the lessees in these transactions.