10-K - SCANA Corporation

More documents

Recommendations

Info

Table of Contents Credit Risk Considerations Certain of Consolidated SCE&G’s derivative instruments contain contingent provisions that require collateral to be provided upon the occurrence of specific events, primarily credit downgrades. As of December 31, 2011 and 2010, Consolidated SCE&G has posted $45.0 million and $0 million, respectively, of collateral related to derivatives with contingent provisions that are in a net liability position. If all of the contingent features underlying these instruments were fully triggered as of December 31, 2011 and 2010, Consolidated SCE&G would be required to post an additional $31.7 million and $34.9 million, respectively, of collateral to its counterparties. The aggregate fair value of all derivative instruments with contingent provisions that are in a net liability position as of December 31, 2011 and 2010, are $76.7 million and $34.9 million, respectively. 7. FAIR VALUE MEASUREMENTS, INCLUDING DERIVATIVES SCE&G values commodity derivative assets and liabilities using unadjusted NYMEX prices to determine fair value, and considers such measure of fair value to be Level 1 for exchange traded instruments and Level 2 for over-the-counter instruments. Consolidated SCE&G’s interest rate swap agreements are valued using discounted cash flow models with independently sourced data. Fair value measurements, and the level within the fair value hierarchy in which the measurements fall, were as follows: There were no fair value measurements based on significant unobservable inputs (Level 3) for either period presented. In addition, there were no transfers of fair value amounts into or out of Levels 1 and 2 during any period presented. Financial instruments for which the carrying amount may not equal estimated fair value at December 31, 2011 and December 31, 2010 were as follows: Fair values of long-term debt are based on quoted market prices of the instruments or similar instruments. For debt instruments for which no quoted market prices are available, fair values are based on net present value calculations. Carrying values reflect the fair values of interest rate swaps based on discounted cash flow models with independently sourced data. Early settlement of long-term debt may not be possible or may not be considered prudent. Potential taxes and other expenses that would be incurred in an actual sale or settlement have not been considered. 128 Fair Value Measurements Using Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Millions of dollars As of December 31, 2011 Assets-Interest rate contracts — $ 1 Liabilities-Interest rate contracts — 77 As of December 31, 2010 Assets-Interest rate contracts — $ 4 Commodity contracts $ 1 — Liabilities-Interest rate contracts — 35 December 31, 2011 December 31, 2010 Estimated Fair Value Estimated Fair Value Carrying Carrying Millions of dollars Amount Amount Long-term debt $ 3,241.5 $ 3,920.3 $ 3,059.7 $ 3,321.8
Table of Contents 8. EMPLOYEE BENEFIT PLANS AND EQUITY COMPENSATION PLAN Pension and Other Postretirement Benefit Plans SCE&G participates in SCANA’s noncontributory defined benefit pension plan, which covers substantially all regular, fulltime employees. SCANA’s policy has been to fund the plan to the extent permitted by applicable federal income tax regulations, as determined by an independent actuary. SCANA’s pension plan provides benefits under a cash balance formula for employees hired before January 1, 2000 who elected that option and for all employees hired on or after January 1, 2000. Under the cash balance formula, benefits accumulate as a result of compensation credits and interest credits. Employees hired before January 1, 2000 who elected to remain under the final average pay formula earn benefits based on years of credited service and the employee’s average annual base earnings received during the last three years of employment. In addition to pension benefits, SCE&G participates in SCANA’s unfunded postretirement health care and life insurance programs which provide benefits to certain active and retired employees. Retirees share in a portion of their medical care cost. SCANA provides life insurance benefits to retirees at no charge. The costs of postretirement benefits other than pensions are accrued during the years the employees render the services necessary to be eligible for these benefits. Changes in Benefit Obligations The measurement date used to determine pension and other postretirement benefit obligations is December 31. Data related to the changes in the projected benefit obligation for retirement benefits and the accumulated benefit obligation for other postretirement benefits are presented below. Other Postretirement Pension Benefits Benefits Millions of dollars 2011 2010 2011 2010 Benefit obligation, January 1 $ 687.8 $ 667.4 $ 171.5 $ 171.4 Service cost 14.7 14.0 3.4 3.2 Interest cost 37.0 41.2 9.6 9.3 Plan participants’ contributions — — 2.5 2.4 Actuarial (gain) loss 2.6 (0.6) 5.6 (1.1) Benefits paid (37.1) (34.2) (11.2) (11.4) Amounts funded to parent — — (3.0) (2.3) Benefit obligation, December 31 $ 705.0 $ 687.8 $ 178.4 $ 171.5 The accumulated benefit obligation for retirement benefits was $666.7 million at the end of 2011 and $649.0 million at the end of 2010. The accumulated retirement benefit obligation differs from the projected retirement benefit obligation above in that it reflects no assumptions about