Form 8-K - Current Report (Page 2 of 3) in pdf

Form 8-K - Current Report Page 2

Item 8.01 Other Events.

In 1996, Old Dominion Electric Cooperative (“ODEC”, “we”, or “our”) entered into a lease transaction relating to our 50% undivided

ownership interest in Clover Power Station (“Clover”) Unit 1. In this transaction, we leased our undivided interest in the facility to an

owner trust for the benefit of an investor for the full productive life of the unit. Immediately after the lease to the owner trust, we

leased the unit and common facilities back for a term of 21.8 years and agreed to make periodic rental payments to the owner trust. At

the end of the term of the leaseback, we have the option to purchase the owner trust’s interest in the unit and, if we do so, we must pay

the owner trust a fixed purchase price of $430.5 million. On June 29, 2016, we provided written notice of our exercise of the option to

purchase the owner trust’s interest in Clover Unit 1 in 2018. For additional information and discussion of our obligations at the end of

the term of the leaseback of Clover Unit 1 and sources of funding for these obligations, see “Management’s Discussion and Analysis

of Financial Condition and Results of Operations—Liquidity and Capital Resources—Significant Contingent Obligations—Clover

Lease” in Item 7 in our 2015 Annual Report on Form 10-K.

Form 8-K - Current Report Page 2