Xcel Energy 2002 Annual Report Download - page 50

5. short-term borrowings
Notes Payable and Commercial Paper Information regarding notes payable and commercial paper for the years ended Dec. 31, 2002
and 2001, is:
(Millions of dollars, except interest rates) 2002 2001
Notes payable to banks $1,542 $ 835
Commercial paper –1,390
Total short-term debt $1,542 $2,225
Weighted average interest rate at year-end 4.33% 3.41%
Credit Facilities As of Dec. 31, 2002, Xcel Energy had the following credit facilities available:
Maturity Term Credit Line
Xcel Energy November 2005 5 years $400 million
NSP-Minnesota August 2003 364 days $300 million
PSCo June 2003 364 days $530 million
SPS February 2003 364 days $250 million
Other subsidiaries Various Various $ 55 million
The lines of credit provide short-term financing in the form of bank loans and letters of credit and, depending on credit ratings, provide
support for commercial paper borrowings. At Dec. 31, 2002, there were $399 million of loans outstanding under the Xcel Energy line of
credit and $88 million for PSCo. The borrowing rates under these lines of credit are based on the applicable London Interbank Offered
Rate (LIBOR) plus an applicable spread, a euro dollar rate margin and the amount of money borrowed. At Dec. 31, 2002, the weighted
average interest rate would have been 2.70 percent and 2.42 percent, respectively. See discussion of NRG short-term debt at Note 7.
On Jan. 22, 2003, Xcel Energy entered into an agreement with Perry Capital and King Street Capital to provide Xcel Energy with a
nine-month, $100-million term loan facility. The facility carries a 9-percent per annum coupon rate and fees for early termination,
prepayment and extensions within the nine-month period. Xcel Energy has no current need to draw on the facility, but sought the
additional liquidity to provide financing flexibility. Xcel Energy, absent SEC approval under PUHCA, can only draw on this facility
when its common equity exceeds 30 percent of total capitalization.
The SPS $250-million facility expired in February 2003 and was replaced with a $100-million unsecured, 364-day credit agreement.
The NSP-Minnesota and PSCo credit facilities are secured by first mortgages and first collateral trust bonds, respectively.
6. long-term debt
Except for SPS and other minor exclusions, all property of our utility subsidiaries is subject to the liens of their first mortgage indentures,
which are contracts between the companies and their bondholders. In addition, certain SPS payments under its pollution-control
obligations are pledged to secure obligations of the Red River Authority of Texas.
The utility subsidiaries’ first mortgage bond indentures provide for the ability to have sinking-fund requirements. These annual
sinking-fund requirements are 1 percent of the highest principal amount of the series of first mortgage bonds at any time outstanding.
Sinking-fund requirements at NSP-Wisconsin, PSCo and Cheyenne are $2.8 million and are for one series of first mortgage bonds
each. Such sinking-fund requirements may be satisfied with property additions or cash. NSP-Minnesota and SPS have no sinking-
fund requirements.
NSP-Minnesota’s 2011 series bonds are redeemable upon seven-days notice at the option of the bondholder. Because of the terms that
allow the holders to redeem these bonds on short notice, we include them in the current portion of long-term debt reported under current
liabilities on the balance sheets.
See discussion of NRG long-term debt at Note 7.
Maturities and sinking fund requirements of long-term debt are:
2003 $7,759 million
2004 $ 239 million
2005 $ 313 million
2006 $ 722 million
2007 $ 420 million
page 64 xcel energy inc. and subsidiaries
notes to consolidated financial statements