<PAGE>
FORM U-7D
CERTIFICATE PURSUANT TO RULE 7(d)
PUBLIC UTILITY HOLDING COMPANY ACT OF 1935
Amendment and Restatement
A Certificate Pursuant to Rule 7(d) on Form U-7D under the Public
Utility Holding Company Act of 1935 was filed in July 1988 (the "Original
Initial Filing") that relates to the financing of a 21 MW hydroelectric facility
at Raystown Lake in Huntington County, Pennsylvania for the benefit of Allegheny
Electric Cooperative, Inc. as lessee public utility company. Effective
September 21, 1996, the beneficial interest therein was transferred to DFO
Partnership as described in Item 10. In connection with such transfer, the
undersigned hereby submit this amended certificate, amending and restating the
Original Initial Filing in its entirety as if this certificate were the initial
filing. The undersigned certify that this certificate accurately summarizes, as
required in the instructions hereto, the information requested as to the lease
identified herein and the transactions for the financing thereof.
1. Lessee public-utility company: Allegheny Electric
Cooperative, Inc.
Address: 212 Locust Street
P.O. Box 1266
Harrisburg, PA 17108-1266
2. Date: The lease is dated as of June 15, 1988
2a. Expected date facility will be placed in service: The facility
was placed in service in April 1988.
3. Regulatory authority which has acted on transaction: The
Rural Utilities Service ("RUS")
The Rural Electrification Administration ("REA") of the
United States Department of Agriculture approved the
transaction as of June 30, 1988. The RUS succeeded the REA
pursuant to Section 232 of the Federal Crop Insurance Reform
and Department of Agriculture Act of 1994.
4. Initial term of lease: A basic term from June 1988 until
January 10, 2019.
4a. Renewal Options: The lessee may elect to exercise various
renewal options, as follows:
1
<PAGE>
(1) the lessee may renew the lease for one five-year fixed
rate renewal term to commence on the day following the last
day of the basic lease term and to end on January 10, 2024
at a base rental equal to 30 percent of the average base
rental in effect over the basic term of the lease; and
(2) the lessee may renew the lease for up to three fair
market renewal terms of not less than two years each, to
commence on the day following the last day of the basic
lease term or any renewal term.
5. Brief description of facility: 21 megawatt run of the river
hydroelectric facility built at the existing U.S. Army Corps
of Engineers dam at Raystown Lake in Huntington County,
Pennsylvania.
6. Manufacturer or supplier: Equipment was supplied by more
than seven prime contractors under the supervision of Green
Construction Company, as construction manager. The turbines
were supplied by Axel Johnson Engineering Corp.
7. Cost of facility: The lessor paid $32,000,000 as the
purchase price for the facility (excluding transaction
expenses).
8. Basic Rent. Initial Term: The aggregate basic rent during
the basic lease term will be approximately $65,170,000,
assuming the interest rate on the Series A Note made by
State Street Bank and Trust Company (as successor to The
Connecticut Bank and Trust Company, National Association),
as owner trustee (herein referred to as "Owner Trustee")
under an Amended and Restated Trust Agreement, dated as of
June 15, 1988 (the "Trust Agreement") with the holder of the
beneficial interest identified at item 10, remains 8.8
percent per annum throughout the basic lease term. Basic
rent payable for any period may vary depending on, among
other factors, the interest rate payable at the time on the
Series A Note.
8a. Periodic Installment. Amount: Assuming the interest rate on the
Series A Note remains 8.8 percent throughout the basic lease
term, the aggregate periodic installments will be
approximately as listed on Schedule A (expressed as a
percentage of facility cost) attached hereto and
incorporated herein.
Period: Semiannually
2
<PAGE>
9. Holders of legal title to facility: State Street Bank
and Trust Company, as successor to The Connecticut Bank and
Trust Company, National Association, not in its individual
capacity but solely as Owner Trustee under the Trust
Agreement between it and the beneficial owner named below.
Address:
Two International Place, Fourth Floor
Boston, MA 02100
Attention: Corporate Trust Department
10. Holders of beneficial interests: DFO Partnership
Address:
c/o Security Pacific Leasing Corporation
555 California Street
San Francisco, CA 94104
Effective September 21, 1996, Ford Motor Credit Company, the
previous holder of the beneficial interest reported in the
certificate on Form U-7D filed in July 1988, transferred
such beneficial interest to DFO Holding Company, Inc. Also
effective September 21, 1996, DFO Holding Company, Inc.
transferred such beneficial interest to DFO Partnership.
DFO Partnership is a New York general partnership, the
general partners of which are Security Pacific Leasing
Corporation and DFO Holding Company, Inc.
Amount invested: $6,400,000 (excluding transaction expenses).
Percent of equity: one hundred percent of equity.
11. If part or all of the financing is supplied by loan on which
only principal and interest is payable, state:
Amount Borrowed: The debt is comprised of a loan by CoBank, N.A.
