As domestic deregulation continues in the electric utility industry, leasing is being used with increasing frequency in power project financings. Lease finance can provide sponsors with significant accounting earnings and tax benefits. Power plants are suitable for lease financing because of their long useful lives and their ability to predictably maintain value, primarily due to well-established operating characteristics and maintenance requirements. Other power assets and equipment, including peaking turbines, railcars, and barges, continue to be suitable for leasing due to a combination of the above characteristics and accelerated depreciation and associated tax benefits available for much of this equipment. The two types of leases applied most in project finance are tax or true leases and financing or synthetic leases. With a true lease, which is structured as a lease for tax purposes but structured as a financing for tax purposes, the lessee retains the tax benefits of depreciation and interest deduction.