ML20029C588

1993 Annual Rept Scana Corp

ML20029C588
Person / Time
Site:	Summer
Issue date:	12/31/1993
From:	SCANA CORP.
To:
Shared Package
ML20029C589	List: ML20029C588 RC-94-0094, Submits Summary of Present Levels of Property Insurance & Cash Flow Statement for Virgil C. Summer Nuclear Station. in addition,1993 Annual Financial Statements Sceg & 1993 Annual Rept for Scana Corp Enclosed
References
NUDOCS 9404060164
Download: ML20029C588 (37)

Text

..

1993 ANNUAL REPORI i,.

), -

Fellow Shareholders:

l c:

I arn pleased l ; gay 4

,m-

.s

=

to provide you a

T

.M

1. .;g

'+~

6.;i,y;

(

t!

with the

. ;,.. - e o :

l 4

+. -

l 3

+.,,..., <

. r.

s.. v..

s

! j,..

1993 Annual Report

• L

~p" -

e

-' ~ ~ -

C.E..,;.%. JC,. L.'.;'. m.. j

~"

l;S,

.,.....,.. s..,.

c.. o j

for SCANA Corporation, i

'~

'y;'; ;;7 p-l -

l'

.xv,...a.-

i er,.*

5CAN A CORPORATION.w, n,,..

l f:Mg which reflects g.r l ',:[3

M laur,srammum.

1 4

id THE MOST SUCCESSFUL

gp 1 cei-men. ten,

j K-vja 2

l YEAR IN THE COMPANY'S

_J

,,o,,,,,,,o,sc,

4 oi,.cio,s i

147-YEAR HISTORY.

y; k

..c a

Je -

Officers w

^'

lO&

_.,,<w nn.nc,o,....

hgs!

jl f'

inVt5for Informot,len 7

33 Y$.

t

.,... y 90 NOIk 35 M

2 i

3

(

i

}

l l

i

)

i;

)

i

1993 ANNU AL RE. PORI 1

.,1

'u

'?

}p Fellow Shareholders:

-A a

$ho '

e

j l am pleased

Iikk!

I

?

~

iyM;f}

to provide you

.g g

9

.x y -

4/:

~

with the 1993 Annual Report

%f, for SCANA Ccrporation, h

d.)g;/

[CANA COFIPOkATION f.

b which reflects

}f(fi.i

an.,1 - m, II 'n.

THE MOST SUCCESSFUL g

cno,,mor, s i ne, e

ar, YEAR IN THE COMPANY'S a

,, o,,,,,,, <,, c m,

.y.

147-YEAR HISTORY.

s ni,,.c,o,s -

l-

..e -

s

1. g,v

$$ y.)

)

OffKets

'4 dilgt}l l%

ha m

finon6lat Review

' f

M 1

1O i ;f investor information 33 y

4

,6

1. 7:ewut 88;,,

dh3 l

l

.. L

~

'l l

Ilulity Sentcc hva Itukt) CustomerProfile i

iscefM cuotam f

6 c-m Steam Generation Electric Dg+.. 3;Q*d -

~** J

dpr Dunng 1933 we added 6 974 nel new custamms. rois-

.;g y

l ursect ing me woi = circ cusema txse by 1.5% = 4sa.e74 ol

(' % UE T E M1erge

... 4 M ; [.

year end femional soles of esecacity m 1993 totoled 16 9 I

j%

[

i W111eams w.

. k -~ (;4 tWlhon kilowatt-hours (KMO, a 6 9% increase kom 1992

• O " "J'

. *' ' ',,.,j 7 r.

_h Hydro Generation Sales to ummole consumers representid 93% of KWH soies 1

vi

..Y a-

?

h Canal j

'c ~,

7 um*

in 1993 wrve sales to wholesas cusomers accounted for 7%

.Af.

,b "

Foirheid Pumpid Storogo

> *Y :

~

)

heal Snoo.

o erosen

... A. f[

i

.,E ' ~es.

Port s

4 Saludo Natural Got p

F.vens M Dunng 1993 we odood 3.653 nel row cusemers aume su*

bnnging the consolubled nolural gas cuskm. base to J

%r-Ifiternoi Combustion Generation SCANA W*on.

_._ w m

Buren 234,736 of yearamd, o 18% increaso our 1992.

==

3

=~

_ _.s _,.-i-4

_== _

_ce

_. __ _ h-s- ~

_a_, _

mrough eleven duect whoh ed subsdag engogns Hagood gas kWcled 717 millon terms m 1993. o 5 8% decrease j

pmecolly m eieckt and n:No! g= u"yg opemin nnd 992 73% W mm m am gy__s m 1993 were e ultimots consumers while sales 10 whole-t SCANA: pntcipoi suta=1aarv W* %nu Eiuc*ic w,im 3

& Gas Company (SCEE). e o foguealed pubic uh84 soie consumers accounied for 27%

enDoged m #m g'inerom tonsmsm Mibunon and S_er _ Generation Nuclear

_e_=___,

1 of rebd, of natural gas m South Carobriu SCE&G piovulos elecyc servce io opprcuumapety 469.000 customers m o

~

j 15,000 square mile orso art the cenFol, southam and

_._ar, - s.e _. s_..

provided m opproximorety 221,000 cusiomers over o

~m, j

19.000 square. mite servce orea. Titough the combood

- me _ S-m.

l CorporofxM, SCANA's gas ironsmission Subssd:ory nolural gas servces are provided tiroughout the sioco on o duset g

c_tenlol basis The Dlol populohon d tie or suppler

~~

s - s_e _. __., ee _

_ m m _ _ _e m _

{

potilon areas of Colurntno Old Charlesion U

SCANA s nonregSm. ed diversthed operohons axiend Deyond South Carolino and mciude acquinng (md operal.

2M 18'J E ing oi! and gas producaig properbes. markehng natural l

io j

mg and sethng propone. yoviding Aber ophc. video and itxho communcohans cnd power plant management and mnmlenance sennces. Al vectiend 1993. the Company a_

so _ -

1 onc its subssdoms had 4.788 employees

}

o e

o 4

IEEE m RE EE 4

l i

I 1

e 4

5

..h kh 4

41 f'h.[. I p,> : n w gg~ e.gdQ y yyr -

, y f g

. p y

i Iinancial60peratingliighlights

% Increase 1993 1992 (Decrease)

(Millions of dellors except statistics and per share amounts)

Common Stock Data Earnings Per Weighted Average Share of Common Stock 3.72 2.84 31.0 Dividends Daclared Per Share of Common Stock 2.74 2.68 2.2 Book Value Per Shore of Common Stock (Year-End)

S 28.59

$ 26.46 8.0 Market Price Per Share of Common Stock (Year-End)

$ 49.75

$ 40.50 22.8 Common Stockholders' Equity (Year-End)

S 1,333.0

$ 1,161.9 14.7 Common Stock Outstanding:

Average (Thousands) 45,203 41,475 9.0 Year-End (Thousands) 46,619 43,911 6.2 Total Company Total Operating Revenues S 1,264.2

$ 1,138.4 11.0 Total Operating Expenses S 1,018.9

$ 928.6 9.7 Net income S 168.0 117.6 42.9 Property Additions and Construction Expenditures S 526.0

$ 387.9 35.6 Utility Plant, Net S 3.004.1

$ 2,810.3 6.9 Electric Operations Electric Operating Revenuer S 940.1

$ 829.5 13.3 Electric Operating Income S 222.0 180.6 22.0 Territorial Sales (Million KWH) 16,880 15,794 6.9 Customers (Year-End) 468,874 461,900 1.5 Generating Capability - Net MW (Year-End) 3,864 3,912 (1.2)

Territorial Peak Demand - Net MW 3.557 3,380 5.2 Gas Utility Operations Gas Operating Revenues S 320.2

$ 305.3 4.9 Gas Operating income S

29.4 34.9 (15.8)

Sales (Thousand Therms) 717,417 761,721 (5.8)

Customers (Year-End) 234,736 231,153 1.6 M,,

, )gg Ah0Ut the Cos'er SCANA Corporation's common stock is owned by more than 42,000 share-holders who reside in all 50 states and several foreign countries. Of the more than am 46 million common shares outstanding,11.4% is owned by active and retired SCANA employees.

p{

Through its Shareholder Services Department, SCANA offers a variety of pj_

services to shareholders, including direct deposit of dividends, seasonal addresses e

eco for Company mailings, consolidation of multiple stock accounts, transfer of stock

((l r

[

certificates, and a toll-free number (1-800-763-5891) for shareholder inquiries.

The Company also otters a Dividend Reinvestment and Stock Purchase Plan, p

-~4 Participants may purchase shares of common stock through automatic reinvest-p ll ment of cash dividends and/or by making optional cash payments of up to $36,000 L

[

L in any calendar year, without brokerage commissions or service charges. The Plan

_J 4

2*

q features a direct purchase option which permits any U.S. resident to make a first-

[

[

time purchase of stock directly from the Company.

