ML20012D973
| ML20012D973 | |
| Person / Time | |
|---|---|
| Site: | Summer  |
| Issue date: | 12/31/1989 |
| From: | Warren J SOUTH CAROLINA ELECTRIC & GAS CO. |
| To: | |
| Shared Package | |
| ML20012D970 | List: |
| References | |
| NUDOCS 9003290174 | |
| Download: ML20012D973 (49) | |
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Electric Operations 1
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- UT.IUTYCUST0nfERPROFILE.
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The company s con-Elechic $80e8i
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n naturalgas customer base
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14.7 13.0 38.6 33.7 100.0-2.6% respectively
FINANCIAL & OPE' TINGHIGHLIGHTS i
% increase I
1989 1988 (Decrease)
Wthee
' (Millions of Dollots except slottstics andpershare amounts)
EmpkyingOnelectesMNc flInonc6el 9000f0Mtl0 OKpkin th0 Tokil0perating Revenues
$ 1,123.3
$ 1,083.3 3.7
'TololOperating Expenses S 910.1 S 878 6 3.6 my899de$OfM Notincome
$ 122.6 S 120.7 1.6 Mng0Mg@
j Eornings Per Shore of Common Stock 3.04 S
3.00 1.3 Dividends Declared Per Shore of Common Stock 2.46 S
2.40 2.5 S& W OS 1h989 SfUd8#f8 Book Volue Per Shore of Common Stock (Year End)
$ 22.79
$ 22.23 2.5 Market Price Per Shore of Common Stock (Year-End)
$ 35.75 S 32.25 10.9 fbundopf$0$fy, Common Stockholders' Equity (Year-End)
$ 918.2
$ 895.7 25 Common Stock Outstanding (Thousands; Year-End) 40,296 40.296 9000f0#00, C0199f8,.
Construction Expenditures
$ 181.5
$ 182.9 (0.8)
Utility Plant, Net
$ 2,444.3
$ 2,384.6 2.5
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Electric 0perating Revenues S 822.1
$ 788.0 4.3 Electric Opeim.ng income
$ 193.8
$ 186 7 38 0fpOV0hbb1080h00ls i
Sales (Milhon KWH) 14,885 14,457 30 l
Customers (Year-End) 435,001 427,089 1.9 thf00phouf SCf&G'S t
Generating Copobility - Net MW (Year-End) 3,891 3,891 SofYlC6 Of00. DuffOE 1989 Territorial Peak Demand Net MW 3,144 3.021 4.1 SCE&Gempd0y90s visited
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Gas Operating Revenues S 297.1 S 291.3 2.0 Gas Operatingincome 24.4 23 0 6.1 j
Sales (Thousand Therms) 714,585 677,580 5.5 l
Customers (Year End) 205,657 201,399 2.1 l
I Tenset OpemNons t
l Transit Operating Revenues S
4.1 S
4.0 2.5 Transit Operating Loss S
(5.1)
S (5.0) 2.0 1
Revenue Passengers Corriod (Thousands) 6.430 6,723 (4.4) p;Sqpgingm7mm'7"r*q p;,. 3 pm y y
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Md;i-is A t aAd 3 p.y 1
JDNNA WARREN ! - J l. L I. '
John A Warren closed another chopter in his long and distinguished career upon retirement as chairman and chief executive officer of SCANA Corporation January 31,1990. For more than 40 years the energy industry has enjoyed the benefits of Mr. Warren's leadership. He helped establish Carolina Pipeline Company in 1957 and later formed Carolina Energies, y
Inc., a holding company, He served os vice chairman, president and chief operating
.. [ ocquired by South Carolina Electric & Gas Company (SCE&G). Mr. Warren was named president and chief operating officer of SCE&G in 1982 and began laying the i,1 c.
groundwork for the formation of the holding company that became SCANA Corpora-
-[
tion. In September 1985 Mr. Warren became vice chairman and chief executive officer
'\\,.
of SCANA Corporation and subsidiaries, and in April 1986 he become chairman. Mr.
Warren's accomplishments as chairman of SCANA were many. He led an employee
+
.E effort to restore a favorable public image of SCE&G. He improved customer under-i standing of the price /value relationship of our products. He significantly raised the competitive position of SCE&G, resulting in utility electric rates that are among the
^
/
lowest in tha region. And he enhanced SCANA shareholder value with attention to financial performance. Mr. Warren asked employees to take the steps necessary to no$ BoardEmentus make SCE&G more efficient. They responded enthusiastically, and as a reward for success-fully reducing expenses and holding rates down, every employee was compensated under a unique incentive bonus plan. Mr. Warren serves as a director of Liberty Life Insurance Company, Mack Trucks, Inc., South Carolina National Corporation, and South Carolina National Bank. Mr. Warren has received numerous awards during his career. The most recent was bestowed upon him January 31,1990 by The Honorable Carroll A. Campbell, Jr., govemor of the State of South Carolina. Mr. Warren was awarded the Order of the Palmetto, South Carolina's highest honor, for service to the state and its citizens. On January 18,1990 the Columbia Chamber of Commerce named Mr. Warren "1990 Ambassador of the Year." Ne received an honorary Doctorate of Public Service degree from the Univers South Carolina in 1987. In 1989 The Citadel conferred a second honorary doctorate. Mr.
Warren will now turn his attention to overseeing the operations of the Palmetto Seed Capital Limited Partnership Fund, created by the South Carolina General Assembly to encourage investments in start-up, entrepreneurial businesses in the state.
2
MRIEM l.
FellowStockholders, lam pleased to send you SCANA Corporation's 1989 Annual Report. This report documents j
another successful y6ar for our company. reflecting many operational challenges met and progress mode toward meeting our longer term strategic goals. famings per share for 1989 were $3.04 compared to $3.00 tot the prior year. I direct your attention to "Manogement's l
Discussion and Analysis of Financial Condition and Results of Operation" on page 40 for a detailed review of operating results. Cosh dividends were increased 2.5% in April 1989 reflecting the real growth in the underlying business. The growth of eomings in 1989 certainly was modest, but it must be viewed in light of the impact of Hurricane Hugo f
and the mild weather early in the year. More importantly, we believe the coming year ydll g
show substantial progress. On January 31,1990 John A. Warren retired after a distin-Y guished career in the energy industry. His accomplishments are outlined on the oppo-site page. He will continue to serve SCANA Corporation as chairman emeritus, director, i
and chairman of the executive committee. During the post year death claimed two men l
l who made significant contributions to the company. J. Edwin Schochte had been a i
director since 1966. B. Marion Smith, Jr., on SCE&G senior vi president,hadbeen on employee since 1958. They were part of an era of major growth for the company, and I will miss their counsel. As I begin my tenure as chairman and chief executive L
e re officer, and as we begin a new decade, it is appropriate to examine the challenges and opportunities the company will confront in the coming years. These challenges are in three CNelExecutiveOthcer creas-potential changes in the structure of the electric industry, company growth pros-pects, and the environment. Our core business is electric operations, constituting 75% of SCANA's assets. Currently many proposals are being considered at the federal and state level to restructure and deregulate the electric industry. Our primary response to the possibility of these changes has been to improve our competitive position versus other electric utilities, independent power producers and cogenerators. Currently our residential electric rates are 10.3% below those in effect in March 1984, and are aniong the lowest in the Southeast.
HeaW emphasis on cost containment, manpower reductions and the effective use of technology have helped to stabilize and reduce operating expenses and have improved l
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-!l efficiency in our operations. These programs will be continued. Higher cost capital hos been restructured or replaced, and both the company and its customers have benefitted from lower "
income tax rates. We will continue our goal to be among the low cost producers in our-general area in order to minimize the effect on shareholder value of any structural change or -
other competitive threats in electric operations. / expect the company to experience signifi-cant growth during the next decade, perhaps eurpassing the progress of the last ten years.
- We have been extremely octive in economic development acWities, especially in the less -
urbanized areas of our service territory, and our efforts will continue. The Staie of South
{
Carolina has made major strides during the past few years in the areas of education, 4
technical training and other " quality of life" factors. As a result, the pace of economic development has quickened, with over $9 billion of capital investment and 170,000 net new jobs announced in the past three years alone. While not all this growth occurs in our electric and gas service territories, the majority of it does, resulting in forecast average growth in -
customers, annual system sales and peak loads of 2% per year. The challenge for SCANA Corporation will be to install the necessary capacity to meet these added needs, not diminish our current price advantages, and capture the financial rewards of growth to improve i
shareholder value from solely an electric service perspective, when a new system peak
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was established on July 11,1989, our generation reserve margin fell to 23.8% With customer growth continuing at 2% or more each year, the need for added generating h
capacity is clear. Currently our strategy is to install gas turbines to meet increases in peak loads. These units have the lowest capital cost to install, and will support our customers'
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needs while we assess the source and timing of additional capacity including base load generation. Studies indicate that the addition of an environmentally acceptable coal-fired
-l l-plant to increase our generating capacity by 10% would require an increase of approxi -
mately 25% in the total assets of the company, and could have a negative impact on our '
competitive advantage. We are currently evaluating many options and no final decisions have been reached. Fortunately, natural gas supply issues can be more easily addressed, l
and without significant investment in plant. Deregulation of the wellhead price of natural gas has created very flexible supply opportunities which we are pursuing. We are currently l'
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L are attempting to control significant reserves of our own. Environmental concems are at the Llop of the current national agenda. SCANA and its subsidiaries are firmly committed to b
complying with existing statutes, rules and reguiotions. All our operations are closely -
monitored by our personnel, as well as by various govemmental agencies, to ensure
. continuing compliance. The challenge for the company will be to adapt to changes and new
~ restrictions in existing rules and regulations while the nation addresses the issues of acid taln/suffur emissions, the greenhouse effect, particulate emissions, toxic waste, nuclear waste, and water quality standards, among others. Proposed changes would require l significant capital investments and probably reduce our plants' operating efficiencies, both of
. which could adversely effect our customers and shareholders. We anticipate that acid rain
- legislation will be enacted by the Congress in 1990. Fortunately, none of our plants is
- among the 104 non-complying facilities requiring immediate remediation under President
- Bush's proposal. However, the proposed standards forthe latter half of this decade would require retrofitting some of our generating plants, perhaps with scrubber technology or other pollution abatement equipment. SCANA Corporation will strive to continue its excellent record l
- n environmental compliance. These are the more significant challenges which the com-L pany faces as i begin my lenure as chairman. We are committed to meeting them in a way
.(
that protects the interests of customers and promotes shareholder value. The company has a L : strong financial base and a growing service territory. More importantly, we have an organization of talented and resourceful people who will deal with these challenges and opportunities. Their outstanding performance in restoring our electnc and gas systems after Hurricane Hugo, In supporting their fellow workers who suffered losses from that hurricane, L
and in the excellence with which they perform their daily tasks gives me great confidence we willmeetourgoals.
E L
Respectfullysubmitted,
. - 4. M February 6,1990 5
yEARMREVIEW J G2Qfj UtilityOperations Onthenght South Cat 0 lina Electric & gas Company Intheearlymorning hours of More than 3,200 September 22,1989, Hurricane Hugo, with sustained winds approaching 150 mph, struck tensformers-ep/mlent the coast of South Carolina at Charleston with devastating results. More than 300,000 toanommisix-month SCE% customers were left literally in the dark as "The Storm of the Century" caused supply-weredamcged
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ordestroyedby extensive damage to the company's electric system. Two base load generating stations were Hurricane Hugo.
knocked out of service. Approximately 5,000 distribution poles and 400 transmission structue wv domoned or destroyed, and nearly 27,000 spans of transmission, distribu-gew tion oM servie knes lay entangled in fallen trees. Initial estimates for restoration were from Spec /alconsiderofions our to six weeks. l.ess than th% wemMater. power had been fully restored to all SCEM weregiven to theWWEe customers able to receive it. It was the largest restoration effort in le company's history and ofourcustomersfollowing involved more than 4,700 SCE% employees, retirees, private contractors and personnel HurricaneHugo. More from other utilities. Under a plan approved by The Public Service Commission of South than20,000peoplerode SCE&G'spublicbuses free Carolina (PSC), the restoration effort will have no significant impact to SCE%'s customers or ofcharge the weekof to SCANA's financial position (see Note 2A of Notes to Consolidated Financial Statements).
October 2-7, andthe Nurricane Hugo's rampage was unlike anything previously expenenced by SCEM or the companygaveawaymore State of South Carolina, but there were many positive results. Although Hugo left damage than 630,000 pounds of estimated at $6 billion statewide, South Carolinians rebounded, rebuilt, and are back in 1
dry /ce whilepowerwas business as usual. SCE%'s timely restoration effort was a key factor. Effective teamwork beingrestored. Billing opero#ons n'wealso within SCE%, with local government officials, and most importantly with our customers, l
temporarflysuspended.
made this possible. Hugo serves as a vivid reminder of how dependent we are upon each j
other, especially in times of crisis.
