10-K - SCANA Corporation

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Table of Contents CAPITAL REQUIREMENTS SCANA’s regulated subsidiaries, including SCE&G, require cash to fund operations, construction programs and dividend payments to SCANA. SCANA’s nonregulated subsidiaries require cash to fund operations and dividend payments to SCANA. To replace existing plant investment and to expand to meet future demand for electricity and gas, SCANA’s regulated subsidiaries must 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 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, when requested. For a discussion of various rate matters and their impact on capital requirements, see the Regulatory Matters section of Management’s Discussion and Analysis of Financial Condition and Results of Operations for SCANA and SCE&G and Note 2 to the consolidated financial statements for SCANA and SCE&G. During the period 2012-2014, SCANA and SCE&G expect to meet capital requirements through internally generated funds, issuance of equity and short-term and long-term borrowings. SCANA and SCE&G expect that they have or can obtain adequate sources of financing to meet their projected cash requirements for the next 12 months and for the foreseeable future. For a discussion of cash requirements for construction and nuclear fuel expenditures, contractual cash obligations, financing limits, financing transactions and other related information, see the Liquidity and Capital Resources section of Management’s Discussion and Analysis of Financial Condition and Results of Operations for SCANA and SCE&G. SCANA’s ratios of earnings to fixed charges were 2.87, 2.92, 2.84, 3.04 and 3.03 for the years ended December 31, 2011, 2010, 2009, 2008 and 2007, respectively. SCE&G’s ratios of earnings to fixed charges were 3.13, 3.18, 3.25, 3.51 and 3.40 for the same periods. ELECTRIC OPERATIONS Electric Sales SCE&G’s sales of electricity and margins earned from the sale of electricity by customer classification as percentages of electric revenues for 2010 and 2011 were as follows: Sales Margins Customer Classification 2010 2011 2010 2011 Residential 43% 43% 48% 48% Commercial 32% 32% 33% 33% Industrial 17% 17% 13% 13% Sales for resale 6% 6% 4% 4% Other 2% 2% 2% 2% Total Territorial 100% 100% 100% 100% NMST —% —% —% —% Total 100% 100% 100% 100% Sales for resale include sales to three municipalities and two electric cooperatives. Sales under NMST during 2011 include sales to seven investor-owned utilities or registered marketers and three federal/state electric agencies. During 2010 sales under the NMST included sales to nine investor-owned utilities or registered marketers, two electric cooperatives and two federal/state electric agencies. During 2011 SCE&G recorded a net increase of approximately 3,600 electric customers (growth rate of 0.5%), increasing its total electric customers to approximately 664,000 at year end. For the period 2012-2014, SCE&G projects total territorial KWh sales of electricity to increase 0.7% annually (assuming normal weather), total electric customer base to increase 1.6% annually and territorial peak load (summer, in MW) to increase 1.0% annually. While SCE&G’s goal is to maintain a reserve margin of between 12% and 18%, weather and other factors affect territorial peak load and can cause actual generating capacity on any given day to fall below the reserve margin goal. 8
Table of Contents Electric Interconnections SCE&G purchases all of the electric generation of GENCO’s Williams Station under a Unit Power Sales Agreement which has been approved by FERC. Williams Station has a net generating capacity (summer rating) of 605 MW. SCE&G’s transmission system, which extends over a large part of the central, southern and southwestern portions of South Carolina, interconnects with Duke Energy Carolinas, Progress Energy Carolinas, Santee Cooper, Georgia Power Company, Oglethorpe Power Corporation and the Southeastern Power Administration’s Clarks Hill (Thurmond) Project. SCE&G, Duke Energy Carolinas, Progress Energy Carolinas, Santee Cooper, Dominion Virginia Power and ALCOA Power Generating, Inc. (Yadkin Division), are members of VACAR, one of several geographic divisions within the SERC. SERC is one of eight regional entities with delegated authority from NERC for the purpose of proposing and enforcing reliability standards approved by FERC. SERC is divided geographically into five diverse sub-regions that are identified as Central, Delta, Gateway, Southeastern and VACAR. The regional entities and all members of NERC work to safeguard the reliability of the bulk power systems throughout North America. For a discussion of the impact certain legislative and regulatory initiatives may have on SCE&G’s transmission system, see Electric Operations within the Overview section of Management’s Discussion and Analysis of Financial Condition and Results of Operations for SCANA and SCE&G. Fuel Costs and Fuel Supply The average cost of various fuels and the weighted average cost of all fuels (including oil) for the years 2009-2011 follow: Cost of Fuel Used 2009 2010 2011 Per MMBTU: Nuclear $ .48 $ .72 $ .88 Coal 4.36 4.49 4.47 Natural Gas 4.61 5.48 4.86 All Fuels (weighted average) 3.61 3.80 3.80 Per Ton: Coal 108.39 110.63 109.91 Per thousand cubic feet (MCF): Gas 4.81 5.64 5.01 The sources and percentages of total MWh generation by each category of fuel for the years 2009-2011 and the estimates for the years 2012-2014 follow: % of Total MWh Generated Actual Estimated 2009 2010 2011 2012 2013 2014 Coal 51% 52% 50% 46% 44% 46% Nuclear 18% 21% 19% 20% 22% 20% Hydro 4% 4% 3% 4% 4% 4% Natural Gas & Oil 27% 23% 28% 29% 29% 29% Biomass — — — 1% 1% 1% Total 100% 100% 100% 100% 100% 100% Six of the seven fossil fuel-fired plants use coal. Unit trains and, in some cases, trucks and barges deliver coal to these plants. Coal is obtained through long-term supply contracts and spot market purchases. Long-term contracts exist with suppliers located in eastern Kentucky, Tennessee and West Virginia. These contracts provide for approximately 3.5 million tons annually, which is substantially all expected coal purchases for 2012. Sulfur restrictions on the contract coal range from 1% to 2%. These contracts expire at various times through 2014. Spot market purchases are expected to continue when needed or when prices are believed to be favorable. SCANA and SCE&G believe that SCE&G’s operations comply with all applicable regulations relating to the discharge of sulfur dioxide and nitrogen oxide. See additional discussion at Environmental Matters in Management’s Discussion and Analysis of Financial Condition and Results of Operations for SCANA and SCE&G. 9
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: Table of Contents Regulated Utiliti
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 and 38: Table of Contents • 2011 vs 2010
Page 39 and 40: Table of Contents The Company’s c
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
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Table of Contents NOTES TO CONSOLID
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Table of Contents costs for turbine
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Table of Contents Fuel costs, emiss
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Table of Contents In May 2009, two
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Table of Contents Accumulated defer
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Table of Contents SCANA issued comm
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Table of Contents The difference be
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Table of Contents losses from its h
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Table of Contents The effect of der
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Table of Contents 8. EMPLOYEE BENEF
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Table of Contents The Company’s p
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Table of Contents Net Periodic Bene
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Table of Contents Equity Awards In
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Table of Contents SCE&G maintains a
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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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10-K - SCANA Corporation

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