FUTURE MINIMUM PAYMENTS – POWER PURCHASE AGREEMENT
(Dollars in millions)
2015
$
―
2016
―
2017
38
2018
65
2019
65
Thereafter
1,460
Total minimum lease payments(1)
1,628
Less: estimated executory costs
(392)
Less: interest(2)
(736)
Present value of net minimum lease payments
$
500
(1)
This amount will be recorded over the life of the lease as Cost of Electric Fuel and Purchased Power on Sempra Energy’s and SDG&E’s Condensed Consolidated Statements of Operations. This expense will receive ratemaking treatment consistent with purchased-power costs, which are recovered in rates.
(2)
Amount necessary to reduce net minimum lease payments to estimated present value at the inception of the lease.