SHORT-TERM BORROWINGS AND BANK LINES OF CREDIT

FirstEnergy had no significant short-term borrowings as of December 31, 2011, and short-term borrowings of approximately $700 million as of December 31, 2010. FirstEnergy’s available liquidity as of January 31, 2012, was as follows:



Company	Type	Maturity	Commitment		Available Liquidity
			(In millions)
FirstEnergy⁽¹⁾	Revolving	June 2016	$	2,000	$	1,395
FES / AE Supply	Revolving	June 2016	2,500		2,498
TrAIL	Revolving	Jan. 2013	450		450
AGC	Revolving	Dec. 2013	50		—
		Subtotal	$	5,000	$	4,343
		Cash	—		49
		Total	$	5,000	$	4,392


⁽¹⁾	FE and the Utilities

Revolving Credit Facilities

FirstEnergy and FES / AE Supply Facilities

FirstEnergy and certain of its subsidiaries participate in two five-year syndicated revolving credit facilities with aggregate commitments of $4.5 billion (Facilities).

An aggregate amount of $2 billion is available to be borrowed under a syndicated revolving credit facility (FirstEnergy Facility), subject to separate borrowing sublimits for each borrower. The borrowers under the FirstEnergy Facility are FE, OE, Penn, CEI, TE, Met-Ed, ATSI, JCP&L, MP, Penelec, PE and WP. An additional $2.5 billion is available to be borrowed by FES and AE Supply under a separate syndicated revolving credit facility (FES/AE Supply Facility), subject to separate borrowing sublimits for each borrower.

Commitments under each of the Facilities will be available until June 17, 2016, unless the lenders agree, at the request of the applicable borrowers, to up to two additional one-year extensions. Generally, borrowings under each of the Facilities are available to each borrower separately and mature on the earlier of 364 days from the date of borrowing or the commitment termination date, as the same may be extended.

Borrowings under each of the Facilities are subject to the usual and customary provisions for acceleration upon the occurrence of events of default, including a cross-default for other indebtedness in excess of $100 million, as described further in Note 12, Capitalization.

The following table summarizes the borrowing sub-limits for each borrower under the Facilities, as well as the limitations on short-term indebtedness applicable to each borrower under current regulatory approvals and applicable statutory and/or charter limitations as of December 31, 2011:



Borrower	Revolving Credit Facility Sub-Limit			Regulatory and Other Short-Term Debt Limitations
	(In millions)
FE		$	2,000		—		⁽¹⁾
FES		$	1,500		—		⁽²⁾
AE Supply		$	1,000		—		⁽²⁾
OE		$	500		$	500
CEI		$	500		$	500
TE		$	500		$	500
JCP&L		$	425		$	411	⁽³⁾
Met-Ed		$	300		$	300	⁽³⁾
Penelec		$	300		$	300	⁽³⁾
West Penn		$	200		$	200	⁽³⁾
MP		$	150		$	150	⁽³⁾
PE		$	150		$	150	⁽³⁾
ATSI		$	100		$	100
Penn		$	50		$	33	⁽³⁾


⁽¹⁾	No limitations.


⁽²⁾	No limitation based upon blanket financing authorization from the FERC under existing open market tariffs.


⁽³⁾	Excluding amounts which may be borrowed under the regulated companies’ money pool.

The entire amount of the FES/AE Supply Facility and $700 million of the FirstEnergy Facility, subject to each borrower’s sub-limit, is available for the issuance of LOCs expiring up to one year from the date of issuance. The stated amount of outstanding LOCs will count against total commitments available under each of the Facilities and against the applicable borrower’s borrowing sub-limit.

AGC and TrAIL Revolving Credit Facilities

FirstEnergy also has established $500 million of revolving credit facilities that are available to TrAIL ($450 million) and AGC ($50 million) until January 2013 and December 2013, respectively.

FirstEnergy Money Pools

FirstEnergy’s regulated companies also have the ability to borrow from each other and the holding company to meet their short-term working capital requirements. A similar but separate arrangement exists among FirstEnergy’s unregulated companies. FESC administers these two money pools and tracks surplus funds of FirstEnergy and the respective regulated and unregulated subsidiaries, as well as proceeds available from bank borrowings. Companies receiving a loan under the money pool agreements must repay the principal amount of the loan, together with accrued interest, within 364 days of borrowing the funds. The rate of interest is the same for each company receiving a loan from their respective pool and is based on the average cost of funds available through the pool. The average interest rate for borrowings during 2011 was 0.44% per annum for the regulated companies’ money pool and 0.42% per annum for the unregulated companies’ money pool.

Weighted Average Interest Rates

The weighted average interest rates on short-term borrowings outstanding, including borrowings under the FirstEnergy Money Pools, as of December 31, 2011 and 2010, were as follows:



	2011		2010
FirstEnergy	—	%	0.68	%
FES	0.53	%	0.60	%
OE	—	%	0.51	%
CEI	—	%	1.92	%
JCP&L	0.51	%	—	%
Met-Ed	0.51	%	0.51	%
Penelec	0.51	%	0.51	%