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k0utine operations reached new levels of performance during 1989. SCE&G's SCE&GPresidentand systemwide electric sales grew 2.9% over 1988 to 14.9 billion KWH. Residential sales Chief 0pemting Officer increased 2.7%, commercial sales 5.1 % and industrial sales.8%. Wholesale and other r
electric sales rose 4.6%. The number of SCE&G's electric customers increased 1.9% during Mo}orGenet01 John hnner, commanderof 1989 to 435,030. Increased demand for air conditioning in response to hot, humid weather theU.S. Army'sfort resulted in record demand on SCE&G's electric delivery system in July 1989. SCE&G Jackson /n ColumWo.
customers set a new record July 11 for peak electricity consumption of 3,144 MW, SCE&G'sofficervisitation a growth of 4.1 % over the 1988 record of 3,021 MW. Abnormally cold weather also
' pmgemprovidesthe resulted in the establishment of a new all-time winter peak of 2,908 MW on December 23,
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1989. SCE&G's peak generating capability is 3,891 MW and includes all electricity pro-g customers withon duced at the A M. Williams Station, which is owned by another SCANA subsidiary, South opportunitytodiscuss Carolina Generating Company, Inc. SCE&G's fossil-fueled electric generating system, in-mattersofserviceona cluding Williams Station, is one of the most efficient in the nation. SCE&G's system ranked -
tbce-to-/bcebasis.
seventh among the nation's 100 largest investor-owned utilities in the latest annual survey of heat rates published by Electric Light & Powermagazine. This marks the seventh year in a row that SCE&G has finished in the survey's Top 10. The system's five coal-buming electric generating plants burned 4.5 million tons of coal in 1989. SCE&G purchases coal with l
relatively low sulfur content to minimize emissions of sulfur dioxide. SCE&G's 1989 system average for sulfur dioxide emissions was 1.66 lbs. per million BTUs, satisfying the stringent air quality standards required by the S.C. Department of Health and Environmen+al Control.
None of the company's electric generating plants is included among the 104 non-complying plants requiring immediate reduction of sulfur dioxide emissions under President Bush's proposed changes in the Clean Air Act of 1970. With customer growth continuing at 2% or l
more each year, the need for added generation is clear. Currently, our strategy is to install gas
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turbines to meet increases in peak loads. These units have the lowest capital cost to install, and will support our customers' needs while we assess the source and timing of additional capacity including base load generation. Westinghouse Electric Corporation was awarded a
$32 million contract by SCE&G in 1989 to install a 93 MW gas-and oil-fueled turbine that is expected to be operational in 1991. This will be SCE&G's first generating unit addition since the V.C. Summer Nuclear Station went into commercial operation in 1984.
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[ive years ago, SCE&G odopted a strategy of rate stability as a means to remain A hiteverywherehegoes, competitive in the rapidly changing electric utility industry. Today, SCE&G's continuing goal Louie theLightningBugis s to maintain its position as a low cost, high service supplier of energy. Electric marketing SCE&G'sotticlolsafety and sales activities play an increasing role in this strategy by influencing customer use of spokesman. Through Saturdaymoming capacity through a growing number of marketing programs designed to encouroge off-peak televisionadverfisements energy sales and minimize peak demands. Since 1984, SCE&G's average residential j
ondilveoppearances, electric rates have declined approximately 10.3% as a result of lower federal income taxes, l
Louiespeakstokidsabout lower fuel costs and intemal cost conhol measures. During the same period, however, the l
Playing /tsoteotound company experienced significant increases in property taxes, depreciation expense and
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operating and maintenance expenses while spending in excess of $400 million in system Improvements and new distribution services. Based on these escalating costs, in July 1989 SCE&G was granted its first retail electric rate increase since March 1984. At that time, the PSC granted SCE&G approximately $21.9 million of a requested $27.2 million annual increase in retail electric revenues. The PSC order granted an allowed return on common equity of 13.25%. On January 3,1990 the Nuclear Regulatory Commission granted an extension of SCE&G's V.C. Summer Nuclear Station's operating license from March 21, 2013 to August 6, 2022. In compliance with the July 3,1989 PSC order, SCE&G subse-quently reduced its retail electric rates by approximately $7.7 million to reflect lower depreciation expense resulting from the extension of the plant's license. The reduction decreased the additional annual revenues allowed in the July 3,1989 order from $21.9 million to $14.2 million, for a net annual increase of 1.9%. Also effective July 3, the Federal Energy Regulatory Commissiori approved a 2.9% increase in SCE&G's wholesale electric rate which also was subsequently reduced as a result of the extension of the Summer Station license. SCE&G's average residential electric rate is slightly below 7 cents per KWH.
That was approximately 2% below the regional average and 5% below the national average for investor-owned utilities according to a July 1989 study by the Edison Electric Institute. SCE&G's average residential electric rate is also lower than approximately two-thirds of the rural electric cooperatives in South Carolina. SCE&G's average commercial electric rate was approximately 5% lower than the regional average and 13% below the national average, according to the study, while the company's average industrial electric rate was approximately 3.8% lower than the regional average and 8.7% lower than the national average.
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l On/henght bicient operation of the V C. Summer Nuclear Station is paramount in maintaining HarryBumellwas SCE&G's competitive price advantage Summer Station ochieved a capacity factor in 1989 recognizedasSCE&G's of 69.8%. This was equivalent to nuclear industry average performance, but lower than that 1989 Employee of the previously experienced at Summer Station During the year several equipment problems Yearbasedonhis involvementwith theBig caused unanticipated maintenance outages; however, no safety issues were involved. The Brotherprogram andother National Academy for Nuclear Training renewed the accreditation of two training programs at communityactivities.
Summer Station after conducting thorough on-site evaluations during 1989. The Academy is SCE&6 *stablished the administered by the Institute of Nuclear Power Operations, the nuclear industry's self-progmm torecognize the assessment agency that promotes excellence in the operation of nuclear plants Sammer confributionsmadebyits Station is scheduled to be taken out of service for 65 days beginning March 23,1990 for employees tohelp those who areless fortunate.
refueling. During this planned outage, the first for refueling since the fall of 1988, more than I
6,000 testing and maintenance tasks will be performed by plant personnel with the assist-once of an additional 800 contract workers. /n its last Systematic Assessment of Licensee Providing economic Performance, the Nuclear Regulatory Commission gave Summer Station above average j
developmentgrants to marks for overall performance Although this is a very good achievement, it is not satisfactory helpfacilitate waterand from SCE&G's standpoint, and the company is working to improve its performance and f
sewerprojects andother achieve an excellent rating for the current assessment period.
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SCE&G's natural gas system also was affected by Hurricane Hugo. A tidal surge A booth of theS.C. State estimated at 17 feet unearthed distribution and service lines and disrupted service in Folly FolttakesSCE&G Beach near Charleston, and in the Georgetown-Myrtle Beach area 100 miles to the north.
Gas crews serviced more than 4,000 orders and repaired over 1,500 leaks as a result of -
demonstratethe tec icolences Hugo. A leak survey has been conducted along the coast to ensure the integrity of the gas thathave takenplacein delivery system. SCE&G's natural gas water heater replacement sales program resulted in theutil/ty/ndusttyin the sales of 9,800 units versus a goal of 8,000. This aggressive sales program has had a Jost50yects. SCE&G substantial impact on SCE&G's natural gas load growth as more than 22,000 units have usesopportunities been sold in the last two years. At year-end 1989, SCE&G was serving 205,471 natural gas customers, a 2.1 % increase over 1988. Due to an unseasonably mild winter, residential eventstoincrease customerawarenessof sales were down 4.2% and commercial sales fell by 11.5%. Industrial sales were up 1.4%.
thepriceholueofthe However, gas transported by SCE&G for industrial end-users increased 17.7% over 1988.
company'sproducts.
Gas operations extended service to residents of John's Island through a 6.8-mile pipeline from Charleston that necessitated special construction provisions to ensure the protection of Bebe the sensitive coastal environment. The first customer was connected November 22. Plans Moreandmorepeopleare are being considered to extend this line to open new markets on nearby Seabrook and enjoyingthetellabl/ityand Kiowah Islands as they develop. On November 30,1989 the PSC approved an increase in comlbrtofnaturalgas. In
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invested more than $47 million to expand and upgrade its natural gac delivery system. That investment continued to provide benefits during 1989. SCE&G's gas delivery system passed a stem test in late December when 5
unusually cold weather settled over the South. While some gas utilities experienced fuel shortages and advised customers to reduce usage, SCE&G was able to meet the record customer g
demand by supplementing its normal natural gas supplies with h.
propane-air reserves.
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' formsafetyeducationis natural gas on its 1,671 -mile intrastate gas pipeline system during 1989. Total throughput anotherserviceprovided
- was 83.1 million MCF in 1989, an increase of 4.3% over 1988. Total sales during 1989 increased 6.4%, with sales to industrial customers up 19.2%. Total purchases, including customersinruralateos.
@metodinclude gas purchased for resale, were up 6.7% from 1988 to 73.4 million MCF. Spot market thehozordsassociated purchases totalled 52.0 million MCF in 1989. SCPC utilizes over 25 different suppliers to withtractortumovers, meet its gas needs. As recently as six years ago, SCPC purchased 100% of its supply from contact with electriclines. only two suppliers. Deregulation of the supply side of the natural gas industry has creat slloandgrainb/nstotope competitive market for supplies, and natural gas utilities across the country are adapting to andpolsonous chemicals. the new environment. Spot market purchases helped make fully compete with altemative fuel suppliers for industrial customers in 1989. The value of SCPC's diversity of suppliers and its liquefied natural gas and propane-air reserves became evident in December 1989 when single-digit temperatures drove demand to record highs across the state. SCPC met all firm customer needs during this period, and in some cases deliveries exceeded contract requirements. To meet future load growth, construction began in October on a 13-mile distribution pipeline from the city of Hartsville to the city of l
Darlington. The line, built parallel to an existing line, allows SCPC to accommodate growth in the coastal areas around Myrtle Beach.
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Non-UlilityOperations ontrerigtit SCANA Corporation SCANA continues to develop compatible businesses within
."Intergenerationalday the SCANA family utilizing the skills and abilities of its personnel. SCANA's largest investment mie"Istheconcept outside its utility operations is in Telecom* USA. Through MPX Systems, Inc. SCANA owns behindGene-GopInc., on approximately 11.7% of the common stock of Telecom* USA, the nation's fourth-largest l Aiken-basedcorporation telecommunications carrier with 1989 revenues of $712.9 million and net income of $36.9 thalprovidesdaycore servicesforchildrenupto million. Telecom* USA experienced significant growth in the last few years and continues to theage of12andfor perform well despite recent decreases in the value of its common stock. Monogement adultsaged50andover.
believes Telecom* USA represents a favorable long-term investment for the company in the SCANA Capito/ Resources, rapidly growing telecommunications industry. During 1989 SCANA Software Inc., SCANA Corporation's curtailed operations due to poor performance. However, this had no significant impact on venturecapitalsubsidiary, isaone-thirdownerof SCANA's financial condition. Primesouth, Inc., a construction and energy services subsidi-Gene-Gop.
ary, finished 1989 w;th total revenues of approximately $47 million. During 1989 Prime,
south was awarded service contracts to operate power plant projects for their owners in AtRichlandMemorial Virginia, Pennsylvania and Michigan. The non-utility operations did not have a significant Hosp / talin Columbia, impact on SCANA's income in 1989 and are not expected to in 1990.
Pflinesouthis thegeneral
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.l'c Earnings andOlvidends Market Price andBook '
Sources of Cash Requirements:
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.Valueper Common Share For Construction O
' aminEamings: _ _
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- age of 167% of SCANNs construction cash j., t s
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. holders' investment is a key corporate goal.
supports its growth strategy.
consistently exceed the national average for annual kilowatt hour usage.
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continued to help SCPC remain competitive in 1989.
J. K. Addy i 2 J. B. Edwards, DMD i 6 B. A. Hagood 3 4 F. C. McMaster u Presdent Presdent President President Mdy Dodge. Inc Medcol Universityof Wm M Bird and Co. Inc Winnsboro Petroleum Company Laington. SouthCorohna South Corohno Charleston. South Carohno Winnsboro. South Carchna W. B. Bookhart, Jr. 3 5 Charleston, South Carolino J. F. Hassell, Jr. 2 3 T. C. Nichols, Jr.
Portner L M. Gressette, Jr.
Rehred Chairman and President W B BookhartForms Chairmanof theBoard, Chief Executive Officar South Corohno Eleche Elloree. South Carohna President and Pro-StressConcrete
& GasCompany H. M. Chapman 2 4 Chiet Executive Offeer Company. Inc Columbia. South Carokna Presdent SCANA Corporation Charleston. SouthCorohna E. W. Pike, Jr. i 4 TheCrhzens & Southem Columbia. South Carolina W. H. Hipp 2 4 Prescent Corporation J. B. Guess, lll 2 3 Presdent and Colonial Development Company Aflonta. Georgia Owner Chief Executive Officer Beaufort. South Carohno Edisto Forms The Uberty Corporation Denmark. SouthCorohna Greenville. South Corohna
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Principal SCANA Corporation Subsidiaries L M. Gressette,Jr.
SouttiCOID//noElect#c J. H. Young, Jr.
B. T. Horton, Jr.
Chairmanof theBoard.
& GOS Company Senior Vce President Vice Presidentand Treasurer Presidentand Customer Relations JohnnyKinloch Chief Executive officer T. C. Nichols, Jr.
O.S.Bmdham Vice Prescent Cathy B. Novinger President and Vice Presdent Transit and Fleet Maintenance S3niorVce President Chief Operating Officer Nuclear Operations C. B. McFadden Mministrationand O. W. Dixon, Jr.
G. J. Bullwinkel, Jr.
Vice Presdent l
Govemmental Affairs Executive Vce Presdent Vce President Human Resources and W. B.Ilmmerman Open)tions Customer Relations -Southem Corporcte Communications S3niorVice President D. A.Nauman Division S. C. McMeekin, Jr.
