4. California American's Outstanding Long-Term Debt

4.1. First Mortgage Bonds

California American has $46 million in first-mortgage bonds composed of: (i) $6 million in "First Mortgage Bonds, 1990 Series," due June 1, 2020, pursuant to Decision (D.) 90-05-060; (ii) $10 million in "First Mortgage Bonds, 1991 Series," Due June 1, 2021, pursuant to D.91-08-021 and D.91-08-045; (iii) $20 million in "First Mortgage Bonds, 1993 Series," with $10 million due December 31, 2023 and a second $10 million due December 31, 2033, pursuant to D.93-10-036; and (iv) $10 million in "First Mortgage Bonds, 1996 Series," due May 1, 2026, pursuant to D.95-12-050. ($6 million + $10 million + $20 million + $10 million = $46 million.) All of the above were issued under a First Mortgage Bond Indenture dated October 1, 1969 between Applicant and Bank of America N.T. & S.A., as Trustee (the "Original Indenture"), which has been amended and supplemented (collectively, the "Indenture"). U.S. Bank Corporate Trust is the current Indenture Trustee.

4.2. Unsecured Debt with Capital Corp.

California American additionally has $162 million in unsecured debt in the form of Notes Payable to Capital Corp. pursuant to D.06-07-035 and D.00-10-067. These notes are composed of: (i) $24 million due December 21, 2013; (ii) $10 million due December 21, 2016; (iii) $52.3 million due December 21, 2018, and $75.7 million due December 21, 2021. ($24 million + $10 million + $52.3 million + $75.7 million = $162 million.)

4.3. Revolving Line of Credit With Capital Corp.

As of June 30, 2008, California American has an outstanding balance of over $49.8 million of short-term debt owed to Capital Corp. California American would still have an outstanding short-term balance after discharging some portion of this debt with $28,743,172 of the proceeds, as discussed above.

California American does not seek any new authority for a revolving line of credit in this application nor do we examine the reasonableness of the outstanding credit arrangement. California American must therefore demonstrate in its next cost of capital proceeding its line of credit with Capital Corp. is duly authorized pursuant to Code § 823(d); that it comports with the outstanding affiliate transaction rules; and its costs are reasonable.