SHORT-TERM BORROWINGS

12 Months Ended

Dec. 31, 2012

SHORT-TERM BORROWINGS

SHORT-TERM BORROWINGS

7 SHORT-TERM BORROWINGS

        On June 29, 2011, the Company and Cal Water entered into Syndicated Credit Agreements, which provide for unsecured revolving credit facilities of up to an initial aggregate amount of $400 million. The Syndicated Credit Facilities amend, expand, and replace the Company's and its subsidiaries' existing credit facilities originally entered into on October 27, 2009. The new credit facilities extended the terms until June 29, 2016, increased the Company's and Cal Water's unsecured revolving lines of credit, and lowered interest rates and fees. The Company and subsidiaries which it designates may borrow up to $100 million under the Company's revolving credit facility. Cal Water may borrow up to $300 million under its revolving credit facility; however, all borrowings need to be repaid within twelve months unless otherwise authorized by the CPUC. The proceeds from the revolving credit facilities may be used for working capital purposes, including the short-term financing of capital projects. The base loan rate may vary from LIBOR plus 72.5 basis points to LIBOR plus 95 basis points, depending on the Company's total capitalization ratio. Likewise, the unused commitment fee may vary from 8 basis points to 12.5 basis points based on the same ratio.

        Both short-term unsecured credit agreements contain affirmative and negative covenants and events of default customary for credit facilities of this type including, among other things, limitations and prohibitions relating to additional indebtedness, liens, mergers, and asset sales. Also, these unsecured credit agreements contain financial covenants governing the Company and its subsidiaries' consolidated total capitalization ratio and interest coverage ratio. As of December 31, 2012, the Company and Cal Water have met all borrowing covenants for both credit agreements.

        As of December 31, 2012 and December 31, 2011, the outstanding borrowings on the Company lines of credit were $64.5 million and $47.1 million, respectively. The borrowings on the Cal Water lines of credit were $25.0 million as of December 31, 2012, and there were no borrowings as of December 31, 2011.

        The following table represents borrowings under the bank lines of credit:

	2012			2011
Maximum short-term borrowings	$	89,475		$	47,140
Average amount outstanding	$	71,715		$	32,324
Weighted average interest rate		1.74	%		2.41	%
Interest rate at December 31		2.14	%		2.10	%