XML 38 R24.htm IDEA: XBRL DOCUMENT v3.22.0.1
Short-Term Debt and Lines of Credit
 12 Months Ended
Dec. 31, 2021
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)20212020
Commercial paper
Amount outstanding at December 31$1,896.1 $1,436.9 
Average interest rate on amounts outstanding at December 310.26 %0.21 %
Term loan
Amount outstanding at December 31$— $340.0 
Average interest rate on amounts outstanding at December 31N/A0.99 %
Operating expense loans
Amount outstanding at December 31 (1)
$0.9 $— 

(1)Coyote Ridge and Tatanka Ridge entered into operating expense loans. In accordance with their limited liability company operating agreements, they received loans from their owners in proportion to their ownership interests.

Our average amount of commercial paper borrowings based on daily outstanding balances during 2021, was $1,480.0 million with a weighted-average interest rate during the period of 0.18%.

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. In March 2021, we repaid the term loan using the net proceeds from the issuance of our 0.80% Senior Notes. See Note 14, Long-Term Debt, for more information.

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, 2021, all companies were in compliance with their respective ratio.

The information in the table below relates to our revolving credit facilities used to support our commercial paper borrowing programs, including remaining available capacity under these facilities as of December 31:
(in millions)Maturity2021
Revolving credit facility (WEC Energy Group) (1)
September 2026$1,500.0 
Revolving credit facility (WE) (1)
September 2026500.0 
Revolving credit facility (WPS) (2)
October 2022400.0 
Revolving credit facility (WG) (1)
September 2026350.0 
Revolving credit facility (PGL) (1)
September 2026350.0 
Total short-term credit capacity $3,100.0 
Less:  
Letters of credit issued inside credit facilities $2.3 
Commercial paper outstanding 1,896.1 
Available capacity under existing facilities $1,201.6 

(1)    In September 2021, WEC Energy Group increased its credit facility to $1,500.0 million, and each of WEC Energy Group, WE, WG, and PGL extended the maturities of their credit facilities to September 2026.

(2)    WPS intends to request approval from the PSCW to extend the maturity of its credit facility to September 2026. Lenders have agreed to the extension, subject to WPS's receipt of PSCW approval.

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.