future compensation levels. Significant assumptions used to determine the above benefit obligations are as follows: Annual discount rate used to determine benefit obligation Other Pension Postretirement 2011 5.25% Benefits Benefits 2010 2011 5.56% 5.35% 2010 5.72% Assumed annual rate of future salary increases for projected benefit obligation 4.00% 4.00% 4.00% 4.00% An 8.2% annual rate of increase in the per capita cost of covered health care benefits was assumed for 2012. The rate was assumed to decrease gradually to 5.0% for 2020 and to remain at that level thereafter. A one percent increase in the assumed health care cost trend rate would increase the postretirement benefit obligation at December 31, 2011 by $1.4 million and at December 31, 2010 by $1.4 million. A one percent decrease in the assumed health care cost trend rate would decrease the postretirement benefit obligation at December 31, 2011 by $1.2 million and at December 31, 2010 by $1.3 million. 129
Page 1 and 2:
Table of Contents UNITED STATES SEC
Page 3 and 4:
Table of Contents CAUTIONARY STATEM
Page 5 and 6:
Table of Contents TERM MEANING MGP
Page 7 and 8:
Table of Contents Regulated Utiliti
Page 9 and 10:
Table of Contents Electric Intercon
Page 11 and 12:
Table of Contents Gas Cost, Supply
Page 13 and 14:
Table of Contents SCE&G holds licen
Page 15 and 16:
Table of Contents PSNC Energy’s r
Page 17 and 18:
Table of Contents Furthermore, rece
Page 19 and 20:
Table of Contents One rating agency
Page 21 and 22:
Table of Contents • Uncertainties
Page 23 and 24:
Table of Contents ELECTRIC PROPERTI
Page 25 and 26:
Table of Contents Litigation In May
Page 27 and 28:
Table of Contents PART II ITEM 5. M
Page 29 and 30:
Table of Contents SCANA CORPORATION
Page 31 and 32:
Table of Contents Key Earnings Driv
Page 33 and 34:
Table of Contents Retail Gas Market
Page 35 and 36:
Table of Contents • 2010 vs 2009
Page 37 and 38:
Table of Contents • 2011 vs 2010
Page 39 and 40:
Table of Contents The Company’s c
Page 41 and 42:
Table of Contents With respect to h
Page 43 and 44:
Table of Contents Air Quality With
Page 45 and 46:
Table of Contents Electric Operatio
Page 47 and 48:
Table of Contents the effects of di
Page 49 and 50:
Table of Contents substantial compl
Page 51 and 52:
Table of Contents ITEM 7A. QUANTITA
Page 53 and 54:
Table of Contents ITEM 8. FINANCIAL
Page 55 and 56:
Table of Contents See Notes to Cons
Page 57 and 58:
Table of Contents See Notes to Cons
Page 59 and 60:
Table of Contents NOTES TO CONSOLID
Page 61 and 62:
Table of Contents costs for turbine
Page 63 and 64:
Table of Contents Fuel costs, emiss
Page 65 and 66:
Table of Contents In May 2009, two
Page 67 and 68:
Table of Contents Accumulated defer
Page 69 and 70:
Table of Contents SCANA issued comm
Page 71 and 72:
Table of Contents The difference be
Page 73 and 74:
Table of Contents losses from its h
Page 75 and 76:
Table of Contents The effect of der
Page 77 and 78: Table of Contents 8. EMPLOYEE BENEF
Page 79 and 80: Table of Contents The Company’s p
Page 81 and 82: Table of Contents Net Periodic Bene
Page 83 and 84: Table of Contents Equity Awards In
Page 85 and 86: Table of Contents SCE&G maintains a
Page 87 and 88: Table of Contents 11. AFFILIATED TR
Page 89 and 90: Table of Contents 13. QUARTERLY FIN
Page 91 and 92: Table of Contents ITEM 7. MANAGEMEN
Page 93 and 94: Table of Contents retain large comm
Page 95 and 96: Table of Contents • 2011 vs 2010
Page 97 and 98: Table of Contents regulations, will
Page 99 and 100: Table of Contents on its draws, whi
Page 101 and 102: Table of Contents To help mitigate
Page 103 and 104: Table of Contents The RSA allows na
Page 105 and 106: Table of Contents site of Summer St
Page 107 and 108: Table of Contents ITEM 7A. QUANTITA
Page 109 and 110: Table of Contents ITEM 8. FINANCIAL
Page 111 and 112: Table of Contents December 31, (Mil
Page 113 and 114: Table of Contents See Notes to Cons
Page 115 and 116: Table of Contents NOTES TO CONSOLID
Page 117 and 118: Table of Contents $32.7 million, of
Page 119 and 120: Table of Contents 2. RATE AND OTHER
Page 121 and 122: Table of Contents Regulatory Assets
Page 123 and 124: Table of Contents 4. LONG-TERM AND
Page 125 and 126: Table of Contents The tax effects o
Page 127: Table of Contents The fair value of
Page 131 and 132: Table of Contents The pension plan
Page 133 and 134: Table of Contents Net Periodic Bene
Page 135 and 136: Table of Contents Nonvested shares
Page 137 and 138: Table of Contents Claims and Litiga
Page 139 and 140: Table of Contents Disclosure of Rep
Page 141 and 142: Table of Contents ITEM 9. CHANGES I
Page 143 and 144: Table of Contents SCE&G: Evaluation
Page 145 and 146: Table of Contents ITEM 14. PRINCIPA
Page 147 and 148: Table of Contents Schedule II—Val
Page 149 and 150: Table of Contents SIGNATURES Pursua
Page 151 and 152: Table of Contents Applicable to Exh
Page 153 and 154: Exhibit 12.01 SCANA CORPORATION CAL
Page 155 and 156: Exhibit 23.01 CONSENT OF INDEPENDEN
Page 157 and 158: Exhibit 24.01 POWER OF ATTORNEY KNO
Page 159 and 160: Exhibit 31.01 CERTIFICATION I, Kevi
Page 161 and 162: Exhibit 31.03 CERTIFICATION I, Kevi
Page 163 and 164: Exhibit 32.01 SCANA CORPORATION CER
Page 165 and 166: Exhibit 32.03 SOUTH CAROLINA ELECTR
Page 167 and 168: scg-20111231.xml
Page 169 and 170: scg-20111231_cal.xml
Page 171 and 172: scg-20111231_pre.xml
show all

10-K - SCANA Corporation

Create successful ePaper yourself

Delete template?

Save as template?