F i

0

'9

'9 1

Fellow Shareholders:

I am pleased to provide.you witn the 1993 demand and total sales of natural gas to residential and commercial customers also set records. Our Annual Report for SCANA Corporation, which reflects

. natural gas pipeline system, including the two lique-the most sucwssful year in the Company's 147 _

year history. This success is attributable in part to fled natural gas storage facilities, worked flawlessly, purposeful changes in the Company initiated over Despite supply limitations, the pipeline company the past several years as well as to the efforts of and propone company managed inventories and.-

highly skilled and dedicated employees. I am excit-flowing supplies to keep energy available to indus-ed to be able to outline the progress that hus been

~ tries which were without an attemate fuel sources made and hope you will get a sense of the momen-thereby allowing them to continue operations. In ret-tum we are building.

rospect, it was our employees' dedication, compe-Eamings for 1993 were $3.72 per common fence and 'can do' attitude, together with the wis-shee, a significant increase over the $2.84 per dom of our supply strategies and some very long shore reported for the previous year. In 1992 eam-work days, which enabled our customers to have ings were reduced from S3.11 to $2.84 per share the energy they needed during the crisis.

as a result of a nonrecurring, cumulative electric rate

' Construction continues significantly ahead of refund stemming from a South Carolina Supreme schedule and on budget for our new Copa Electric Court decision. Thus a better comparison from con-Generating Station, with commercial operation tinuing operations shows an increase in 1993 eam-scheduled for early 1996. With supply shortages of ings per share of 20%, despite a 9% increase in electricity occurring on many systems affected by the average number of common shares outstand-the recent cold weather, I am pleased that we have ing. The specific reasons for the increase in eam-this additional 385 megawatts of baseload capaci-ings are explained in some detail elsewhere in the ty under construction in order to meet our cus-report. However, it is worth noting that eamings from tomers' future needs.

our natural gas exploration and production compo-In addition to the outstanding operating perfor-ny contributed S.25 per share in 1993, up S.20 per mance mentioned above, South Carolina Electric &

share from 1992. This is a relatively new business Gas Company continued its preparations for a less for SCANA Corporation and reflects the growth regulated, more competitive business environment.

potential available to us as we continue to seek and Through the formation of strategic business units focus on opportunities in energy-related businesses and completion of organizational effectiveness beyond our traditional electric and natural gas utility reviews, SCE&G has become more decentralized i

businesses operationally and more focused on its various cus-The indicated annual dividend rate was raised tomers. Despite an overall electric rate increase of 2.9% effective April 1,1994 to S2.82 per common 7.4% which went into effect June 1,1993, our shore. The magnitude of the increase reflects the electric rates are among the lowest in the Southeast, fundamental progress of our businesses in sales and we enjoy a significant competitive price advan-and eamings. SCANA Corporation has increased its tage over our neighboring regulated utilities and i

dividend 19 years in a row, and 41 of the last 42 most electric cooperatives.

years.

In January 1994 we settled the litigation with Record cold weather in January 1994 placed Westinghouse Electric Corporation conceming the substantial demands on each of SCANA's energy steam generators it fumished for our V. C. Summer subsidiaries. All were more than equal to the task.

Nuclear Station. As I previously reported, these gen-New records were set for electric energy sales and erators have experienced unusual wear and mainte-we had a new winter peak demand for the system.

nonce requirements which made it necessary for us All generating plants performed well, and we experi-to replace them with new equipment. While the enced no voltage reductions or rotating blackouts as terms of the settlement were sealed by the court, I -

I was the case with several other companies. Peak am satisfied that the result will provide substantial a

1

benefits to our cus-tomers without the expense and risk of a trial, New generators s

l ing a refueling outage k

)

will be installed dur-V scheduled for the

=

fourth quarterof 1994,

~

In January 1994 the Supreme Court of -

g South Carolina issued-T a decision which.

- upholds prior rulings '

J d

~

~

~

of the state's Public j -

~ Service Commission j

g s

that permit industrial interruptible natural gas sales to be regu-

" '"'" " "'* $ $'o $",N I K r$ 7c,,$ " "" "" " "

1

• ""*"*""*F"i""

lated on the basis of'

'value of service' rather than a strict cost of service. This ruling is very.

As a group, active and retired employees own important in that it affirms a 30-year practice of our 11.4% of the common stock of our Company. Their natural gas companies to negotiate sales prices level of financial investment is unique. Much more directly with industrial customers which can use importantly, however, it is the cumulative commit--

altemale fuels in price competition with natural gas.

ment to success, the expertise and hard work of our This very progressive ruling takes on added signifi-employees which moves us forward every day, conce when viewed in light of the increasing dereg-.

-l am very proud of the progress outlined in this ulation and price competition in the electric industry, report and with the momentum which we have particularly forindustrialioods.

achieved. It will not be easy to surpass the best in 1994 we will complete the divestiture of year in our Company's history, but we have out-SCANA Development Corporation, which will con-standing human resources, a strong financial con-clude our direct participation in the real estate dition and a history of operational excellence to developmeni business. During my tenure, a key drive us forward.

goal for SCANA Corporation has been to focus on energy and energy-related businesses. I am pleased that after this transaction, we will have Respectfully submitted, substantially achieved that goal.

Many positive things have occurred in the past twelve months which are outlined in some detail in M = c<. M.

A this report. While the energy industry in general, and the electric industry in particular, continue to Lawrence M. Gressette, Jr.

change and become more competitive, SCANA Chairman of the Board, President and Corporation is moving forward with great success, Chief Executive Officer adapting to the new realities while continuing to February 7,1994 meet the needs of our customers, shareholders, and employees.

l l

7

,n

.d AN DVERVIEW OF SCANA MJ SCANA Carpaatlantsafam//y Suuih Carolina Liectric G Gas N

2 ofcompanies Mthlasastments Unmpany concentratedinenetgpalated gjggygggpygygg, N

s businesses. Wegenerateand a:

delherelectricity. Wemaintain SCANA's largest subsidiary 2

andopemtepowerplantsfor continues on a fost track thirdparties. Weown, develop preparing for competition in the andproducenatualgas elechic uMy indushy. We are transforming our company from resenes. Wemarketandtrans-a successful, regulated utility portnaturalgas. Wesell into an excellent free-market propane. Weareleadersin the competitor. During 1993 we heldofflheroplictelecommuni.

lald important structural callons. Andweencaumpe groundwork for the changes we casamNandscansmic must make. We fully imple-mented a strategic business desslapsentthisughmatch/nf unit concept and continued to grantandloanpmgrams.SCANA refine our control processes to presidestheenergyandsen' ices better track and minimize costs.

thathelpSouthCatallnaandthe A strengthened commitment na###ytur.Burstategyof to research and technology PP " " '

diversifingintaenergpalated f

u w h expan e bus ess that end we are streamlining our fle/dshasapm>Untracktocant opportunities and new services.

customer inquiry services to l#27statesthtunghoutthe in collaboration with the Electric make it easier for our customers countrJ', as1993ptatedtobea Power Research Institute, we to do business with us.

successfulandpmfitableJuar.

are developing programs to During 1993 construction of g, gg y,,y,,, g, fyyyy,,7 recycle more waste products, a new S450 million baseload refine high speed circuit breaker generating station near Cope, SC effsttsan sneig),-related

,ecnnoiday and generate inter-continued oneod of seneduie and businesses. WeatNytNud#f#nf est in solar-powered photo-on budget. The 385-megawatt accomplishmentsanderc/ted voltaic panels.

coal-fired facility is the sixth about the futufN.

Another important part of fossil plant on SCE&G's system.

our transformation is targeting it also will be one of the most

<x.-

customer servico environmentally-sensitive plants and new technolo-ever constructed when it begins gies. We are com-operations in 1996.

t mitted to a customer SCE&G was granted a two-focused, continuous phase increase in retail electric

~4~

improvement con-base rates in 1993 totaling cept that stresses

$60.5 million or 7.4 percent on

\\hp,

./

customer service and an annual basis. The additional k[j the highest standards revenue will allow us to recover

=

y g7 j

of performance. To carrying costs associated with 4

the ongoing construction of the fidential and have been sealed

{

new plant. This represented our by the court. However, it is our first electric rate increase in opinion that the settlement was nearly four years. However, dur-in the best interest of all parties ing the remainder of the decade, and avoided what could have we willincur capital expendi-been a costly and uncertain trial.

~

tures that could require addi-During 1993 Summer tional rate actions. These Station continued its tradition of expenditures involve completion operational excellence. For the of the plant Cope and compli-fourth consecutive time the ance with requirements of the plant was recognized as having Clean Air Act. We will maintain one of the highest safety perfor-our competitive position by con-mance records in the nation, trolling costs, selling aggres-The Nuclear Regulatory sively, and pursuing economic Commission granted this latest development opportunities.

' excellent' rating to only five of the 109 nuclear power plants Aid,ar$eratinris operating in the United States.

In addition, the Commission's succeeded in making progress One of the most significant latest Systematic Assessment of during 1993 for natural gas to be short-term challenges we face Licensee Performance (SALP) the fuel of choice for this conver-involves replacing the steam report rated Summer Station's sion. We reached an agreement generators at the V.C. Summer overall performance as ' excel-with the federal government to be Nuclear Station. These three lent" for the 18-month period the fuel supplier for 275 natural large heat exchangers have from September 1991 through gas vehicles ordered for its experienced tube cracks and February 1993.

Savannah River Site facility.

leaks since the beginning of Restructuring of the natural plant operations in 1984 and NatwalBas@eratilms gas industry continues. The must be replaced to ensure con-Federal Energy Regulatory tinued reliability. The work will We continue moving Commission's Order 636 will be done in conjunction with a aggressively to increase off-result in cost shifting among refueling outage scheduled for peak and nonweather-related some customer classes and a the fall of 1994 cnd represents sales of natural gas We envi-greater respo_nsibility to be a reli-the largest modification antici-sion going beyond the meter to able supplier of natural gas to our pated during the life of the plant.

offer services for appliances utility markets. We will systemati-In a related matter, we reached and other equipment. Substantial cally evaluate our gas purchasing a settlement with Westinghouse opportunities exist to capture and delivery practices as the Electric Corporation in January new markets in space and evolution of the natural gas 1994 that resolved a dispute water heating and air condition-industry continues.

over the steam generators.

ing. Particularly promising is a SCE&G filed suit in May 1990 new market for natural gas against Westinghouse in the vehicles. The Comprehensive U.S. District Court for South National Energy Policy Act of Carolina seeking compensation 1992 included mandates for for damages to Summer Station.

government fleets and others to Terms of the settlement are con-convert to alternative fuels. We 5

for natural gas. The ownership total investment of about $248 and sale of the gas will be han-million. None of these reserves

'L 9

died by unregulated suppliers is delivered to South Carolina,

<7 dealing directly with end-users.

thereby forcing geographic Our current mission is to match diversity and growth. We will g

natural gas supplies with prices continue to seek attractive our customers will pay.We have acquisitions that complement structured the company to oper-our existing domestic reserve f

xo,.

ate successfully in this increas-base.

ingly competitive environment, and have implemented a natur-SCANA14dmcarbans,Inc.

al gas supply plan that includes flexible sales agreements.

