10-K - SCANA Corporation

More documents

Recommendations

Info

Table of Contents Included in other commercial commitments are estimated obligations for coal and nuclear fuel purchases. SCE&G also has a legal obligation associated with the decommissioning and dismantling of Summer Station Unit 1 and other conditional asset retirement obligations that are not listed in the contractual cash obligations above. See Notes 1 and 10 to the consolidated financial statements. In addition, Consolidated SCE&G is party to certain NYMEX futures contracts for which any unfavorable market movements are funded in cash. These derivatives are accounted for as cash flow hedges and their effects are reflected within other comprehensive income until the anticipated sales transactions occur. See further discussion at Item 7A. Quantitative and Qualitative Disclosures About Market Risk. At December 31, 2011, Consolidated SCE&G had posted $45 million in cash collateral for interest rate derivative contracts. Financing Limits and Related Matters Consolidated SCE&G’s issuance of various securities, including long-term and short-term debt, is subject to customary approval or authorization by regulatory bodies including the SCPSC and FERC. Financing programs currently utilized by Consolidated SCE&G are as follows. SCE&G and GENCO have obtained FERC authority to issue short-term indebtedness (pursuant to Section 204 of the Federal Power Act). SCE&G may issue up to $1.2 billion of unsecured promissory notes or commercial paper with maturity dates of one year or less, and GENCO may issue up to $150 million of short-term indebtedness. The authority to make such issuances will expire in October 2012. SCE&G and Fuel Company are parties to five-year credit agreements in the amount of $1.1 billion, of which $400 million relates to Fuel Company, which expire October 23, 2015. These credit agreements are used for general corporate purposes, including liquidity support for each company’s commercial paper program and working capital needs and, in the case of Fuel Company, to finance or refinance the purchase of nuclear fuel, certain fossil fuels, and emission and other environmental allowances. These committed long-term facilities are revolving lines of credit under credit agreements with a syndicate of banks. Wells Fargo Bank, National Association, Bank of America, N. A. and Morgan Stanley Bank, N.A. each provide 10% of the aggregate $1.5 billion credit facilities, Branch Banking and Trust Company, Credit Suisse AG, Cayman Islands Branch, JPMorgan Chase Bank, N.A., Mizuho Corporate Bank, Ltd., TD Bank N.A. and UBS Loan Finance LLC each provide 8%, and Deutsche Bank AG New York Branch, Union Bank, N.A. and U.S. Bank National Association each provide 5.3%. Three other banks provide the remaining 6%. These bank credit facilities support the issuance of commercial paper by SCE&G (including Fuel Company). When the commercial paper markets are dislocated (due to either price or availability constraints), the credit facilities are available to support the borrowing needs of SCE&G (including Fuel Company). At December 31, 2011 and 2010, SCE&G (including Fuel Company) had available the following committed LOC and had outstanding the following LOC advances, commercial paper, and LOC-supported letter of credit obligations: Millions of dollars 2011 2010 Lines of credit: Committed long-term Total $ 1,100 $ 1,100 LOC advances — — Weighted average interest rate — — Outstanding commercial paper (270 or fewer days) $ 512 $ 381 Weighted average interest rate .56% .42% Letters of credit supported by an LOC $ .3 $ .3 Available $ 588 $ 719 As of December 31, 2011, Consolidated SCE&G had no outstanding borrowings under its $1.1 billion facilities, had approximately $512 million in commercial paper borrowings outstanding, was obligated under $.3 million in LOC-supported letters of credit, and had approximately $16 million in cash and temporary investments. Consolidated SCE&G regularly monitors the commercial paper and short-term credit markets to optimize the timing for repayment of the outstanding balance 98