(formerly known as Baltimore Bank for
Cooperatives) (the "Loan Participant") to the
Owner Trustee, in the original principal amount
of $25,600,000. The Owner Trustee's obligation
to the Loan Participant is evidenced by the
non-recourse Series A Note.
3
<PAGE>
Interest Rate: For purposes of calculating basic rent, the
interest rate on the Series A Note is assumed to
be 8.8 percent. In fact, the interest rate on the
Series A Note is fixed at a rate initially equal
to the rate fixing addendum in effect on June 30,
1988 for a two-year period and subsequently to be
determined, according to the rate fixing addendum
mutually agreed to by the lessee, Owner Trustee
and the Loan Participant, from time to time.
Number of Lenders: One
Terms of repayment. Amount: Installments of principal repayable
throughout the term of the Series A Note are listed on
Schedule B attached hereto and incorporated herein.
Period: Semiannually, with respect to interest. Annually, with
respect to principal.
4
<PAGE>
Date executed: October 21, 1996
Signature of holder of legal title:
STATE STREET BANK AND TRUST COMPANY, (as successor
to the Connecticut Bank and Trust Company,
National Association), as Owner Trustee under an
Amended and Restated Trust Agreement dated as of
June 15, 1988 with DFO Partnership (as successor
to Ford Motor Credit Company)
By: /s/ Arthur J. MacDonald
-------------------------------------
Title: Assistant Vice President
Signature of holder of beneficial interest:
DFO PARTNERSHIP
By: Security Pacific Leasing Corporation,
its managing general partner
By: /s/ Steven M. Jacobs
---------------------------------
Title: Vice President
5
<PAGE>
SCHEDULE A
BASIC RENT PAYMENTS
ALLEGHENY ELECTRIC COOPERATIVE, INC.
<TABLE>
<CAPTION>
RENTAL RENT RENT RENT
DATE* NUMBER AMOUNT % OF COST
<S> <C> <C> <C>
1/1989 0 0.00 0.0000000
1/1989 1 0.00 0.0000000
7/1989 2 1892005.75 5.9125180
1/1990 3 0.00 0.0000000
7/1990 4 1892005.75 5.9125180
1/1991 5 0.00 0.0000000
7/1991 6 1892005.75 5.9125180
1/1992 7 0.00 0.0000000
7/1992 8 1892005.75 5.9125180
1/1993 9 1434536.31 4.4829260
7/1993 10 877915.16 2.7434849
1/1994 11 1460154.85 4.5629839
7/1994 12 852296.62 2.6634269
1/1995 13 1480839.36 4.6276230
7/1995 14 831612.11 2.5987878
1/1996 15 1500598.91 4.6893716
7/1996 16 811852.56 2.5370393
1/1997 17 1521496.09 4.7546753
7/1997 18 790955.38 2.4717356
1/1998 19 1543596.44 4.8237389
7/1998 20 768855.02 2.4026719
1/1999 21 1566969.28 4.8967790
7/1999 22 745482.19 2.3296318
1/2000 23 1591687.91 4.9740247
7/2000 24 720763.56 2.2523861
1/2001 25 1617824.11 5.0557004
7/2001 26 694627.36 2.1707105
1/2002 27 1645438.06 5.1420564
7/2002 28 666993.41 2.0843544
1/2003 29 1238245.67 3.8695177
7/2003 30 653760.07 2.0430002
1/2004 31 1256122.18 3.9253818
7/2004 32 635883.56 1.9871361
1/2005 33 1275027.85 3.9844620
7/2005 34 616977.90 1.9280559
1/2006 35 1295021.97 4.0469436
7/2006 36 596983.78 1.8655743
</TABLE>
*RENTS PAYABLE ON THE TENTH OF EACH DESIGNATED MONTH.
<PAGE>
<TABLE>
<CAPTION>
RENTAL RENT RENT RENT
DATE* NUMBER AMOUNT % OF COST
<S> <C> <C> <C>
1/2007 37 1316000.89 4.1125028
7/2007 38 576004.86 1.8000152
1/2008 39 1337845.87 4.1807683
7/2008 40 554159.88 1.7317496
1/2009 41 1797219.74 5.6l63117
7/2009 42 515231.73 1.6100991
1/2010 43 1834508.29 5.7328384
7/2010 44 477943.18 1.4935724
1/2011 45 1873944.26 5.8560758
7/2011 46 438507.20 1.3703350
1/2012 47 1915651.38 5.9864106
7/2012 48 396400.08 1.2400003
1/2013 49 1959760.48 6.1242515
7/2013 50 352690.99 1.1021593
1/2014 51 2006409.92 6.2700310
7/2014 52 306041.54 0.9563798
1/2015 53 2055746.06 6.4242064
7/2015 54 256705.41 0.8022044
1/2016 55 2127491.74 6.6484117
7/2016 56 184959.73 0.5779992
1/2017 57 2216094.32 6.9252948
7/2017 58 94357.15 0.3011161
1/2018 59 2303731.73 7.1991617
7/2018 60 8719.74 0.0272492
----------- -----------
TOTALS 65169086.81 203.6533963
</TABLE>
*RENTS PAYABLE ON THE TENTH OF EACH DESIGNATED MONTH.
