SHORT-TERM CREDIT ARRANGEMENTS

6 Months Ended

Jun. 30, 2011

SHORT-TERM CREDIT ARRANGEMENTS [Abstract]

SHORT-TERM CREDIT ARRANGEMENTS

(D)  SHORT-TERM CREDIT ARRANGEMENTS

As of June 30, 2011, there were no outstanding amounts under the revolving credit agreement, dated as of November 17, 2010, entered into by and among UIL Holdings, UI, CNG, SCG and Berkshire, together with a group of banks named therein (the Credit Facility).  Under the Credit Facility, UIL Holdings has outstanding standby letters of credit in the amount of $3.9 million, which expire on January 31, 2012 and June 16, 2012, but can be extended under a provision that automatically extends the letter of credit for one year periods from the expiration date (or any future expiration date), unless the issuer bank elects not to extend.  In addition, UI has an outstanding standby letter of credit in the amount of $0.4 million, which expires on December 31, 2011.  Available credit under the Credit Facility at June 30, 2011 totaled $395.7 million for UIL Holdings and its subsidiaries in the aggregate.  UIL Holdings records borrowings under the Credit Facility as short-term debt, but the Credit Facility provides for longer term commitments from banks allowing UIL Holdings to borrow and reborrow funds, at its option, until its expiration on November 17, 2014, thus affording UIL Holdings flexibility in managing its working capital requirements.