Allegheny Power 2014 Annual Report Download - page 46

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31
As of December 31, 2014, FirstEnergy’s net deficit in working capital (current assets less current liabilities) was due in large part
to currently payable long-term debt and short-term borrowings. Currently payable long-term debt as of December 31, 2014, included
the following:
Currently Payable Long-Term Debt (In millions)
PCRBs supported by bank LOCs (1) $ 92
FMBs 215
Unsecured PCRBs (1) 313
Collateralized lease obligation bonds 78
Sinking fund requirements 102
Other notes 4
$ 804
(1) These PCRBs are classified as currently payable long-term debt because the applicable interest rate
mode permits individual debt holders to put the respective debt back to the issuer prior to maturity.
Short-Term Borrowings
FE and certain of its subsidiaries participate in three five-year syndicated revolving credit facilities with aggregate commitments of
$6.0 billion (Facilities), which are available until March 31, 2019. FirstEnergy had $1,799 million and $3,404 million of short-term
borrowings under the Facilities as of December 31, 2014 and 2013, respectively. FirstEnergy’s available liquidity under the Facilities
as of January 31, 2015 was as follows:
Borrower(s) Type Maturity Commitment Available
Liquidity
(In millions)
FirstEnergy(1) Revolving March 2019 $ 3,500 $ 1,469
FES / AE Supply Revolving March 2019 1,500 1,435
FET(2) Revolving March 2019 1,000 1,000
Subtotal $ 6,000 $ 3,904
Cash — 58
Total $ 6,000 $ 3,962
(1) FE and the Utilities.
(2) Includes FET, ATSI and TrAIL.
Revolving Credit Facilities
FirstEnergy, FES/AE Supply and FET Facilities
On March 31, 2014, FE, FES, AE Supply, FET and FE's other borrower subsidiaries entered into extensions and amendments to
the three existing multi-year syndicated revolving credit facilities. Each Facility was extended until March 31, 2019. The FE facility
was amended to increase the lending banks' commitments under the facility by $1.0 billion to a total of $3.5 billion and to increase
the individual borrower sublimit for FE by $1.0 billion to a total of $3.5 billion. The FES/AE Supply facility was amended to decrease
the lending banks' commitments by $1.0 billion to a total of $1.5 billion. The lending banks' commitments under the FET facility
remain at $1.0 billion and that facility was amended to increase ATSI's individual borrower sublimit to $500 million from $100 million
and TrAIL's individual borrower sublimit to $400 million from $200 million. FirstEnergy expensed approximately $5 million (FES -
$3 million) of unamortized debt expense as a result of the amendments, included in Loss on Debt Redemptions in the Consolidated
Statement of Income for the year ended December 31, 2014.
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. Each of the Facilities contains
financial covenants requiring each borrower to maintain a consolidated debt to total capitalization ratio (as defined under each of
the Facilities, as amended) of no more than 65%, and 75% for FET, measured at the end of each fiscal quarter.