10-K - SCANA Corporation
10-K - SCANA Corporation
10-K - SCANA Corporation
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Table of Contents<br />
In May 2011, SCE&G issued $<strong>10</strong>0 million of 5.45% first mortgage bonds due February 1, 2041, which constituted a<br />
reopening of the prior offering of $250 million of 5.45% first mortgage bonds issued in January 2011. Proceeds from these sales were<br />
used to retire $150 million of SCE&G first mortgage bonds due February 1, 2011, to repay short-term debt primarily incurred as a<br />
result of SCE&G’s construction program, to finance other capital expenditures and for general corporate purposes.<br />
In May 2011 <strong>SCANA</strong> issued $300 million of 4.75% medium term notes due May 15, 2021. Proceeds from the sale of these<br />
notes were used by <strong>SCANA</strong> to retire $300 million of its 6.875% medium term notes.<br />
In February 2011, PSNC Energy issued $150 million of 4.59% unsecured senior notes due February 14, 2021. Proceeds from<br />
these notes were used to retire PSNC Energy’s $150 million medium term notes due February 15, 2011.<br />
<strong>SCANA</strong> issued common stock valued at $59.2 million (at time of issue) in a public offering on May 17, 20<strong>10</strong> and entered<br />
into forward agreements for the sale of approximately 6.6 million shares. The forward agreements, after being extended by<br />
amendment dated October 26, 2011, are to be settled no later than December 31, 2012.<br />
In March 20<strong>10</strong>, PSNC Energy issued $<strong>10</strong>0 million of 6.54% unsecured notes due March 30, 2020. Proceeds from the sale<br />
were used to pay down short-term debt and for general corporate purposes.<br />
During 2011 the Company experienced net cash inflows related to financing activities of approximately $240 million<br />
primarily due to issuances of common stock and short-term and long-term debt, partially offset by repayment of long-term debt and<br />
payment of dividends.<br />
The Company paid approximately $61 million in 2011 to settle interest rate contracts associated with the issuance of longterm<br />
debt.<br />
For additional information on significant financing activities, see Note 4 to the consolidated financial statements.<br />
In February 2012, <strong>SCANA</strong> increased the quarterly cash dividend rate on <strong>SCANA</strong> common stock to $.495 per share, an<br />
increase of 2.1% from the prior declared dividend. The dividend is payable April 1, 2012 to shareholders of record on March 9, 2012.<br />
ENVIRONMENTAL MATTERS<br />
The Company’s regulated operations are subject to extensive regulation by various federal and state authorities in the areas of<br />
air quality, water quality, control of toxic substances and hazardous and solid wastes. Applicable statutes and rules include the CAA,<br />
CWA, Nuclear Waste Act and CERCLA, among others. Compliance with these environmental requirements involves significant<br />
capital and operating costs, which the Company expects to recover through existing ratemaking provisions.<br />
For the three years ended December 31, 2011, the Company’s capital expenditures for environmental control equipment at its<br />
fossil fuel generating stations totaled $164.0 million. In addition, the Company made expenditures to operate and maintain<br />
environmental control equipment at its fossil plants of $7.9 million during 2011, $6.5 million during 20<strong>10</strong>, and $5.6 million during<br />
2009, which are included in “Other operation and maintenance” expense and made expenditures to handle waste ash of $8.7 million in<br />
2011, $5.9 million in 20<strong>10</strong>, and $6.5 million in 2009, which are included in “Fuel used in electric generation.” In addition, included<br />
within “Other operation and maintenance” expense is an annual amortization of $1.4 million in each of 2011, 20<strong>10</strong>, and 2009 related<br />
to SCE&G’s recovery of MGP remediation costs as approved by the SCPSC. It is not possible to estimate all future costs related to<br />
environmental matters, but forecasts for capitalized environmental expenditures for the Company are $35.0 million for 2012 and<br />
$126.1 million for the four-year period 2013-2016. These expenditures are included in the Company’s Estimated Capital<br />
Expenditures table, are discussed in Liquidity and Capital Resources, and include known costs related to the matters discussed below.<br />
At the state level, no significant environmental legislation that would affect the Company’s operations advanced during 2011.<br />
The Company cannot predict whether such legislation will be introduced or enacted in 2012, or if new regulations or changes to<br />
existing regulations at the state level will be implemented in the coming year. Several regulatory initiatives at the federal level did<br />
advance in 2011 and more are expected to advance in 2012 as described below.<br />
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