Order 636 allows direct This strategy aligns our sales of natural gas to end-wellhead commitments with users. SCANA Hydrocarbons stored gas and spot purchases operates in this capacity. Our to create the proper volume of advantage over competitors is natural gas available at the our knowledge of end-users' proper times for our customers, needs and our reputation as a while minimizing its cost. We high-quality marketing compa-4 also are considering expansion ny. We continue to build that into North Carolina markets as advantage by maintaining our part of a growth plan.

reputation with existing cus-tomers and working to develop SCANA Petmleumilcsoumes,Inc.

relationships with new customers that are mutually beneficial.

SCANA's largest non-regulat-With offices in Columbia and ed subsidiary is capitalizing on Houston, SCANA Hydrocarbons attractive new business oppor-is handling expanded marketing tunities by acquiring high value responsibilities for Petroleum oil and natural gas reserves as Resources. We sold approxi-South Carolina Pipeline restructuring occurs in the mately 57.3 billion cubic feel of Corporation domestic exploration and pro-natural gas in 1993 from duction industry. We nearly Petroleum Resources and other Order 636 will have a sub-doubled our reserves in 1993 third-party suppliers to cus-stantialimpact on SCANA's gas with the purchase of NICOR tomers in 27 states. These sales transmission subsidiary as well Exploration and Production represent a 119 percent increase by changing the method by Company of Denver. Petroleum over 1992.

which we contract to receive Resources now ranks among natural gas. While Pipeline the largest independent oil and Corporation still has on obliga-natural gas producers in the fion to be a supplier (as it is still country. Houston-based regulated by The Public Service Petroleum Resources now owns Commission of South Carolina),

approximately 238 billion cubic over time we will become pri-feet equivalent of proven natural marily a transportation vehicle gas reserves, representing a e

i Submban Pmpane Gmup. lac.

MPX Sptans.Inc.

the state. By utilizing the public safety network as our wireless Aggressive marketing is the SCANA's telecommunications platform and capitalizing on our thrust of Suburban Propane subsidiary operates a fiber optic-fiber infrastructure, we will be Group, fully integrated now based network consisting of uniquely positioned to vigorous-from the merger of three sepa-more than 600 miles of fiber ly pursue new markets as appil-rate companies in prior years, optics in South Carolina, cations unfold that are driven by This subsidiary serves 30,000 Georgia and Alabama. We lease the 'information super highway.'

customers primarily in South these facilities to major carriers Carolina. Our focus is on pro-in those states. We expanded in SCANA Development Caymmliun viding the highest level of ser-1993 by building additional vice at a competitive price. We capacity in Georgia and Alabama Consistent with our strategic continue to add customers in and continue to look for new plan to concentrate our efforts on the areas we already serve, communications-related ventures core energy businesses, we while pursuing growth through in other southeastern states.

have entered into an agreement add;tional acquisitions of other We also developed and are to sellin 1994 substantially all retail propane operations.

marketing an emergency radio of the assets of SCANA During 1993 we added two network that will make common Development Corporation, our new offices in Columbia and communication available to all real estote subsidiary. Upon Darlington, SC to sell propane public safety and law enforce-completion of the sale, SDC and gas appliances. We now ment agencies within the state of operations will be discontinued.

sell, install and repair all types South Carolina. This public safety The sale will not have a material of natural and propane gas network can provide independent impact on results of operations.

appliances from 19 separate communications for individual stores. Propone sales in 1993 agencies. But more importantly, totaled approximately 20 mil-it ties together all emergency lion gallons.

service providers in the event of a natural disaster or other emer-PrimesDilth,Inc.

gency situations. Approximately 40 percent of the state is cur-We curtailed Primesouth's rently covered by this system, construction activities in 1993 We will continue to aggressively to better focus its expertise on market this critical public safety maintaining and operating network throughout the rest of power plants for third parties.

Construction projects in South Carolina and North Carolina are being completed but no new s@

projects will be undertaken. We also operate power plants for clients in Pennsylvania, New York, Michigan and Virginia.

s

~

7

w.

=.

mn

.)

IIRECTORS d.

.r ;& J SCANA Coqiaration F. C. McMaster 1.4.5 comurtries or Tur soAno or oinicions 1 Member of Executive Committee President B. L. Amick 2,4,5 Winnsboro Petroleum Company 2 Member of Audit Committee Chairman of the Board and Winnsboro, South Carolina 3 Member of Management Chief Executive Officer Development and Corporate Amick Farms, Inc.

Henry Ponder, Ph.D. 2,3,5 Performance Committee Batesburg. South Carolina President 4 Member of Nuclear Oversight Fisk University Committee W. B. Bookhart, Jr 2.4.5 Nashville, Tennessee 5 Memberof Long-Term Ph Bookhart Farms J. B. Rhodes 2.3,5 Compensation Committee e Chairman of Executive Elloree, South Carolina Chairman and Chief Executive Officer Comminee Rhodes Oil Company, Inc.

. Casse J2 5 Walterboro, South Carolina DIRECTORS EMERITI e

Southeastem Freight Lines, Inc.

W. B. Timmerman W. R. Bruce, Sr.

Columbia, South Carolina Senior Vice President, K. W. French Chief Financial Officer, J. B. Guess, til H. M. Chapman 1,3.5 Controller and Assistant Secretary J. F. Hasself, Jr.

Chairman SCANA Corporation F. M. Hipp NationsBank South Columbia, South Carolina J. H. Lumpkin, Sr.

Atlanta, Georgio A. C. Mustard E

WaH, A W E W. me,3.

J. B. Edwards, DMD 1,4.5 President V. C. Summer President Canal Industries, Inc.

Medical University of South Carolina Conway, South Carolina Charleston, South Carolina John A. Warren 4,5,6 Elaine T. Freeman 2.4,5 Chairman of the Board Emeritus Executive Director 1

SCANA Corporation ETV Endowment of South Carolina Columbia, South Carolina Spartanburg, South Carolina

)

L. M. Grassette, Jr.1 Chairman of the Board, President and Chief Executive Officer SCANA Corporation Columbia, South Carolina B. A. Hagood 2.3.5 Chairman of the Board William M. Bird and Company, Inc.

Charleston, South Carolina W. H. H!pp 1.3.5 President and Chief Executive Officer The Liberty Corporation Greenville, South Carolina B. D. Kenyon President and Chief Operating Officer South Carolina Electric & Gas Company Columbia, South Carolina l

l 8

1 S I: A N A U Illl: Ell S SCANA Corporation B. T. Horton, Jr.

SCANA LM. Gressette, Jr.

Vice President and Treasurer Hyilrocarbons,Inc.

Chairman of the Board, President Max Earwood and Chief Executive Officer (1)

J hnny Kin h President and Treasurer Cottiy B. Novinger Transit and Fleet Maintenance and C. A. Rampey, Jr.

Senior Vice President Community Affairs Executive Vice President and Administration, Govemmental and General Manager Public Aftairs C. B. McFadden Vice President B. J. MacInnis W. B. Timmerman Customer Relations-Vice President Senior Vice President, Chief Financial Southem Division Off er Controlier and Assistant

. C. McMeekin, Jr.

Primesouth,Inc.

Vice President J. M. Woods,111 K. B. Marsh Customer Relations-President and Treasurer Vice President-Finance, Northem i hvision Treasurer and Secretary (3)

J.C. Chapman W. E. Moore, Jr.

Senior Vice President and A. H. Gibbes Vice President Assistant Secretary General Counsel and Assistant Fossil and Hydro Operations J. L Skolds MPX Systems,Inc.

(1) Also Chairman and Chief Vice President Executive Officer of all subsidiaries Nuclear Operations L M. Gressette, Jr.

(2) Also Chief Financial Officer of all President subsidiaries Patricia T. Smith (3) Also Secretary of all subsidiaries Vice President and General Counsel M' D Blackwell Executive Vice President and M. S. Tibshrany General Manager UIIII;UIS fil PIIINCIPAL Vice President SilHSIlllAlll[S Power Delivery Suburban Prnpane Crnup,Inc.

South Carolina Pipeline W. B. Timmerman South Care!!na[lectric D Cas Coqmration President CD."lpaHy Max Earwood D. L Sharp President and Treasurer Executive Vice President and B. D. Kenyon General Manager President and Chief Operating Officer H. T. Arthur, ll Vice President and General Counsel J. M. Clark, Jr.

G. J. Bullwinkel, Jr.

Vice President

$!Ia$dYy'dINuction ice'P ent SCANA 08Velopment Corporation A. H Gibbes R. W. Stedman SCANA Petroleum Resources,Inc.

President and T-r <

Senior Vice President Max Earwood Judith H. Battle Administrative Support Group President and Treasurer Vice President-Finance and Accounting, J. H. Young, Jr.

G. J. Wilson, Jr.

Controller and Assistant Secretary Senior Vice President Executive Vice President and Customer Relations General Manager M. L Holmes, Sr.

Vice President ce Pre ident and Controller Vice' Pres e t W. A. Darby B. S. Samuel Vice President Vice President Gas Operations Residential Development I

e

F IIN A ggTMjg htl11e of(lontents P'I i

l 1

Management Report..

Independent.

l I

rs i2s

. Auditors' Report l

[

[

[

j s40 3;

g__

I l-10%

F l

l sm Consolidated j-f Financial Statements 12 j.

lI._

s2o I

'1 -[

8' d'

i Notes to Consolidated

)

Financial Statements 2s os

[

so Management's Discussion

& A00iYSiS 05 A higher electnc sales motgin and The marketprice ofSCANA's common hu'ce A

i c

to 9 1 pus n th t to ratio gg l 99ggy00S a 31% increase in eamings per shore.

to I74% of year-end, Selected Financial Data

.30 Common Stock Information 32 10

d d

ManagementReport Iminpem!cutMilors'Repwt The management of SCANA Corporation SCANA CORPORATION:

(Company) is responsible for the preparation and We have audited the Consolidated Balance Sheets integrity of the financial data included in the accompa-and Consolidated Statements of Capitalization of nying Consolidated Financial Statements. These state.

