LONG-TERM DEBT

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



	As of December 31,
	2016			2015
First Mortgage Bonds, rates range from 2.51% to 9.31%, with a weighted average rate of 4.86% in 2016 and 5.29% in 2015, due at various dates through 2048	$	2,090		$	2,083
Unsecured term bank loans, variable rates of approximately 1.37% due 2017	150			—
Pollution Control Revenue Bonds, 5% rate, due 2033	142			142
Pollution Control Revenue Bonds owned by PGE	(21		)	(21		)
Total long-term debt	2,361			2,204
Less: Unamortized debt expense	(11		)	(11		)
Less: Current portion of long-term debt	(150		)	(133		)
Long-term debt, net of current portion	$	2,200		$	2,060

First Mortgage Bonds and Unsecured term bank loans—During 2016, PGE issued a total of $140 million of FMBs and repaid long-term debt, in an aggregate amount of $133 million.

In January 2016, the Company issued $140 million of 2.51% Series FMBs due 2021 and repaid $58 million of 3.81% Series FMBs, due in 2017 and $75 million of 5.80% Series FMBs due in 2018. Due to the anticipated repayment of this $133 million in early January 2016, this amount of long-term debt was classified as current on the Company’s consolidated balance sheets as of December 31, 2015.

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 May 2016, PGE entered into an unsecured credit agreement with certain financial institutions, under which the Company had the opportunity to obtain three separate term loans in an aggregate principal amount of up to $200 million by October 31, 2016. Under the agreement, PGE obtained the following term loans:


•	$50 million on May 4, 2016;


•	$75 million on June 15, 2016; and


•	$25 million on October 31, 2016.

The term loan interest rates are set at the beginning of the interest period for periods of 1-month, 3-months, or 6-months, as selected by PGE and are based on the London Interbank Offered Rate (LIBOR) plus 63 basis points, approximately 1.37% as of December 31, 2016, with no other fees.

The credit agreement expires November 30, 2017, 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 for financings of this type.

Pollution Control Revenue Bonds—The Company has the option to remarket through 2033 the $21 million of PCBs held by PGE as of December 31, 2016. 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, 2016, the future minimum principal payments on long-term debt are as follows (in millions):



Years ending December 31:
2017	$	150
2018	—
2019	300
2020	—
2021	160
Thereafter	1,751
	$	2,361