Lines of Credit and Short-Term Borrowings

12 Months Ended

Dec. 31, 2020

Lines of Credit and Short-Term Borrowings

Lines of Credit and Short-Term Borrowings

Lines of Credit and Short-Term Borrowings

Pinnacle West and APS maintain committed revolving credit facilities in order to enhance liquidity and provide credit support for their commercial paper programs, to refinance indebtedness, and for other general corporate purposes.

The table below presents the consolidated credit facilities and the amounts available and outstanding as of December 31, 2020 and 2019 (dollars in thousands):

	December 31, 2020						December 31, 2019
	Pinnacle West		APS		Total		Pinnacle West		APS		Total
Commitments under Credit Facilities	$	231,000	$	1,000,000	$	1,231,000	$	250,000	$	1,000,000	$	1,250,000
Outstanding Commercial Paper, Term Loan and Revolving Credit Facility Borrowings	(169,000)		—		(169,000)		(114,675)		—		(114,675)
Amount of Credit Facilities Available	$	62,000	$	1,000,000	$	1,062,000	$	135,325	$	1,000,000	$	1,135,325
Weighted-Average Commitment Fees	0.125%		0.100%				0.125%		0.100%

Pinnacle West

On May 5, 2020, Pinnacle West refinanced its 364-day $50 million term loan agreement that would have matured on May 7, 2020 with a new 364-day $31 million term loan agreement that matures May 4, 2021. Borrowings under the agreement bear interest at Eurodollar Rate plus 1.40% per annum. At December 31, 2020, Pinnacle West had $19 million in outstanding borrowings under the agreement.

At December 31, 2020, Pinnacle West had a $200 million revolving credit facility that matures in July 2023. Pinnacle West has the option to increase the amount of the facility up to a maximum of $300 million upon the satisfaction of certain conditions and with the consent of the lenders. Interest rates are based on Pinnacle West’s senior unsecured debt credit ratings. The facility is available to support Pinnacle West’s $200 million commercial paper program, for bank borrowings or for issuances of letters of credits. At December 31, 2020, Pinnacle West had no outstanding borrowings under its credit facility, no letters of credit outstanding and $150 million of commercial paper borrowings.

APS

At December 31, 2020, APS had two revolving credit facilities totaling $1 billion, including a $500 million credit facility that matures in June 2022 and a $500 million facility that matures in July 2023.  APS may increase the amount of each facility up to a maximum of $700 million, for a total of $1.4 billion, upon the satisfaction of certain conditions and with the consent of the lenders.  Interest rates are based on APS’s senior unsecured debt credit ratings. These facilities are available to support APS’s $500 million commercial paper program, for bank borrowings or for issuances of letters of credit.  At December 31, 2020, APS had no outstanding borrowings under its revolving credit facilities, no letters of credit outstanding or commercial paper borrowings.

See “Financial Assurances” in Note 11 for a discussion of APS’s other outstanding letters of credit.

Debt Provisions

On December 17, 2020, the ACC issued a financing order in which, subject to specified parameters and procedures, it approved APS’s short-term debt authorization equal to a sum of (i) 7% of APS’s capitalization, and (ii) $500 million (which is required to be used for costs relating to purchases of natural gas and power). (See Note 7 for additional long-term debt provisions.)