SCANA Corporation and subsidiaries (Company) as of ments have been prepared in conformity with generally December 31,1993 and 1992 and the related accepted accounting principles, as applicable. In situ-Consolidated Statements of income and Retained ations that prevent exact accounting measurements, Earnings and of Cash Flows for each of the three years management has used informed judgments and esti-in the period ended December 31,1993. These finan-mates. Financial information presented elsewhere in cial statements are the responsibility of the Company's this Annual Report is consistent with these financial management. Our responsibility is to express an opin-statements.

lon on these financial statements based on our audits.

The Company maintains and relies upon a system We conducted our audits in accordance with ge.n-of internal accounting controls designed to provide rea-erally accepted auditing standards. Those standards sonable assurance that all transactions are properly require that we plan and perform the audit to obtain recorded in the books and records and that assets are reasonable assurance about whether the financial protected against loss or unauthorized use. The degree statements are free of material misstatement. An audit of intemal accounting control is based upon the deter-includes examining, on a test basiR evidence support-mination of the optimum balance between the cost ing the amounts and disclosures in the financial state-Incurred in maintaining a system of intemal controls ments. An audit also includes assessing the cccount-and the benefits to be derived. The system of internal ing principles used and significant estimates made by accounting controls is supported by written policies and management, as well as evaluating the overall finan-guidelines and is complemented by the selection, cial statement presentation. We believe that our audits training and development of professional financial provide a reasonable basis for our opinion.

managers and by a staff of internal auditors who con-In our opinion, such financial statements present duct comprehensive internal audits.

fairly, in all material respects, the financial position of The Board of Directors provides oversight for the the Company at December 31,1993 and 1992, and preparation of the financial statements through its Audit the results of its operations and its cash flows for each Committee, which is composed entirely of nonemploy-of the three years in the period ended December 31, ee directors. The Audit Committee meets periodically 1993 in conformity with generally accepted accounting with management and internal auditors to review their principles, activities and responsibilities. The Audit Committee also meets periodically with the Company's indepen-1, dent auditors, Deloitte & Touche. The internal and inde-

[

~

pendent auditors have free access to the Audit Deloitte & Touche Committee to discuss intemal accounting controls, Columbia, South Carolina auditing and financial reporting matters.

February 7,1994 W.B. Timmerman Senior Vice President, Controller and Chief Financial Officer February 7,1994 M

f i

1 ConselldatedBalanceSheets Cacomber 31, 1993 1992

ASSETS OhousandsotDoacts)

Utility Planf (Notes 1,3 and 4):

Electric S3,328,915

$3,203,849 Gas.

451.493 411,584

'3,709

'3,287 Transit,

72,804 65,124 Common Total.

3.856.981 3,683,844 '

- Less occumulated depreciation and omortization.

1,2S9.689 1,192,873 Total.

2,597,292 2,490,971-349,530 250,229

' Construction work in progress...

Nuclear fuel, net of occumulated amortization,

29,087 39,916 Acquisition adjustment-gos, not of occumuloted amortization.

28,166 29,163-Utility Plant. Net.

3,004,075 2,810,279 Nonutility Property and investments (not of occumulated depreciation and depletion)(Note 8).

393s728 250,084 Current Assets:

Cash and temporary cash investments (Note 8).

20,766 32,050 Receivables.

174,121 138,684 inventories (at overage cost):

Fuel (Notes 3 and 4) 62,977

'52,598 Materials and supplies 46,890 46,274 Prepayments.

21,826 22,628 Accumulated deferred income taxes 8,607 4.

Total Current Assets.

335,107 292,234 00ferred Debits:

Unamortized debt expense.

13,076 10,104 Accumulated deterred income taxes (Notes 1 and 7) 45,599 Unamortized deferred return on plant investment (Note 1).

14,860 19,106 Nuclear plant decommissioning fund (Note 1) 25,103 20,841 Other (Notes 1 and 10).

254,497 109,474 Total Deferred Debits 307,536 205,124 Total

$4,040.526

$3,557,721

)

l

.l l

12

I December 31, 1993-1992

' CAPITALIZATION AND LIABILITIES 6tomands otDobs).

Stockholders' investment (Note 5):

...$1,161,896 Common equity.,

$1,333,045 Preterred stock (Not subject to purchase or sinking funds).

26,027-26,027

. Total Stockholders' investment....

1,359.072

'1,187,923' Preferred Stock, Net (Subject to purchase or sinking funds)(Notes 6 and 8)

~

.52,840 56,154 Long-Term Debt, Net (Notes 3,4 and 8).

'1.424.399-1,204,754 Total Capitalization 2,836,311:

.2,448,831 Current Llobilities:

. 43,019 41,156.

Short-term borrowings (Notes 8 and 9).

Current portion of long-term debl (Note 3) 34.322-24,704 Current portion of preferred stock (Note 6) 2,504-2,485' Accounts payable 129.495-101,785 Estimated rete refunds and related !nterest (Note 2).

2,509.

17,811.

Customer deposits. -...-

-13.498 14,102 Taxes accrued.

50,063 65,004 '

Interest ocerued.

21,784.

- 29,295-Dividends declared 33 637 31,302.

Other.

.12,649 8,438 Total Current Uobilihes.

343,480-336,082 -

Deferred Credits:

Accumulated deferred income taxes (Notes 1 ond 7) 568,172 539,439 Accumuioted deferred investment tax credits (Notes 1 and 7) 94.981 98,639-Accumulated reserve for nuclear plant decommissioning (Note 1).

25.103 20,841' Other (Note 1).

172,479 113,889 Total Deferred Credits 860,735 772,808 Commitments and Contingencies (Note 10)

Total

$4,040,526

$3,557,721 l

See Notes to Consoldated Financd Statements.

13

a Consolidated Statements oflaceme and Retnincti famings For the Years Ended December 31, 1993 1992 1991 1-l (ThousandsotDonors -

exceptpershore ornounW Operating Revenues (Notes 1 and 2):

Electric,

S 940,121

$ 829,477

$. 867,215 Gas,,

320,195 305,275 276,742 Transit.

3.851 3,623 3,869 1,264,167 1,138,375 1,147,826 Total Operating Revenues.

Operating Expenses:

Fuel used in electric generation.

228,688 206,151 224,867 13.057 7,323' 9,816 Purchased power.

209,743 191,577 171,869

+

Gas purchased for resale,.. _..

223,239 215,800 208,614 Other operation (Note 1).

Molnfenonce (Note 1).

'67,652 65,442 61,599.

Depreciation and amortization (Note 1)..

112,844 108,315 102,669 income taxes (Notes 1 and 7)..

. 90,007 60,947

'77,562 l

Other taxes.

73.626-73,040 68,470 i

Total Operating Expenses.. _..

,1,018,856 928,595 925,466 1

Operating income.

245,311 209,780 222,360 Other income (Note 1):

Other income, net of income taxes 21,147 6,388 8,201

{

Allowance for equity funds used during construction 8,920 5,495 3,454 Total Other incorne.

30.076 11,883 11,655 I

~ 275,387 221,663 234,015 Income Before Interest Charges and Preferred Stock DMdends.

Interest Chorges (Credits):

Interest on long-term debt, net.

98,695 93,052 88,690 I

Other interest expense.,

8,672 8,819 7,648 i

Allowance for borrowed funds used during construction (Note 1)

(6.178) -

(4,271) '

(4,880)

Total lnterest Chorges, Net.._..

101.189 97,600 91,458 Income Before Preferred Stock Cash DMdends of Subsidiary.

174,198 124,063 142,557 Preferred Stock Cash DMdends of Subsidiary (At stated rates)

(6,217)

(6,473).

(6,706)

NCt Income.

167.981 117,590 135,851 Retained Eamings of Beginning of Year,

462.893 457,393 428,626 Common Stock Cash DMdends Declared (Note 5).

(124,494)

(112,090)

(105,868)f Other.

(1,216)-

'Retoined Eomings of End of Year.

$ 506.380

$ 462,893

$ 457,393 Net income.,

S 167.981

$ 117,590

.S: 135,851 Weighted Average Number of Common Shores Outstanding (Thousands).

45,203 41,475' 40,361 Eomings Per Weighted Average Shore of Common Stock.

$3.72

$2.84

$3.37 k

See Notes to Consoudated Financial Statements.

14 oI'

Consolidated Statements alCash Hows 1

For the Years Ended December 31, 1993 1992 1991-Cosh Flows from Operating Activities:

OhousanceotDo#aro Net income....

$167.081

$117,590

$135,851 Adjustments to reconcile nel income to not cash provided from operating activities:

Depreciation, deplehon and amortization...

158.024 126.695 117,402 Amortization of nuclear fuel' 18.156

.-23,190 18,384.

Deferred income taxes, net _.......

65.205 (10,783)

30,199

? Deferred inveralment tax credits, net....................

(3,658)

(3,667) -

(3,646)

Net regulatory asset - odoption of SFAS No.109.

(31.531).

6,473 0,706 Dividends declared on preferred stock of subsidiary.

6217 Allowonce for funds used during construction.

(16107)-

(9,766) '

(8,334)

Unamortized loss on reacquired debt.,

(17.083)'

(81) 171 Nuclear refueling ocerual......... _,

(0.086) 11,862

(6,192)

Equity in (eamings) losses of investees.._.

(319) 652 412 l

Over (under) collections, fuel adjustment clause.

(14,309) 7,482 (1,207)

Changes in certain current ossets and liobilities:

(Increase) cecreasein receivables

-(35,244)

(8.918)

(2,506)

(Increase) decrease in inventories.......

(10,995).

(234) 7,785 increc= (de:=::=) in accounts payab!a...............................

28.109-7,282 6,978 Increase (decrease) in estimated rote refunds and related interest.

(15,302) 17,811 Increase (decrease) in taxes accrued....

(14,941) 1,691 0,095 -

Increase (decrease) in interest accrued.

(7,511).

663 4,410 Other, net.

3.955 '

12,354-3 567 2

Net Cosh Prnvided From Operating Activities.

275.582 -

300,296 319,075 Cash Flows From investing Activities:

Utility properly additions and construction expenditures.

(322.381)

.(277,636)

.(239,140)

Increase in nonutility property and investments:

Acquisihon of oil and gas producing properties.

