Xcel Energy 2014 Annual Report Download - page 110

92
Credit Facilities — In order to use their commercial paper programs to fulfill short-term funding needs, Xcel Energy Inc. and its
utility subsidiaries must have revolving credit facilities in place at least equal to the amount of their respective commercial paper
borrowing limits and cannot issue commercial paper in an aggregate amount exceeding available capacity under these credit facilities.
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.
Amended Credit Agreements — In October 2014, Xcel Energy Inc., NSP-Minnesota, NSP-Wisconsin, PSCo and SPS entered into
amended five-year credit agreements with a syndicate of banks. The amended credit agreements have substantially the same terms
and conditions as the prior credit agreements with an extension of maturity from July 2017 to October 2019. In addition, the
borrowing limit for Xcel Energy Inc. has been increased to $1 billion from $800 million and the borrowing limit for SPS has been
increased to $400 million from $300 million. As a result, the total borrowing limit under the amended credit agreements increased to
$2.75 billion from $2.45 billion.
NSP-Minnesota, PSCo, SPS, and Xcel Energy Inc. each have the right to request an extension of the revolving termination date for
two additional one-year periods. NSP-Wisconsin has the right to request an extension of the revolving termination date for an
additional one-year period. All extension requests are subject to majority bank group approval.
Features of the credit facilities include:
• Xcel Energy Inc. may increase its credit facility by up to $200 million, NSP-Minnesota and PSCo may each increase their
credit facilities by $100 million and SPS may increase its credit facility by $50 million. The NSP-Wisconsin credit facility
cannot be increased.
• 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, 2014 and 2013, respectively, as evidenced by the table below:
Debt-to-Total Capitalization Ratio
2014 2013
Xcel Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 56% 56%
NSP-Wisconsin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 47
NSP-Minnesota . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48 47
SPS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 49
PSCo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 45
• If Xcel Energy Inc. 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.
• The Xcel Energy Inc. credit facility has a cross-default provision that provides Xcel Energy Inc. will be in default on its
borrowings under the facility if it or any of its subsidiaries, except NSP-Wisconsin as long as its total assets do not comprise
more than 15 percent of Xcel Energy’s consolidated total assets, default on certain indebtedness in an aggregate principal
amount exceeding $75 million.
• The interest rates under these lines of credit are based on Eurodollar borrowing margins ranging from 87.5 to 175 basis points
per year based on the applicable long-term credit ratings.
• The commitment fees, also based on applicable long-term credit ratings, are calculated on the unused portion of the lines of
credit at a range of 7.5 to 27.5 basis points per year.
At Dec. 31, 2014, Xcel Energy Inc. and its utility subsidiaries had the following committed credit facilities available:
(Millions of Dollars) Credit Facility (a) Drawn (b) Available
Xcel Energy Inc.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,000.0 $ 380.5 $ 619.5
PSCo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 700.0 388.4 311.6
NSP-Minnesota. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500.0 166.1 333.9
SPS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 400.0 67.0 333.0
NSP-Wisconsin. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 150.0 78.0 72.0
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,750.0 $ 1,080.0 $ 1,670.0
(a) These credit facilities have been amended to extend the maturity to October 2019.
(b) Includes outstanding commercial paper and letters of credit.