Leasing Activities (Tables)

6 Months Ended

Jun. 30, 2011

Leasing Activities

Cross-Border Energy Lease Investments

	June 30, 2011			December 31, 2010
	(millions of dollars)
Scheduled lease payments to PHI, net of non-recourse debt	$	2,119		$	2,265
Less: Unearned and deferred income		(790	)		(842	)
Investment in finance leases held in trust		1,329			1,423
Less: Deferred income tax liabilities		(725	)		(816	)
Net investment in finance leases held in trust	$	604		$	607

Income Recognized From Cross-Border Energy Lease Investments

	Three Months Ended June  30,				Six Months Ended June  30,
	2011		2010		2011		2010
	(millions of dollars)
Pre-tax income from PHI's cross-border energy lease investments (included in "Other Revenue")	$	14	$	13	$	28	$	26
Income tax expense related to cross-border energy lease investments		7		3		10		7
Net income from PHI's cross-border energy lease investments	$	7	$	10	$	18	$	19

Net Investment In Leases By The Published Credit Ratings

Lessee Rating (a)	June 30, 2011		December 31, 2010
	(millions of dollars)
Rated Entities
AA/Aa and above	$	723	$	709
A		438		549
Total		1,161		1,258
Non Rated Entities		168		165
Total	$	1,329	$	1,423

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