(122.621)

(74,766)

. (3,167)

Nonutility property (81,044)-

(35,462)

(20.750) investments.

(4.066)

(2,591) 4,895 Repurchase /reissuance of common stock for immotoriot acquisition, net of cash ocquired.

(25,514)

Principal noncash item:

Allowance for funds used during construction.

15.107 9,766 8,334 Net Cash Used For investina Activites.

(515.005)

(380,689)--

(275,342)-

Cash Flows From Financing Activiiles:

Proceeds:

Issuance of mortgage bonds 600,000-300,000 issuance of common stock..

129 06G 126,809 Issuance of notes

- 85,r)00 -

150,900 Issuance of bank notes and loans.

63,059 3,354 80,000 Other long-term debt.

3,005 Repayments:

Mortgage bonds.

(430,000)

(35.890)

(8.000)

Notes.. _... _......

'(71,700)

(95,217)

(81,016)

Othor long-term debt... _....

(1,535)

(310)

(76,649)

Repurchase of common stock.

(3,656)

Preferred stock...

(3,295) -

(3,199)

(2,622)

Dividend payments:

Common stock.

(122,129)

(109,383)

-(104,910) '

Preferred stock.

(6,247)

(6,558).

(6,718) ~

Short-term borrowings, net.....

1,863 20,390.

(113,304)

Fuet financinas, net (18.948)

(6.628)

(4,292)

Net Cash Provided By (Used For) Financing Activities.

228.139 44,268 (21,167)

Net increase (Decrease) in Cash and Temporary Cosh investments (11,284)

(36,125) 22,566 Cash and Temporary Cosh investmer}ts, January 1.

32,050 68,175 -

45,609 Cash and Temporary Cosh Investments, December 31 S 20,766

$ 32,050

$ 68,175 Suppiemental Cosh information:

Cash paid for - Interest...

$113,010

$100,340

$ 90.623 Income taxes.

93.337 81,819 45,357 Noncash Financing Activities:

Capital lease obligations recorded...................

4,965 Department of Energy Decontamination and Decommissioning Obligation 2,864

- See Notes to Consoleted nnarx'latStatements.

1s l

L.

MMMM M Notes to ConseMateHiwicM Statements

1. SUMMAlty CF SIGNiflCANT ACCOUNilNG POLICIES:

$262.2 million as of December 31,1993 and 1992, respectively.

A. Organization and Principles of Consolidotion.

SCE&G's shore of the direct expenses associated with operating SCANA Corporation (Company), o South Carolina corporatiort.

Summer Station is included in the Company's 'Other operction* and is a public utility holding company within the meaning of the Public

' Maintenance

• expensesJ Utility Holding Company Act of 1935, but is exempt from registratim D. Allowance for Funds Used During Construction T o ponying Consolidated Financial Statements refid Allowance for funds used during construction (AFC), o noncash the consolidation of the accounts of the Company ond its wholly item, reflects the period cost of capital devoted to plant under con-owned subsidiaries:

struction. This accounting practice results in the inclusion, as a component of construction cost, of the costs of debt and equity copl-bgudeduses tal dedicated to construction investment. AFC is included in rate South Carolino Electric & Gas Company (SCE&G) base investment and depreciated as o component of plant cost in South Carolino Fuel Company, Inc.

establishing rates for utility services. The Company's regulated sub-South Carolina Generating Company, Inc. (GENCO) sidiaries calculated AFC using composite rates of 9.3% 0.6% and South Carolina Pipeline Corporation (Pipeline Corporation) 9.7% for 1993,1992 and 1991, respectively. These rates do not Nonregulatedbusnesses exceed the maximum allowable rote os calculated under FERC Order SCANA Petroleum Resources, inc. (Petroleum Resources)

No. 561. Interest on nuclear fuel in process is capitalized at the -

SCANA Hydrocarbons, Inc.

actualinterest amount.

Suburbon Propane Group, Inc.

SCANA Development Corporation E. Deferred Return on Plant Investment.

MPX Systems, Inc' Commencing July 1,1987, os opproved by a PSC order on Primesouth, Inc.

that date, SCE&G ceased the deferrol of carrying costs ossociated SCANA Capital Resources,Inc.

with 400 MW of electric generating capacity previously removed U

"O Investments in joint ventures in real estate are reporied using the equity method of occounting. Significant intercompany balances rying costs on a straight-line basis over a tenicar period.

and transactions have been elirrunated in consolidation.

Amortization of deferred carrying costs, included in ' Depreciation in January 1994 the Company signed an ogreement to sell in and amortizahon," was approximately $4.2 million for each of 1994 substonhatty all of the real estate assets of SCANA 1993,1992 and 1991' Development Corporofion to Uberty Properties Group, Inc. of F. Revenue Recognition Greenville, South Carolina for $91.5 mitilon. Under the terms of the Customers' meters are read and bills are rendered on a agreement, a portion of the sales price will be received in cash at monthly cycle basis. Bose revenue is recorded during the account-the time of closing. The remainder of the sales price, which is relat-ing period in which the meters are readi

{

l cd to certain projects currently under construction, will be received in Fuel costs for electric generation are collected through the fuel

[

cash as those projects are completed. The transaction will not have component in retail electric rates. The fuel component contained in l

o material impact on results of operations, electric rates is established by the PSC during semionnual fuel cost hearings. Any difference between actual fuel cost and that contained he unt ng records of the Company's regulated subsidi-in the fuel component is deferred and included when determining the orles are maintained in accordance with the Uniform System of el cosmponenWng N W selonnmW cosMng.

2 0*O Accounts prescribed by the Federal Energy Regulatory Commission through the elect'ric fuel clouse component opproximately (FERC) and os odopted by The Public Service Commission of South CMna (PSQ'

$9.2 million and $17.7 million, respectively, which are included in ' Deterred Credjts-Other,"

C. Utility Plant Customers subject to the gas cost adjustment clause are billed Utility plant is stated substantially of original cost. The costs of based on a fixed cost of gas determined by the PSC during annual odditions, renewals and betterments to utility plant, including direct gas cost recovery hearings. Any difference between actual gas cost -

labor, material and indirect charges for engineering, supervision and and that contained in the rates is deferred and included when estab-an allowance for funds used during construction, are Gdded to utility lishing gas costs during the next annual gos cost recovery hearing.

plant accounts. The original cost of utility property retired or other-At December 31,-1993 and 1992 the Company had undercollected wise disposed of is removed from utility plant accounts and through the gas cost recovery procedure approximately $12.0 mil-gerarally charged, along with the cost of removal, less salvage, to lion and $6.2 million, respectively, which are included in ' Deferred occumulated depreciation. The costs of repairs, replacements and Debits-Other.'

rerowols of items of property determined to be less than o unit of G. Depreclotion, Depletion and Amortization property are charged to maintenance expense' clear Station (Summer Provisions for depreciation are recorded using the straight-line i

SCE&G, operator of the V. C. Summer Nu Station), and the South Corolina Public Service Authority (PSA) ore method for financial reporting purposes and are based on the esti.

joint owners of Summer Station,n the proportions of tw& thirds and moted service lives of the various classes of property. The compos-4 i

one-third, respectively. The parties share the operating costs and its weighted overage depreciation rates were os follows:

energy output of the plant in these proportions. Each party, how#

1993 1992 1991 ever, provides its own financing. Plant in service related to SCE&G's SCE&G 2.97 %

3.00%.

2.97%.

portion of Summer Storion was approximately $920.2 million and

$916.0 million as of December 31,1993 and 1992, respectively.

GENCO 204%

2.63 %

2.59 %

- Accumulated depreciation associated with SCE&G's share of Pipeline Corporation 2.39 %

2.62% '

2.62 %

j Summer Station was opproximately $285.3 million and Aggregateof Above 2.92 %

2.96 %

2.94 %

1a

~

Nuclear fuel amortization, which is included in ' Fuel used in

. In occordance with Staternent Noi 109, deferred tax assets and

. electric generation" and is recovered through the fuel cost compo-liabilities are recorded for the tax effect of temporary differences

- nent of SCE&G's rates, is recorded using the units-of-production -

between the book and tax basis of assets and liabilities at currently >

method. Provisions for amortization of nuclear fuelinclude amounts - enacted tax rates. Deferred tax assets and liabilities are adjusted for..

necessary to satisfy obligations to the United States Department of changes in such rctes through charges or credits to regulatory assets Energy under o contract for disposal of spent nuclear fuel.

or liabilities if they are expected to be recovered from, or passed The acquisition adjustment relating to the purchase of certain through to, customers of the Company's regulated subsidiaries; gas properties in 1982 is being amortized over a 40-year period otherwise, they are charged or credited to income tax expense.

using the straight-line method..

Prior to the adoption of Statoment No.109 on January 1l 1993; Depreciation, depletion and amortization of the capitalized the Company recorded a deferred income tax provision on all mater-costs of oil and gas producing propedies is provided for on the 101 timing differences between the inclusion of items in pretax finan-units-of-production basis. Units-of-production rates are based on.

cial income and taxable income each year, except for those which estimated proven reserves.

were expected to be possed through to, or collected from, customers of the Company's regulated subsidiaries. ' Accumulated deferred

[oru me taxes were generally not adjusted for changes in enacted tax ;

mmer Station is presently projected to..

commence in the year 2022 when the operahng license expires-

' The expenditures (on a before-tax basis) related to SCE&G's shore J. Pension Expense of decommissioning activities are currently eshmated, in 2022. dol-The Company has a noncontributory defined benefit pension lors assuming o 4.5% annual rate of inflation, to be approximately

. plan covering substantially all permanent employees.. Benefits are

$545.3 million including partial reclamation costs. SCE&G is pro-based on years of accredited service and the employee's overage viding for its shore of estimated decommissioning costs of Summer annual base eamings received during the lost three years of employ-Station over the life of Summer Station. SCE&G collected through ment. The Company's policy has been to fund pension costs -

rates $2.5 million and $1.6 million in 1993 and 1992, accrued to the extent permitted by the opplicable Federal income tax respectively. The amounts collected are deposited in on extemal regulations os determined by on independent actuary.

trust fund in compliance with the financial ossurance requirements

. octuary, for the years ended December 31,1993,1992 and 1991 Net periodic pension cost, as determined by on independent of the Nuclear Regulatory Commission. Management intends for the tund, including eamings thereon, to provide for all eventual decom-included the following componenb:

missioning expenditures on an after-tax basis.

