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We have a potential obligation to make
a cash payment related to the call option associated with our putable/callable
notes. See “— Summary of Significant Items — Call Option” above
for additional information.
Our business requires
significant capital investments. Through
2005, we expect we will need cash mostly
for ongoing utility construction and
maintenance programs designed to maintain
and improve facilities providing electric
service. We do not anticipate needing
additional generating capacity through
2005.
Capital expenditures
for 2002 and anticipated capital expenditures
for 2003 through 2005 are as follows:
These estimates
are prepared for planning purposes and
will be revised from time to time as
discussed in Note 2 of the Notes to
Consolidated Financial Statements, “Summary
of Significant Accounting Policies.”
Actual expenditures will differ from
our estimates.
Maturities of long-term debt as of December
31, 2002 are as follows:
(a)Includes
$135 million in debt for which funds have been irrevocably deposited
with the bond trustee to provide for repayment of the obligation.
(b)In addition, we are required to reduce utility
debt by at least $100 million annually in each of the next two years
as ordered by the KCC.
Contractual Obligations and
Commercial Commitments
In
the course of our business activities, we enter into a variety of
contractual obligations and commercial commitments. Some of these
result in direct obligations that are reflected in our consolidated
balance sheets while others are commitments, some firm and some
based on uncertainties, that are not reflected in our underlying
consolidated financial statements. The obligations listed below
do not include amounts for on-going needs for which no contractual
obligations existed as of December 31, 2002, and represent only
amounts that we were contractually obligated to meet as of December
31, 2002.
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Contractual
Cash Obligations
The following table summarizes the projected
future cash payments for our contractual obligations existing at
December 31, 2002:
(a)See
Note 12 of the Notes to Consolidated Financial Statements, “Long-Term
Debt,” for individual long-term debt maturities.
(b)See “— Future Cash Requirements” above for a description
of funds that have been irrevocably deposited with the bond trustee
for repayment of debt.
(c)We have an obligation to reduce debt by $100 million
annually in 2003 and 2004.
Long-term
debt: Our long-term debt existing
as of December 31, 2002 is debt that
has a final maturity of January 1, 2003
or later (including current maturities
of long-term debt). See Note 12 of the
Notes to Consolidated Financial Statements,
“Long-Term Debt,” for detailed information.
Capital
leases: We maintain capital leases
in the ordinary course of our business
activities. These leases primarily include
those for vehicles and equipment. See
Note 25 of the Notes to Consolidated
Financial Statements, “Leases,” for
additional information.
Operating
leases: We maintain operating
leases in the ordinary course of our
business activities. These leases include
those for office space, operating facilities,
office equipment and operating equipment.
These leases have various terms and
expiration dates from 1 to 16 years.
See Note 25 of the Notes to Consolidated
Financial Statements, “Leases,” for
additional information.
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