Note 2 – Utility Plant

Net utility plant as of December 31, 2012 and 2011 was as follows (thousands of dollars):


December 31,	2012			2011
Gas plant:
Storage	$	20,503		$	20,496
Transmission		301,505			295,103
Distribution		4,224,560			4,048,078
General		310,936			291,639
Other		161,996			155,734

		5,019,500			4,811,050
Less: accumulated depreciation		(1,750,795	)		(1,638,091	)
Acquisition adjustments, net		911			1,091
Construction work in progress		74,178			44,894

Net utility plant	$	3,343,794		$	3,218,944

Depreciation and amortization expense on gas plant was as follows (thousands of dollars):


	2012		2011		2010
Depreciation and amortization expense	$	182,612	$	172,712	$	167,050

Operating Leases and Rentals. Southwest leases a portion of its corporate headquarters office complex in Las Vegas and its administrative offices in Phoenix. The table below presents the rental payments and the current term expiration dates, although both leases have optional renewal terms available.


	2013		2014		2015		2016		2017
(In thousands)
Corporate headquarters (expires in 2017)	$	2,140	$	2,190	$	2,270	$	2,343	$	1,194
Phoenix administrative offices (expires in 2014)		1,446		243		—		—		—

In addition to the above, the Company leases certain office and construction equipment. The majority of these leases are short-term. These leases are accounted for as operating leases and, for the gas segment, are also treated as such for regulatory purposes. NPL has various short-term operating leases of equipment and temporary office sites. The table below presents Southwest rental payments and NPL lease payments that are included in operating expenses for all operating leases (in thousands):


	2012		2011		2010
Southwest Gas	$	7,762	$	7,812	$	7,585
NPL		24,054		19,017		11,780

Consolidated rental payments/lease expense	$	31,816	$	26,829	$	19,365

The following is a schedule of future minimum lease payments for significant non-cancelable operating leases (with initial or remaining terms in excess of one year) as of December 31, 2012 (thousands of dollars):


Year Ending December 31,
2013	$	6,757
2014		4,304
2015		3,181
2016		2,510
2017		1,238
Thereafter		61

Total minimum lease payments	$	18,051