11. Commitments:

a. Operating leases

As of December 31, 2012, our estimated minimum rental commitments for our railcar leases for use at our coal-fired facilities over the next five years and thereafter are as follows:



		(dollars in thousands)

2013	$	5,743
2014		5,743
2015		4,412
2016		4,412
2017		4,412
Thereafter		7,041

The rental expenses for the railcar leases are added to the cost of the fossil inventories and are recognized in fuel expense. Rental expenses totaled $5,164,000 in 2012, $5,190,000 in 2011 and $5,265,000 in 2010.

b. Fuel

To supply a portion of the fuel requirements to our generating units, Southern Nuclear on our behalf for nuclear fuel, and Georgia Power, on our behalf for coal, have entered into various long-term commitments for the procurement of coal and nuclear fuel. The contracts in most cases contain provision for price escalations, minimum purchase levels and other financial commitments. The value of the coal commitments is based on maximum coal prices and minimum volumes as provided in the contracts and does not include taxes, transportation or government impositions. For further discussion of total nuclear fuel expense, see Note 1h. As of December 31, 2012, our estimated minimum long-term commitments are as follows:



		(dollars in thousands)

		Coal		Nuclear Fuel

2013	$	78,000	$	72,000
2014		41,000		57,000
2015		–		36,900
2016		–		29,100
2017		–		26,100
Thereafter		–		138,000