APS 2015 Annual Report Download - page 117

Table of Contents
COMBINED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
5. Lines of Credit and Short-Term Borrowings
Pinnacle West and APS maintain committed revolving credit facilities in order to enhance liquidity and provide credit support
for their commercial paper programs, to refinance indebtedness, and for other general corporate purposes.
The table below presents the consolidated credit facilities and the amounts available and outstanding as of December 31, 2015
and 2014 (dollars in thousands):
December 31, 2015
December 31, 2014
Pinnacle West APS Total
Pinnacle West APS Total
Commitments under Credit Facility $ 200,000 $ 1,000,000 $ 1,200,000
$ 200,000 $ 1,000,000 $ 1,200,000
Outstanding Commercial Paper Borrowings — — —
— (147,400) (147,400)
Amount of Credit Facility Available $ 200,000 $ 1,000,000 $ 1,200,000
$ 200,000 $ 852,600 $ 1,052,600
Weighted-Average Commitment Fees 0.125% 0.100%
0.175% 0.125%
Pinnacle West
At December 31, 2015, Pinnacle West had a $200 million revolving credit facility that matures in May 2019. Pinnacle West has
the option to increase the amount of the facility up to a maximum of $300 million upon the satisfaction of certain conditions and with
the consent of the lenders. At December 31, 2015, Pinnacle West had no outstanding borrowings under its credit facility, no letters of
credit outstanding and no commercial paper borrowings.
APS
On September 2, 2015, APS replaced its $500 million revolving credit facility that would have matured in April 2018, with a
new $500 million facility that matures in September 2020.
At December 31, 2015, APS had two credit facilities totaling $1 billion, including the $500 million credit facility that matures in
September 2020 and a $500 million credit facility that matures in May 2019. APS may increase the amount of each facility up to a
maximum of $700 million each, for a total of $1.4 billion, upon the satisfaction of certain conditions and with the consent of the
lenders. Interest rates are based on APS’s senior unsecured debt credit ratings. These facilities are available to support APS’s $250
million commercial paper program, for bank borrowings or for issuances of letters of credit. At December 31, 2015, APS had no
outstanding borrowings or letters of credit under its revolving credit facilities. See "Financial Assurances" in Note 10 for a discussion of
APS's other outstanding letters of credit.
Debt Provisions
On February 6, 2013, the ACC issued a financing order in which, subject to specified parameters and procedures, it approved
APS’s short-term debt authorization equal to a sum of 7% of APS’s capitalization, and $500 million (which is required to be used for
costs relating to purchases of natural gas and power). This financing order is set to expire on December 31, 2017. See Note 6 for
additional long-term debt provisions.
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