I and Controller Senior Vice President W. A. Darby Vice Presdent i
Chief Financial 0fficer Power Production Vice President Customer Relations-Northem l
R. L Cohen R. W. Stedman Gas Operations Division Vice President Senior Vice Presdent R.D. Hazel D. C. McNamara Corporate Development Mministration Vice Prescent Nice President B. T. Horton, Jr.
Administration Southern Division Electnc Marketing / Soles Treasurer Barbara D. Blair Sscretary E. C. Roberts Assistant Secretary 22
i Directors Emeriti Henry Ponder, Ph.D. 2 3 E. C. Wolf, Jr. '
- i Memter of Executive Commmee W. R Bruce Pres: dent President 2 Mem> of Audit Commmee K. W. French Fisk University Canolindustnes. Irc 3 Memter of Corporate performance and F M. Hipp Nashville, Tennessee Conway. South Carolina Strategic Pionning Commmee J H lumpkin J. B. Rnodes 4 6 John A. Worren e a Memter of investment Compensation A C Mustard Chief Executive Ottcor Chairman of the Board Ementus and Management Development A M Wilm Commmee Rhodes Oil Company, lac-SCANACorporation Walkrboro. South Carolina Columbia. South Carohno Womw mroarsight 6 hr t the Executive Commmee Board Ementus SCANACorporation Columbia. SouthCarchna Directors'picturesbelowshown inalphabeticalorderlefttotight x9 _
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l K. B. Motsh South Carolino Pipeline P11mesouth,Inc.
MPXSystems,Inc.
Vioa President and Controller Corporation l
W. E. Moore, Jr.
J. M. Woods, til L M. Gressette, Jr.
Vice President Max Earwood President and Treasurer President Fossiland Hydro 0peranons President and Treasurer J. C. Chapman W. B. Timmerman E. C. Roberts R. M. Kightlinger SeniorVce President Senior Vice President Vice President and General Vee President Controker and J. H. Young, Jr.
Counsel and Assistant Supply and Engineenng Assistant Secretary SeniorVice President Smerary B. J. MacInnis Patricio T. Smith Vice President South CarolinoRealEsfate vee president operanons DevelopmentColppany,Inc.
Rates. Purchasing and George Fasano, Jr.
Regulatory Affairs Controller A. H. Gibbes J. G. Block, ll Presidentand Treasurer Assistant Treasurer Judith H. Battle Controller 23
m,;
V FINANCIAL RE VIE W 4-4 l.
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24.
RepodofIndependent ManagementRepod CertifiedPublicAccountants The Monogement of to be derived. The system of SCANA CORPORATION:
SCANA Corporahon (the Com.
It'temal occounting controls is We have audited the '
test basis, evidence support-pany)is responsible for the.
supported by written policies Consolidated Bolance Sheets ing the amounts and disclo-preparation and integrityof the and guidehnes and is comple-and Consolidated Statements sures in the financial state-financialdata included in the mented by the selection, train-of Capitalization of SCANA ments. An audit also includes accompanying Consolidated ing and development of Corporation and subsidiaries assessing the accounting FinancialStatements. These professional financial man-statements have been pre-agers and by a staff of intemal
(" Company") as of December principles used and significant pared in conformity with gen-auditors who conduct com-31,1989 and 1988 and the estimates made by manage-related Consolidated State ment, as well as evaluating
. erally accepted accounting prehensive intemal audits.
ments of Income and Reta:ined the overallfinancial statement
. principles, as applicable. In The Board of Directors situations that prevent exoct provides oversight for the Eamings and of Cash Flows presentation. We believe that accounting measurements, preparationof thefnoncial for each of the three years in our audits provide a reasono-management has used in-statements throughits Audit the period ended December ble basis for our opinion.
formed udgments and esti-Committee, which is com-31,1989. These financial In our opinion, such males. ?lnancialinformation posed entirely of nonemployee statements are the responsi-financial statements present presented elsewhere in this directors. The Audit Committee bility of the Company's man-fairly, in all material respects, Annual Reportis consistent meets periodically with man-agement. Our responsibility is the financial position of the with these financial agement and intemal auditors to express an opinion on Company at December 31, statements.
to review their activities cnd these financial statements 1989 and 1988, and the re-The Company main-responsibilities. The Audit based on our audits.
sults ofits operations and its lains and relies upon a sys-Committee also meets periodi-We conducted our au-cash flows for each of the tem of intemalaccountmg cally with the Company's in-dits in accordance with gener-three years in the period controls designed to provide dependent auditors, Deloitte &
ally accepted auditing stand-ended December 31,1989, in reasonable assurance that all Toucta The intemal and inde-ords. Those standards require conformity with generally ac-transactions are properly re-pendent auditors have free ac-that we plan and perform the copted accounting principles.
corded in the books and rec-cess to the Audit Committee to audits to obtain reasonable ords and that assets are pro-discuss intemal accounting assurance about whether the tected againstloss or controls, auditing and finan-f nancial statements are free of unauthorized use. The degree cial reporting matters.
ofintemalaccounting control material misstatem9nt. An au-Columbia, South Carolina dit includes examining, on a February 6,1990 is based upon the determina-g tion of the optimum balance between the costincurred in W. B. Timmerman maintaining a system of inter-
. Senior Vice President nalcontrols and the benefits Chief FinancialOfficer 25
1 ConsolidatedBalanceSheels 1
December 31, 1989' 1988
-ASSETS (Thousands ofDollars) y' utility Plant (Notes 1,3 and 4):
Electric
$ 2,794,405-S 2,679,699
)
Gas 333,640 -
314,731-Transit 4,034-4,013
- Common 49,074 45,622 Total 3,181,153
-3,044,065-Less accumulated depreciation and amortization 956,137 873,060 Total '
2,225,016, 2,171,005' Construction workin progress 129,287 120,187-1 Nuclear fuel, net of accumulated amortization -
57,821-
-60,290.
1 Acquisition adjustment-gas, net of accumulated amortization 32,154
~ 33,151
.-1 Utility Plant, Net 2,444,278 2,384,633-Other Property and Investments:
Non-utility property (substantially at cost) 67,542 51,139
' investments (Note 1) 68,673 60,509-
. Total Other Property and Investments 136,215
'111,648
-i
'1 Current Assets-
- Cash and temporary cash investments 10,465 5,278 Ll Receivables 133,190 123,898 -
-1 Inventories (at average cost):~
48,200 55,224 ~
'l Fuel (Notes 3 and 4)-
Materials and supplies 43,838 29,009
- Prepayments 18,661 16,023 TotalCurrent Assets 254,354'
-229,432
^
Deterred Debits:
6,901 6,693-
. Unamortized debt expense 22,038 19,892 Accumulated deferred income taxes (Notes 1 and 7)
Unamortized deferred retum on plant investment (Notes 1 and 2) 31,844 36,089-1 Nuclear plant decommissioning fund (Note 1) 12,016 9,529
-l Other (Note 1) 76,861 89,363 Total Deferred Debits 149,660 161,566 Total S 2,984,507
$ 2,887,279 26 -
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December 31, 1989 1988
- CAPITAll2ATl0N AND LIABILITIES '
(Thousands of Dollars)
Stockholders' investment:
Common Equity-S 918,235-
$ / 895,727 Preferred Stock (Not Subject to Purchase or Sinking Funds) 26,027 26,029
-Total Stockholders' investment 944,262 921,756 1
Preferred Stock (Subject to Purchase or Sinking Funds) 68,038 77,24'4 3
- Long Term Debt, Nel 1,003,972 885,679'
' Total Capitalization.
2,016,272 1,884,679
' Current Llobilities:
Short-term borrowings (Note 8) 37,587 98,051
. Current portion of long-term debt (Note 3) 33,687 65,543
- Accounts payable 104,002
'100,033 f Customer deposits.
13,412 16,710-
' Taxes accrued -
40,377
. 35,976:
- Interest accrued 25,493 17,938 Dividends declared -
26,544 26,188' Other.
11,273
-9,056'
- 3 Total Current Uabilities 292,375 370,295-Deferred Credits:
- Accumulated deterred income taxes (Notes 1 and 7)
-489,144 451,597-Accumulated deferred investment tax credits (Notes 1 and 7) 109,351 113,633 1
' Accumulated reserve for nuclear plant decommissioning (Note 1) 12,016' 9,529:
Other' 65,349 57,546 Total Deferred Credits 675,860 632,305 Commitments and Contin 9encies (Note 9)
Total S 2,984,507 S 2,887,279
.)
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See Notes to Consolidated Financlol Statements.
27 e
)
1 l Consolidated Statements ofIncome & Retained Eamings For the Years Ended December 31, 1989 1988 1987 (Thousands ofDollars exceptpershare amounts)
' Operating Revenues (Notes 1 ond 2):
S 806,826 Electric:
$ 822,112 S 787,956 Gas:
297,069 291,308 305,934-
-Transit 4,102 4,060' 3,212 Total Operating Revenues-1,123,283 1,083,324' 1,115,972' Operating Expenses:
= Fuel used in electric generation 224,035 224,278
.227,877.
- Purchased and interchange power, net (2,024)
-(6,412).
(12,486)--
Gas purchased for resale 212,112 209,344 222,319 Other operation (Note 1) 180,126 174,758 1169,356 Maintenance (Note 1) 69,338--
54,050 57,995 Depreciation and amortization (Note 1) 102,296.
97,389 92,583 Income taxes (Notes 1 and 7) 65,535 69,030-95,051 Other taxes 58,681 56,217 58,892-Total Operating Expenses -
910.099 878,654
-911,587
~ Operating income -
213,184 204,670
-204,385'
_Other income (Note 1):
. Allowance for equity funds used during construction 2,194 1,821 2,063-
. Deferred retum on plant investment (Notes 1 and 2) 6,06 1
- Other income (loss), net of income taxes 4,931 2,326 (1,731).
' Total Other income' 7,125 4,147 6,395-
" income Before Interest Charges and Preferred Stock Dividends 220,309 208,817 210,780-ll Interest Chorges (Credits):
Interest on long-term debt, net 86,178 75,075 68,119
~0therinterestexpense - '
8,244 9,352 5,155
' Allowance for borrowed funds used l.
during construction (Note 1)
(4,001)
(4,370)
(1,796) -
TotalInterest Charges, Net 90.421 80,057 71,478 Preferred Stock Cosh Dividends of Subsidiary (At stated rates) 7,263 8,014 10',437 Net income-122,625 120,746 128,865 Retained Eemings of Beginning of Year 321,155 297,120 262,671 H
Common Stock Cash Dividends Declared (Note 5) -
(99,128)'
(96,711)
(93,487)
.0ther Capital Stock Transactions, Net (929)-
Retained Ecmings at End of Year S 344,652 S 321,155 S 297,120 l
- Net income
$ 122,625 S 120,746 $ ~128,865 Common Shores Outstonding (Thousands) 40,296 40,296 40,296:
l Eomings Per Shore of Common Stock
$ 3.04 S 3.00
$ 3.20 p'
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28 See Notes to Consolidated Financial Statements.
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o Consolidated Statements ofCash Flows '
,For the Years Ended December 31, 1989-1988 1987 (Thousands of Dollars)'
i coq Flows From Operating Activities:
Net income
$ 122,625 - S 120,746-S 128,865 Adjustments to reconcile net income to cash flows:
= Depreciation and amortization -
102,296-97,389 92,583 l
Amortization of nuclearfuel 19,584-14,732-17,196
- Deferred income taxes, net
-34,759 32,246 =
20,627 Deferred investment tax credits, net (4,282)
(3,544)
(2,589) -
Allowance for funds used during construction (6,195)
(6,191)
' (3,859) -
Deferred retum on plantinvestment
-(6,063)
Application of deferred credits to storm damage costs (Note 2)
(13,783)
Nuclear refueling occrual 8,863 (4,002)
(559)
Equity (comings) losses in investees (Note 1)
(357)
(1,140) 968 Changes in certain current cssets and liabilities:
-1 Receivables (9,292)
(18,857) 2,037 inventories (7,805) 1,333 (12,365)L Accounts payable-3,969 17,244-721:
Customer deposits (3,298) 1,450
_ 1,843 Taxes ocerued 4,401 (424)
(9,436) -
- Interest accrued 7,555 1,254 '
4,537 Other, net 26.092 (1,599) 6,143-Net Cash Provided From Operations 285,132 250,637 240,649'
~ Cash Flows From investing Activities:
Propertyadditions (181,545) -(182,890)
(173,318)'
Other property and investments (24,210)
(40,643)
(21,289)
. Principal noncash item:
Allowance for funds used during construction 6,195 6,191 3,859 Net Cash Us3d For Investing Activities (199,560)
(217,342)
'(190,748)-
1 Cosh Flows From Financing ActMiles:
.lssuance of first mortgage bonds 100,000 Bank notes sold 153,000 40,000 Note sold 34,000
- Pollution control bonds sold 4,365 increase (decrease) in short-term borrowings, net (61,264) 77,286 (59,011).
Increase (decrease) in fuel financings, net (6,158)
(778)
_ 13,938 Reduction of long-term debt (92,231)
. (19,794)
(13,001)
' Retirement of preferred stock
- (9,208)
(7,388)
(32,910)
- Payment of dividends on common stock -
(98,524)
(96,144)-
(93,831) <
-Net Cash Used For Financing Activities (80,385) _
(46,818)-
(40,450)
Net increase (Decrease) In Cash and Temporary Cash investments 5,187 (13,523)-
9,451 Cash and Temporary Cash investments, January 1 =
5,278 18,801 9,350 Cash and Tempomry Cash investments, December 31
$ 10,465 S
5,278 S 18,801
' Supplemental Cash information:
Cash paid for-interest
$ 86,155 S 83,173
$ 68,737
~
-Preferred stock dividends 7,441 8,163 11,524
-Income taxes 22,836 47,218 90,510 Noncash Financing Activities:
Direct billing obligations under supplier
~ take-or-pay arrangements (Note 2)
S 50,036 lSes Notes to Consolidated Financial Statements.
