Debt and Credit Agreements (Tables)

12 Months Ended

Dec. 31, 2013

Debt Disclosure [Abstract]

Summary of Long-Term Debt

The following table summarizes long-term debt (rates and terms as of December 31, 2013), excluding LSTC:

(in millions)	Current Rate1	Effective Interest Rate2	Maturity Date	December 31, 2013		December 31, 2012
Walnut Creek Energy    Term Loan	2.50% LIBOR+2.25%	5.46%	May 2023	$	417	$	330
WCEP Holdings, LLC Term Loan	4.24% LIBOR+4.00%	7.63%	May 2023	53		52
Big Sky Wind, LLC Vendor financing loan	3.87% LIBOR+3.50%	3.87%	October 2014	231		222
High Lonesome Mesa, LLC    Bonds	6.85% Fixed	6.85%	November 2017	65		69
American Bituminous Power Partners, L.P.3  Bonds	0.05% Floating	0.05%	October 2017	39		46
Viento Funding II, Inc. Term Loan	3.10% LIBOR+2.75%	5.61%	July 2023	200		191
Tapestry Wind, LLC Term Loan	2.75% LIBOR+2.50%	4.51%	December 2021	201		210
Cedro Hill Wind, LLC Term Loan	3.38% LIBOR+3.13%	7.01%	December 2025	118		125
Laredo Ridge Term Loan	3.00% LIBOR+2.75%	5.90%	March 2026	69		71
Crofton Bluffs Wind, LLC Term Loan4	3.12% LIBOR+2.88%	5.37%	December 2027	26		27
Broken Bow Wind, LLC Term Loan4	3.12% LIBOR+2.88%	5.56%	December 2027	50		52
Others	Various	Various	Various	29		43
Total debt				$	1,498	$	1,438
Less: Short-term debt				4		382
Total long-term debt				1,494		1,056
Less: Current maturities of long-term debt				323		307
Long-term debt, net of current portion				$	1,171	$	749

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  Principal payments are due annually through October 1, 2017. Interest rates are reset weekly based on current bond yields for similar securities. On October 1, 2013, American Bituminous Power Partners, L.P. (Ambit) made the required annual principal payment to bondholders by drawing on its line of credit. The current interest rate on this short-term debt is 5.25%. Ambit was unable to fully reimburse the draw down which is a potential event of default. However, Ambit and various counterparties, including the line of credit issuer, executed an agreement effective October 1, 2013 to waive any event of default.

⁴  The interest rate swaps for this obligation expired in December 2013 and forward starting rate swaps became effective. For additional information, see Note 6—Derivative Instruments and Hedging Activities.

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, 2013
High Lonesome	1.20 to 1.00		1.88	2
Viento II	1.40 to 1.00		2.75
Tapestry Wind	1.20 to 1.00		1.48
Laredo Ridge	1.20 to 1.00		1.79
Cedro Hill	1.20 to 1.00		1.53
Broken Bow	1.20 to 1.00		1.67
Crofton Bluffs	1.20 to 1.00		2.23
Walnut Creek Energy3	1.20 to 1.00		N/A
WCEP Holdings, LLC3	2.50 to 1.00		N/A
Required reserve account balance4
Ambit	Twenty million		Four million

¹  The Debt Service Coverage Ratio (DSCR) 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  Calculated at October 31, 2013, the last payment date.

³  Commercial operations started in the second quarter of 2013.

⁴  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.