10-K - SCANA Corporation

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Table of Contents • 2010 vs 2009 Other operation and maintenance expenses increased by $16.9 million due to higher generation, transmission and distribution expenses and by $9.0 million due to higher incentive compensation and other benefits. Depreciation and amortization expense increased primarily due to net property additions. Other taxes increased primarily due to higher property taxes. Other Income (Expense) Other income (expense) includes the results of certain non-utility activities. Components of other income (expense), were as follows: Millions of dollars 2011 Change 2010 Change 2009 Other income $ 4.9 (59.5)%$ 12.1 (57.7)%$ 28.6 Other expense (11.8) (21.9)% (15.1) 33.6% (11.3) Total $ (6.9) * $ (3.0) * $ 17.3 * Greater than 100% • 2011 vs 2010 Total other income (expense) decreased primarily due to lower pension income in 2011. • 2010 vs 2009 Total other income (expense) decreased $16.0 million due to decreased interest income. In September 2009, as a result of a favorable decision by the South Carolina Supreme Court, SCE&G was refunded previously contested EIZ Credits of $15.3 million and an additional $14.3 million of interest income. SCE&G recorded a multi-year catch-up adjustment in the third quarter of 2009 of approximately $6.3 million ($4.0 million after federal tax effect) as a reduction in income taxes. The interest income of $14.3 million ($8.8 million after tax effect) was recorded in the third quarter of 2009 within other income. Interest Expense Components of interest expense, net of the debt component of AFC, were as follows: Millions of dollars 2011 Change 2010 Change 2009 Interest on long-term debt, net $ 191.0 7.3% $ 178.0 13.9% $ 156.3 Other interest expense 13.5 55.2% 8.7 17.6% 7.4 Total $ 204.5 9.5% $ 186.7 14.1% $ 163.7 Interest on long-term debt increased in each year primarily due to increased long-term borrowings over the prior year. Other interest expense increased in each year primarily due to higher principal balances on short-term debt over the prior year. Income Taxes Income tax expense (and the effective tax rate) increased in 2011 over 2010 primarily due to the accelerated amortization of deferred EIZ Credits to offset undercollected fuel costs in 2010 pursuant to an SCPSC order and an increase in operating income. Income tax expense (and the effective tax rate) decreased in 2010 over 2009 primarily due to the above-mentioned accelerated amortization of EIZ Credits to offset undercollected fuel costs and the accelerated amortization of EIZ Credits in connection with the July 2010 retail electric rate order. (See Note 5 to the consolidated financial statements for reconciling differences between income tax expense and statutory tax expense.) LIQUIDITY AND CAPITAL RESOURCES Consolidated SCE&G anticipates that its contractual cash obligations will be met through internally generated funds and the incurrence of additional short- and long-term indebtedness and capital contributions from SCANA. Consolidated SCE&G expects that it has or can obtain adequate sources of financing to meet its projected cash requirements for the foreseeable future. Consolidated SCE&G’s ratio of earnings to fixed charges for the year ended December 31, 2011 was 3.13. Consolidated SCE&G’s cash requirements arise primarily from its operational needs, funding its construction programs and payment of dividends to SCANA. The ability of Consolidated SCE&G to replace existing plant investment, to expand to meet future demand for electricity and gas and to install equipment necessary to comply with environmental 96
Table of Contents regulations, will depend upon its ability to attract the necessary financial capital on reasonable terms. Consolidated SCE&G recovers 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 Consolidated SCE&G continues its ongoing construction program, Consolidated SCE&G expects to seek increases in rates. Consolidated SCE&G’s future financial position and results of operations will be affected by Consolidated SCE&G’s ability to obtain adequate and timely rate and other regulatory relief. Cash outlays for property additions and construction expenditures, including nuclear fuel, net of AFC were $786 million in 2011 and are estimated to be $1.3 billion in 2012. Consolidated SCE&G’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 Consolidated 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 Consolidated SCE&G - Normal 429 396 360 New Nuclear 954 952 727 Cash Requirements for Construction 1,383 1,348 1,087 Nuclear Fuel 44 110 55 Total Estimated Capital Expenditures $ 1,427 $ 1,458 $ 1,142 Consolidated SCE&G’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 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 SCE&G has the option to utilize certain vendors without the obligation to do so. SCE&G may terminate such arrangements without penalty. 97 Payments due by period Less than 1 year 1 - 3 years 4 - 5 years More than 5 years Millions of dollars Total Long-term and short-term debt including interest $ 7,204 $ 716 $ 746 $ 359 $ 5,383 Capital leases 7 2 3 2 — Operating leases 37 7 9 — 21 Purchase obligations 4,335 955 2,306 412 662 Other commercial commitments 1,991 641 557 207 586 Total $ 13,574 $ 2,321 $ 3,621 $ 980 $ 6,652 Future Value Millions of dollars 2012 2013 2014 2015 2016 After 2016 Total Project Cash Outlay $ 804 $ 825 $ 558 $ 575 $ 367 $ 232
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Table of Contents UNITED STATES SEC
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Table of Contents CAUTIONARY STATEM
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Table of Contents TERM MEANING MGP
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Table of Contents Regulated Utiliti
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Table of Contents Electric Intercon
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Table of Contents Gas Cost, Supply
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Table of Contents SCE&G holds licen
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Table of Contents PSNC Energy’s r
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Table of Contents Furthermore, rece
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Table of Contents One rating agency
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Table of Contents • Uncertainties
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Table of Contents ELECTRIC PROPERTI
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Table of Contents Litigation In May
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Table of Contents PART II ITEM 5. M
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Table of Contents SCANA CORPORATION
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Table of Contents Key Earnings Driv
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Table of Contents Retail Gas Market
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Table of Contents • 2010 vs 2009
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Table of Contents • 2011 vs 2010
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Table of Contents The Company’s c
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Table of Contents With respect to h
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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 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
Page 89 and 90: Table of Contents 13. QUARTERLY FIN
Page 91 and 92: Table of Contents ITEM 7. MANAGEMEN
Page 93 and 94: Table of Contents retain large comm
Page 95: Table of Contents • 2011 vs 2010
Page 99 and 100: Table of Contents on its draws, whi
Page 101 and 102: Table of Contents To help mitigate
Page 103 and 104: Table of Contents The RSA allows na
Page 105 and 106: Table of Contents site of Summer St
Page 107 and 108: Table of Contents ITEM 7A. QUANTITA
Page 109 and 110: Table of Contents ITEM 8. FINANCIAL
Page 111 and 112: Table of Contents December 31, (Mil
Page 115 and 116: Table of Contents NOTES TO CONSOLID
Page 117 and 118: Table of Contents $32.7 million, of
Page 119 and 120: Table of Contents 2. RATE AND OTHER
Page 121 and 122: Table of Contents Regulatory Assets
Page 123 and 124: Table of Contents 4. LONG-TERM AND
Page 125 and 126: Table of Contents The tax effects o
Page 127 and 128: Table of Contents The fair value of
Page 129 and 130: Table of Contents 8. EMPLOYEE BENEF
Page 131 and 132: Table of Contents The pension plan
Page 133 and 134: Table of Contents Net Periodic Bene
Page 135 and 136: Table of Contents Nonvested shares
Page 137 and 138: Table of Contents Claims and Litiga
Page 139 and 140: Table of Contents Disclosure of Rep
Page 141 and 142: Table of Contents ITEM 9. CHANGES I
Page 143 and 144: Table of Contents SCE&G: Evaluation
Page 145 and 146: 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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