10-K - SCANA Corporation

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Table of Contents LIQUIDITY AND CAPITAL RESOURCES The Company anticipates that its contractual cash obligations will be met through internally generated funds, the incurrence of additional short- and long-term indebtedness and sales of equity securities. The Company expects that it has or can obtain adequate sources of financing to meet its projected cash requirements for the foreseeable future. The Company’s ratio of earnings to fixed charges for the year ended December 31, 2011 was 2.87. Cash requirements for SCANA’s regulated subsidiaries arise primarily from their operational needs, funding their construction programs and payment of dividends to SCANA. The ability of the regulated subsidiaries to replace existing plant investment, to expand to meet future demand for electricity and gas and to install equipment necessary to comply with environmental regulations, will depend on their ability to attract the necessary financial capital on reasonable terms. Regulated subsidiaries recover the costs of providing services through rates charged to customers. Rates for regulated services are generally based on historical costs. As customer growth and inflation occur and these subsidiaries continue their ongoing construction programs, rate increases will be sought. The future financial position and results of operations of the regulated subsidiaries will be affected by their ability to obtain adequate and timely rate and other regulatory relief. The Company also obtains equity from SCANA’s stock plans. Shares of SCANA common stock are acquired on behalf of participants in SCANA’s Investor Plus Plan and Stock Purchase-Savings Plan through the original issuance of shares, rather than being purchased on the open market. This provided approximately $97 million of additional equity during 2011 and is expected to provide approximately $102 million of additional capital in 2012. Due primarily to new nuclear construction plans, the Company anticipates keeping this strategy in place for the foreseeable future. The Company also expects to issue common stock in 2012 under forward contracts executed in 2010 (and extended by amendment in October 2011). SCANA’s leverage ratio of long- and short-term debt to capital was approximately 58% at December 31, 2011. SCANA has publicly announced its desire to maintain its leverage ratio at levels between 54% and 57%, but SCANA’s ability to achieve and maintain those levels depends on a number of factors. In the future, if SCANA is not able to achieve and maintain its leverage ratio within the desired range, the Company’s debt ratings may be affected, it may be required to pay higher interest rates on its long- and short-term indebtedness, and its access to the capital markets may be limited. Capital Expenditures Cash outlays for property additions and construction expenditures, including nuclear fuel, net of AFC, were $884 million in 2011 and are estimated to be $1.4 billion in 2012. The Company’s current estimates of its capital expenditures for construction and nuclear fuel for 2012-2014, which are subject to continuing review and adjustment, are as follows: Estimated Capital Expenditures Millions of dollars 2012 2013 2014 SCE&G - Normal Generation $ 143 $ 96 $ 79 Transmission & Distribution 197 217 190 Other 26 14 21 Gas 49 51 57 Common 14 18 13 Total SCE&G - Normal 429 396 360 PSNC Energy 57 65 70 Other 54 41 32 Total Normal 540 502 462 New Nuclear 954 952 727 Cash Requirements for Construction 1,494 1,454 1,189 Nuclear Fuel 44 110 55 Total Estimated Capital Expenditures $ 1,538 $ 1,564 $ 1,244 38
Table of Contents The Company’s contractual cash obligations as of December 31, 2011 are summarized as follows: Contractual Cash Obligations Included in the table above in purchase obligations is SCE&G’s portion of a contractual agreement for the design and construction of the New Units at the Summer Station site. SCE&G expects to be a joint owner and share operating costs and generation output of the New Units, with SCE&G accounting for 55 percent of the cost and output and the other joint owner(s) the remaining 45 percent. SCE&G’s estimated projected costs for the two additional units, in future dollars and excluding AFC, are summarized below. To the extent that actual contracts were put in place by December 31, 2011, obligations arising from these contracts are included in the purchase obligations within the Contractual Cash Obligations table above. Also included in purchase obligations are customary purchase orders under which the Company has the option to utilize certain vendors without the obligation to do so. The Company may terminate such arrangements without penalty. Other commercial commitments includes estimated obligations under forward contracts for natural gas purchases. Forward contracts for natural gas purchases include customary “make-whole” or default provisions, but are not considered to be “take-or-pay” contracts. Certain of these contracts relate to regulated businesses; therefore, the effects of such contracts on fuel costs are reflected in electric or gas rates. Other commercial commitments also includes a “take-and-pay” contract for natural gas which expires in 2019 and estimated obligations for coal and nuclear fuel purchases. In addition to the contractual cash obligations above, the Company sponsors a noncontributory defined benefit pension plan and an unfunded health care and life insurance benefit plan for retirees. The pension plan is adequately funded under current regulations, and no significant contributions are anticipated until after 2012. Cash payments under the health care and life insurance benefit plan were $12.2 million in 2011, and such annual payments are expected to be the same or increase up to $14.0 million in the future. In addition, the Company is party to certain NYMEX futures contracts for which any unfavorable market movements are funded in cash. These derivatives are accounted for as cash flow hedges and their effects are reflected within other comprehensive income until the anticipated sales transactions occur. See further discussion at Item 7A. Quantitative and Qualitative Disclosures About Market Risk. At December 31, 2011, the Company had posted $15.4 million in cash collateral for such contracts. In addition, the Company had posted $125 million in cash collateral for interest rate derivative contracts. The Company also has a legal obligation associated with the decommissioning and dismantling of Summer Station Unit 1 and other conditional asset retirement obligations that are not listed in the contractual cash obligations table. See Notes 1 and 10 to the consolidated financial statements. Financing Limits and Related Matters The Company’s issuance of various securities, including long-term and short-term debt, is subject to customary approval or authorization by regulatory bodies including state public service commissions and FERC. Financing programs currently utilized by the Company follow. 39 Payments due by periods Less than 1 year 1 - 3 years 4 - 5 years More than 5 years Millions of dollars Total Long- and short-term debt, including interest $ 10,477 $ 1,216 $ 1,031 $ 547 $ 7,683 Capital leases 13 4 6 3 — Operating leases 56 11 16 1 28 Purchase obligations 4,367 984 2,307 412 664 Other commercial commitments 4,724 1,062 1,587 912 1,163 Total $ 19,637 $ 3,277 $ 4,947 $ 1,875 $ 9,538 Future Value Millions of dollars 2012 2013 2014 2015 2016 After 2016 Total Project Cash Outlay $ 804 $ 825 $ 558 $ 575 $ 367 $ 232
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: Table of Contents • 2011 vs 2010
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
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Table of Contents 13. QUARTERLY FIN
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Table of Contents ITEM 7. MANAGEMEN
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Table of Contents retain large comm
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Table of Contents • 2011 vs 2010
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Table of Contents regulations, will
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Table of Contents on its draws, whi
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Table of Contents To help mitigate
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Table of Contents The RSA allows na
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Table of Contents site of Summer St
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Table of Contents ITEM 7A. QUANTITA
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Table of Contents ITEM 8. FINANCIAL
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Table of Contents December 31, (Mil
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Table of Contents See Notes to Cons
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Table of Contents NOTES TO CONSOLID
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Table of Contents $32.7 million, of
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Table of Contents 2. RATE AND OTHER
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Table of Contents Regulatory Assets
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Table of Contents 4. LONG-TERM AND
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Table of Contents The tax effects o
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Table of Contents The fair value of
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Table of Contents 8. EMPLOYEE BENEF
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Table of Contents The pension plan
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Table of Contents Net Periodic Bene
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Table of Contents Nonvested shares
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Table of Contents Claims and Litiga
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Table of Contents Disclosure of Rep
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Table of Contents ITEM 9. CHANGES I
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Table of Contents SCE&G: Evaluation
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Table of Contents ITEM 14. PRINCIPA
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Table of Contents Schedule II—Val
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Table of Contents SIGNATURES Pursua
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Table of Contents Applicable to Exh
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Exhibit 12.01 SCANA CORPORATION CAL
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Exhibit 23.01 CONSENT OF INDEPENDEN
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Exhibit 24.01 POWER OF ATTORNEY KNO
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Exhibit 31.01 CERTIFICATION I, Kevi
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Exhibit 31.03 CERTIFICATION I, Kevi
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Exhibit 32.01 SCANA CORPORATION CER
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Exhibit 32.03 SOUTH CAROLINA ELECTR
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scg-20111231_cal.xml
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scg-20111231_pre.xml
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10-K - SCANA Corporation

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