Short-Term Borrowings and Credit Arrangements

12 Months Ended

Dec. 31, 2022

Debt Disclosure [Abstract]

Short-term Debt

(10)          Unsecured Credit Facilities

Credit Facilities

On May 18, 2022, we amended our existing $425 million credit facility to, among other things, change the Eurodollar rate to the secured overnight financing rate as administered by the Federal Reserve Bank of New York (SOFR) and extend the maturity date of the facility from September 2, 2023 to May 18, 2027. The amended and restated credit facility (the Primary Credit Facility) maintains the same capacity at $425 million and uncommitted features that allow us to request up to two one-year extensions to the maturity date and increase the size of the facility by up to an additional $75 million. The Primary Credit Facility does not amortize and is unsecured. Borrowings may be made at interest rates equal to (a) SOFR, plus a credit spread adjustment of 10.0 basis points plus a margin of 100.0 to 175.0 basis points, or (b) a base rate, plus a margin of 0.0 to 75.0 basis points.

On October 28, 2022, we entered into a $100 million Credit Agreement (the Additional Credit Facility) to supplement our existing $425 million revolving credit facility. The Additional Credit Facility has a maturity date of April 28, 2024. The Additional Credit Facility does not amortize and is unsecured. Borrowings may be made at interest rates equal to (a) SOFR, plus a credit spread adjustment of 10.0 basis points, plus a margin of 100.0 to 175.0 basis points, or (b) a base rate, plus a margin of 0.0 to 75.0 basis points.

On March 25, 2022, we amended our existing $25 million swingline credit facility (the Swingline Facility) to, among other things, change the Eurodollar rate to the secured overnight financing rate as administered by the Federal Reserve Bank of New York (SOFR) and extend the maturity date of the facility from March 27, 2023 to March 27, 2024. The Swingline Facility does not amortize and is unsecured. Borrowings may be made at interest rates equal to (a) SOFR, plus a margin of 90.0 basis points, or (b) a base rate, plus a margin of 12.5 basis points.

Commitment fees for the unsecured revolving lines of credit were $0.1 million and $0.4 million for the years ended December 31, 2022 and 2021.

The availability under the facilities in place for the years ended December 31 is shown in the following table (in millions):

	2022		2021
Unsecured revolving line of credit, expiring May 2027	$	425.0	$	425.0
Unsecured revolving line of credit, expiring April 2024	100.0		—
Unsecured revolving line of credit, expiring March 2024	25.0		25.0
	550.0		450.0
Amounts outstanding at December 31:
SOFR borrowings	450.0		—
Eurodollar borrowings	—		373.0
Letters of credit	—		—
	450.0		373.0
Net availability as of December 31	$	100.0	$	77.0

The Credit Facility includes covenants that require us to meet certain financial tests, including a maximum debt to capitalization ratio not to exceed 65 percent. The facility also contains covenants which, among other things, limit our ability to engage in any consolidation or merger or otherwise liquidate or dissolve, dispose of property, and enter into transactions with affiliates. A default on the South Dakota or Montana First Mortgage Bonds would trigger a cross default on the Credit Facility; however a default on the Credit Facility would not trigger a default on the South Dakota or Montana First Mortgage Bonds.