29
j-y Consolidated Statements ofCapitalization December 31, 1989 1988 Common Equity (Note 5):
(Thousands o(Dollots).
- Common stock, no por value, authorized 75,000,000 shores lesued
' and oulslanding,1989 and 1988 40,296,147 shores
$573,583
$574,572
- Retoined somings 344,652-321,155 I
Tolol Common Equity -
918,235 46 %
895,727 48 %
South Carolino Electric & Gos Company:
Cumulative Preferred Stock (Not Subject to Purchase or Sinking Funds)(Note 5):
$100 Por Value - Authorized 200,000 shares
$50 Por Value - Auttiortzed 125,209 shores Shores Outstanding Redemption Price Eventual Series 1989 1988 Cunent Through
- Minimum
$100 Por 8.40% '
197.668 197,668 104.70 11-30-91 101.00.
19,767
-19,767
$50 Pqr 5.00 %
125,209 125,234 52.50 52.50 6,260 6,262 i
. Total Pretened Stock (Not Subject to Purchase or Sinidng Funds) 26,027 1%
26,029 1 %'
F
- South Carollno Electric & Gas Company:
Cumulative Pretened Stock (Subject to Purchase or Sinking Funds)(Note 6):
- $100 Por Value - Authorized 1,550,000 shores.
Shores Outstanoing Redemption Price
]
Eventual Series 1989 1988 Cunent Through Minimum I
7.70 %
103,683 105,000 101.00 101.00 10,368 10,500 8.12 %
145,221 149,596 102.03 102.03 14,522 14,960 i
248,904 254,596 l
$50 Por Value - Authorized 1,690,686 shores Shores Outstanding Redemption Price Eventual l
Series 1989 1988 Current Through Minimum j
4.50%.
27,200 28,800 51.00 51.00 1,360 1,440-4.60 %
9,834 11,334 50.50 50.50 492 567 4.60%(A) 38,052 40,052 51.00 51.00 1,903 2,002.
j 4.60%(B) 95,200 98,600 50.50 50.50 4,760 4,930 5.125 %
78,000
.79,000 51.00 51.00 3,900 3,950 6.00 %
102.400 105.600 50.50 50.50 5,120 5,280 8.00 %
140,000 50.00 50.00 7,000 '
8.72% '
288,000 302,300 52.00 12-31 93 50.00 14,400 15,115 l,
9.40%
224,269 230,001 51.175 51.175 11,213 11,500.
862,955 1,035,687,
$25 Por Value - Authorized 2,000,000 shores; None outstanding in 1989 and 1988 i
Total Prefened Stock (Subject to Purchase or Sinking Nads) 68.038 3%
77,244 4%
.30'
r p
j l
December 31,
~1989 1988
.Lon9-Term Debt (Noles 3 and 4)i (Thousands of Dollars)
South Corolino Electric & Gos Company:
. First and Refund 6ng Mortgage Bonds:
Year of l-
, Series Maturity t
10 1/2%
1990 6,600 7,200 5%
1990-10,000 10,000 5%
1991 8,000 8,000 47/8%
1995 16,000 16,000 l
5.45 %
1996 15,000 15,000 6%
1997 15,000 15,000 6-1/2% -
1998
, 20,000 20.000 8%
1999 35,000 35,000
--)
91/8%
1999 15,000 15,000 8%
2001 35,000 35,000 71/4%
2002 30,000 30,000 91/8%
2006 50,000 50,000 8.40%.
2006 50,000 50,000 t.
8-3/8%
2007 30,000' 30,000 i-l' 8.90% -
2008 30,000 30,000 10-1/8 %
2009 35,000 35,000 9-7/8%
2009 50,000 50,000 12.15 %
2010 35,890 35,890 8 3/4% -
2017 100.000 100,000 1 -?
Pollution Control Facillfles Revenue Bonds:
Li 5.95% Series, due 2003 7,105 7,180 L-Fairfleid County Series 1984, due 2014 (vorloble rate - 6.30% through 8/31/90) 57,000 57,000
- Richland County, due 2014 (vorloble role - 6.30% through 8/31/90) 5.210 5,210 Fairfield County Sertos 1986, due 2014 (vorloble role - 6.30% through 8/31/90) 1,100 1,100 Colleton and Dorchester Counties Series 1987, due 2014 j
(variable rote - 6.375% through 8/31/90) 4,365 4,365 l
Capitalized Leoes Obligations, due 1991 1997 (various ro4s between 5-3/4% and 10%)
7,909 10,176
- Term Loon, due 1991 (vortable rate - 8.8675% of 12/31/89) 75,000 i..
South Carolino Generating Company, Inc.:
Berkeley County Pollution Control Focilities Revenue Bonds, due 2014 (vorioble rate - 6.25% through 9/30/90) -
35,850 35,850 Bank Note, due 1991 (vortable role - 9.00% of 12/31/89) 69,500 72,500 South Carolino Fuel Company,Inc.:
E Nuclear fuelliability 60,522 59,210 Fossilfuelliobility 16.554 24,024 L
- South Corolino Pipeline Corporation:
Direct billing obligations under supplier toke-or poy arrangements, due 1989 1993
' (various rates between 8.61 % and 8.65%)
48,503 Note,9.27%, due 19901994 34,000 South Carolino Real Estate Development Company, Inc.:
Notes, due 19891991 (at various rotes) 487 520 Bank Loon, due 1992 (vorlobic role - 10.50% of 12/31/89) 3,159
' Bank Loon, due 1992 (vorloble rate - 10.50% of 12/31/89) 4,841 SCANA Corporollon:
Bank Note,8.32%, due 1989 40,000 Bank Note,9.825% due 1991 70,000 Total 1,039,092 952,728 Less - Long-term debt moturttles, including sinking fund requirements 33,687 65,543 Unomortized discount 1,433 1,506 Total Long Term Debt, Net -
1,003,972 50 %
885,679 47 %
' Total Capitalization
$2,016,272 100 %
$1,884,679 100%
See Notes to Consolidated Financial Statements.
31
I Notes to Consolidated Financial Statements
- 1. SUtnm0ly Of $ifnifiC0nl ACC0unting PollCies:
D. Ahowance for Funds used Dunng Construcson A. Orgontzotion and Prtreiples of Consoli6oton Allowance for funds used dunng construction (AFC), o norcosh item.
W W W d @ kW b m uns ensWon M SCANA Corporoton (the Company) o South Corokno corporation, is omWng Wee msuus e miuson. os o component d conh o pubic utihty holding company within the treoning of the Pubic Uhlity H Ideng Company Act of 1935. but is exempt from registraton under such p
n St n
n rom inenenW deprecoW as a componenW plant Tre occompanying Consolidated Financol Statements retnoci tre i in M hing %st iy
. e ompon(s$0W consohdoton of the occounts o' the Company ond its wholly-owned subsidiones calculated AFC using composite rates (computed on on otter-su W ones tax bosts) of 8 8% 7.8% ond 8 4% for 1989.1988 ond 1987.
Regulaled utilihes respectively These roles do not exceed the maximum okowable rate os UhNoIiNrNng$mponNnc$E c icui ted under FERC Order No. 561. Interest on nuclear fuel in process 0) ts capitalized at the octual interest omount South Corohno fuel Company, Inc South Corohno Pipehne Corporation (Pipehne Corporation) whch E. Detoned Retum on Plant investment wtolly owns Carolino Explotohon Corporohon Commencing July 1,1987, os approved by o PSC order on trot Non-mgulated businesses date, SCEE ceased the deterrol of carrying costs ossociated with 400 Curotone, Inc MW of electnc generating copocity previously removed trom rote base and MPX Systems. Inc began omothzing the occumulated detened carrying costs on a straight-Dnmesouth, Inc.
hne basis over o ten-year penod (see Note 2H) Amurtization of deterred SCANA CopPol Resources, Inc carrying costs, included in " Depreciation and omortizahon", was opprox6-SCANA Software Services, Inc motely $4 2 million for 1989 ond 1988 ond $21 milhon for 1987.
South Corohno Real Estate Development Ocmoony. Inc F. Deprectohon and Amortizahon JCANA Hydrocarbons. Inc Provisions for deprecionon are recorded using the straight-kne inves monts in joint ventures in real estate and on interstate telecom.
method for financial reporting purposes and are based on the estimated municohor i comer are reported using the equity method of accounting service hves of the vanous classes of property (see Note 28). The Significont niercompany bolorces and fronsochons have been ehminated compost % weighted-overage depreciation rotes wore os follows in consoli ahon B. Sysitin of Accounts iggg igge iggy Tr e occounting records of tre Company's regulated subsidiones are sci &G 3 32 %
3 29% 3 34 %
GENCO 265%
2.65%
2 67 %
maint aned in accordance with the Uniform System of Accounts presenbed Pipehne Corporation 2 64 %
2.65%
2.43%
by tru Federal Energy Reguiotory Commission (FERC) and os odopted by Wogam ch 3.25%
3 23%
3.26 %
The P abhc Servce Commission of South Corohno (PSC)
C. I tility Plant Nuclear fuel amortization, whch is included in " Fuel used in elecinc Uhlity plant is stated substonhally at onginal cost The costs of generation" and is recovered through the fuel cost component of SCE&G's ot'Jihons, renewols and butterments to utility plant, including direct labor, roles, is recorded using the units-of-production method Provisions for i olenol and indirect chorges for engineenng, supervision, and on omortization at nuclear fuel include amounts necessary to sofisty obhgo-cawonce for funds used dunng construction, ore odded to utikty plant tions to the United States Department of Energy under o contract for accounts The onginal cost of utility property retired or otherwise disposed disposal of spent nuclear fuel of ts removed from utihty plant occounts and generally charged, along The acquisition adjustment relohng to the purchase of cedoin gas with the cost of removal, less solvoge, to occumulated depreciohon. The proportos in 1982 is be!ng omothzed over o forty-year penod using the ccets of repairs. replacements and renewals of items of property outer.
stroight kne method mined to be less than o unit o' property are charged to maintenance g
expense SCEE. operator of the V C Suminer Nuclear Stohon (Summer On January 3.1990 the Nuclear Regulatory Commission (NRC)
Stahon), and the South Corohno Pubhc Service Authority (PSA), o pubkc opproved SCE&G's request for on extension of its operahng hcense for corporohon of the State of South Corohno, are Jol11 owners of Summer Summer Station Decommissioning of Summer Station is presently pro-Stahon in the proportions of two-thirds and one third. respectively The Jected to commence In the ynr 2022 The expenditures (on o before-tax partes shore the operohng costs and energy c tput of the plant in these basis) related to SCE&G's shore of decammissioning activities are proportions The total cost of the construction of Summer Station upon currently estimated to be approximately $337 milkon (in 2022 dollars, complehon in 1983 was opproximately $13 bilhon, or about $1,461 per ossuming a 5% onnual rate of inflation). SCE&G W providing for kilowatt. of which SCE&G s shore was omroximately $877 milkon estimated decommissioning costs of its shore of Summer Station over the Accumulated depreciation associated wto 'CurG s shore of Summer life of Summer Stahon and hos estobbshed a reserve for this purpose.
Station was approximately $198 5 milhon and $164 5 million as of SCE&G is presently funding the reserve with amounts collected through December 31,1989 and 1988. respectively SCE&G's shore of the direct electne rates (opproximctely $1.1 milhon annually for 1989 and 1988 expmses associated with operating Summer Station is included in the and $0 8 milhon for 1987, not of taxes), and intends for the fund.
Company's "Other operatiotr and "Molntenance" expenses including comings, to provide for oli eventual decommissioning expendi-tures on on after-tox basis 32
(
The NRC hos pubhshed final regulohons on decommissioning of Tre following table sets todh the funded status of the plan, os nuclear facilities. These regulohons oddress decommissioning planning determined by on independent octuary, of December 31,1989 and 1988.
reeds, timing, funding methods, and environmental review requirements and require hcensed electne utillhes to submit a decommissioning pion bV var (now Decomter 31, 1989 1988 July 1990 certifying f nancial assurance for decommissioning costs-i gnouses ers)
SCMG plans to estabhsh in 1990 o trust fund maintaine3 by on Actuonal Present value of Beneht Obigations:
Independent trustee that comphes with the hnancial ossurance require-vesiw tenefit obigoten
$169.472
$150.069 ments of the NRC rule.
Non veste tenefit obhgotion 3.777 9.392 H. Income Taxes
- Accumumnewgown U3,249 M40 The Company and its subsidiones file consokdoted Federot and State aM*oNrYue" "
2 Income tax retums. Income taxes are allocated to all substatories based on their contributions to consohdoted taxable income.
Pkin ossets hrooter than (less thon) propcied netti obhoahon 12.516 (8.560)
Because tax lows and financlot occounting standards differ in their Unrecognized tot trans# Eon liability 17.542 19.722 recognition and measurement of economic events, differences anse Unrecognized pnot service costs 10A46 3.496 between (1) the amount of toxoble income and reported prefox financial Unrecognize tot gmn (44Ae6) 0 6.731) income for a year and (2) the tax bases of ossets or habilities and their Pe w o onsoli nc r is
$ (3.982)
$ (2.073) reported omounts in the financial statements. Accordingly, the Company provides deferred income taxes for substantially all timing differences, princinc!!y accelerated tax depreciation, except for certain basis differ.