'm3 1992 1991-In addition, pursuant to the National Energy Policy Act passed by Congress in 1992, SCE&G has recorded a liability for its estimat-

. (ThousandsotDo#ars) ed share of amounts required by the U.S. Department of Energy for.

Service cost-benefits ecmed its decommissioning fund. SCE&G will recover the costs associated during the period S 7.629 $ 7,174 $ 6,367 with this liability, totaling $4.6 million at December 31,1993, Interest cost on projected through the fuel cost component of its ratss; occordingly, these benefit obligation 20.413 19,628 18,334 omounts have been deferred and are included in " Deferred Debits.

Adjustments: Retum on plan assets (50,389) (28,607) -(51,440)

Other' and 'Long-term Debt, Net."

Net amort!zation and deferral 25,936 8.096 36,263

1. Income Taxes Net periodic pension cost

$ 3,589 $ 6,291 $ 9,524 The Company and its subsidiaries file consolidated Federal and State income tax retums. Income taxes are allocated to all subsid The following table sets forth the funded status of the plan, os iories based on their contributions to consolidated taxoble income.

determined by an independent actuary, at December 31,1993 and The Company odopted Statement of Financiot Accounting 1992:

Standards No.109,

• Accounting for income Taxes,* effective -

23 1992 January 1,1993. Prior years' financial statements have not been restated. Deferred tax assets and liabilities were adjusted from the (Thousands otDosars) -

amounts recorded at December 31,1992 under prior standards to Actuarial present value of benefit obligahons:

the amounts required at January 1,1993 under Statement No.109 vested benefit obligation

$204,794 : $177,930 at currently enacted income tax rates The adjustments were Nonvested benefit obligation 14.c85 17,110 charged or credited to regulatory assets or liabilities if the Company Accumulated benefit obhgation

. $218,879

$195,040 expects to recover the resulting odditional income tax expense from, or pass through the resulting reduchons in income tax expense to, Projected benefit obligation

$295,718

$258,440 customers of the Company's regulated subsidiaries; otherwise they Plan ossets at fair value (invested were charged or credited to income tax expense. The cumulchve primority in equity and debt securtties) 351.648 304,114 effect of adopting Statement No.109 on retained eamings os of Plan ossets greater than January 1,1993, as well as tne effect of adoption on net income for projected benerit obligation 55.930 45,674 the year ended December 31,1993, was not material. The com-Unrecognized not transition liability 10.713 11,555 -

bined oftect of adopting Statement No.109 and adjusting deferred unrecognized prior service costs 9,294 10,563 tax assets and liabilities for the change in 1993 of the corporate unrecognized net gain -

(M.607) -

(63.633)

Federal income tax rate from 34% to 35% resulted in balonces of

$100.8 million in regulatory assets (included in ' Deferred Debits-da Bo ts S 11.330

$ 4,159 Other") and $69 3 million in regulatory liabilities (included in

' Deferred Credits-Other') for the Company's regulated subsidiaries.

Se

_____m.__-

MNE The accumulated benefit obligation is based on the plon's Accumulated postret rement benefit obligations for:

benefit formulos without considering expected future salary Retirees S 40,065 increases. The following table sets forth the assumptions used in Other fully englble podicipants 25,767 the omounts shown above for the years 1993,1992 and 1991.

Other active participants 6.841 1992 and Accumulated postretirement benefit obligation 73,473 1993 1991 Plon assets of fair value Annual discount rate used to determine Plan assets less occumulated postretirement -

benefit obligations _

7.25%

8.0%

benefit obligation (73,473)

Expected long-term rate of retum on Unrecognized net transition liability ~

64.925 plan assets.

7.25%

8.0%

Unrecognized prior service costs Discount rate used in determining Unrecognized net (goin) loss

. 4.248; pension cost 8.0%

8.0%

Postratirement benefit liability recognized l

Assumed annuc! fc'e c' fu'ure sc!arY '

in Consolidated Balonce Sheeti S (4.300) increases for prejscled benefit obligation 4.75%

5.5%

The chance in the annual discount rote used to determine The occumulated postretirement obligotion is based upon the plan's benefit o' iigafIons from 8.0% to 7.25% as of December 31,1993 benefit provisions and the following ossumptions: '

u increased the projected benefit obligation and reduced the unrecog-

. Assumed health core cost trend rate used to

~

nfzed net gain by approximately $4.1 million. -

measure expected 1994 costs 12.25 %

in codition to pension benefits, the Company provides certain Ultimate health care cost trend rote heo!!h core and life insurance benefits to active and retired employees. On January 1,1993 the Company adopted Statement (to be achieved in 2004).

5.25 %

No,106 ' Employers Accounting for Postratirement Benefits Other Discount mte used wennining posh Than Pensions.' The Statement requires that the cost of postratire_

retirement benefit costs 7,25 %

ment benefits othet than pensions be occrued during the years the Assumed annual rate of so'ary increases 4.75 %

employees render the service necessary to be eligible for the applic-The effect of a one-percentoge-point increase in the assumed oble benefits. The Campany previously expensed these benefits, health core cost trend rate for each future year on the aggregate of which are primarily health care, os claims were incurred. The occu-the service and interest cost components of nel periodic mulated obligation for these benefits at January 1,1993 was postretirement benefit cost for the year ended December 31,1993 i

opproximately $68 million (transition liability) and the annuolized and the accumulated postretirement benefit obligation as of l

increase in expenses (net of payments to current retirees), including December 31,1993 would be to increase such amounts by l

the amortization of the transition liability over opproximately 20

$60,000 and $1.7 million, respectively.

years os provided for by the Statement, is approximately $4.7 mil-tion. In its June 1993 electric rate order (see Note 2A) the PSC K. Debt Premium, Discount and Expense, Unomortized Loss on opproved the inclusion in rates of the portion of increased expenses Reacquired Debt related to electric operations. Such expenses had been deferred long-term debt premium, discount and expense are being

{

through May 31,1993 pursuant to o December 10,1992 omortized as components of ' Interest on long-term debt, net" over I

occounting directive allowing deferral pending consideration of the terms of the respective debt issues. Gains or losses on reac-j recovery in future rate proceedings. The Company expensed quired debt that is refinanced are deferred and amortized over the approximately $4.3 million, net of payments to current retirees, for term of the replacement debt.

the year endad December 31,1993, i

Net periodic postretirement benefit cost, as determined by on L Environmental

]

Independent actuary for the year ended December 31,1993 The Company hos on environmental assessment program to included the following components (thousands of dollars);

identify and assess current and former operations sites that could

{1 require environmental cleanup. As site ossessments are initiated, Service cost-benefits eomed during the period

$ 1,908 on estimate is made of the amount of expenditures, if any, neces-Interest cost on occumulated postretirement sary to investigate and clean up each site. These estimates are -

benefit obligation 5,502 refined as additional information becomes available; therefore octual expenditures could signrficantly differ from the original estimates.

Adjustments: Retum on plan assets Amortization of unrecognized Amounts estimated and ocerued to date for site ossessments and cleanup relate primanly to regulated operations; such amounts have trone. tion obligation 3,344 been deferred and are being omortized and recovered through rates -

Other not omortization and deferral over o ten-year period; Such amounts fotoled $19.6 million and -

Net periodic postretirement benefit cost

$ 10.754

$18.3 million of December 31,1993 and 1992, respectively, and are included in ' Deterred Debits-Other.'

The following table sets forth the unfunded status of the plan, M. Gas Futures Contracts as determined by on independent actuary, of December 31,1993 The Company sells gas futures contracts to hedge price risks (thousands of dollars):

for a portion of Petroleum Resources' production. Gains and losses on such contracts, which are not material, ore recognized concur, rently with the revenue from the associated gas sales.

20

i l

l j

N. Postemployment Benefits'.

. Pipeline Corporation's customers'(including SCE&G) but that all such

. recovery of take-or-pay chorges and shift the allocations among In November 1992 th9 financial Accounting Standards Board

. Issued Statement No.112 ' Employers' Accounting for Postemploy.

. charges should be ultimately recovered. The ecse has been famitted ;

ment Benefits? The Statement, which is effective for calendor year

~ to the PSC by the Supreme Court and the Company anticipates the 1994, establishes certain conditions for the recognition of costs of PSC will issue on Order authorizing full recovery of incurred take-or-benefits to former employees after employment but before retirement.

pay costs on a prospec'ive volumetric basis after the completion of The Statement requires recognition of the obligation to provide post-accounting venfication by the PSC Staff of the principal and associated employment benefits if sucn obligation is o!!ributable 10 services pre-'.

~ interest costsm viously rendered, the obligation relates to rights which vest, payment E. On August 8,1990 the PSC issued on order, effective of the benefits is probable, and the amount of such benefits con be November 1,1990, opproving changes in Pipeline Corporation's reasonably estimated. The Company does not anticipate thof appli-gas rate design for sales for resale service and upholding the cotton of this Statement will have a significant impact on results of

'value-of-service' method of regulation for its direct industrial -.

operations or financial position, seMee. Direct industrial customers seeking ' cost-of-service' based '

rates initiated two separate appeals to the Circuit Court, which Te n

s e te orary cash investments having reversed and remonded to the PSC its August 8,.1990 order.

original maturities of three months or less to be cash equivalents.

Pipeline Corporation appealed that decision to the Supreme Court which reversed the two Circuit Court decisions and reinstated the Temporary cash investments are generally in the form of commercial imper, certificates of deposit and repurchase ogreements.

. PSC Order. The Supreme Court held that the industrial customer group s appeal was premature and toiled to exhaust administrative P. Reclassifications remedies. Additionally, the Supreme Court iraterpreted the ratec Certain omounts from prior periods have been reclassified to '

making statutes of South Carolina to give discretion to the PSC in

. conform with the 1993 presentation.

selecting the methodology to be used in setting rates for natural gas service...

