Allegheny Power 2011 Annual Report Download - page 138

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123
Borrowings under each of the Facilities are subject to the usual and customary provisions for acceleration upon the occurrence of
events of default, including a cross-default for other indebtedness in excess of $100 million, as described further in Note 12,
Capitalization.
The following table summarizes the borrowing sub-limits for each borrower under the Facilities, 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, 2011:
Borrower
FE
FES
AE Supply
OE
CEI
TE
JCP&L
Met-Ed
Penelec
West Penn
MP
PE
ATSI
Penn
Revolving
Credit Facility
Sub-Limit
(In millions)
$ 2,000
$ 1,500
$ 1,000
$ 500
$ 500
$ 500
$ 425
$ 300
$ 300
$ 200
$ 150
$ 150
$ 100
$ 50
Regulatory and
Other Short-Term
Debt Limitations
—
—
—
$ 500
$ 500
$ 500
$ 411
$ 300
$ 300
$ 200
$ 150
$ 150
$ 100
$ 33
(1)
(2)
(2)
(3)
(3)
(3)
(3)
(3)
(3)
(3)
(1) No limitations.
(2) No limitation based upon blanket financing authorization from the FERC under existing open market tariffs.
(3) Excluding amounts which may be borrowed under the regulated companies’ money pool.
The entire amount of the FES/AE Supply Facility and $700 million of the FirstEnergy Facility, subject to each borrower’s sub-limit,
is available for the issuance of LOCs expiring up to one year from the date of issuance. The stated amount of outstanding LOCs
will count against total commitments available under each of the Facilities and against the applicable borrower’s borrowing sub-
limit.
AGC and TrAIL Revolving Credit Facilities
FirstEnergy also has established $500 million of revolving credit facilities that are available to TrAIL ($450 million) and AGC ($50
million) until January 2013 and December 2013, respectively.
FirstEnergy Money Pools
FirstEnergy’s regulated companies also have the ability to borrow from each other and the holding company to meet their short-
term working capital requirements. A similar but separate arrangement exists among FirstEnergy’s unregulated companies. FESC
administers these two money pools and tracks surplus funds of FirstEnergy and 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 during 2011 was 0.44% per annum for the regulated companies’ money
pool and 0.42% per annum for the unregulated companies’ money pool.
Weighted Average Interest Rates
The weighted average interest rates on short-term borrowings outstanding, including borrowings under the FirstEnergy Money
Pools, as of December 31, 2011 and 2010, were as follows: