DTE Energy 2009 Annual Report Download - page 28

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26
Preferred and Preference Securities — Authorized and Unissued
At December 31, 2009, MichCon had 7 million shares of preferred stock with a par value of $1 per share and 4 million shares of
preference stock with a par value of $1 per share authorized, with no shares issued.
NOTE 12 — SHORT-TERM CREDIT ARRANGEMENTS AND BORROWINGS
MichCon has a $181 million, five-year unsecured revolving credit agreement expiring in October 2010 and a $250 million, two-year
unsecured revolving credit agreement expiring in April 2011. The five-year and two-year revolving credit facilities are with a
syndicate of 22 banks and may be used for general corporate borrowings, but are intended to provide liquidity support for our
commercial paper program. No one bank provides more than 8.5% of the commitment in any facility. Borrowings under the facilities
are available at prevailing short-term interest rates. The above agreements require the Company to maintain a total funded debt to
capitalization ratio, as defined in the agreements, of no more than 0.65 to 1. At December 31, 2009, the debt to total capitalization
ratio for MichCon is 0.49 to 1. Should we have delinquent obligations of at least $50 million to any creditor; such delinquency will be
considered a default under our credit agreements.
At December 31, 2009, the Company had outstanding commercial paper of $327 million and no other short-term borrowings, resulting
in net availability under the combined facilities of $104 million. At December 31, 2008, the Company had outstanding commercial
paper of $272 million and other short-term borrowings of $220 million.
The weighted average interest rates for short-term borrowings were 0.7% and 4.3% at December 31, 2009 and 2008, respectively.
NOTE 13 — OPERATING LEASES
Lessee — MichCon leases certain property under operating lease arrangements expiring at various dates through 2025. Some leases
contain renewal options. Future minimum lease payments under non-cancelable leases at December 31, 2009 were:
Rental expense for operating leases was $1 million in 2009, 2008 and 2007.
Lessor — MichCon leases a portion of its pipeline system to the Vector Pipeline Partnership through a capital lease contract that
expires in 2020, with renewal options extending for five years.
The components of the net investment in the capital lease at December 31, 2008 were as follows:
(in Millions)
2010
$ 9
2011
9
2012
9
2013
9
2014
9
Thereafter
53
Total minimum future lease receipts
98
Residual value of leased pipeline
40
Less unearned income
(63)
Net investment in direct financing lease
75
(in Millions)
Operating
Leases
2010
$ 1
2011
1
Total minimum lease payments
$ 2