2. RATE MAT 1ERS:

F, On July 3,1989 the PSC granted SCE&G opproximately A. On June 7,1993 the PSC issued on order on the

$21.9 million of a requested $27.2 million annua! Increase in retail Company's pending electric rate proceeding allowing on authorized electric revenues based upon on allowed retum on common equity of retum on common equity of 11.5%, resulting in o 7.4% annual 13.25%. The Consumer Advocate oppealed the decision to the increase in retoit electric rates, or o projected $60.5 million onnually Supreme Court which, on August 31,1992, found that the evidence in.

tosed on a test year. These rates are to be implemented in two the record of that case did not support a retum on common equity.

phases over o two-year period: phase one, effective June 1993, higher than 13.0% and remanded to the PSC a portion of its July -

producing $42.0 million annualty, and phase two, effective June 1989 order for a determination of the proper retum on common equity 1994, producing $18.5 million annualty, based on a test year.

consistent with the Supreme Courrs opinion. On January 19,1993 B. On September 14,1992 the PSC issued on order granting the PSC issued on order allowing a retum on common equity of SCE&G a $.25 increase in transit fores from S.50 to S.75 in both 13.0%, approving a refund based on the difference in rotes created by Columbia and Charleston, South Carolino; however, the PSC clso the difference between the 13.0% and the 13:25% retum on common required $.40 fores for low income customers and denied SCE&G's equity and making other non-material adjustmenis to the calculation request to reduce the number of routes and frequency of service.

of cost-of-service. The total refund, before interest and income taxes,

~

The new rates were ploced into effect on October 5,1992. SCE&G was approximately $14.6 million and was charged against 1992 has appealed the PSC's order to the Circuit Court. During oral orgu-

' Electric Revenues? The refund plus interest was made during 1993.

ments in February 1994 the Circuit Court retained jurisdiction and G. On November 28,1989 the PSC granted SCE&G on increase remanded the decision to the PSC for the limited purpose of answer-in firm retail natural gas rates, effective November 30,1989, de-ing questions conceming the applicable regulatory principles used signed to increase annual revenues by $10.1 million, or 89.5% out by the PSC in determining these transit rates.

of the requested increase of opproximately $11.3 million. In its order C. Since November 1,1991 SCE&G's gas rate schedules for the PSC authorized a 12.75% retum on common equity. The Con-its residential, small commercial and small industrial customers sumer Advocate appealed to the Supreme Court which on August 31, have included a weather normalization adjustment (WNA). The 1992 remonded the order to the PSC for redetermination of the proper WNA minimizes fluctuchons in gas revenues due to abnonnal amount of litigation expenses to include in the test period. In January weather conditions and hos been opproved through November 1993 the PSC reduced the amount of litigation expense and ordered a 1994 subject to on annual review by the PSC. The PSC order was refund totaling approximately $163,000 which was charged against tosed on a retum on common equity of 12.25% (see Note 2G).

1992 'Gos Revenues? The refund was mode during 1993.

The WNA become effective the first billing cycle in December 1991.

D. In May 1989 the PSC approved a volumetric and direct 3.1.ONG-TERM DEBT:

billing method for Pipeline Corporation to recover take-or-pay costs The annual amounts of long-term debt maturities, including the incurred from its interstate pipeline suppliers pursuant to FERC-amounts due under the nuclear and fossit fuel agreement (see Note opproved final and nonappealable settlements. In December 1992 4), and sinking fund requirements for the years 1994 through 1998 the South Carolina Supreme Court (Supreme Court) opproved Pipebne ore summarized as follows:

Corporation's full recovery of the take-or-poy chorges imposed by its suppliers and treatment of these charges os a cost of gas. However, Year Amount Year Amount th3 Supreme Court declared the PSC-opproved ' purchase deficiency" Ghousands ofDobs) methodology for recovery of these costs to be unlawful retroactive 1994

$34,322 1997

$34,591 ratemaking and remanded the docket to the PSC to reconsider its 1995 94,067 1998 59,228 rcovery methodology. The Company believes that the elimination of 1996 69,269 the purchose deficiency method of recovery will affect the timing for 21

\\

' Approximately $10.9 million of the current portion oflong-term At any hme when dividends have not been paid in full or debt for 1994 may be satisfied by either deposit and cancellation of -

declared and set apart for payment on oli series of preferred stock, I

bonds issued upon the basis of property additions or bond retire-

, SCE&G may not redeem any shares of preferred stock (unless all I

ment credits, or by deposit of cash with the Trustee, shares of preferred stock then outstanding are redeemed) or pur-During 1993 certain issues of SCE&G's First and Refunding chase or otherwise acquire for value any shores of preferred stock Mortgage Bonds were redeemed and replaced with SCE&G's Fitst -

' except in accordance with an offer mode to all holders of preferred.

Mortgage Bonds.

stock. SCE&G may not redeem any shares of preferred stock in January 1994 the Company arranged for unsecured bank (unless all shares of preferred stock then outstanding are redeemed) -

. loans totating $60 million, due January 13,1995 at interest rates or purchase or otherwise acquire for value any shares of preferred between 3.875% and 3.89E Proceeds from the loan were used to

. stock (e;; cept out of monies set aside os purchase funds or sinking -

I-repoy o $60 million bank loan due January 14,1994; occordingly, funds for one or more series of preferred stock) of any time when it ;

l such loan is included in long-term debt at December 31,1993, is in default under the provisions of the purchase fund or sinking l

Substantially oli utility plant and fuel inventories are pledged as fund for any series of preferred stock..

l

- collateral in connection with long-term debt..

. fund requirements for preferred stock for the years 1994 through The aggregate annual amounts of purchase fund or sinking

4. FUEL FINANCING 5:

1998 ore summarized as follows:

l Nuclect and fossil fuel inventories are financed through the y,,

w y,,

w

. issuance of short-term commercial paper. These short-term borrow?

Ings are suppoded by on irrevocable revolving credit ogreement ghousandsomo# ors) :

which expkes July 31,1996. Accordingly, the amounts outstond.

1994

- $2,504

_1997

$2,440 -

ing have been included in long-term debtc The credit agreement.

1995.

2,515 1998 2,440 provides for a maximum amount of $75 million that may be out-1996 2,482 standing of any time.

The changes in ' Total Preferred Stock (Subject to purchase or Commercial paper outstanding totaled $36.8 million and -

sinking funds)* during 1993,1992 and 1991 are summarized os

$55.7 million at December 31,1993 and 1992 at weighted over-follows:

age interest rates of 3.47% and 3.81% respectively. '

Number Thousands of Shores of Dollars

5. 510CKHCLDERS' INVESTMENT (including Preferred Stock Not Subjec* to Purchese or Sinking f unds):

Bolonce December 31,1990

.1,050,201

. $64.460 The changes in ' Common Stock,' without par value, during Shores Redeemed:

1993,1992 and 1991 are summortzed as follows:

$100 por value (628)

-(63) 50 por value (51,169)

(2,559) d Shwes of Dollas Bolonce December 31,1991 998,404 61,838 Bolonce December 31,1990 40.882,176

$575,251 (6.098)

(610)

Repurchase of common stock (1,000,000)

(37,425) 50 por value -

(51,777)

(2,589) -

Acquisit on of propone operations 902,311 33,769 Other (160) 2 Bolonce Decembe 31,1992 -

940.529 58.639 33ff p

{

Bdonce December 31,1991 40,784,327 571,597 a

g7,374)

(737) issuance of common stock 3,126.304 127,406

- 50 pu edue (51,187)

(2.558)

Bdonce Decemba 31,1992 43.910 631 699.003 cdomo Docesmbs 31,1993 881.968 -

' $55.344 luuance of common stock 2.708,826 1273c2 Bd:mc-e Decemba 31.1993 46.619.457

$826.605

7. INCOME TAXES:

. The Restated Articles of incorporation of the Company do not Total income tax expense for 1993,1992 ond 1991 is os limit the dividends that may be payable on its common stock.

• follows:

However, the Restated Articles of incorporation of SCE&G and the W93 4 92 M91

,4 Indenture underlying its Fkst and Refunding Mortgage Bonds contain provisions that may limit the poyment of cash dividends on its com-ghousands otDo#as) mon stock. In addition, with respect to hydroelectric projects, the Current taxes:

Federal Power Act may require the appropriation of a portion of the rederd S59390 $67,240 $43.485 eamings therefrom. At December 31,1993 opproximately $10.6 state 0.409 8,146

- 5,284 million of retained eamings were restricted as to payment of cash Totd current taxes 65399 75,386 48,769 dividends on common. stock.

Defend be net Cash dividends on common stock were declared at an annual FMed 23,219 ' (11,888) 548 rate por shara of $2.74, $2.68 and $2.62 for 1993,1992 and 25[653 sete 6.003

~413 4

1991, respectively.

Total deferred taxes 29.222 (11,475) 30,201

6. PRf f ERRED STOCK (Subject to Furchc50 or Sinking Funds):

Investment tax credits:

The call premium of the respective series of preferred stock in Amortization of amounts deterred (credtt) (3.659)

(3,659)

(3.645) no cose exceeds the amount of the annual dividend. Retirements Totot income tax expense 39f 362 $60,252 $75,325 under sinking fund requirements are at por values.

22

m NL M 1

l Total income taxes differ from amounts computed by applying

' Total deferred taxes' charged (credited) to income tax expense -

' the statutory Federal income tax rate of 35% for 1993 and 34% for -

result from timing differences in recognition of the following items:

- 1992 and 1991 to pretax income as follows:

M92 1991 1933

<1992-1991' (Thousands of 00bs) -

(ThousmdsofDobs)

Charged (credited)10 expense: -

Netincome

' $167,981.. $117,590 $135,851

- Accelerated depreciation and amortization S 2,313

$23,000 :

Totalincome tax expen*

Deferred fuel occounting

- (2,958) 461 Charged to operating expenses 91007

.60,947

-77,562 Property taxes

'562 1,692 -

Chorged (credHed)to other income t,555.

