10-K - SCANA Corporation

Table of Contents
costs for turbine maintenance in excess of cumulative collections are classified as a regulatory asset on the balance sheet. Nuclear
refueling outages are scheduled 18 months apart, and SCE&G begins accruing for each successive scheduled outage upon completion
of the preceding scheduled outage. SCE&G accrued $1.2 million per month from July 2008 through July 2011 for its portion of the
outages in the fall of 2009 and the spring of 2011. Total costs for the 2009 outage were $32.7 million, of which SCE&G was
responsible for $21.8 million. Total costs for the 2011 outage were $34.1 million, of which SCE&G was responsible for $22.7
million. In July 2011, SCE&G began accruing $1.2 million per month for its portion of the refueling planned for the fall of 2012.
SCE&G had an accrued balance of $7.2 million at December 31, 2011 and $14.3 million at December 31, 2010.
Goodwill
The Company considers amounts categorized by FERC as “acquisition adjustments” with carrying values of $210 million for
PSNC Energy (Gas Distribution segment) and $20 million for CGT (All Other segment) to be goodwill. The Company tests these
goodwill amounts for impairment annually as of January 1, unless indicators, events or circumstances require interim testing to be
performed. The goodwill impairment testing is a two-step process which in step one requires estimation of the fair value of the
respective reporting unit and the comparison of that amount to the carrying value of the reporting unit. If this step indicates an
impairment (a carrying value in excess of fair value), then step two, measurement of the amount of the goodwill impairment (if any),
is required. In the first quarter of 2012, the Company will adopt accounting guidance whereby it will have the option to first perform a
qualitative assessment of impairment. Based on this assessment, if the Company determines that it is not more likely than not that the
fair value of a reporting unit is less than its carrying amount, the Company will not be required to proceed with the two-step
quantitative assessment.
In evaluations of PSNC Energy, fair value is estimated using the assistance of an independent appraisal. In evaluations of
CGT, estimated fair value has been obtained from internal analyses. In all evaluations for the periods presented, step one has indicated
no impairment, and no impairment charges have been recorded; however, should a write-down be required in the future, such a charge
would be treated as an operating expense.
Nuclear Decommissioning
SCE&G’s two-thirds share of estimated site-specific nuclear decommissioning costs for Summer Station Unit 1, including
the cost of decommissioning plant components both subject to and not subject to radioactive contamination, totals $451.0 million,
stated in 2006 dollars. Santee Cooper is responsible for decommissioning costs related to its one-third ownership interest in Summer
Station Unit 1. The cost estimate assumes that the site would be maintained over a period of approximately 60 years in such a manner
as to allow for subsequent decontamination that would permit release for unrestricted use.
Under SCE&G’s method of funding decommissioning costs, amounts collected through rates ($3.2 million pre-tax in each of
2011, 2010 and 2009) are invested in insurance policies on the lives of certain Company personnel. SCE&G transfers to an external
trust fund the amounts collected through electric rates, insurance proceeds and interest thereon, less expenses. The trusteed asset
balance reflects the net cash surrender value of the insurance policies and cash held by the trust. Management intends for the fund,
including earnings thereon, to provide for all eventual decommissioning expenditures for Summer Station Unit 1 on an after-tax basis.
Cash and Cash Equivalents
The Company considers temporary cash investments having original maturities of three months or less at time of purchase to
be cash equivalents. These cash equivalents are generally in the form of commercial paper, certificates of deposit, repurchase
agreements, treasury bills and notes.
Account Receivable
Accounts receivable reflect amounts due from customers arising from the delivery of energy or related services and include
revenues earned pursuant to revenue recognition practices described below. These receivables include both billed and unbilled
amounts. Receivables are generally due within one month of receipt of invoices which are presented on a monthly cycle basis.
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