Short-Term Debt and Lines of Credit

12 Months Ended

Dec. 31, 2016

Short-term Debt [Abstract]

SHORT-TERM DEBT AND LINES OF CREDIT

SHORT-TERM DEBT AND LINES OF CREDIT

The following table shows our short-term borrowings and their corresponding weighted-average interest rates as of December 31:

(in millions, except percentages)	2016			2015
Commercial paper
Amount outstanding at December 31	$	860.2		$	1,095.0
Average interest rate on amounts outstanding at December 31	0.96		%	0.68		%

Our average amount of commercial paper borrowings based on daily outstanding balances during 2016, was $882.3 million with a weighted-average interest rate during the period of 0.66%.

WEC Energy Group, WE, WPS, WG, and PGL have entered into bank back-up credit facilities to maintain short-term credit liquidity which, among other terms, require them to maintain, subject to certain exclusions, a minimum total funded debt to capitalization ratio of less than 70.0%, 65.0%, 65.0%, 65.0%, and 65.0%, respectively. As of December 31, 2016, all companies were in compliance with their respective ratio.

As of December 31, 2016, we had $1,620.7 million of available capacity under our bank back-up credit facilities and $860.2 million of commercial paper outstanding that was supported by the credit facilities.

The information in the table below relates to our revolving credit facilities used to support our commercial paper borrowing program, including remaining available capacity under these facilities as of December 31:

(in millions)	Maturity	2016
WEC Energy Group	December 2020	$	1,050.0
WE	December 2020	500.0
WPS	December 2020	250.0
WG	December 2020	350.0
PGL	December 2020	350.0
Total short-term credit capacity		$	2,500.0
Less:
Letters of credit issued inside credit facilities		$	19.1
Commercial paper outstanding		860.2
Available capacity under existing agreements		$	1,620.7

Each of these facilities has a renewal provision for two one-year extensions, subject to lender approval.

The bank back-up credit facilities contain customary covenants, including certain limitations on the respective companies' ability to sell assets. The credit facilities also contain customary events of default, including payment defaults, material inaccuracy of representations and warranties, covenant defaults, bankruptcy proceedings, certain judgments, Employee Retirement Income Security Act of 1974 defaults, and change of control. In addition, pursuant to the terms of our credit agreement, we must ensure that certain of our subsidiaries comply with several of the covenants contained therein.