Allegheny Power 2011 Annual Report Download - page 47

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32
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.
Each of the Facilities contains financial covenants requiring each borrower to maintain a consolidated debt to total capitalization
ratio of no more than 65%, measured at the end of each fiscal quarter. As of December 31, 2011, FirstEnergy’s and its subsidiaries’
debt to total capitalization ratios (as defined under each of the Facilities) were as follows:
Borrower
FirstEnergy
FES
OE
Penn
CEI
TE
JCP&L
Met-Ed
Penelec
ATSI
MP
PE
WP
AE Supply
57.5%
51.4%
63.4%
42.8%
59.4%
62.7%
43.6%
56.0%
56.6%
48.6%
56.6%
56.8%
52.1%
38.5%
As of December 31, 2011, FirstEnergy could issue additional debt of approximately $6.7 billion, or recognize a reduction in equity
of approximately $3.6 billion, and remain within the limitations of the financial covenants required by its revolving credit facility.
The Facilities do not contain provisions that restrict the ability to borrow or accelerate payment of outstanding advances as a result
of any change in credit ratings. Pricing is subject to “pricing grids,” whereby the borrower's cost of funds borrowed under the Facilities
is related to the credit ratings of the company borrowing the funds.