Short-Term Borrowings

6 Months Ended

Jun. 30, 2022

Short-Term Debt [Abstract]

Short-Term Borrowings

Short-Term Borrowings

We generate short-term borrowings through several sources, described in further detail below.

Revolving Credit Facility. We maintain a revolving credit facility to fund ongoing working capital requirements, including the provision of liquidity support for our commercial paper program, provide for issuance of letters of credit and also for general corporate purposes. Our revolving credit facility has a program limit of $1.85 billion and is comprised of a syndicate of banks. On February 18, 2022, we extended the termination date of our revolving credit facility to February 18, 2027. We had no outstanding borrowings under this facility as of June 30, 2022 and December 31, 2021.

Commercial Paper Program. Our commercial paper program has a program limit of up to $1.5 billion. We had $270.0 million and $560.0 million of commercial paper outstanding with weighted-average interest rates of 2.00% and 0.24% as of June 30, 2022 and December 31, 2021, respectively.

Accounts Receivable Transfer Programs. Columbia of Ohio, NIPSCO and Columbia of Pennsylvania each maintain a receivables agreement whereby they may transfer their customer accounts receivables to third-party financial institutions through wholly owned and consolidated special purpose entities. The three agreements expire between August 2022 and May 2023 and may be further extended if mutually agreed to by the parties thereto.

All receivables transferred to third parties are valued at face value, which approximates fair value due to their short-term nature. The amount of the undivided percentage ownership interest in the accounts receivables transferred is determined in part by required loss reserves under the agreements.

Transfers of accounts receivable are accounted for as secured borrowings resulting in the recognition of short-term borrowings on the Condensed Consolidated Balance Sheets (unaudited). As of June 30, 2022, the maximum amount of debt that could be recognized related to our accounts receivable programs is $285.0 million.

We had $285.0 million and zero short-term borrowings related to the securitization transactions as of June 30, 2022 and December 31, 2021, respectively.

For the six months ended June 30, 2022 and 2021, $285.0 million and zero, respectively, were recorded as cash flows from financing activities related to the change in short-term borrowings due to securitization transactions. For the accounts receivable transfer programs, we pay used facility fees for amounts borrowed, unused commitment fees for amounts not borrowed, and upfront renewal fees. Fees associated with the securitization transactions were $0.7 million and $0.4 million for the three months ended June 30, 2022 and 2021, respectively and $1.0 million and $0.8 million for the six months ended June 30, 2022 and 2021, respectively. Columbia of Ohio, NIPSCO and Columbia of Pennsylvania remain responsible for collecting on the receivables securitized, and the receivables cannot be transferred to another party.

Items listed above are presented net in the Condensed Statements of Consolidated Cash Flows (unaudited) as their maturities are less than 90 days.