The occumulated benefit obhgchon is based on the pion's berefit onces onsing prior to 19B2. Deterred income tax provisions are included formulas without considenng expected future solary increases. The follow-in income cunently with corresponding credits or charges to occumulated ing table sets forth the assumptions used in the amounts shown above.
defened income taxes.
1989 1988 1987 investment tax credits were generally deferred and are being amof-Annual oscount rote used to fized over the depreciable hves of the respective ossets.
neiermire tenefit obh0anons 8.0%
80%
80%
in December 1987 the financial Accounting Standards Board Exi*cte long-ten row of retum (FASB) issued Statemer6 No. 96, " Accounting for income Taxes " This Discoun So$e used in determining Statement requires the use of the "habikty method" whereby a deterred tax pension cost 80%
80%
7.5%
hability or osset would be recognized for deferred tax consequences of all Assumed annual rate of future solary temporary differences. The Statement (1) requires that a defened tax increases for propeted terwtit habikty or osset be adjusted for the effect of a change in tax low or roles, whgotion 65%
$5%
55%
(2) prohibits net-of tax occounhng and reporting, and (3) requires The unrecognized not transition hability represents the effect of recognition of a defened tax liability for tax benefits thol are flowed odopting Statement of Financial Accounting Standards No. 87. Such through to customers when temporary differences originate and for the obhgohon (opproximately $23 9 milhor 01 January 1,1987) represents equity component of AFC. Tre Company does not ontcipate that opphco-tre difference between the falt value of the plan ossets and tre projected tion of this Statement will have o significant impact on results of benefit obhgotion. This liobility is not recognized in the Company's operations. The balonce sheet will require certain reclassthcofions to consolidoted tinonciot statements, but is being omothzed os o component comply with the provisions of this Statement. The requirements of tre of pension cost on a straight line basis over the overoge remaining Stolement must be adopted by the Company no later than January 1, service penod (19 6 years os of January 1,1987) of employees expected 1992.
to receive benefits under the plan, except for opproximately $7.5 milkon I. Pension Expense of prior sake costs miated to on early retenant pogrom teing amortized over the six year overage remaining service life of employees in The Company hos a noncontnbutory defined benefit plan covenng the program.
substonholty all employees. Benefits are based on years of occredited in 1989 the Company completed on early rehroment incentive service and the employee's overage annual base 60mings received dunng program. which increased pension habihty by $6 4 milhon. Or this the lost three years of employment. The Company's policy has been to fund pension costs occrued to the extent permitted by the opphcoble omount, S1.1 milkon was expensed in 1989 and tre remaining balonce is bein0 omortized over eight years, the overage remaining service hfe of Federal income tax regulohons os devimined oy on independent octuarY.
the employees porheipohng in ttw progrom.
Net periodic pension cost, as determined by on Ind pendent actuary, tor the years ended Dece.nber 31,1939,1988 and 1987 included the in addition fo pension berefits the Company provides certain hootth care, supplemental retirement and hfe insurance benefits to octive and following coniponents:
retired employees Such benefits are generol!y chcig9d to expense wten claims and premiums are poid. The annual costs of providing such Year inood Decomter 31, 1989 1988 1987 benefits to retired employees are not significont.
(Thousands orDONots)
Service cost benents somed dunng the penod
$ 5.233
$ 5.027 $ 6.057 Interest cost on projected benent obi'0 anon 16,347 14,920 14.204 Adjustments-Refum on plon ossets (41.284)
(21,463)
(5.058)
Nst omorttration and delenal 29.851 10.654 (5.560)
Net penodic pension cost 5 10.147
$ 9.138 $ 9.643 33
nm J. Revenue Recognmon
$14 2 million, or on annual increase of 1.9% Consequently, rtere will be no eftect on future not income os o result of the January odjustmorts.
Customers, meters are read and bills are rendered on o monthly Tre Consumer Advocate has appealed the electre role order to tre South cycle basis Base revenue is recorded dunng the occounting penod in Carolino Circuit Court. While the outcome of this ritotter is uncertain, the Company bekeves that any significont chonge in its role order is unkkely.
costIto e generchon ore collected through the fuel C Nhn M 3, $89 ne N oppmwd on $893E, m F
Component in retail electre roles Tre fuel component contained in electric 2 9% onnual increase in SCEWs wholesale electre rate. On January 5, roles b established by the PSC during semionnual fuel cost teonngs. Any 1990 SCE&G tiled with the FERC for opprovol to reduce its wholesale ditterence between octual fuel cost and that contained in the tuet I
ND *'
component is deterred and included when d9termining the fuel cost Y
B o
o 8 component dunng the text semiannuot fuel cost teonng At December 31, D.
On November 28,1989 the PSC granted SCE&G on increase in 1989 and 1988, SCE&G had under collected opproximately $9 0 milkon hnn rWon noNml gas m4s that mesignWnce onnebes and $2.6 million, respectivelt through tre electnc fu.e. l clause compo-by $10.1 million. This represents opproximately 89.5% of SCE&G s nent, which are included in " Deterred Debits Otter.
request for on increase of approximately $11.3 milhort in its order, the Customers subject to the gas cost odjustment clause are billed PSC o@mM o 12M rWum on comnon equ4 De rew mes based on a fixed cost of gas determined by tre PSC dunng semionnual become effective on November 30,1989. On January 8,1990 the PSC gas cost recovery hoonngs Any citterence between octual fue: cost and enied the Consumer Advocate's petition for reconsideration and rehoor-that contained in the fuel component is detorted and included when ing of the gas rote order. The Consumer Advocate hos 30 days to appeal establishing gas costs dunng the next semlannuol gas cost recovery the decision to the South Corohno Circuit Court teoring At December 31,1989 and 1988, SCE&G had under collected E. The Consumer Advocate ini'oted o proceeding at the PSC opproximately $6 3 milhon and $2 9 milkort respectively, through the seeking to reduce Pipehne Corporohon's roles. On August 11,1989 Otter',,st recovery procedure, which are included in " Deterred Debits -
Pipehne Corporohon filed on opphcohon with the PSC seeking o rate gas co increase for sole for resale customars. On February 6,1990 Pipehne K. Debt Premium Discount and Expense Corporohon and the Consumer Advocate executed on ogreement by which each party will withdraw its request to tre PSC for o change in Pipeline Long-term debt premium, discount and expense are being amortized Corporohon's roles. The ogreement requires that Pipeline Corporation os components al " Interest on long-term debt, not" over the terms of the request opproval trom the PSC tot a $300,000 annual reduchon in roles respective debt issues' for sole for resale customers. Pipehne Corporchon ond the Consumer L Statements of Cosh Flows Advocate have agreed to not request o change in the agreed rates through March 31,1993, unless Pipeltne Corporohon's roles for sales of gas to its Company considers temporcry cash investrients hoving maturh nierruptible Industrial customers are set by the PSC using a cost of hes of three months or less to be cash equivalents. Temporary cash psahon's two principal gas supphers have incurred ad ch ogr habilites to gas producers under ' toke or poy" provisions of gas supply M. Reclassificottons contracts The f ERC, pursuant to its Order No. 500, hos opproved settlements oHowing the interstate pipohne supphers to recover porhons of Certain amounts from pnor years have been reclassthed to conform such ' toke-or-poy' habikt es from their customers, including Pipehne with the 1989 presentohon~
Corporohon, through volumetric surcharges in gas rates and through
- 2. Rate Matters:
direct bilhngs Pipekne Corporchon's future gas purchoses over the next four years A The Company sustained signihcont domoge to its electr6c will include volumetric surcharges of opproximately S.0775 per deko-transmission, distnbution and other tocihtes os a result of Hurncone Hugo trerm and S 131 per dekotherm for gas delivenes from Southem Natural on September 21 22,1989. Total costs attnbuted to the replocement and Gas Company and Transcontinental Gas Pipe tire Corporohon, repair of domoged plant were approximately $56 milhon. Of this amouni respectively.
$13 4 milhon will be recovered through insurance and on additional in May 1989 the PSC approved a volumetnc and direct billing
$19.3 milhon associated with capital expr nditures has been included in method for Pipohne Corporation to recover these costs from its customers.
"Uhhti Plant." ior electnc costs not ecpitchzed or covered by insurance At December 31,1989 and 1988, opproximately $27.4 and $50.0
($22 milhon), SCE&O received on of der from the PSC on f ebruary 6, milhon, respectively, of direct billings to Pipeline Corporohon from its 1990 cporoving the o'tset in the 1989 Consohdoted Statement of income suppliers remain to be recovered from Pipehne Corporohon's customers of SI3 8 milhon of storm-related costs, ofter income tax benefits of $8.2 and me included in " Deterred Debits Other." The Consumer Advocate milhon, intough the opphCohon of credits corried on Its books os a result and two ott'.or intervenors have oppealed to the South Carolina Clr0 ult of a 1980 settlement of certain lihgohon. Tne remaining non-electric storm Court the PSC's order regarding the pass through of these costs. It the costs of $1.3 m!Ilion have been included in 1989 operating expenses choHenge were to be successful, it would only oftect the timing of the Tb treatment preschbed by the PSC did not require any role increase for recovery of the costs by Pipehne Corporation. (See Note 3)
SCEWs custwers.
G.
As a result of o Petthon Requeshng Investigation filed by B: On July 3,1989 the PSC granted SCE&G opproximately $21.9 Intervenors during the 1989 electric rate cose (see Note 28), the PSC milhon of o requested $27.2 milkon annual increase in retail electric issued on Order Granhng investigot on on April 12,1989. The Investigo-revenues The PSC order granted on ohowed retum on common equity of tion relates to the propnety of financlot relohonships between SCE&G ond 13 25% On January 3,1990 the NRC extended Summer Stahon s its attihotos. The Company believes that the outcome of this investigohon operahng beense from March 21, 2013 to August 6, 2022 (see Note will have no material eftect on its operchons.
1G). In compliance with the July 3,1989 PSC order, SCE&G subse' H.
In on order dated July 1,1987 the PSC approved SCEEs quently reduced its retall electnc rates by approximately $7.7 million to January 30,1987 request to restore to its rate base, ettective July 1, reflect lower dapreciohon expense resutting from the extension of the 1987, the not produchon investment (approximately $102.5 milkon at plant's hcense. The ettect of such reduchon is to decrease the addihonal July 1,1987) associated with 400 MW of electnc generating capacity onnual revenues ollowed in th9 July 3,1989 order from $219 milhon to 1
l
previously removed by the PSC in its order dated March 2,1984. Tte Approximately $9 4 milkon of the cunent porhon of longlerm debt 1987 order also opproved SCEM's proposal to include in role base the for 1990 may be schsfied by either deposit and cancellahon of bonds ossocloted 0:: cumulated delerred carrying costs (approximately $42 5 issued upon the basis of property oddihons or bond rehrement crodits, or milkon of July 1,1987) and to begin omortaing ttese costs over a ten-by deposit of cash with the Trustee.
year penod commencing July 1,1987. The July 1,1987 order was in January 1989 SCEM ononged for o bank loan due February 1, oppooled by tre Consumer Advocate to ite South Corchna Supreme 1991 in the pnncipal amount of $75 milhon. The lnierest role is Court, which heard the cose b March 1989. On May 30,1989 the South determined Quarterly and is based upon the three-month LIBOR role plus Corohna Supreme Court issued on order remonding the cose to the PSC 18 basis points. The loon is secured by the pledge of a like amount of for toctual hnding on the prudence of the derchng of 69 MW of SCEM's SCEW's First and Refunding Mortgoge Bonds, 20% Series due February 10101 produchon copocity ond the eflect, if any, of the derahngs on 1,1991. The proceeds of the bank loon were used to refund a like deproclohon and carrying cost Issues. Pursuant to the South Carohno omount of commerc6alpaper.
Supreme Court's directive on remond, the PSC issued on order roothrming The Company has in effect a shelf registrahon for the issuance from O decis60n ond stohng its findings and conclusions concoming the 69 time to time of on oggregate $200 milhon in unsecured medium 4erm MW derating Issue The Consurrer Advocate hcs oppealed the order to the debt securttes. The proceeds of any soles of these securltes may be used South Carohna Circuit Court and the oppeal has been consohdoted with to fund oddihonal business octivthes in n;n-utility subsidiones, to reduce the oppeal of the electric rate order described in Note 2B obove. While the short-term debt incuned in connechon therewith or for gereral Corporate outcome of this matter is uncertoln, the Company bekeves that any purposes, in oddihon, SCEM has in ettect o shett registrohon statement significant change in the PSC's order issued on rernand is unkkely.
under which it can issue on oddthonal $100 milhon of First and I.
On January 15,1987 tre PSC ordered SCEM to reduce its retail Refunding Mortgage Bonds which may be used to refund debt or for other electne roles opproxtmately $25 milkon annually, or 3%, due to anticl-corporate purposes.
poted ince'ne tax sovings ossociated with the Tax Reform Act of On November 9,1989 Pipehne Corporchon orronged for o $34 1986 (the Tax Act). Rotes implementing this reduchon were ploced in milhon note due November 15,1994. The interest is payoble quarterly at effect with the first bilkng cycle in February 1987, o rate of 9.27% por annum. Principot installments of $2 milhon ore On December 30,1987 the PSC ordered a reduchon in SCENs poyable quartorty beginning November 15,1990. The proceeds of the retall electric tales, effective January 1,1988, of $27.6 milhon annually, note were used to repay a like amount of indebtedness related to Pipeline or 3.7% This reduchon was pnmonly due to the odditional tax savings Corporchon's take-or-poy habillhes (see Note 2F).
resulhng from the Tax Act and a change in the method of recovery of Substantially all utikty plant and fuel Inventones are pledged as municipal tranchise taxes. The order otso reduced SCEWs role of retum collateral in connechon with long term debt.
on common equity from 14 25% to 13.25%
J.
