Short-Term Debt and Lines of Credit

12 Months Ended

Dec. 31, 2020

Short-term Debt [Abstract]

SHORT-TERM DEBT AND LINES OF CREDIT

SHORT-TERM DEBT AND LINES OF CREDIT

The following table shows our short-term borrowings and their corresponding weighted-average interest rates as of December 31:

(in millions, except percentages)	2020			2019
Commercial paper
Amount outstanding at December 31	$	1,436.9		$	830.8
Average interest rate on amounts outstanding at December 31	0.21		%	2.00		%
Term loan
Amount outstanding at December 31	$	340.0		$	—
Average interest rate on amounts outstanding at December 31	0.99		%	—		%

Our average amount of commercial paper borrowings based on daily outstanding balances during 2020, was $788.9 million with a weighted-average interest rate during the period of 0.85%.

In order to enhance our liquidity position in response to the COVID-19 pandemic, in March 2020, WEC Energy Group entered into a $340.0 million 364-day term loan that will mature on March 29, 2021. The proceeds from this term loan were used to pay down commercial paper. The weighted-average interest rate on the term loan during the year ended December 31, 2020 was 1.38%.

WEC Energy Group, WE, WPS, WG, and PGL have entered into bank back-up credit facilities to maintain short-term credit liquidity which, among other terms, require them to maintain, subject to certain exclusions, a total funded debt to capitalization ratio of 70.0%, 65.0%, 65.0%, 65.0%, and 65.0% or less, respectively. As of December 31, 2020, all companies were in compliance with their respective ratio.

The information in the table below relates to our term loan agreement and our revolving credit facilities used to support our commercial paper borrowing programs, including remaining available capacity under these credit agreements as of December 31:

(in millions)	Maturity	2020
Term loan agreement (WEC Energy Group)	March 2021	$	340.0
Revolving credit facility (WEC Energy Group)	October 2022	1,200.0
Revolving credit facility (WE)	October 2022	500.0
Revolving credit facility (WPS)	October 2022	400.0
Revolving credit facility (WG)	October 2022	350.0
Revolving credit facility (PGL)	October 2022	350.0
Total short-term credit capacity		$	3,140.0
Less:
Letters of credit issued inside credit facilities		$	2.3
Term loan outstanding		340.0
Commercial paper outstanding		1,436.9
Available capacity under existing agreements		$	1,360.8

Each of the revolving credit facilities has a renewal provision for two extensions, subject to lender approval. Each extension is for a period of one year.

The bank back-up credit facilities contain customary covenants, including certain limitations on the respective companies' ability to sell assets. The credit facilities also contain customary events of default, including payment defaults, material inaccuracy of representations and warranties, covenant defaults, bankruptcy proceedings, certain judgments, Employee Retirement Income Security Act of 1974 defaults, and change of control. In addition, pursuant to the terms of WEC Energy Group's credit agreement, we must ensure that certain of our subsidiaries comply with several of the covenants contained therein.