10-K - SCANA Corporation
10-K - SCANA Corporation
10-K - SCANA Corporation
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Table of Contents<br />
Claims and Litigation<br />
In May 2004, a purported class action lawsuit currently styled as Douglas E. Gressette and Mark Rudd, individually and on<br />
behalf of other persons similarly situated v. South Carolina Electric & Gas Company and <strong>SCANA</strong> Communications, Inc. was filed in<br />
South Carolina’s Circuit Court of Common Pleas for the Ninth Judicial Circuit. The plaintiffs alleged that SCE&G made improper use<br />
of certain electric transmission easements and rights-of-way by allowing fiber optic communication lines and/or wireless<br />
communication equipment to transmit communications other than SCE&G’s electricity-related internal communications and asserted<br />
causes of action for unjust enrichment, trespass, injunction and declaratory judgment. While SCE&G and SCI believe their actions<br />
were consistent with governing law and the applicable documents granting easements and rights-of-way, this case, with Circuit Court<br />
approval in August 20<strong>10</strong>, has been settled as to all easements and rights of ways currently containing fiber optic communications lines<br />
in South Carolina. This settlement did not have a material impact on Consolidated SCE&G’s results of operations, cash flows or<br />
financial condition.<br />
Consolidated SCE&G is also engaged in various other claims and litigation incidental to its business operations which<br />
management anticipates will be resolved without a material impact on Consolidated SCE&G’s results of operations, cash flows or<br />
financial condition.<br />
Operating Lease Commitments<br />
Consolidated SCE&G is obligated under various operating leases with respect to office space, furniture and equipment.<br />
Leases expire at various dates through 2057. Rent expense totaled approximately $<strong>10</strong>.8 million in 2011, $9.3 million in 20<strong>10</strong> and<br />
$16.5 million in 2009. Future minimum rental payments under such leases are as follows:<br />
Purchase Commitments<br />
Millions of dollars<br />
2012 $ 7<br />
2013 6<br />
2014 2<br />
2015 1<br />
2016 —<br />
Thereafter 21<br />
Total $ 37<br />
Consolidated SCE&G is obligated for purchase commitments that expire at various dates through 2034. Amounts expended<br />
for coal supply, nuclear fuel contracts, construction projects and other commitments totaled $717.8 million in 2011, $859.7 million in<br />
20<strong>10</strong> and $756.9 million in 2009. Future payments under such purchase commitments are as follows:<br />
Millions of dollars<br />
2012 $ 1,459<br />
2013 965<br />
2014 836<br />
2015 767<br />
2016 773<br />
Thereafter 1,038<br />
Total $ 5,838<br />
Asset Retirement Obligations<br />
Consolidated SCE&G recognizes a liability for the fair value of an ARO when incurred if the fair value of the liability can be<br />
reasonably estimated. Uncertainty about the timing or method of settlement of a conditional ARO is factored into the measurement of<br />
the liability when sufficient information exists, but such uncertainty is not a basis upon which to avoid liability recognition.<br />
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