Borrowings and Other Financing Instruments

9 Months Ended

Sep. 30, 2019

Borrowings and Other Financing Instruments

NSP-Wisconsin meets its short-term liquidity requirements primarily through the issuance of commercial paper and borrowings under its credit facility.

Commercial Paper — Commercial paper outstanding for NSP-Wisconsin was as follows:



(Amounts in Millions, Except Interest Rates)	Three Months Ended Sept. 30, 2019			Year Ended Dec. 31, 2018
Borrowing limit	$	150		$	150
Amount outstanding at period end	68			51
Average amount outstanding	43			28
Maximum amount outstanding	68			103
Weighted average interest rate, computed on a daily basis	2.45		%	2.31		%
Weighted average interest rate at period end	2.27			2.89

Letters of Credit — NSP-Wisconsin uses letters of credit, generally with terms of one year, to provide financial guarantees for certain operating obligations. At Sept. 30, 2019 and Dec. 31, 2018, there were no letters of credit outstanding.

Credit Facility — In order to use its commercial paper program to fulfill short-term funding needs, NSP-Wisconsin must have a revolving credit facility in place at least equal to the amount of its commercial paper borrowing limit and cannot issue commercial paper in an aggregate amount exceeding available capacity under this credit facility. The line of credit provides short-term financing in the form of notes payable to banks, letters of credit and back-up support for commercial paper borrowings.

Amended Credit Agreement — In June 2019, NSP-Wisconsin entered into an amended five-year credit agreement with a syndicate of banks. The amended credit agreements have substantially the same terms and conditions as the prior credit agreements with the exception of the maturity, which was extended from June 2021 to June 2024.

NSP-Wisconsin has the right to request an extension of the revolving credit facility termination date for an additional one year period. All extension requests are subject to majority bank group approval.

As of Sept. 30, 2019, NSP-Wisconsin had the following committed credit facility available (in millions of dollars):



Credit Facility ^(a)		Outstanding ^(b)		Available
$	150	$	68	$	82


^(a)	This credit facility expires in June 2024.


^(b)	Includes outstanding commercial paper.

All credit facility bank borrowings, outstanding letters of credit and outstanding commercial paper reduce the available capacity under the credit facility. NSP-Wisconsin had no direct advances on the credit facility outstanding at Sept. 30, 2019 and Dec. 31, 2018.

Other Short-Term Borrowings — The following table presents the notes payable of Clearwater Investments, Inc., a NSP-Wisconsin subsidiary, to Xcel Energy Inc.:



(Amounts in Millions, Except Interest Rates)	Sept. 30, 2019		Dec. 31, 2018
Notes payable to affiliates	$	—	$	0.6
Weighted average interest rate at period end	N/A		2.89		%