Dominion Power 2002 Annual Report Download - page 79

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20Short-Term Debt and Credit Agreements
Joint Credit Facilities
In May 2002, Dominion, Virginia Power and CNG entered
into two joint credit facilities that allow aggregate borrowings of
up to $2 billion. The facilities include a $1.25 billion 364-day
revolving credit facility that terminates in May 2003 and a $750
million three-year revolving credit facility that terminates in
May 2005. The 364-day facility includes an option to extend
any borrowings for an additional period of one year to May
2004. These joint credit facilities are being used for working
capital, as support for the combined commercial paper pro-
grams of Dominion, Virginia Power and CNG and other gen-
eral corporate purposes. The three-year facility can also be used
to support up to $200 million of letters of credit. Dominion
expects to renew the 364-day revolving credit facility prior to its
maturity in May 2003.
At December 31, 2002, total outstanding commercial
paper supported by the joint credit facilities was $1.2 billion,
with a weighted average interest rate of 1.71 percent. At Decem-
ber 31, 2001, total outstanding commercial paper supported by
previous credit agreements was $1.9 billion, with a weighted
average interest rate of 2.72 percent.
At December 31, 2002, total outstanding letters of credit
supported by the three-year facility were $106 million. There
were no outstanding letters of credit at December 31, 2001.
CNG Credit Facility
In August 2002, CNG entered into a $500 million 364-day
revolving credit facility that terminates in August 2003. This
credit facility is being used to support CNG’s issuance of com-
mercial paper and letters of credit to provide collateral required
by counterparties to derivative financial contracts used by CNG
in its risk management strategies for its gas and oil production.
At December 31, 2002, outstanding letters of credit under this
facility totaled $500 million.
Cove Point Bridge Facility
In September 2002, Dominion financed its acquisition of
Cove Point with commercial paper supported by a $250
million 364-day revolving credit facility. This bridge facility
will expire in March 2003 and will not be renewed. See
Note 5 for a discussion of the Cove Point acquisition.
21 Long-Term Debt
Long-term debt consists of the following:
2002
Weighted
Average
At December 31, Coupon(8) 2002 2001
(millions)
Dominion Resources, Inc.:
Senior and medium-term notes
Variable rates, due 2002 to 2003 2.49% $ 100 $ 350
3.875% to 8.125%, due 2003 to 2032(1) 6.63% 4,920 3,250
Equity-linked senior notes,
5.75% to 8.05%, due 2006 to 2008 7.03% 743 413
Consolidated Natural Gas Company:
Senior notes
5.375% to 7.375%, due 2003 to 2027 6.48% 3,150 3,150
6.875%, due 2026(2) 150 150
Senior subordinated debt, 9.25% due 2004 88 94
Virginia Electric and Power Company:
First and refunding mortgage bonds,
6.0% to 8.625%, due 2002 to 2025(3) 7.56% 1,666 2,121
Senior and medium-term notes
Variable rates, due 2002 to 2003 2.37% 120 340
5.375% to 9.60%, due 2002 to 2038 5.95% 1,785 1,195
Tax-exempt financings(4):
Variable rates, due 2008 to 2027 1.60% 197 489
3.15% to 5.875%, due 2007 to 2031(5) 4.99% 402 110
Other Subsidiaries:
Medium-term notes, 5.72% to 6.1%,
due 2005 to 2006(6) 5.94% 199 117
Revolving lines of credit, variable rates,
due 2002 to 2004(6) 3.16% 163 241
Bank term note, variable rate, due 2002 675
Nonrecourse debt:
Variable rates, due 2004 to 2006 2.11% 40 40
7.0% to 12.5%, due 2002 to 2020 8.08% 342 353
14,065 13,088
Fair value hedge valuation (see Note 15) 75 43
Amounts due within one year (2,077) (1,309)
Unamortized discount and premium, net(7) (95) (25)
11,968 11,797
Notes payable—affiliates (see Note 30):
6.0%, due 2005 126 175
Variable rates, due 2006 14 192
140 367
Amounts due within one year (48) (45)
92 322
Total long-term debt $12,060 $12,119
(1) $250 million of the 7.82% remarketable notes due September 15, 2014 will
be either mandatorily purchased and remarketed by the remarketing agent
or mandatorily redeemed by Dominion on September 15, 2004.
(2) At the exercised option of holders, CNG will be required to purchase its
$150 million, 6.875% senior notes due October 15, 2026 at 100% of the
principal amount plus accrued interest on October 15, 2006.
Footnotes continued on next page.
77
Dominion ’02 Annual Report