Allegheny Power 2014 Annual Report Download - page 49

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34
covenants required by the Facilities, as amended. As of December 31, 2014, FES' incremental debt capacity under its consolidated
debt to total capitalization financial covenant is also $4.9 billion given FE's consolidated debt to total capitalization ratio under its
Facility, as amended.
Changes in Cash Position
As of December 31, 2014, FirstEnergy had $85 million of cash and cash equivalents compared to $218 million of cash and cash
equivalents as of December 31, 2013. As of December 31, 2014 and 2013, FirstEnergy had approximately $79 million and $103
million, respectively, of restricted cash included in Other Current Assets on the Consolidated Balance Sheets.
Cash Flows From Operating Activities
Net cash provided from operating activities was $2,713 million during 2014, $2,662 million during 2013 and $2,320 million during
2012. Cash flows from operations increased $51 million in 2014 compared with 2013 primarily due to:
• An increase in Regulated Distribution and Regulated Transmission sales associated with higher weather-related usage
as well as improving economic conditions in 2014, complemented by a year-over-year improvement in receivables
collections,
• Absence in 2014 of make-whole premiums paid on debt redemptions (2013); partially offset by
• Increases in purchase power and transmission expenses due to higher volumes, increased prices and higher capacity
expenses resulting from the extreme weather-related events in January 2014 that significantly impacted the wholesale
market as discussed above.
Cash Flows From Financing Activities
In 2014, cash provided from financing activities was $513 million compared to $477 million of net cash provided from financing
activities during 2013. The following table summarizes new debt financing (net of any discounts), redemptions and common stock
dividend payments:
For the Years Ended December 31,
Securities Issued or Redeemed / Repaid 2014 2013 2012
(In millions)
New Issues
PCRBs $ 878 $ — $ 650
Term loan 1,050 — —
Senior secured notes — 445 —
FMBs 200 1,000 100
Unsecured Notes 2,400 2,300 —
$ 4,528 $ 3,745 $ 750
Redemptions / Repayments
PCRBs $ (793) $ (470) $ (238)
Long-term revolving credit — (50) —
Senior secured notes (191) (376) (118)
FMBs (175) (420) —
Unsecured notes (600) (2,284) (584)
$ (1,759) $ (3,600) $ (940)
Tender premiums paid on debt redemptions $ — $ (110) $ —
Short-term borrowings, net $ (1,605) $ 1,435 $ 1,969
Common stock dividend payments $ (604) $ (920) $ (920)