TSE:FTS The PUB specifies Newfoundland PowerGLYPH<213>s method of accounting for income taxes. Commencing January 1, 1981, the PUB allowed the tax allocation method with respect to the timing difference between amortization and capital cost allowances for all depreciable assets. Since the full tax allocation method of accounting has not always been followed, Newfoundland Power has an unrecorded future income tax liability of $76.8 million at December 31, 2001 (2000 - $72.0 million). a percentage of the tenantGLYPH<213>s sales. An allocated portion of the CorporationGLYPH<213>s overhead costs are recovered from tenants and recorded as revenue. The CorporationGLYPH<213>s overhead costs are recorded as operating expenses. Income producing properties, which include office buildings, shopping malls, hotels and land, are recorded at cost. Real estate revenue is derived from leasing retail and office space to tenants for varying periods of time. The leases are primarily of a net nature with tenants paying basic rental plus a pro rata share of defined overhead expenses. Certain retail tenants pay additional rent based on Fortis Properties amortizes income producing buildings by the sinking fund method using an imputed interest rate of 6% over the estimated useful life of sixty years from date of acquisition. Fortis Properties amortizes tenant inducements over the initial terms of the lease to which they relate, except where a write-down is required to reflect permanent impairment. The lease terms range from three to twenty years. The credit facilities of the Corporation and its subsidiaries, consisting of bankersGLYPH<213> acceptances and demand loans issued against unsecured bank lines of credit, bear interest at rates ranging from 2.5% to 4.0% at December 31, 2001 (2000 - 5.8% to 7.5%). The Corporation and its subsidiaries had authorized lines of credit of $255 million of which $125 million was unused at year end. The quoted market value of the CorporationGLYPH<213> interest in Caribbean Utilities is $92.8 million at December 31, 2001 (2000 - $85.5 million). 5. Short-Term Borrowings Revenue Amortization Income Producing Properties FORTIS Inc. 2OO1 Annual Report 47 The accounting policies which follow relate to the real estate operations of the Corporation. 1. Deferred Charges 2001 (in thousands) 2000 Deferred pension costs $ 57,330 $ 48,357 Weather normalization account 9,900 8,740 Unamortized debt discount and expenses 7,413 6,020 Capital charge - Point Lepreau 5,229 - Other 1,026 1,655 Deferred recoverable costs 1,799 1,743 Unamortized capital stock issue expenses 527 597 $ 83,224 $ 67,112 2. Utilities’ Capital Assets 2001 (in thousands) 2000 UtilitiesGLYPH<213> capital assets $ 1,662,616 $ 1,466,133 Accumulated amortization 598,359 557,343 $ 1,064,257 $ 908,790 3. Income Producing Properties 2001 (in thousands) 2000 Land, buildings and tenant inducements $ 244,083 $ 228,009 Accumulated amortization 23,745 22,444 $ 220,338 $ 205,565 4. Long-Term Investments 2001 (in thousands) 2000 Caribbean Utilities Company, Ltd. $ 80,326 $ 79,901 Other investments 1,885 1,614 $ 82,211 $ 81,515