Allegheny Power 2010 Annual Report Download - page 128
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113
The following table summarizes the borrowing sub-limits for each borrower under the facility, as well as the limitations on
short-term indebtedness applicable to each borrower under current regulatory approvals and applicable statutory and/or
charter limitations as of December 31, 2010:
Revolving Regulatory and
Credit Facility Other Short-Term
Borrower Sub-Limit Debt Limitations
(in millions)
FirstEnergy $2,750 $ - (1)
FES 1,000 - (1)
OE 500 500
Penn 50 34 (2)
CEI 250 (3) 500
TE 250 (3) 500
JCP&L 425 411 (2)
Met-Ed 250 300 (2)
Penelec 250 300 (2)
ATSI 50 (4) 100
(1) No regulatory approvals, statutory or charter limitations applicable.
(2) Excluding amounts which may be borrowed under the regulated companies’ money pool.
(3) Borrowing sub-limits for CEI and TE may be increased to up to $500 million by delivering notice to the administrative agent
that such borrower has senior unsecured debt ratings of at least BBB by S&P and Baa2 by Moody’s.
(4) The borrowing sub-limit for ATSI may be increased up to $100 million by delivering notice to the administrative agent that
ATSI has received regulatory approval to have short-term borrowings up to the same amount.
The regulated companies also have the ability to borrow from each other and FirstEnergy to meet their short-term
working capital requirements. A similar but separate arrangement exists among the unregulated companies. FESC
administers these two money pools and tracks FirstEnergy’s surplus funds and those of the respective regulated and
unregulated subsidiaries, as well as proceeds available from bank borrowings. Companies receiving a loan under the
money pool agreements must repay the principal amount of the loan, together with accrued interest, within 364 days of
borrowing the funds. The rate of interest is the same for each company receiving a loan from their respective pool and is
based on the average cost of funds available through the pool. The average interest rate for borrowings in 2010 was
0.51% for the regulated companies’ money pool and 0.60% for the unregulated companies’ money pool.
The weighted average interest rates on short-term borrowings outstanding as of December 31, 2010 and 2009 were as
follows:
2010 2009
FE 0.68 % 0.74 %
FES 0.60 % 1.84 %
OE 0.51 % 0.72 %
CEI 1.92 % 1.13 %
TE - 0.72 %
JCP&L - -
Met-Ed 0.51 % -
Penelec 0.51 % 0.72 %
As of December 31, 2010, FirstEnergy Corp. had four receivables securitizations for five of its seven public utilities.
These transactions enable the company to access up to $395 million of financing at costs based on commercial paper
rates plus annual fees. Each of the facilities matures in 364 days, and are reflected in the table below. In March of 2011
the Centerior Funding Corp. and OES Capital facilities are scheduled to decrease to $100 million each. There were no
outstanding borrowings as of December 31, 2010.