SHORT-TERM BORROWINGS

12 Months Ended

Dec. 31, 2016

On March 10, 2015, the Company and Cal Water entered into Syndicated Credit Agreements, which provide for unsecured revolving credit facilities of up to an initial aggregate amount of $450.0 million for a term of 5 years. The Company and subsidiaries that it designates may borrow up to $150.0 million under the Company’s revolving credit facility. Cal Water may borrow up to $300.0 million under its revolving credit facility; however, all borrowings need to be repaid within 12 months unless otherwise authorized by the CPUC. The credit facilities may each be expanded by up to $50.0 million subject to certain conditions. The proceeds from the revolving credit facilities may be used for working capital purposes, including the short-term financing of capital projects. The base loan rate may vary from LIBOR plus 72.5 basis points to LIBOR plus 95 basis points, depending on the Company’s total capitalization ratio. Likewise, the unused commitment fee may vary from 8 basis points to 12.5 basis points based on the same ratio.

The revolving credit facilities contain affirmative and negative covenants and events of default customary for credit facilities of this type including, among other things, limitations and prohibitions relating to additional indebtedness, liens, mergers, and asset sales. Also, these unsecured credit agreements contain financial covenants governing the Company and its subsidiaries' consolidated total capitalization ratio and interest coverage ratio.

As of December 31, 2016 and December 31, 2015, the outstanding borrowings on the Company lines of credit were $57.1 million and $33.6 million, respectively. The borrowings on the Cal Water lines of credit as of December 31, 2016 was $40.0 million and there were no borrowings as of December 31, 2015.

The following table represents borrowings under the bank lines of credit:



	2016			2015
Maximum short-term borrowings	$	97,100		$	139,582
Average amount outstanding	$	65,804		$	104,863
Weighted average interest rate	1.33		%	1.04		%
Interest rate at December 31	1.40		%	1.03		%