Allegheny Power 2011 Annual Report Download - page 137

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The amounts and annual fees for PCRB-related LOCs for FirstEnergy, FGCO, NGC, Met-Ed and Penelec as of December 31, 2011,
are as follows:
FGCO
NGC
Met-Ed
Penelec
Aggregate LOC
Amount
(In millions)
$ 365
200
29
45
$ 639
Annual Fees
1.71% to 3.30%
1.71%
1.75%
1.71% to 1.75%
Debt Covenant Default Provisions
FirstEnergy has various debt covenants under certain financing arrangements, including its revolving credit facilities. The most
restrictive of the debt covenants relate to the nonpayment of interest and/or principal on such debt and the maintenance of certain
financial ratios. The failure by FirstEnergy to comply with the covenants contained in its financing arrangements could result in an
event of default, which may have an adverse effect on its financial condition.
Additionally, there are cross-default provisions in a number of the financing arrangements. These provisions generally trigger a
default in the applicable financing arrangement of an entity if it or any of its significant subsidiaries default under another financing
arrangement in excess of a certain principal amount, typically $100 million. Although such defaults by any of the Utilities, ATSI or
TrAIL would generally cross-default FirstEnergy financing arrangements containing these provisions, defaults by any of AE Supply,
FES, FGCO or NGC would generally not cross-default to applicable financing arrangements of FirstEnergy. Also, defaults by
FirstEnergy would generally not cross-default applicable financing arrangements of any of FirstEnergy’s subsidiaries. Cross-default
provisions are not typically found in any of the senior notes or FMBs of FirstEnergy, FGCO, NGC or the Utilities.
13. SHORT-TERM BORROWINGS AND BANK LINES OF CREDIT
FirstEnergy had no significant short-term borrowings as of December 31, 2011, and short-term borrowings of approximately $700
million as of December 31, 2010. FirstEnergy’s available liquidity as of January 31, 2012, was as follows:
Company
FirstEnergy(1)
FES / AE Supply
TrAIL
AGC
Type
Revolving
Revolving
Revolving
Revolving
Maturity
June 2016
June 2016
Jan. 2013
Dec. 2013
Subtotal
Cash
Total
Commitment
(In millions)
$ 2,000
2,500
450
50
$ 5,000
—
$ 5,000
Available
Liquidity
$ 1,395
2,498
450
—
$ 4,343
49
$ 4,392
(1) FE and the Utilities
Revolving Credit Facilities
FirstEnergy and FES / AE Supply Facilities
FirstEnergy and certain of its subsidiaries participate in two five-year syndicated revolving credit facilities with aggregate
commitments of $4.5 billion (Facilities).
An aggregate amount of $2 billion is available to be borrowed under a syndicated revolving credit facility (FirstEnergy Facility),
subject to separate borrowing sublimits for each borrower. The borrowers under the FirstEnergy Facility are FE, OE, Penn, CEI,
TE, Met-Ed, ATSI, JCP&L, MP, Penelec, PE and WP. An additional $2.5 billion is available to be borrowed by FES and AE Supply
under a separate syndicated revolving credit facility (FES/AE Supply Facility), subject to separate borrowing sublimits for each
borrower.
Commitments under each of the Facilities will be available until June 17, 2016, unless the lenders agree, at the request of the
applicable borrowers, to up to two additional one-year extensions. Generally, borrowings under each of the Facilities are available
to each borrower separately and mature on the earlier of 364 days from the date of borrowing or the commitment termination date,
as the same may be extended.