Short-Term Borrowings

9 Months Ended

Sep. 30, 2012

Short-term Debt [Abstract]

Short-Term Borrowings

Short-Term Borrowings

During June 2011, NiSource Finance implemented a new commercial paper program with a program limit of up to $500.0 million with a dealer group comprised of Barclays, Citigroup, Credit Suisse and Wells Fargo. Commercial paper issuances are supported by available capacity under NiSource’s $1.5 billion unsecured revolving credit facility, which expires in May 2017. At September 30, 2012, NiSource had $55.0 million of commercial paper outstanding.

During May 2012, NiSource Finance amended its existing $1.5 billion revolving credit facility with a syndicate of banks led by Barclays Capital extending the termination date to May 15, 2017 and also reducing the borrowing costs under the facility. The purpose of the facility is to fund ongoing working capital requirements including the provision of liquidity support for NiSource’s commercial paper program, provide for issuance of letters of credit, and also for general corporate purposes. At September 30, 2012, NiSource had no outstanding borrowings under this facility.

As of September 30, 2012 and December 31, 2011, NiSource had $36.9 million and $37.5 million, respectively, of stand-by letters of credit outstanding, of which $18.6 million and $19.2 million, respectively, were under the revolving credit facility.

Transfers of accounts receivable are accounted for as secured borrowings resulting in the recognition of short-term debt on the Condensed Consolidated Balance Sheet in the amount of $170.3 million and $231.7 million as of September 30, 2012 and December 31, 2011, respectively. Refer to Note 10, “Transfers of Financial Assets,” for additional information.

(in millions)	September 30, 2012		December 31, 2011
Commercial Paper weighted average interest rate of 1.02% and 1.01% at September 30, 2012 and December 31, 2011, respectively.	$	55.0	$	402.7
Credit facilities borrowings weighted average interest rate of 1.99% at December 31, 2011.	—		725.0
Accounts receivable securitization facility borrowings	170.3		231.7
Total short-term borrowings	$	225.3	$	1,359.4

Given their turnover is less than 90 days, cash flows related to the borrowings and repayments of the items listed above are presented net in the Condensed Statements of Consolidated Cash Flows (unaudited).