On December 1,1987 the PSC issued on order grcnting SCE&G 4, fuelF/noncings opproximately $4.3 milhon of a requested $6.7 milhon annual hereose Nuclear and tossil fuel Inventories are financed through the issuance in retall natural gas rates. The new rates were placed into effect Ditomber of short term commercial paper. These short-term borrowings are sup-1,1987, ported by irrevocable bank lines of credit which expire in 1992. Accord-3, L000 TeIrn Debt:
ingly, the nants outstoneng hon been incen longaenn su N bank knes provide for maximum omounts ($75 milhon related to nuclear SCEWs annuot tender Polluhon Control Focillhes Revenue Bonos fuel and $25 million related to fossil fuel) that may be outstanding of ony (which do not include the 5 95% Senes, due 2003) are secured by like hme.
principoi omounts of its First and Refunding Mortgoge Bonds.
At December 31,1989 the amount outstanding for nuclear fuel was GENCO's annual tender Pollution Control Focikhes Revenue Bonds opproximately $60 5 milhon at a weighted overoge interest rate of 8.54%
are secured by on irrevocable letter of credit expiring in 1991, and the amount outstanding for lossil fuel was opproximately $16.6 These annual tender Bonds bear interest at a rate, not to exceed 15%
milhon at a weighted overage interest rote of 8.59% At December 31, per annum, (1) set between 80% and 120% of on index rate based on 1988 the amount outstanding for nuclear fuel was opproximately $59.2 one-year yield evaluahons of comparable tax exempt obkgations, or (2) milhon of a weighted overage interest rate of 9 44% and the amount equal to 65% of one year yield evoluotions of U. S. Troosury Bonds at outstanding for lossil fuel was approximately $24 0 milkon at a weighted por, The Interest rate is adjusted annually but may become fixed until overage interect rate of 9.33%
motunty. These Bonds also provide that the holders may require the Bonds to be purchased at por upon each onnuoi odjustment of the Interest 5, Stockholders'irvestment (/ncluding Preferred Stock Not rose or at the time tne interest rate becomes fixed until rnaturtty. If the Bonds are tendered by the holders, the Company Intends to tr offer the Subject to Purchase or Sinking Funds?'
. Bonds to the pubhc. Due to the irrevocable letter of credit and provisions The changes in " Common stock, without por value, dunng 1989, of the Bond indentures, which permit the Company to purchase the Gonds 1968 and 1987 are summenzed os follews:
In heu of redemption and resell them and to substitute other securify arrongements, the Boiids are Classihed as long term debt.
Number Thousanos The annual amounts of long term debt molurit es, including the of shares or Dollars amounts due under nuclear and tossil fuel ogreements (see Note 4), and Bolonce January 1,1987 40,296,147
$574,242 sinking fund requirements for the years 1990 through 1994 ore summa, amer 258 fl2ed as follows:
Bolonce December 31,1987 40,296,147 574,500 Bo n December 31,1968 40.296,147
$574 g
9!
Bolonte December 31,1989 40.296,147
$573.583 2
1992 103.466 35
M The Company's employ 60 stock beneht plans' trustee and ogen! for
- 7. /DcotDe T0XeS O Dividend Reinvestment and Stock Putchose Plan purchcse previously Total income tax expense for 1989,1988 ond 198? is os follows:
Issued and outstonding shores of the Company's common stock in the open market.
1989 1988 1987 The Restated Articles of incorporation of the Company do not limit the 6288888 WMO4) dividends that may be payable on its common stock However, the Restated Articles of incorporation of SCE&G ond the indentun.s underlying Current income taxes:
certoln of its bond issues contorn provisions that may limit the paymerd of Fedwol
$21,810
$33.630
$66,850 cash dividends on common stock in odditiori, with respect to hydroelec-Soote 2,034 5.297 10.117 tric projects, the Federal Power Act (noy require the oppropnotion of a toioi cunent taxes 23.844 38.927 76,967 portion of the comings theretrorn Ai December 31,1989, opproximately D* r xn, nW:
$5.9 million of retained earnrngs were restncted as 10 payment of cash 28.595 26,829 16,361 cvidends on common stock Stom 6.164 5.417 4.266 Cosh dividends on common stock were declared at on annual rate Teot desenW taxes 34.759 32.246 20,627
. per shore of $2.46, $2.40 and $2.32 tot 1989,1988 and 1987, Invemment tax crWns:
respectively.
DesurW 405 1,675 2.821
- 6. Preferred Stock (Subject to Purchase or Sinking Funds):
Amortizonon or amoura The call premlum of the respective series of pretened stock in no Omm cose exceeds the amount of the annual dividend. Retirements under totalinveement tax credns (4.281)
(3.545)
(2,348) sinking fund requirements are at por values.
imd incuw ex expenu
$54,322
$67,628
$95,246 At any time when dividends have not been paid in tull or declared and set oport for payment on oil senes of preferred stock, SCE&G may not redeem any shores of pretened stock (unless all shores of preferred stock Current income toxes noted above reflects opproximately $8.2 then outstonding are redeemed) or purchase or otherwise ocquire for million of income tax benefits related to storm domoge costs which are value any shores of pretened stock except in accordance with on offer included as o reduction in maintenance expense in the Consohdoted mode to oil holders of preferred stock SCE&G may not redeem any shares Statements of income (see Note 2A).
of preferred stock (unless all shores of pretened stock then outstanding Total income taxes differ from amounts computed by opplying the are redeemed) or purchase or otherwise acquire for value any shores of statutory Federal income tax role ol 34% for 1989 and 1988, and 40%
preferred stock (except out of monies set aside os purchase funds or for 1987 to pre-tox income os tollows:
sinking funds for one or more series of pretened stock) of any time when 11 b m default under the provisions of the purchase fund or sinking fund 1989 1988 1987 for any series of pretened stock G hosedsW M en)
The oggregole annual amounts of purchase fund or sinking fund requirements for pretened stock for the years 1990 through 1994 ore Net income
$122,625 $120,746
$128,865 summarized as follows:
Totalincome tax expenne:
Chorged to operotmg expenses 65.535 69,030 95,051 Year Amount Year Amount Chorge to othw income (3.013)
(1,402) 195 10x benettt of Norm flomoge cools (8.200)
F M us e ds W N es)
Preterred stock dividenas 7,263 8.014 10.437 Total pre tox incorne
$184,210 $196.388
$234,548 1992 2,515 income taxes on obove of potutory Fedwolincome tax rate
$ 62,631 $ 66,772
$ 93,819 The changes in "Pretened Stock (Subject to Purchase or Sinking incroones (decroones) otttbutoble to:
Aliowance for tunds used dunno Funds)" dunng 1989,1988 and 1987 ore summortzed as follows:
construchon(excludmg nuclear fuel)
(746)
(619)
(825)
Number Thousands Deterred retum on plant investment, W Shores W Ddiars not of omortironon 1.444 1,444 (1,575)
Bolonce knuary 1,1987 1,824,858
$117,542 Depreciation dewences (859) 2,028 4,163 Shores Redeemed-Amortt20t6on of investment tax
$100 por value (263,994)
(26.399) credits (4,686)
(5,220)
(5.410)
$50 par votue (1'50.211)
(6,511)
Amortization of Imgohon somement-rebhd ens (4.6BG)
Bo noe December 31,1987 1,430.653 84,632 g, g cone tax ettect) 5.411 7,071 S,630
$100 por value (7,390)
(739)
Deknw incone mx nowbock W
$50 por value (132,980)
(6.649) h6gher rates than statutory (3,353)
(2,387)
(3,543)
Bolonce December 31,1988 1,290,283 77,244 Other dittwences, not (834)
(3,461)
(13) 10toilncome tox expense
$ 54,322 $ 67.628
$ 95,246 1
va e (5,692)
(569)
$50 por value (172,732)
(8.637)
Bolonce December 31,1989 1,111,859
$ 68,038 36
" Total detened taxes' results from hming ditterences in recognihon of SCE&G cunently maintains polces (for itsett and on teholt of tre tro following items PSA) with Nuclear Elecinc insurance Limited (NEIL) and Amencon Nuclear insurers (ANI) providing combined property and decontaminchon
~
1989 IPSB 1987 insurance coveroge of $975 mdkon for any losses in excess at $500 gggg mdhon pursuont to existing pnmary coveroges (with ANI) on Summer Station SCE&G pays annual premiums ond. in oddihon. could be Cforged to expenses assessed o retrooctive premium not to exceed 7 W times its annual Accelerated deprecionon and premium in the event of property domoge loss to any nuclear generating amortuoton
$23 802
$30.384
$31,543 tocikhes covered by NEll Based on the current onnual premium, this Delerred fuel occounting 4.387 3.950 (2 041) retroactive premium would be opproximately $51 milkon Other, ret 6.570 (2.088)
(8 875)
To the extent that insurable claims for property domoge. decontami.
10101 deferred taxes
$34 759
$32.246
$20.627 notion. repott and replacement and other costs and expenses ansing from o nuclear incident of Summer Stahon exceed the pokcy hmits of Insur-At December 31.1989 the cumulative not amount of income tax once or to the extent such insurance becomes unavailable in the future.
tirning ditterences on which deterred taxes have not been provided totaled W to W e&nt M MW s rots M M neom N cost d any opproximately $79 mdhon (See Note 1H) purchased replacement power, SCE&G wdl retain the nsk of loss os a self-The Intemol Revenue Service has examined and closed conschdoted insurer 6 tos no noson to ontcipate o sonous Nels incident at Federal income tax returns of the Company through 1984 Summer Station it such on incident were to occur. It could hovt o matenolly adverse impact on the Company s financial position
- 8. ShothTerm Borrowings:
- 10. Segment of Business Information:
The Company pays fees to banks os compensation for its knes of credit Short-term borrowings are for 270 days or less Details of knes of S89 ment informahon of December 31.1989.1988 and 1987 and credit and short term borrowings at Decemter 31 1989.1988 and t r ne yes then em is os tonows 1987 and for the years then ended are os follows 1989 Electnc Gas Tronstt Total O*'*"O*' N-I989 IOOO N07 _
(Thousongs of Dollors)
Operenng revenues S 822.112 $297.069 $ 4.102 $1 123.283 (Dolors in Marrons)
Operotsng expenses.
excludmg deprecionon Lines of credit of year-end S 90 3
$90 2
$ 90 2 ond omortuonon 538.002 260.974 8.827 807.803 Shon-term borrowmgs (including Deprecionon one commercial paper) dunng the yeo' omortu'chon 90.286 11.655 355 102.296 Maximum outstonding
$113 3
$98 8
$1331 Averoge outstandinD
$ 44 6
$55 6
$ 391 Total operating expenses 628.288 272.629 9.182 910.099 Weighted overage dotty interest roles Operating income (loss)
$ 193.824 $ 24,440 $(5.080) 213.184 Bank loorts 9 48%
7 45%
7 07%
Commercial parer 9 18%
7 73%
6 65%
Add - Otter mcome. net 7.125 Unsecured promissory note 889%
8 89%
Less - Interest enorges 90.421 Short-term borrowm0s outstonding at
- Preferred stock dividends 7.263 Bank ns
$ 2 25
$ 2 25 reighted overage interest rate 8 55%
876%
Capital expenditures Commercloi paper S 37 6
$66 5
$ 19 2 Identthobie
$ 154,356 $ 22.012 $ 142 $ 176.510 Weighted overage interest rote B 73%
9 40%
8 30%
Unsecured promissory note
$30 0 Unlued for overall company operchons 5.035 Weighted overage mterest rote 889%
Totot
$ 181.545 denHflCble oss0ts or 9 Committnents and Contingencies.
December 31.1989 utikry piant net
$2149.226 $/49.062 $ 1421 $2.399.709 Nuct for insurance inventones The Pnce-Anderson Indemnification Act (the Act). which deals with
~
77 353 7.182 450 84.985 totoi
$2.226.579 $256.244 $ 1.871 $2,484.694 SCE&G's pubhc hobthty for o nuclear incident. was amended in 1988 to increase the habihty hmit for third-party claims associated with any Assets unlued for omou Company opwohons 499,813 nuclear incident to $7 8 bdhon currently Each reactor heensee is currently totoi ossets
$2.984 507 hable for up to $66 2 mdhon per reactor owned for each nuclear incident
~
occurring at any reactor in the Unded States, provided that not more than
$10 mdhon of the habihty per reactor would be assessed per year SCE&G's maximum ossessment. based on its two-thirds ownership of Summer Stohon would be opproximately $44 mdhon per incident but rol more than $6 7 mdhon per year 37
m 1988 1987 Electric Got Tronsit 1 0:01 Electne Gas transit Tool phousands of Dohors)
Ghousonds of Do40ts)
Operonn0 revenues
$ 787,956 $291,308 $ 4,060 $1,083,324 Operating revenues
$ 806.826 $305,934 $ 3.212 $1,115.972 Operciano expenses.
