Allegheny Power 2013 Annual Report Download - page 52

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The following table summarizes the borrowing sub-limits for each borrower under the Facilities, 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, 2013:
Borrower
FirstEnergy
Revolving
Credit Facility
Sub-Limit
FES/AE Supply
Revolving
Credit Facility
Sub-Limit
FET Revolving
Credit Facility
Sub-Limit
Regulatory and
Other Short-Term
Debt Limitations
(In millions)
FE $ 2,500 $ — $ — $ — (1)
FES — 1,500 — — (2)
AE Supply — 1,000 — — (2)
FET — — 1,000 — (1)
OE 500 — — 500 (3)
CEI 500 — — 500 (3)
TE 500 — — 500 (3)
JCP&L 600 — — 850 (3)
ME 300 — — 500 (3)
PN 300 — — 300 (3)
WP 200 — — 200 (3)
MP 150 — — 500 (3)
PE 150 — — 150 (3)
ATSI — — 100 500 (3)
Penn 50 — — 50 (3)
TrAIL — — 200 400 (3)
(1) No limitations.
(2) No limitation based upon blanket financing authorization from the FERC under existing market-based rate tariffs.
(3) Includes amounts which may be borrowed under the regulated companies' money pool.
The entire amount of the FES/AE Supply Facility, $700 million of the FirstEnergy Facility and $225 million of the FET Facility, subject
to each borrower’s sub-limit, is available for the issuance of LOCs (subject to borrowings drawn under the Facilities) 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.
The Facilities do not contain provisions that restrict the ability to borrow or accelerate payment of outstanding advances in the event
of any change in credit ratings of the borrowers. Pricing is defined in “pricing grids,” whereby the cost of funds borrowed under the
Facilities is related to the credit ratings of the company borrowing the funds, other than the FET Facility, which is based on its
subsidiaries' credit ratings. Additionally, 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.
Term Loan
During December of 2013, FE entered into an agreement to extend and amend its $150 million term loan agreement with a maturity
date of December 31, 2014. The maturity of the loan was extended to December 31, 2015 and the principal amount was increased
to $200 million.
FirstEnergy Money Pools
FirstEnergy’s utility operating subsidiary 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 in 2013 was 0.67% per annum for the regulated companies’
money pool and 1.34% per annum for the unregulated companies’ money pool.