Oncor Electric Delivery Co. LLC established an up to $2 billion commercial paper program for short-term financing of its business operations, according to a Form 8-K filed March 26.

The program allows the utility to issue unsecured notes on a private placement for up to an aggregate amount outstanding at any time of $2 billion. The maturities of the notes will vary, but will not exceed 364 days from the date of issue. The interest rate could be on a fixed or floating-rate basis.

The program has liquidity support from Oncor's revolving credit agreement, which provides for a $2 billion revolving credit facility with a customary accordion feature to request an increase of up to $400 million under certain conditions.

The Texas-based transmission and distribution utility, which was recently acquired by Sempra Energy, also entered into commercial paper agreements, which allow the dealers to either purchase notes from the company or arrange a sale of the notes for Oncor.