•  Print this page
  • Glossary 

Contractual Obligations

Contractual Obligations

Obligations and Commitments

At December 31, 2008, the Company had $16.2 billion of total Long-Term Debt and $1.2 billion of Junior Subordinated Notes, compared to $12.9 billion of total Long-Term Debt and $1.0 billion of Junior Subordinated Notes at December 31, 2007. TransCanada's share of the total debt of joint ventures, including capital lease obligations, was $1.1 billion at December 31, 2008, compared to $903 million at December 31, 2007. Total Notes Payable, including TransCanada's proportionate share of the notes payable of joint ventures, were $1.7 billion at December 31, 2008, compared to $421 million at December 31, 2007. TransCanada has provided certain pro-rata guarantees related to the capital lease obligations of Bruce Power and to the performance obligations of Bruce Power and certain other partially owned entities.

CONTRACTUAL OBLIGATIONS
Year ended December 31
(millions of dollars)
Payments Due by Period
  Total Less than one year 1 – 3 years 3 – 5 years More than 5 years
Long-term debt(1) 18,208 980 1,787 2,684 12,757
Capital lease obligations 235 13 25 38 159
Operating leases(2) 403 28 56 66 253
Purchase obligations 12,246 3,926 2,595 1,761 3,964
Other long-term liabilities reflected on the balance sheet 610 12 29 34 535
Total contractual obligations 31,702 4,959 4,492 4,583 17,668
(1) Includes Junior Subordinated Notes.
(2) Represents future annual payments, net of sub-lease receipts, for various premises, services and equipment. The operating lease agreements for premises, services and equipment expire at various dates through 2035, with an option to renew certain lease agreements for one to ten years.

TransCanada's commitments under the Alberta PPAs are considered to be operating leases and a portion of these PPAs have been subleased to third parties under similar terms and conditions. Future payments under these PPAs have been excluded from the above table, as these payments are dependent upon plant availability, among other factors. The amount of power purchased under the PPAs in 2008 was $471 million (2007 — $440 million; 2006 — $499 million).