The invention comprises a cordless power tool that has a power umbilical in the form of a coiled cord that connects the power tool to a power source, which in the preferred embodiment is a battery pack. In contrast to prior art approaches, the invention integrates the power tool with the power source in a holstered arrangement. Provision is also made for operating the power tool from an AC source while the batteries are being charged, in the event the battery charge is depleted during use. In this way, the tool is operable at all times because the tool is logically and readily integrated with the power source. Further, the removal from the power source from the tool itself by means of the coiled cord umbilical means that the power tool is lighter and easier to handle.