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SHORT TERM AND LONG TERM DEBT
6 Months Ended
Jun. 30, 2015
Notes To Consolidated Financial Statements [Abstract]  
Debt Disclosure

6.       SHORT-TERM AND LONG-TERM DEBT

 

Credit Agreements and Commercial Paper Programs: Eversource parent, CL&P, PSNH, WMECO, NSTAR Gas and Yankee Gas are parties to a five-year $1.45 billion revolving credit facility that expires September 6, 2019. The facility serves to backstop Eversource parent's $1.45 billion commercial paper program. The commercial paper program allows Eversource parent to issue commercial paper as a form of short-term debt. As of June 30, 2015 and December 31, 2014, Eversource parent had $576.5 million and approximately $1.1 billion, respectively, in short-term borrowings outstanding under the Eversource parent commercial paper program, leaving $873.5 million and $348.9 million of available borrowing capacity as of June 30, 2015 and December 31, 2014, respectively. The weighted-average interest rate on these borrowings as of June 30, 2015 and December 31, 2014 was 0.40 percent and 0.43 percent, respectively. As of June 30, 2015, there were intercompany loans from Eversource parent of $85.6 million to CL&P, $133.5 million to PSNH and $60.6 million to WMECO. As of December 31, 2014, there were intercompany loans from Eversource parent of $133.4 million to CL&P, $90.5 million to PSNH and $21.4 million to WMECO.

 

NSTAR Electric has a five-year $450 million revolving credit facility that expires September 6, 2019. The facility serves to backstop NSTAR Electric's $450 million commercial paper program. As of June 30, 2015 and December 31, 2014, NSTAR Electric had $377.2 million and $302 million, respectively, in short-term borrowings outstanding under its commercial paper program, leaving $72.8 million and $148 million of available borrowing capacity as of June 30, 2015 and December 31, 2014, respectively. The weighted-average interest rate on these borrowings as of June 30, 2015 and December 31, 2014 was 0.19 percent and 0.27 percent, respectively.

 

On June 16, 2015, the FERC granted authorization to allow CL&P and WMECO to incur total short-term borrowings up to a maximum of $600 million and $300 million, respectively, effective January 1, 2016 through December 31, 2017.

 

Except as described below, amounts outstanding under the commercial paper programs are included in Notes Payable for Eversource and NSTAR Electric and classified in current liabilities on the balance sheets as all borrowings are outstanding for no more than 364 days at one time. Intercompany loans from Eversource parent to CL&P, PSNH and WMECO are included in Notes Payable to Eversource Parent and classified in current liabilities on the balance sheets. Intercompany loans from Eversource parent to CL&P, PSNH and WMECO are eliminated in consolidation in Eversource's balance sheets.

 

Long-Term Debt: On January 15, 2015, Eversource parent issued $150 million of 1.60 percent Series G Senior Notes, due to mature in 2018 and $300 million of 3.15 percent Series H Senior Notes, due to mature in 2025. The proceeds, net of issuance costs, were used to repay short-term borrowings outstanding under the Eversource parent commercial paper program. As the debt issuances refinanced short-term debt, the short-term debt was classified as Long-Term Debt as of December 31, 2014.

 

On April 1, 2015, CL&P repaid at maturity the $100 million 5.00 percent 2005 Series A First and Refunding Mortgage Bonds using short-term borrowings. On April 1, 2015, CL&P also redeemed the $62 million 1996A Series 1.55 percent PCRBs that were subject to mandatory tender, using short term borrowings.

 

On May 20, 2015, CL&P issued $300 million of 4.15 percent 2015 Series A First and Refunding Mortgage Bonds due to mature in 2045. The proceeds, net of issuance costs, were used to repay short-term borrowings.

 

On August 1, 2015, WMECO repaid at maturity the $50 million 5.24 percent Series C Senior Notes using short-term borrowings.

 

Long-Term Debt Issuance Authorization: On April 3, 2015, the DPU authorized NSTAR Gas to issue up to $100 million in long-term debt for the period through December 31, 2015.