Xcel Energy 2008 Annual Report Download - page 107

5. Short-Term Borrowings and Other Financing Instruments
Commercial Paper — At Dec. 31, 2008 and 2007, Xcel Energy and its utility subsidiaries had commercial paper
outstanding of approximately $330.3 and $1.1 billion, respectively. The weighted average interest rates at Dec. 31, 2008
and 2007 were 3.53 percent and 5.57 percent, respectively. At Dec. 31, 2008 and 2007, Xcel Energy and its utility
subsidiaries had combined board approval to issue up to $2.25 billion of commercial paper.
Credit Facility Bank Borrowings — At Dec. 31, 2008, Xcel Energy and its utility subsidiaries had credit facility bank
borrowings of $125.0 million with a weighted average interest rate of 1.88 percent. Xcel Energy and its utility
subsidiaries had no credit facility bank borrowings at Dec. 31, 2007.
Money Pool — Xcel Energy and its utility subsidiaries have established a utility money pool arrangement that allows for
short-term loans between the utility subsidiaries and from the holding company to the utility subsidiaries at market-
based interest rates. The utility money pool arrangement does not allow loans from the utility subsidiaries to the
holding company. At Dec. 31, 2008 and 2007, Xcel Energy and its utility subsidiaries had money pool loans
outstanding of $104.5 million and $100.6 million, respectively. The weighted average interest rates at Dec. 31, 2008
and 2007 were 3.48 percent and 5.64 percent, respectively.
6. Long-Term Borrowings and Other Financing Instruments
Credit Facilities — At Dec. 31, 2008, Xcel Energy and its utility subsidiaries had the following committed credit
facilities available:
Credit Credit Facility
Facility(1) Borrowings Available(2) Original Term Maturity
(Millions of Dollars)
NSP-Minnesota ....................... $ 482.2 $ — $ 411.4 Five year December 2011
PSCo .............................. 675.1 — 630.2 Five year December 2011
SPS............................... 247.8 — 236.2 Five year December 2011
Xcel Energy — holding company ............ 771.6 125.0 420.7 Five year December 2011
Total ............................. $2,176.7 $125.0 $1,698.5
(1) Reflects a reduction in the commitments resulting from the Lehman Brothers bankruptcy, which reduced the credit facilities by $73.3 million, collectively.
(2) Net of credit facility borrowings, issued and outstanding letters of credit and commercial paper borrowings.
The lines of credit provide short-term financing in the form of notes payable to banks, letters of credit and back-up
support for commercial paper borrowings.
• Each credit facility has one financial covenant requiring that the debt-to-total-capitalization ratio of each entity
be less than or equal to 65 percent with which all were in compliance at Dec. 31, 2008 and 2007. If Xcel
Energy or any of its utility subsidiaries do not comply with the covenant, it is deemed an event of default and
any outstanding amounts due under the facility can be declared due by the lender.
• Each credit facility has a cross default provision that provides the borrower will be in default on its borrowings
under the facility if any of its subsidiaries, comprising more than 15 percent of the consolidated assets, defaults
on any of its indebtedness greater than $50 million.
• The interest rates under these lines of credit are based on either the agent bank’s prime rate or the applicable
LIBOR, plus a borrowing margin based on the applicable debt rating.
• The commitment fees, also based on applicable debt ratings, are calculated on the unused portion of the lines of
credit at 8 annual basis points for Xcel Energy, PSCo and SPS, and at 6 annual basis points for NSP-Minnesota.
Xcel Energy and its utility subsidiaries have $2.2 billion in senior unsecured revolving credit facilities that mature in
December 2011. Xcel Energy and its utility subsidiaries have the right to request an extension of the final maturity date
by one year. The maturity extension is subject to majority bank group approval.
• At Dec. 31, 2008, Xcel Energy had short-term borrowings of $125.0 million on this line of credit. In addition,
the credit facilities were used to provide backup for $330.3 million of commercial paper outstanding and
$23.0 million of letters of credit.
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