Allegheny Power 2013 Annual Report Download - page 136

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The amounts and annual fees for PCRB-related LOCs for FirstEnergy and FES as of December 31, 2013, are as follows:
Aggregate LOC
Amount Annual Fees
(In millions)
FirstEnergy $ 818 1.65% to 3.30%
FES 744 1.65% to 3.30%
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. As of December 31, 2013, FirstEnergy and FES remain
in compliance with all debt covenant provisions.
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, FG or NG 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, FG, NG or the Utilities.
13. SHORT-TERM BORROWINGS AND BANK LINES OF CREDIT
FirstEnergy had $3,404 million and $1,969 million of short-term borrowings as of December 31, 2013 and December 31, 2012,
respectively. FirstEnergy’s available liquidity as of January 31, 2014, was as follows:
Borrower(s) Type Maturity Commitment
Available
Liquidity
(In millions)
FirstEnergy(1) Revolving May 2018 $ 2,500 $ 224
FES / AE Supply Revolving May 2018 2,500 2,489
FET(2) Revolving May 2018 1,000 —
Subtotal $ 6,000 $ 2,713
Cash — 48
Total $ 6,000 $ 2,761
(1) FE and the Utilities
(2) Includes FET, ATSI and TrAIL as subsidiary borrowers
Revolving Credit Facilities
FirstEnergy, FES/AE Supply and FET Facilities
FE and certain of its subsidiaries participate in three five-year syndicated revolving credit facilities with aggregate commitments of
$6.0 billion (Facilities). The Facilities consist of a $2.5 billion aggregate FirstEnergy Facility, a $2.5 billion FES/AE Supply Facility
and a $1.0 billion FET Facility, that are each available until May 2018, unless the lenders agree, at the request of the applicable
borrowers, to an additional one-year extension. 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.
On May 8, 2013, FE, FES, AE Supply and FE's other borrowing subsidiaries entered into extensions and amendments to the three
existing multi-year syndicated revolving credit facilities. Each facility was extended until May 2018, unless the lenders agree, at the
request of the applicable borrowers, to an additional one-year extension. The FE Facility was amended to increase the lending
banks' commitments under the facility by $500 million to a total of $2.5 billion and to increase the individual borrower sub-limits for
FE by $500 million to a total of $2.5 billion and for JCP&L by $175 million to a total of $600 million.