10-K - SCANA Corporation
10-K - SCANA Corporation
10-K - SCANA Corporation
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Table of Contents<br />
Environmental<br />
SCE&G maintains an environmental assessment program to identify and evaluate current and former operations sites that<br />
could require environmental clean-up. As site assessments are initiated, estimates are made of the amount of expenditures, if any,<br />
deemed necessary to investigate and remediate each site. Environmental remediation liabilities are accrued when the criteria for loss<br />
contingencies are met. These estimates are refined as additional information becomes available; therefore, actual expenditures could<br />
differ significantly from the original estimates. Probable and estimable costs are accrued related to environmental sites on an<br />
undiscounted basis. Amounts estimated and accrued to date for site assessments and clean-up relate solely to regulated operations.<br />
Amounts expected to be recovered through rates are recorded in deferred debits and, if applicable, amortized over approved<br />
amortization periods. Other environmental costs are recorded to expense.<br />
Income Statement Presentation<br />
In its consolidated statements of income, Consolidated SCE&G presents the activities of its regulated businesses (including<br />
those activities of segments described in Note 12) within operating income, and it presents all other activities within other income<br />
(expense).<br />
Revenue Recognition<br />
Consolidated SCE&G records revenues during the accounting period in which it provides services to customers and includes<br />
estimated amounts for electricity and natural gas delivered but not yet billed. Unbilled revenues totaled $117.8 million at December<br />
31, 2011 and $123.4 million at December 31, 20<strong>10</strong>.<br />
Fuel costs, emission allowances and certain environmental reagent costs for electric generation are collected through the fuel<br />
cost component in retail electric rates. This component is established by the SCPSC during annual fuel cost hearings. Any difference<br />
between actual fuel costs and amounts contained in the fuel cost component is deferred and included when determining the fuel cost<br />
component during the next annual hearing.<br />
Customers subject to the PGA are billed based on a cost of gas factor calculated in accordance with a gas cost recovery<br />
procedure approved by the SCPSC and subject to adjustment monthly. Any difference between actual gas costs and amounts<br />
contained in rates is deferred and included when making the next adjustment to the cost of gas factor. In addition, included in these<br />
deferred amounts are realized gains and losses incurred in SCE&G’s natural gas hedging program.<br />
SCE&G’s gas rate schedules for residential, small commercial and small industrial customers include a WNA which<br />
minimizes fluctuations in gas revenues due to abnormal weather conditions. In August 20<strong>10</strong>, SCE&G implemented an eWNA on a<br />
one-year pilot basis for its electric customers, and it will continue on a pilot basis unless modified or terminated by the SCPSC.<br />
Taxes that are billed to and collected from customers are recorded as liabilities until they are remitted to the respective taxing<br />
authority. Accordingly, no such taxes are included in revenues or expenses in the statements of income.<br />
New Accounting Matter<br />
Effective for the first quarter of 2012, Consolidated SCE&G will adopt accounting guidance that revises how comprehensive<br />
income is presented in its financial statements. Consolidated SCE&G does not expect the adoption of this guidance to impact results<br />
of operations, cash flows or financial position.<br />
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