Xcel Energy 2010 Annual Report Download - page 107

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At Dec. 31, 2010, Xcel Energy and its utility subsidiaries had the following committed credit facilities available:
(Millions of Dollars) Credit Facility Drawn
(a) Available Original
Term Maturity
N
SP-Minnesota ......................... $ 482 $ 5 $ 477 Five year December 2011
PSCo ................................... 675 275 400 Five year December 2011
SPS .................................... 248 49 199 Five year December 2011
Xcel Energy — Holding Company........ 772 148 624 Five year December 2011
N
SP-Wisconsin (b) ......................
—
—
—
Total ............................... $ 2,177 $ 477 $ 1,700
(a) Includes outstanding commercial paper and issued and outstanding letters of credit.
(b) NSP-Wisconsin does not have a separate credit facility; however, it has a borrowing agreement with NSP-Minnesota, see further discussion below.
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. 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.
● Each credit facility has a financial covenant requiring that the debt-to-total capitalization ratio of each entity be less than
or equal to 65 percent. Each entity was in compliance at Dec. 31, 2010 and 2009 as evidenced by the table below:
Debt-to-Total
Capitalization Ratio
2010 2009
N
SP-Minnesota ...................................... 49% 48
%
PSCo ............................................... 46 45
SPS ................................................. 50 49
Xcel Energy — Consolidated ......................... 55 55
If Xcel Energy or any of its utility subsidiaries do not comply with the covenant, an event of default may be declared, and if not
remedied, any outstanding amounts due under the facility can be declared due by the lender.
● Each credit facility has a cross default provision that provides Xcel Energy will be in default on its borrowings under the
facility if any of its subsidiaries, comprising more than 15 percent of the consolidated assets of Xcel Energy on a
consolidated basis, 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. Based on current credit ratings, the borrowing margin is 35
basis points for Xcel Energy and SPS, and 25 basis points for NSP-Minnesota and PSCo.
● The commitment fees, also based on applicable long-term credit ratings, are calculated on the unused portion of the lines
of credit at 8 basis points per year for Xcel Energy and SPS and at 6 basis points per year for NSP-Minnesota and PSCo.
● At Dec. 31, 2010, the credit facilities were used to provide backup for $466.4 million of commercial paper outstanding
and $10.1 million of letters of credit. At Dec. 31, 2009, the credit facilities were used to provide backup for
$459.0 million of commercial paper outstanding and $21.0 million of letters of credit.
● Xcel Energy plans to syndicate new credit agreements at the Holding Company, NSP-Minnesota, PSCo, SPS, and NSP-
Wisconsin during the first quarter of 2011 to replace the existing agreements. The total anticipated size of the new credit
facilities will be approximately $2.45 billion.
● In an order dated Feb. 4, 2011, NSP-Wisconsin received regulatory approval to establish a commercial paper program
authorized for $150 million and enter into a back-up credit facility. Subsequently, NSP-Wisconsin’s intercompany
borrowing arrangement with NSP-Minnesota will be terminated.
Long-Term Borrowings
All property of NSP-Minnesota and NSP-Wisconsin and the electric property of PSCo are subject to the liens of their first
mortgage indentures. In addition, certain payments made by SPS under its pollution-control obligations are pledged to secure
obligations of the Red River Authority of Texas.