LONG-TERM DEBT

Long-term debt consists of the following (in millions):



	As of December 31,
	2014			2013
First Mortgage Bonds, rates range from 3.46% to 9.31%, with a weighted average rate of 5.42% in 2014 and 5.62% in 2013, due at various dates through 2048	$	2,075		$	1,795
Unsecured term bank loans, rates range from 0.86% to 0.93%, due October 2015	305			—
Pollution Control Revenue Bonds, 5% rate, due 2033	142			148
Pollution Control Revenue Bonds owned by PGE	(21		)	(27		)
Total long-term debt	2,501			1,916
Less: current portion of long-term debt	(375		)	—
Long-term debt, net of current portion	$	2,126		$	1,916

First Mortgage Bonds—During 2014, PGE issued a total of $280 million of FMBs, consisting of the following:


•	In November, issued $80 million of 3.51% Series FMBs due 2024;


•	In October, issued $100 million of 4.44% Series FMBs due 2046; and


•	In August, issued $100 million of 4.39% Series FMBs due 2045.

The Indenture securing PGE’s outstanding FMBs constitutes a direct first mortgage lien on substantially all regulated utility property, other than expressly excepted property. Interest is payable semi-annually on FMBs.

In January 2015, the Company issued $75 million of 3.55% Series FMBs due 2030.

Unsecured term bank loans—During 2014, PGE obtained four term loans pursuant to a credit agreement in an aggregate principal amount of $305 million. The term loan interest rates are set at the beginning of the interest period for periods ranging from one- to six-months, as selected by PGE and are based on the London Interbank Offered Rate (LIBOR) plus 70 basis points, with no other fees. The credit agreement expires October 30, 2015, at which time any amounts outstanding under the term loans become due and payable. Upon the occurrence of certain events of default, the Company’s obligations under the credit agreement may be accelerated. Such events of default include payment defaults to lenders under the credit agreement, covenant defaults and other customary defaults. Interest is payable monthly on the unsecured term bank loans.

Pollution Control Revenue Bonds—In January 2014, PGE retired $6 million of Pollution Control Revenue Bonds (PCBs). The Company has the option to remarket through 2033 the $21 million of PCBs held by PGE as of December 31, 2014. At the time of any remarketing, the Company can choose a new interest rate period that could be daily, weekly, or a fixed term. The new interest rate would be based on market conditions at the time of remarketing. The PCBs could be backed by FMBs or a bank letter of credit depending on market conditions. Interest is payable semi-annually on PCBs.

As of December 31, 2014, the future minimum principal payments on long-term debt are as follows (in millions):



Years ending December 31:
2015	$	375
2016	67
2017	58
2018	75
2019	300
Thereafter	1,626
	$	2,501