Debt and Credit Agreements (Tables)

12 Months Ended

Dec. 31, 2012

Debt Disclosure [Abstract]

Summary of Long-Term Debt

The following table summarizes long-term debt (rates and terms as of December 31, 2012), excluding LSTC:

				December 31,
(in millions)	Current Rate1	Effective Interest Rate2	Maturity Date	2012		2011
Recourse
EME (parent only)
Senior Notes, net3
Series A Notes	7.50% Fixed	7.50%	June 2013	$	—	$	500
Series B Notes	7.75% Fixed	7.75%	June 2016	—		500
Tranche A Notes	7.00% Fixed	7.00%	May 2017	—		1,200
Tranche B Notes	7.20% Fixed	7.20%	May 2019	—		800
Tranche C Notes	7.63% Fixed	7.63%	May 2027	—		700
Nonrecourse4
Walnut Creek Energy5    Construction Loan	2.46% LIBOR+2.25%	2.79%	June 2013	330		138
WCEP Holdings, LLC5  Construction Loan	4.21% LIBOR+4.0%	4.50%	June 2013	52		49
Big Sky Wind, LLC Vendor financing loan	4.14% LIBOR+3.5%	4.14%	October 2014	222		211
High Lonesome Mesa, LLC6    Bonds	6.85% Fixed	6.85%	November 2017	69		72
American Bituminous Power Partners, L.P.7  Bonds	0.14% Fixed	0.14%	October 2017	46		55
Viento Funding II, Inc.6  Term Loan	3.27% LIBOR+2.75%	5.79%	December 2020	191		207
Tapestry Wind, LLC Term Loan	2.82% LIBOR+2.5%	4.52%	December 2021	210		214
Cedro Hill Wind, LLC Term Loan	3.32% LIBOR+3.0%	6.89%	December 2025	125		131
Laredo Ridge Term Loan	3.06% LIBOR+2.75%	5.90%	March 2026	71		74
Crofton Bluffs Wind, LLC Term Loan	3.19% LIBOR+2.88%	3.61%	December 2027	27		—
Broken Bow Wind, LLC Term Loan	3.19% LIBOR+2.88%	3.65%	December 2027	52		—
Others	Various	Various	Various	43		61
Total debt				$	1,438	$	4,912
Less: Short-term debt				382		—
Total long-term debt				1,056		4,912
Less: Current maturities of long-term debt				307		57
Long-term debt, net of current portion				$	749	$	4,855

¹  London Interbank Offered Rate (LIBOR)

²  The effective rate at which interest expense is reflected in the financial statements after the consideration of the current rate of debt and any amounts subject to interest rate swaps. For further discussion, see Note 6—Derivative Instruments and Hedging Activities—Interest Rate Risk Management.

³  With the commencement of the Chapter 11 Cases, the senior notes were reclassified to LSTC. See Note 16—Restructuring Activities.

⁴  Payment obligations are generally secured by pledges of the borrower's direct and indirect ownership interests in the projects, project agreements and reserve accounts, if applicable.

⁵  Reclassified to short-term debt as the construction loans are expected to convert to 10-year amortizing term loans no later than 2013. For further discussion, see "Walnut Creek" below.

⁶  Included as part of current maturities of long-term debt as of December 31, 2012 dueto potential defaults arising from the Chapter 11 Cases and the associated execution of short-term forbearance agreement with the lenders. For further discussion, see below "Chapter 11 Cases—Viento II Financing" and "Chapter 11 Cases—High Lonesome."

⁷  Principal payments are due annually through October 1, 2017. Interest rates are reset weekly based on current bond yields for similar securities. At December 31, 2012, the outstanding balance is supported by a letter of credit.

Summary of Debt Covenants

Key existing covenants of EME's non-debtor subsidiaries include:

Debt Service Coverage Ratio1	Covenant Level	Actual Performance as of December 31, 2012
High Lonesome2	1.20 to 1.00		1.37	3
Viento II2	1.20 to 1.00		2.49
Tapestry Wind	1.20 to 1.00		1.34
Laredo Ridge	1.20 to 1.00		1.73
Cedro Hill	1.20 to 1.00		1.53
Broken Bow4	1.20 to 1.00		N/A
Crofton Bluffs4	1.20 to 1.00		N/A
Required reserve account balance5
Ambit	Twenty million		Four million

¹  The Debt Service Coverage Ratio is typically calculated over a 12-month historical period and is individually defined for each borrowing in the applicable financing agreement, credit agreement, trust indenture, or other document governing the financing requirements.

²  Subject to forbearance agreement as discussed in Chapter 11 Cases above.

³  Calculated at October 31, 2012, the last payment date.

⁴  Commercial operations started in the fourth quarter of 2012.

⁵  Ambit is required to maintain funded reserve accounts primarily for debt servicing and maintenance costs. The underfunded reserve does not create an event of default under the loan but does restrict distributions from Ambit.