Operonng expenses, excluom9 depreciohon excluding deprecnohon and omortronon 515,081 257,500 8,684 781,265 ond omortzonon 539,604 271,644 7,756 819.004 Deproc6 anon and Deprecionon and omortronon 82.758 9,519 306 92,583 omornzohon 86.162 10,843 384 97,389 Total operahng expenses 622,362 281,163 8.062 911,587 total operonno expenses 601,243 268,343 9,068 878.654 Operahng income (loss)
$ 184,464 $ 24,771 $(4,850) 204.385 Operonng income (loss)
$ 186.713 $ 22,965 $(5,008) 204,670 6,395 Add - Other income, not Add - Other income, not 4.147 Less-Interest chor9el 71,478 Lees-Interest charges 80.057
- Prolerred stock OMoonds 10.437
- Prolerred stock dividends 8.014
$ 128.865 Net income Not income
$ 120,746 Copnol expenditures:
Capitalexpenditures:
Idennhobie
$ 148,599 $ 26.027 $ 230 $ 174,856 loentthob6e
$ 146,281 $ 21,034 $ 333 $ 167,648 LQltzCd for overoll Company operanons 8 034 Utilized for overall Company operanons 5.670 toroi
$ 182,890 Total
$ 173.318
=
identihobie ossets of idennhable ossets of Dec rnber 31,1988.
December 31,1987:
Unlity plant, not
$2,098.361 $239.861 $ 1,631 $2,339,853 Utility plant, not
$2,045.819 $225.503 $ 1,783 $2,273,105 inventories 73,629 7.285 440 81,354_
inventones 74,977 6.859 374 82.210 Total
$2,171,990 $247,146 $ 2,071 $2.421,207 Total
$2,120.796 $232.362 $ 2.157 $2,355,315 Assets uttilted for overoll Company operonons 466,072 Assets utilized for overoll Company operchons 358,942 TWol oseWs
$2.887,279 Total ossas
$2,714,257 11, Quarterly Financial 0010 (Unaud!!ed):
1989 Frst Second Third Fourth ouoner cuaner ovan.,
cuann Annuoi reve ues(o00)
!?85.814
$252.54e $300.310
$284.601 $1.123.283 e(o00) 65.o64 44.023 69.076 45,021 213.184 het income (000) 33.909 21.004 45.430 22,282 122.625 tomings por shore of common stock es reported
.84
.52 1.13
.55 3 04 1988 First Second Tlad Founn cuans Quaner ouoner ouoner Annual 10:01 onerotmg revenues (000)
$302.235
$226.910 $264.062 $270.117 $1,083.324 (000) 58.831 37.396 63.879 44,564 204.670 Not income (000) 38.923 17,371 42,744 21.703 120.746 Eommgs per snare or common stock os roported 97
.43 1.06
.54 3 00 R
CommonStockInformation 1989 1988 4th 3rd 2nd 1st 4th 3rd 2nd 1st Qtr.
Otr.
- Ott, Qtr.
Qlr.
Olt.
Olt.
Qlr.
Piles Renfe:(0)
Hi9h 35 3/4 35 1/2 33 7/8 31 3/4 32 1/4 32 5/8 33 5/8 33 1/8 Low 32 1/4 32 3!4 30 29 5'8 30-3/8 29 3/4 30 28-1/2 DMeends Per 8hese:
_1989 Amount Date Doctored pgte Pold First Quarter
$.615 February 22.1989 April 1,1989 Second Quorter
.615 April 26,1989 July 1,1989 1hlid Quorter
.615 August 23,1989 October 1,1989 Fourth Quarter
.615 October 25,1989 January 1,1990 1988 Amount Date Doclored Dole Pond First Quoner
$.80 Februory 24,1988 April 1,1988 Second Quoner
.80 April 27,1988 July 1,1988 Third Quoner
.80 August 24,1988 October 1,1988 Fourm Quoner
.80 October 26,1988 January 1,1989 December 31.
1989 1988 Number of common shores outstanding 40,296,147 40,296,147 Number of common slockholders of record 45,650 47,944 The principal morhet for SCANA common stock is the New York Stock Exchange (stock symbol-SCO).
(c) As reponed on the New York Stock Exchange Composite Lishng-39
m O
Management's Discussion & Analysis of Financial Condition & Results of Operation Liquid /ty And oopitalResources Approximately 80.7% of totoi cash requirements (inciuding divi-donds) was provided from intemol sources ln 1989 os compored to The capitol needs of the Company onse pnmotify ! om the captfol 73 4% in 1988. Dunng 1989, substonholly oil funds for expenditures requirements of SCE&G's operchons and constnr: hon prograrn Because associated with domoges from Humcone Hugo were provided from roles for regulated services are based on histoncol cost omounts, to the intemolly generated funds and the sole of commercial poper. Expenditures extent Inflation occurs and roles are not oppropnofety odjusted on a timely during 1990 for Hurncone Hugo comoges are not expected to be basis, tre Company's regulated subsidiores moy not recm the costs of signdicant. Extemol funds for 1989 were provided trom o $75 milhon providing services. Therefore, the Company's future firm - posthon and term loon, o $70 milhon bank note, a $34 milkon note, and short-term results of operahons could be impacted by future inflottorury trends, commercial paper sold on on interim basis. Tte proceeds were used to As o result of continuing customer growth, the Company beleves retund commercial paper and other short-term indebtedness of $105 odded electnc generating copocity will be rvessary dunng the next five milhon and P poline Corporohon's toke or pay liabikties of $34 milhon.
years. Although the source of this oddihono! generating copocity has not The Company hos in ettect a shelf registration for the issuance trom been determined, the Current strategy (S to lastoll gas turbines to meet time to time of on oggregole $200 milhon in unsecured medium-term increases in peak loods. These units have the lowest capital cost to install debt securthes. It any sales of these securities are consummated, the and Wilt support customer needs while the Company assesses the pmceeds may be used to fund addihonal business octivthes in non-utility sources and timing of oddihonal copocity, including bose lood generchon.
subsidiores, to reduce short-term debt incurred in connection therewith or The ability 01 the Company's regulated subsidiones to replace im geol empma purposes. In oddihon, SCE&G hos in effect a shell exishng plant investment, os well os to expand to meet future demand, egistrohon slotement under which 11 con issue on oddihonal $100 million will depend upon their obility to attract the necessory financiot capital on of First and Refunding Mortgoge Bonds which may be used to refund debt roosonable le ms The ability to attract such copftal will depend upon the or for other corporate purposes. Whether oddihonal Secunhes will be sold regulated subsidiones' abikty to obtain odequale and timely rate reket.
and the timing and omount of such sales will depend upon market On July 3,1989 tre PSC granted SCE&G opproximately $21.9 con milhon at a requested $27.2 million annual increase in retoit electric ComponY it subsidiones have ovallable to them funds from revenues. The PSC order granted on allowed retum on common equity of unused hres of credit of $90 3 milhon.
13.25% On January 3,1990, 'n complionce with the July 3,1989 PSC The Company anticipates that its 1990 cash requiremehts will he order, SCE&G subsequently reduced its retolf electnc rates by opproxi-met primortly through Intemally generated funds, funds ovolloble through motely $7.7 million to reflect lower depreciation expense resulting from the sole of commerclol paper and the soles of odditional securttes dunng the extension of Summer Station's license. The effect of such reduction is ne ymr. Mehr oddihonal swuntes wul be sold ed u hming and to decrease the addihonal annual revenues oilowed in the July 3,1989 omount of such sales will depend upon market conditions and other order from $21.9 million to $14.2 million, or on annual increase of 1.9%
factus. Wol 1990 cmstmchon ed nucler tw expen@ums may vary (see Note 2B of Notes to Consohdated Financial Statements).
from the estimates set forth obove due to toctors such as inflation and On November 28,1989 the PSC granted SCE&G on increase in hrm economic conditions, regulohon and legislation, rates of lood growth, retail natural gas roles that are designed to increase onnuoi revenues by env metal pmtetion standords and the cost and avoilobikty of
$10.1 milhon. This represents opproximately 89 5% of SCE&G's request cop for on increcie of opproximately $11.3 milhon. In its order, the PSC The Company expects that it has or con obtain od000010 Sources of authorized a 12.75% retum on common egotty. The new rates become hnoncing to meet its cash requirements tn the long term.
effect ve on November 30,1989. On January 8,1990 the PSC denied the Consumer Advocate's petition for reconsiderohon and reheonng of the Results OIOperations 90s rate order. The Consumer Advocate has 30 days to appeal the Eomings and Olvidends decision to the South Corohna Circuit Court.
The Company sustoined signihcont domoge to its electne transmis.
Eamings por shore of common stock, the percent increase (de-sion, distribution 04 other toclkhes os o result of Hurricone Hugo on crease) from the previous year and the rate of retum eomed on common September 21 22,1989 Total costs attributed to the replacement and equity for the years 1987 through 1989 were os follows:
repair of domoged plant were opproximately $56 milhon. Of this amount 1989 1988 1987
$13.4 milhon will be reccvered through insuronce and on ocdmonal Eommes per snare
$3 04
$3 00
$3.20
$19.3 million associoied with capitol expenditures hos been included in Percentincrease(oecrease)in eminos per shore L3%
(6.3%)
56%
"Utihty Piont." For electnc costs not capitalized or cover 6d by Irauronce
($32 milkon), SCE&G received on order from the PSC on February 6, N"qh"Nn#f "
d 13 4 % 13.5%
14 8 %
1990 approving the of' set in the 1989 Consohdoted Statement of Income of $13 8 milhon of storm-related costs, offer income tax benefits Eomings per shore and retum on common eaulty increased in 1989 of $8.2 million, through the opphcohon of credits mmed on its books os from 1988 pnmority as a result of increased electne and gas operating a result of a 1980 settlement of certain ht got on. The remaining nork margins wNch were partially offset by higher other operchon and electric storm costs of $1.3 milhon have been included in 1989 operahng maintenance expenses and interest charges Eamings per shore and expenses. The treatment prescriDed by the PSC did not require any rate retum on common equity decreased in 1988 from 1987 primarily os o increose for SCE&G's customers.
result of lower retail electnc rates ordered by the PSC and placed into The eshmated primary cash requirements for 1990. excluding effect January 1,1988 and higher interest charges.
requirements for fuel habilthes and short-term borrawings, and the octual Allowonce for funds used dunng construchon (AFC) is a uhhty pnmary cash requirements for 1989 ore os tollows-occounhng proctice wherecy a portion of the cost of both equity and 1990 1989 borrowed funds used to finance construchon (which is shown on the preuznas WDom) balonce sheet as construction worir in progress) is capitalized. Both the Construction expenditures, excludmg equity and the debt portions of AFC are noncash items of nonoperating allowance for funds used cunn0 income which have the effect of increasing reported ret income. AFC represented approximately 5% of net income in 1989 and 1988 ond 3%
Nuc fex n itures in 1987.
Motunng obligations. redemptions and smiong and purchase fund Dunng the period March 1984 through June 1987, the Company reQUlfements 26.218 168.861 recorded Carrying costs (including equ!!y retum) ossociated with the
(
Total
$240.433
$344.211 production investment, net of occumulated depreciation, relating to 400 40.
~~-
Y a0 WW of electre generahng copocity previously removed from role base The gos operahng margin for 1989 increased from 1988 pnmarily 10101 delened carrying costs, o noncosh llem included under "Other due to on increase in the number of customers and higher overoge use income os "Deleired retum on plant investment", represented opproxi-per industrial customer. Residential and co.nmercial classes had lower motely 5% of net income for 1987, Commencing July 1,1987 the dekatherm soles despite increases in numbers of customers because of Company ceased the deferral of carrying costs and begon omorhzing the warmer weather in the first Quorter of 1989. The decrecse in the gas occumulated delerted carrying costs over o ten-year period. (See Notes operating morgin for 1988 compared to 1987 is pnmarity the result of a lE ond 2H of Notes to Consohdoted Financial Statements.)
decrease in industrial demand which more than offset on increase in retail in 1989 the Company's Board of Directors raised the quarterly cash natural gas roles ploced irdo effect December 1,1987 (see Note 2J of dividond on common stock to 61,5 cents per shore from 60.0 cents per Notes to Consohdated Financio! Stolements). Changes in customers and shore. The increase, effective wtth the dividend payable on April 1,1989, dekatherm (DT) sales of naturol gas are presented in the following table:
raised the Indicated onnual dividend role to $2.46 per share from $2.40-The Company hos increased the dividend rate on its common stock in 36 Increase (Decrease)From Phor Year ost 37 ym Cusomws volume (DT)
Cionsecohon 1989 1988 19e9 1988 Operating Margins Res6denhol 3,770 5,515 5g (g(457,807 28,858 Electric operahng margins for 1989,1988 and 1987 were as muc6al 4
,g 7
ows.
