SHORT-TERM DEBT AND LINES OF CREDIT

6 Months Ended

Jun. 30, 2011

SHORT-TERM DEBT AND LINES OF CREDIT

SHORT-TERM DEBT AND LINES OF CREDIT

NOTE 4—SHORT-TERM DEBT AND LINES OF CREDIT

Our short-term borrowings consisted of sales of commercial paper and short-term notes.

(Millions, except percentages)	June 30, 2011			December 31, 2010
Commercial paper outstanding	$	5.1		—
Average discount rate on outstanding commercial paper	0.21		%	—
Short-term notes payable outstanding	—			$	10.0
Average interest rate on short-term notes payable outstanding	—			0.32		%

The commercial paper outstanding at June 30, 2011, matured on July 1, 2011.

The table below presents our average amount of short-term borrowings outstanding based on daily outstanding balances during the six months ended June 30:

(Millions)	2011		2010
Average amount of commercial paper outstanding	$	6.9	$	0.2
Average amount of short-term notes payable outstanding	7.3		10.0

We manage our liquidity by maintaining adequate external financing commitments.  The information in the table below relates to our short-term debt, lines of credit, and remaining available capacity:

(Millions)	Maturity	June 30, 2011		December 31, 2010
Revolving credit facility (1)	04/23/13	$	115.0	$	115.0
Revolving credit facility (2)	05/15/12	$	135.0	—
Revolving short-term notes payable (3)	05/13/11	—		10.0
Total short-term credit capacity		$	250.0	$	125.0
Less:
Letters of credit issued inside credit facilities		$	0.2	$	0.2
Loans outstanding under credit agreements and notes payable		—		10.0
Commercial paper outstanding		5.1		—
Available capacity under existing agreements		$	244.7	$	114.8

(1) Supports our commercial paper borrowing program.

(2) In May 2011, we entered into a new revolving credit agreement to support our commercial paper borrowing program.  We have requested approval from the PSCW to extend this facility through May 17, 2014.

(3) These short-term notes payable were repaid in May 2011.

At June 30, 2011, we were in compliance with all financial covenants related to outstanding short-term debt.  Our revolving credit agreement contains financial and other covenants, including but not limited to, a requirement to maintain a debt to total capitalization ratio not to exceed 65%, excluding non-recourse debt.  Failure to comply with these covenants could result in an event of default, which could result in the acceleration of outstanding debt obligations.