10-K - SCANA Corporation

Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization and Principles of Consolidation
SCANA, a South Carolina corporation, is a holding company. The Company engages predominantly in the generation and
sale of electricity to wholesale and retail customers in South Carolina and in the purchase, sale and transportation of natural gas to
wholesale and retail customers in South Carolina, North Carolina and Georgia. The Company also conducts other energy-related
business and provides fiber optic communications in South Carolina.
The accompanying Consolidated Financial Statements reflect the accounts of SCANA, the following wholly-owned
subsidiaries, and two other wholly-owned subsidiaries liquidated in 2011.
Regulated businesses
Nonregulated businesses
South Carolina Electric & Gas Company
SCANA Energy Marketing, Inc.
South Carolina Fuel Company, Inc.
SCANA Communications, Inc.
South Carolina Generating Company, Inc.
ServiceCare, Inc.
Public Service Company of North Carolina, Incorporated SCANA Services, Inc.
Carolina Gas Transmission Corporation
SCANA Corporate Security Services, Inc.
Westex Holdings, LLC
The Company reports certain investments using the cost or equity method of accounting, as appropriate. Intercompany
balances and transactions have been eliminated in consolidation with the exception of profits on intercompany sales to regulated
affiliates if the sales price is reasonable and the future recovery of the sales price through the rate-making process is probable as
permitted by accounting guidance.
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to
make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and
liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual
results could differ from those estimates.
Utility Plant
Utility plant is stated substantially at original cost. The costs of additions, replacements and betterments to utility plant,
including direct labor, material and indirect charges for engineering, supervision and an allowance for funds used during construction,
are added to utility plant accounts. The original cost of utility property retired or otherwise disposed of is removed from utility plant
accounts and generally charged to accumulated depreciation. The costs of repairs and replacements of items of property determined to
be less than a unit of property or that do not increase the asset’s life or functionality are charged to expense.
AFC is a noncash item that reflects the period cost of capital devoted to plant under construction. This accounting practice
results in the inclusion of, as a component of construction cost, the costs of debt and equity capital dedicated to construction
investment. AFC is included in rate base investment and depreciated as a component of plant cost in establishing rates for utility
services. The Company’s regulated subsidiaries calculated AFC using average composite rates of 4.7% for 2011, 7.4% for 2010 and
7.5% for 2009. These rates do not exceed the maximum allowable rate as calculated under FERC Order No. 561. SCE&G capitalizes
interest on nuclear fuel in process at the actual interest cost incurred.
The Company records provisions for depreciation and amortization using the straight-line method based on the estimated
service lives of the various classes of property. The composite weighted average depreciation rates for utility plant assets were as
follows:
2011 2010 2009
SCE&G 2.92% 2.83% 2.97%
GENCO 2.69% 2.66% 2.66%
CGT 2.00% 1.94% 1.94%
PSNC Energy 3.05% 3.11% 3.10%
Aggregate of Above 2.90% 2.85% 2.95%
59