Sole for resole (1) 1,923,030
. 313.852 1989 1988 1987 Total 4,258 6,061 3,700.472 (5.656.516)
(Mnons orDows) tiecinc operohno revenues
$822.1
$788 0
$806.8 Gas purchased for resole increased in 1989 compared to 1988 Lees Fuel usedln electnc generation 224.0 224.3 227.9
- Purchased onG wilerchon9e power, ner (2.0)
(6 4)
(12.5) primarily as o result of increased cust0mer demand for natural gas patholty offset by lower gas costs. Gas purchased for resole decreased in 1 0001
$600.1
$570.1
$591.4 1988 compared to 1987 primarily as a result of lower customer demand The 1989 electric operating margin increased from 1988 primarily I r natural gas.
due to higher retall elecinc roles placed into effect on July 3,1989 (see Other Operating Expenses Note 2B of Notes to Consohdated Financlot Statements), increased kilowatt hour (KWH) sales as a result of the increase in the number of Other operchon and maintenance expenses increased primarily due electric customers and increased overoge customer usoge due to wormer to costs related to domoges caused by Hurricone Hugo and severe summer storms and increased expenses related to Summer Station summer weather. The 1988 elecinc operahng margin decreased from outoges. As o result of the Company's cost containment efforts, other 1987 primortly due to lower retoll slectric rates ploced lnto ettect Jonuary 1,1988 (see Note 21 of Notes to Consohdoted Financiot Statements) operation and maintenance expenses in 1988 did not change signifi-which more than offset on increase in customer domand-contly from the prior year. Increases in depreciation and amortirohon Increases (decrooses) in electric customers and megowatt hour expense for 1989 and 1988 reflect odditions to plant in sennce. Income (MWH) sales volume by classes of customers are presented in the tax expense decreased for 1989 from 1988 as a result of the tax impacts following toble:
of offsethng storm domoge costs with higohon settlement-related credits os approved by the PSC (see Note 2A of Notes to Consolidated Financiot increces (Decrease) From Pnor Year Statements). The decrease in income tax expense for 1988 results Cueromus volume (WWH) pnmarily from o reduction in the Federoi corporate income tax role Classecohon 1989 1988 1989 1988 offective July 1,1987 and lower pre-tox incorne resuthng trom o Residenhol 6.487 7,619 128.866 40.677 reduchon in retail electric rates. Other taxes increased in 1989 from 1988 Commerclol 1,404 1,632 202,831 167,089 pnmorily due to higher property loxes caused by increased milloge rates Industrial (2) 8 38,722 36,059 and additional property. The decrease in other taxes in 1988 from 1987 gSo j
p resulted from o change in the method of recovery of municipal tranchise resole Tolol 7.912 9,311 427 956 142,814 Interest Cinrges Fuel used in electric generation for 1989 remained relatively un-changed from 1988 even though KWH generchon increased because the Interest on long-term debt increased $11.1 and S7.0 milhon in generation mix shifted toward nuclear generchon (of unit costs lower than 1989 and 1988, respectivety, when compared to the respective previous tossil fuels) and per unit fossil fuel costs were lower. Fuel used in electne years. The increase in 1989 was due primarily to SCE&G's $75 million generchon for 1988 decreased from 1987 primortly because of a bank loan obtained in January 1989, the Company's $70 million bank reduction in the overage costs of fossil and nuclear fuels. Income from note sold in January 1389 and higher interest rates. The increase in purchased and interchange power, net, decreased for 1989 compared to 1988 resulted pnmonty from Interest associated with the issuance of 1988 primarily due to increased purchases of lower cost electricity from
$100 milhon principut omount of 8 3/4% Senes First and Refunding other utilities. Income from purchased and interchange power, net, Mortgoge Bonds in February 1987, the issuance of $4.365 million of tax-decreased for 1988 compared to 1987 largely due to the decreased exempt, annual tender pollution control bonds in September 1987, o $40 demand for electricity by other utikhes.
milhon 8.32% Bank Note in December 1987 and higher interest rates.
Summer weather combined with on increase in the number of Other interest expense decreosed $ 1.1 milkon in 1989 and in-electric customers resutted in on oil-hme peck demand record of 3.144 creased $4.1 million in 1988 compared to the respective previous years.
MW on July 11,1989, The previous year's record of 3.021 MW was set The decrease in 1989 resulted pnmarity from lower short-term borrowings on August 18,1988-and a decrease in interest expense related to rotunds to wholesale Gas operahng margins for 1989,1988 and 1987 were as follows:
customers. The increase in 1988 resulted from on increase in short-term borrowings, higher interest rates, and interest expense related to amounts 1989 1988 1987 totunded to wholesale customers (Milkons of Dollots)
Gas operatin0 revenues
$297.1
$291.3
$306.o Less. Gos purchosed for resale 212.1 209.3 222.3 Total
$ B5.o
$ 82.0 S 83.7 41
a o
o e
SelectedFinancialData e
Forthe Voors Ended December 31, 1989 1988 1987 1986 1985 1984 1979 Isolement ofincome Delo (7housands of Domors empt seasks andper share amouns)
Operoun9 Revenues:
$ 822,112 $ 787,956 $ 806,826 $ 809.488 $ 787,796 $ 746,745
$401,281 Elecinc Gos 297,069 291,308 305.934 289,429 318.856 378,491 138,386 Tronen 4,102 4,080 3,212 3,119 3,689 3,178 2,146 10001Operatin9 Revenues 1,123,283 1,083,324 1,115.972 1,102,036 1,110,341 1,128,414 541,813 OperoI6ng Expenses:
Fuelusedin electric ponerchon 224.035 224,278 227,877 216,076 229,249 223,768 185,624 Got purchased for resale 212,112 209,344 222,319 215,928 246,760 289,212 110,702 Other operotton and molnlononce 247,440 222,396 214,865 209,629 195,031 187,448 67,963 Depreclot60n and omorttration 102,296 97,389 92,583 90,627 86.899 74,914 35,444 Tomes 124,216 125,247 153,943 171,060 154,804 153,776 62,008 10101Operatin9 Expenses 910,099 876,654 911,587 903,320 912.743 929.118 461,741 Operot6ngincome 213,184 204.670 204,385 198,716 197,598 199,296 80,072 10001 Other income 7.125 4,147 6,395 9.825 15,721 17,647 26,956 income BeloreInterealChorges and Prolerted Stock Dividends 220,309 208,817 210.780 208,54) 213.319 216,943 107,028 Tololinterest Chor9es, Nel 90,421 80,057 71,478 71,934 83,218 78,248 51,347 Prolerted Stock Cosh Dividends of Subendiory 7,263 8.014 10,437 14,443 16,541 16,877 12,315
$ 122.625 $ 120,746 $ 128,865 $ 122,164 $ 113,560 $ 121,818
$ 43,366 Notincome Wel9hlod Average Number of Common Shotos Outstond6ng(1housands) 40,296 40,296 40,296 40,296 40,296 39,900 23,540 Eomin9s Per Shore alCommon Stock
$3.04
$300
$3.20
$3.03
$2.82
$3.05
$1.84 Dividends Declared Per Shore of Common Stock
$2.46
$2.40
$2.32
$2.24
$2.16
$2.05
$1.68 Po cent ol0peratingincome(Loss)
Beforeincome Taxes:
Electric 91 90 91 93 92 87 97 Gos 12 13 12 9
10 15 6
Transit (3)
(3)
(3)
(2)
(2)
(2)
(3) 42
o December 31, 1989 1988 1987 1986 1985 1984 1979 8eleaselhest Delo (Thousandt of Dotrs arcept sponses andper Are amount)
Ulltfly Plant Not
$2,444,278 $2,384,633 $2,313.996 $2,248,657 $2,221.070 $2,205,297
$1,482,688 10101 Assels
$2,984,507 $2,887,279 $2,714,257 $2,587,491 $2,550,627 $2,506.996
$1,659.127 Common Equity
$ 918,235 $ 895,727 $ 871,620 $ 836,913 $ 806,155 $ 778,251
$ 449,397 Prolorred Stock Subject to Purchase or Sinidn9 Fund Requirements 68.038 77,244 84,632 117,542 152,514 156,789 126,!tt Prolerted Stock Not Subject to Purchase or S6nidng Fund Requirements 26.027 26.029 26.029 26,029 26,262 26,262 26,262 Long-Term Dobl. Not 1.0C3,972 885,679 896,963 757,340 791,539 900.878 681,454 Total Capitolization
$2,016.272 $1,884,679 $1.879,244 $1737,824 $1.776.470 $1,862,180
$1,283,477 Common Shores Outstanding (Yoor End)(Thousands) 40.296 40,296 40,296 40,296 40,296 40,296 24,195 Book Value Per Shore of Common Stock (Year End)
$22 79
$22 23
$2163
$20 77
$20.01
$10 31
$18 57 Other Stettstics Electric:
Customers (Year End) 435 :>
427,089 417,778 406,511 393,810 378,960 336,700 Solos (Mill 6on KWH) 14 t 14.457 14,314 13,704 13.041 12,590 11,252 Residentd:
Average onnualuse por customer (KWH) 12.891 12,805 12,988 12,821 11,992 12,%I 11,627 Average annual role per KWH
$ 0699
$ 0691
$0724
$ 0759
$.0774
$0757
$.0464 Generating Copobility Net MW (Year End) 3 891 3,891 3,890 3,890 3,959 3,959 3,359 Territorial Pook Demand - Net MW 3 144 3,021 2,943 2,853 2,703 2,596 2,299 Gos:
Customers (Year End) 205.657 201,399 195,338 192,941 191,002 189,544 164,277 Sales (Thousand Therms) 714.585 677,580 734,145 671,881 647,215 737,059 545,387 Res6dential:
Average annual use per customer (therms) 575 617 627 548 524 618 684 Averoge onnual rate per therm
$ 69
$ 70
$ 68
$.68
$ 67
$ 69
$.34 Transit:
Number of Cooches 64 114 108 117 122 123 96 Revenue Possengers Corned (fhousands) 6.430 6,723 8,668 8.699 9,032 9.658 9,548 43
l INVESMRlNFQRMAHON e
n 1
s Nohce of AnnualMeenng Corporate Headquarters StocAholdetInquines Bond Trustee and Potmetto Center Questons concoming divdend Poying Agent The 1990 AntalMeehng 1426 Main Street payments or otter stockholds SCfM fastand Returdng ofStockholdets of SCANA Cdumbo SC29201 matters stould te directedinwnt pyrgogesyes Corporohon wl/Ibe heldin Telephone (803)748-3000 ing to tre Secretoraland Store-Monutocturers Fbnover Trust M derSe m s M
Company Columbro, SC on Wednesday-Mallin Address
(
- e Canponys noiling rus Deponnent -
April 25. The meehng wllI SCANA pordon convene at 10.00a m in the Columbio. SC 29218 Aud M 450 West 33rd Stree,t Bollroomof theColumbro Common and Preferred DDi@t'e L TOUCf*
9,,yn,Kyy;999 Momott Hotel,1200 Hamp-Stocklistmgs certifed Public Acx:ountants Investor Communtcohons IonStreet Promes willbe Tre common stock of SCANA 1426 Main Sneet. Suite 820 intenm reports provding sum-molled to stocAholdersin Corporotonislisted and traded on Columbo SC29201 mary tironcol statenents and Match. Stockholders who ole tre New York 90ck Exchange unable to offend the Annual The tcher symtd is SCG Tre cor.
Record eepingond Company nws are sentto stock-toldersfollowingthecloseof the Meetmp shouldretum their porole nome SCANAis usedin PayingAgents first.secondandthirdquarters A proxies prompftyby mo!!
nuspops sock listings W 9ocA copy of SCANA's AnnualReport on The 5% seres cumulative pre-SCANACorporation Secretonal Form 10-K (os filed with the Secu-toned stock of South Carolino and Shoreholder Services ntes and Exchonge Commission)
Electnc & GasCompany Deportnent(054) and tre SatistcolSupplement to (SCE&G). SCANA s pnncipol sub-Columbio. SC 29218 tre 1989 AnnualReport ore avoib sidiary. is also listed and troded SCf&G Pre 4vred90cA ob6e without chartie Inquires on tre New York 90ck Excronge South Corolino National Bonk concerning activines alSCANA The teker symbolis SAC Pr. tre Secontes Tronsier Services Corporoton and tra subsdiares newspaper listing is ScrE pf Room 101 and requestsfor pubications DividendPaymentDates 101 Greystone Boulevard should be odoressed to theinves-Columbo. SC 29226 tor Relations Department (054)of Quarterty divdendsonSCANA s common stock are normally pay TransferAgentS We ComponVs noiling oddress ob6e on tre first doy of JanuoY Corrrnon Sock invesfor Contact Apnl. July and October to stock-South Carolino Nahonal Bank H JohnWinn til holders of record on the 10th doY Securites Transfer Services -
Monoger-Investor Rc60tions of the month preceding the pay-Room 101 Telephone (803)748-3240 nent date 101 Greystone Boulevord Divderts on SCE&G s pretened Columbia. SC 29226 investots'Assoclohon SloCk are paid quarterly on the ManutoClurers Hanover Trust For intynotonabout this WgonF laton'soCtivlies Writeto AssoCF some dotes os the common stock g
don d SCANAInwsors. c/c W divdends Sockito Department.
Dindend Reinvestment 15th Floor SC Plan 450 West 33rdStreet New York NY 10001 SCANA otters o Dividend Reinveg.
mont and Stock PurClose P\\on to MM PreterredSock this reportis tssued sosely kw tre itscommonstoChholdersof te South Cnrolina Natiord Bonk purposeo'providingsnkvmahon it cord Abrochure, Authorizoton SecuntWrunster Sen1res -
,s not snien@d ky usein connachon Form onc retum envelope are au-Room 101 wittery sose orpuretose of. or any tomaticotty mailed to nil new 101 Greystone BobevJrd sol #citpfu of offers 70 Duv or so#
stockto6ders For furtter informo.
Columbo. SC 29226 ony secuntes Ion or for queshons about voor The Ctese Manhatton BonN N A DRPoccount wntetotheSacro-Sock Transfer Department ford and Shoreholder Services P O Box 469, Washington Bndge Department (054)of treCompo 90 ton ny s mailing oddress New York NY 10033 s
44
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