Table of Contents on its draws, while maintaining appropriate levels of liquidity. Average short-term borrowings outstanding during 2011 were approximately $485 million. Short-term cash needs were met primarily through the issuance of commercial paper. At December 31, 2011, Consolidated SCE&G had net available liquidity of approximately $604 million, and its revolving credit facilities are in place until October 2015. Consolidated SCE&G’s long-term debt portfolio has a weighted average maturity of over 18 years and bears an average cost of 6.18%. Most long-term debt, other than facility draws, effectively bears fixed interest rates or is swapped to fixed. To further preserve liquidity, Consolidated SCE&G rigorously reviews its projected capital expenditures and operating costs and adjusts them where possible without impacting safety, reliability, and core customer service. SCE&G’s Restated Articles of Incorporation do not limit the dividends that may be paid on its common stock. However, SCE&G’s bond indenture contains provisions that, under certain circumstances, which SCE&G considers to be remote, could limit the payment of cash dividends on its common stock, all of which is beneficially owned by SCANA. With respect to hydroelectric projects, the Federal Power Act requires the appropriation of a portion of certain earnings therefrom. At December 31, 2011, approximately $58.8 million of retained earnings were restricted by this requirement as to payment of cash dividends on SCE&G’s common stock. SCE&G is subject to a bond indenture dated April 1, 1993 (Mortgage) covering substantially all of its electric properties under which all of its first mortgage bonds (Bonds) have been issued. Bonds may be issued under the Mortgage in an aggregate principal amount not exceeding the sum of (1) 70% of Unfunded Net Property Additions (as therein defined), (2) the aggregate principal amount of retired Bonds and (3) cash deposited with the trustee. Bonds, other than certain Bonds issued on the basis of retired Bonds, may be issued under the Mortgage only if Adjusted Net Earnings (as therein defined) for 12 consecutive months out of the 18 months immediately preceding the month of issuance are at least twice (2.0) the annual interest requirements on all outstanding Bonds and Bonds to be outstanding (Bond Ratio). For the year ended December 31, 2011, the Bond Ratio was 5.37. Financing Activities In January 2012, SCE&G issued $250 million of 4.35% first mortgage bonds due February 1, 2042. Proceeds from the sale were used to repay short-term debt primarily incurred as a result of our construction program, to finance capital expenditures and for general corporate purposes. In October 2011, SCE&G issued $30 million of 3.22% first mortgage bonds due October 18, 2021. Proceeds from the sale were used to redeem prior to maturity $30 million of 5.7% pollution control facilities revenue bonds due November 1, 2024 issued by Orangeburg County, South Carolina, on SCE&G’s behalf. In May 2011, SCE&G issued $100 million of 5.45% first mortgage bonds due February 1, 2041, which constituted a reopening of the prior offering of $250 million of 5.45% first mortgage bonds issued in January 2011. Proceeds from these sales were used to retire $150 million of SCE&G first mortgage bonds due February 1, 2011, to repay short-term debt primarily incurred as a result of SCE&G’s construction program, to finance other capital expenditures and for general corporate purposes. During 2011 Consolidated SCE&G experienced net cash inflows related to financing activities of $193 million primarily due to the issuance of short-term and long-term debt and contribution from parent, partially offset by repayment of long-term debt and payment of dividends. debt. SCE&G paid approximately $31 million in 2011 to settle interest rate contracts associated with the issuance of long-term For additional information on significant financing transactions, see Note 4 to the consolidated financial statements. ENVIRONMENTAL MATTERS Consolidated SCE&G’s regulated operations are subject to extensive regulation by various federal and state authorities in the areas of air quality, water quality, control of toxic substances and hazardous and solid wastes. Applicable statutes and rules include the CAA, CWA, Nuclear Waste Act and CERCLA, among others. Compliance with these 99
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 and 8:
Table of Contents Regulated Utiliti
Page 9 and 10:
Table of Contents Electric Intercon
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 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 and 96: Table of Contents • 2011 vs 2010
Page 97: Table of Contents regulations, will
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
Page 147 and 148: Table of Contents Schedule II—Val
Page 149 and 150:
Table of Contents SIGNATURES Pursua
Page 151 and 152:
Table of Contents Applicable to Exh
Page 153 and 154:
Exhibit 12.01 SCANA CORPORATION CAL
Page 155 and 156:
Exhibit 23.01 CONSENT OF INDEPENDEN
Page 157 and 158:
Exhibit 24.01 POWER OF ATTORNEY KNO
Page 159 and 160:
Exhibit 31.01 CERTIFICATION I, Kevi
Page 161 and 162:
Exhibit 31.03 CERTIFICATION I, Kevi
Page 163 and 164:
Exhibit 32.01 SCANA CORPORATION CER
Page 165 and 166:
Exhibit 32.03 SOUTH CAROLINA ELECTR
Page 167 and 168:
scg-20111231.xml
Page 169 and 170:
scg-20111231_cal.xml
Page 171 and 172:
scg-20111231_pre.xml
show all

10-K - SCANA Corporation

Create successful ePaper yourself

Delete template?

Save as template?