<PAGE>
SCHEDULE B
DEBT AMORTIZATION SCHEDULE
ALLEGHENY ELECTRIC COOPERATIVE, INC.
<TABLE>
<CAPTION>
DATE* DEBT SERVICE INTEREST PRINCIPAL BALANCE
<S> <C> <C> <C> <C>
1/1989 1188977.78 1188977.78 0.00 25600000.00
7/1989 1126400.00 1126400.00 0.00 25600000.00
1/1990 1126400.00 1126400.00 0.00 25600000.00
7/1990 1709839.46 1126400.00 583439.46 25016560.54
1/1991 1194813.89 1100728.66 94085.23 24922475.31
7/1991 3229542.20 1096588.91 2132953.29 22789522.02
1/1992 2357600.95 1002738.97 1354861.99 21434660.04
7/1992 1892005.75 943125.04 948880.70 20485779.33
1/1993 1434536.31 901374.29 533162.02 19952617.32
7/1993 877915.16 877915.16 0.00 19952617.32
1/1994 1460154.85 877915.16 582239.69 19370377.63
7/1994 852296.62 852296.62 0.00 19370377.63
1/1995 1322399.01 852296.62 470102.40 18900275.23
7/1995 831612.11 831612.11 0.00 18900275.23
1/1996 1280692.74 831612.11 449080.63 18451194.60
7/1996 811852.56 811852.56 0.00 18451194.60
1/1997 1286788.55 811852.56 474935.99 17976258.61
7/1997 790955.38 790955.38 0.00 17976258.61
1/1998 1293236.18 790955.38 502280.80 17473977.82
7/1998 768855.02 768855.02 0.00 17473977.82
1/1999 1300055.89 768855.02 531200.87 16942776.95
7/1999 745482.19 745482.19 0.00 16942776.95
1/2000 1307269.14 745482.19 561786.95 16380990.00
7/2000 720763.56 720763.56 0.00 16380990.00
1/2001 1314768.21 720763.56 594004.65 15786985.35
7/2001 694627.36 694627.36 0.00 15786985.35
1/2002 1322671.55 694627.36 628044.19 15158941.16
7/2002 666993.41 666993.41 0.00 15138941.16
1/2003 967751.10 666993.41 300757.69 14858183.46
7/2003 653760.07 653760.07 0.00 14858183.46
1/2004 1060044.37 653760.07 406284.30 14451899.16
7/2004 635883.56 635883.56 0.00 14451899.16
1/2005 1065557.84 635883.56 429676.27 14022224.89
7/2005 616977.90 616977.90 0.00 14022224.89
1/2006 1071389.58 616977.90 454411.68 13567813.21
7/2006 596983.78 596983.78 0.00 13567813.21
1/2007 1073777.47 596983.78 476793.69 13091019.52
7/2007 576004.86 576004.86 0.00 13091019.52
</TABLE>
*DEBT SERVICE PAYABLE ON THE TENTH OF EACH DESIGNATED MONTH.
<PAGE>
<TABLE>
<CAPTION>
DATE* DEBT SERVICE INTEREST PRINCIPAL BALANCE
<S> <C> <C> <C> <C>
1/2008 1072481.74 576004.86 496476.88 12594562.64
7/2008 554159.88 554159.88 0.00 12594562.64
1/2009 1438890.56 554159.88 884730.68 11709811.96
7/2009 515231.73 513231.73 0.00 11709811.96
1/2010 1362698.65 513231.73 847466.92 10862345.04
7/2010 477943.18 477943.18 0.00 10862345.04
1/2011 1374215.42 477943.18 896272.23 9966072.80
7/2011 438507.20 438507.20 0.00 9966072.80
1/2012 1386396.29 438507.20 947889.09 9018183.71
7/2012 396800.08 396800.08 0.00 9018183.71
1/2013 1399279.54 396800.08 1002479.43 8015704.26
7/2013 352690.99 352690.99 0.00 8015704.26
1/2014 1412905.61 352690.99 1060214.62 6955489.64
7/2014 306041.54 306041.54 0.00 6955489.64
1/2015 1427317.30 306041.54 1121275.76 5834213.88
7/2015 256705.41 256705.41 0.00 5834213.88
1/2016 1887289.05 256705.41 1630583.64 4203630.24
7/2016 184959.73 184959.73 0.00 4203630.24
1/2017 2198654.85 184959.73 2013695.12 2189935.12
7/2017 96357.15 96357.15 0.00 2189935.12
1/2018 2286292.26 96357.15 2189935.12 0.00
7/2018 0.00 0.00 0.00 0.00
----------- ----------- -----------
TOTALS 63997134.50 38397134.50 25600000.00
</TABLE>
*DEBT SERVICE PAYABLE ON THE TENTH OF EACH DESIGNATED MONTH.