(695)

Preferred stock dividends

' 6.217 6,473. (2,237)

Cycle billing (1,321) 3 608 6,706

. Take-or-pay contracts (1,118) -

(1[099)

Tola! pretax income 5265.70a $184,315 $217,882 Intangible drilhng costs 5,122-

. 276-statutory Federalincome tax rate a S Nuclear refueling accrual; (4,430).

'.2,052 Income taxes on above at -

. 93.016 $ 62,667 : $ 74,080 -

Electric rate refund (6,571) :

Increases (decraases) attributable to:

Injuries and damages (1,377)

Allowance for funds used Other, net (1,697)

(609) '

Total deferred taxes

$(11,475)

$30,201 -

lud i fuel)

(3,125) : (1,868). (1,174)

~

The intemal Revenue Service has examined and closed consol-n of 1,4as 1,444 1,444

' Depreciahon differences.

2,794 2,129 1,613 -. Idated Federal income tax retums of the Company through 1989 Amortization ofinvestment tax credits ' (3,659)

(3,659) ' (3,645) and is currently examining the 1990 and 1991 Federal income tax Elate income taxes (less Federal

' retums. No adjustments are currently proposed by the examining income tax effect) 8.068 -

5,649 -

6,559 ogent. The Company does not anticipate that any adjustments -

Deferred income tax flowback al '

which might result from this examination will have a significant higher than statutory rates.

(4.411)

(5,565)

(3,226)

Altemate fuel production tax credit 0.373).

(275) impact on the eamings or financial position of the Company.

other differences, net :

(1,234)

(270)

(326)

Totalincome tax expense S 91,562 S 60,252 $ 75.325

8. FINANCIAL INSTRUIAENTS:

The carrying amounts and estimated fair values of the The Omnibus Budget Reconciliation Act was signed into law on Company's financial instruments at December 31,1993 and 1992 August 10,1993, increasing the corporate tax rate from 34% to 35%

are as follows (thousands of dollars):

effective January 1,1993. The impact of this change on the Com' m

1992 pony's financial position and results of operations was not material.

The tax effects of significant temporary differences comprising canym F

carrying F

the Compony's net deferred tax liability of $559.6 million at Ame vwe Amount ~

voiue December 31,1993 determined in accordance with Statement No.

cosn andlernporary 109 (see Note 11) are as follows (thousands of dollars):

cosn investments s 20,7c6 s 20,76e S 32,050 $ 32,050 -

Investrnonts 5.312 15,235 5,066 10,195 Deferred tax ossets:

short-term borrowings 41019 uc19 41,156 41,15e Unomortized investment tax credits S 56.839 Total Long-Term DetJI l A58 721 I,5$ L873 1,229,458 1,272,922 Cycle billing 15.c84 Tolol Preferred Stock Nuclear operations expenses 4,908 (Subject to purchase Deferred suu ps.Ja 6 5,315 or sinking funds) 51344 SL615 58,639 53,771 Uncollectible accounts 1,892 aos Uures contracts 137 650 338

' 26a

- Other pu:Jsu-4 benefits 1.631 The information presented herein is based on pertinent information injunes md damcges 722 available to the Company as of December 31,1993 and 1992.

Other BM8 Although the Company is not aware of any factors that would signifi.

Total deterred tax assets 96 879 confly affect the estimated fair value amounts, such financial Instru-Deferred tax liabilities:

ments have not been comprehensively revolued since December 31, Accelerated depreclaflon and omort zahon 6c4 091 1993 and the current estimated fair value may differ significantly Intangible drilling costs 15.768 from me estimated fair value at that date.

% ired debt L574 The following methods and assumptions were used to estimate the fair value of the above classes of financial instruments:

Property taxes 6.406 Pension expense 6 266 Cash and temporary cash investments, including commercial Toke-or-pay contracts 4,528 paper, repurchase agreements, treasury bills and notes are valued a ek carrying amount.

Nuclear system maintenance 2.965 Early retirement programs 1,961 Fair values of investments and long-term debt are based on Nuclear decontamination fund 1,417 quoted market prices for similar instruments, or for those instru-N M8 ments for which there are no quoted market prices available, fair values are based on net present value calculations. Investments Total deferred tax liobilities 656.444 which are not considered to be financial Instrurnents (goodwill)

Net deferred tax licbility

$5n 565 have been excluded from the carrying amount and estimated fair 23

value. Settlement of long-term debt may not be possible or may not B. Nuclear insurance..

to a prudent management decision.

. The Price-Anderson indemnification Act, which deals with pub-Short-term borrowings are valued of their carrying amount.

lic tiability for a nuclear incident, currently establisnes the liability 1 The fair value of preferred stock (subject to purchase or '

limit for third-parly claims associated with any nuclear incident at sinking funds) and gas futures contracts is estimated on the basis

$9.4 billion. Each reactor licensee is currently liable for up to of market prices.

. $79.3 million per reactor owned for each nuclear incident occurring Potential taxes and other expenses that would be incurred in on of ony reactor in the United Statas, provided that not more than $10 octual sale or settlement have not been taken into consideration.

million of the liability per reactor would be assessed per year.

SCE&G's maximum assessment, based on its two-thirds ownership -

of Summer Stahon, would be approximately $52.9 million per incl-

9. Uf0RT-TERM BORROWINGS:

dent, but not more than $6.7 miHion per year.

The Company pays fees to banks as compensation for its lines SCE&G currently maintoins policies (for itself and on behalf of of credit. Commercial paper borrowings are for 270 days or less.

. the PSA) with Nuclear Electric Insurance Limited (NEll) and.

Details of finas of credit and short-term borrowings at December 31, American Nuclear insurers (ANI) providing combined property and 1993,1992 and 1991 and for the years then ended ore as follows:

decontamination insurance coverage of $1.4 billion for ony losses '

j 1993:

1992 1991 In excess of $500 million pursuant to existing primary coverages (with ANI) on Summer Station. SCE&G pays annual premiums and, j

SriarsotDoloro in oddition, could be assessed a retroactive premium not to exceed 1j l

Au'horized ures d credit at year-end -

$175.0

$153.9.. $141.7 Unused lines of credit at yearand S148 0

$127.8 ' $141.6 71/2 times its annual premium in the event of property damage loss to any nuclear generating facilities covered by NEIL Based on short-term borrowings Oncluding _

the current annual premium, this retroactive premium would not exceed $8.1 million.

commercial paper) during the year:

$134.0 To the extent that insurable claims for property damage, decon-

. Maximum outstanding S3o4.8 - $143.0 Average outsbnding

. $1172

$ 75.3

$ 74.3 famination, repair and replacement and other costs and expenses ~

Weightod overage doity interest roles:

orising from a nuclear incident at Suminer Station exceed the policy Bank loans 3.57 %

4.47%

6.32 %

limits of insurance, or to the extent such insurance becomes un-Commercial paper 3.13%

3.69 %

6.31 %

ovailable in the future, and to the extent that SCE&G's rates would.

l not recover the cost of any purchased replacement power, SCE&G

~l mm wsundog a will retain the nsk of loss as a self-insurer. SCE&G has no reason to l

anticipate a serious nuclear incident at Summer Station il such an j

Dank loans S 42 0

$411

$ 20 7 W

o ocwr, it could have a materially adverse impact on j

l Weighted overoge interest rate 3 71 %

459% - 5 89 %

l Ccmmercid paper

$ Lo the Company's financial position.

C. Litigation l

Weighted overage interest rote 3 50 %

in January 1994 SCE&G, octing on behalf of itself ond the PSA (as co-owners of Summer Station), reached a settlement with

10. COWITMENTS AND CONItNGENCIIS:

Westinghouse Electric Corporation (Westinghouse) resolving a dis-A. Construction pute involving steam generators provided by Westinghouse to SCE&G entered into a contract with Duke / Fluor Daniel in Summer Station which are defective in design, workmonship and l

1991 to design, engineer and build a 385 MW coal-fired electric materials. Terms of the settlement are confklential by agreement of generating plant near Cope, South Carolina in Orangeburg County.

the parties and order of the court. SCE&G had filed on action in May Construct on of the plant began in November 1992 and commercial 1990 agoinst Westinghouse in the U.S. District Court for South -

i operation is expected in late 1995 or earty 1996 The estimated Carolina; an order dismissing this suit was issued on January 12, price of the Cope plant, excluding financing costs and AFC but 1994.

including on allowance for escalation, is $450 million. In addihon, D. Environmental the transmission lines for interconnection with the Company's As described in Note IL the Company has an environmental system are expected to cost $26 million.

ossessment program to identify and assess current and former oper-

- Under the Duke / Fluor Daniel contract SCE&G must make ations sites that could require environmental cleanup. As site j

specified monthly minimum payments. These minimum payments ossessments are initiated, an estimate is made of the amount of do not include amounts for inflation on a portion of the contract expenditures, if any, necessary to investigate and clean up each which is subject to escalation (approximately 34% of the total con-site. These estimates are refined os addtlional information becomes tract amount). The aggregate amount of such required minimum ovallable; therefore actual expenditures could signif cantly differ from payments remainng at December 31/1993 is as follows (thousands the original estimates. Amounts estimated and ocerued to date for of doHars):

site ossessments and cleanup relate primarily to regulated opera-1994

$168,152 tions; such amounts have been deferred and are being amortized 1-1995 59,766 and recovered through rates over a ten-year period. -

i 1996 5,603 Total

$233,521 Through December 31,1993 SCE&G paid $142.0 million under the contract, 24

l

.1

' 11, SEGMENT OF BUSINESS INFORMATION:

1991-

. Segment information at December 31,1993,1992 and 1991 Elecinc

Gas Transt!

Total and for the years then ended is as follows:

0Nuancevoobo 3993-Operating revenues '

$ 867,215 $276,742 $ 3.869 $1,147,826 Elecinc Gas Transit Tc!ct OpW m..

excluding depreciation.

hmJa0924 and omortization 580,265 '233,509 9,023 -..822,797 Operanog revenues S 940,121 3320.195 S 3,851 $1,264,167 -

Depreciation and

. omodization -

88,803 ~ 13,720 -

148 - L 102,669 opersing expenses.

excludmg daptacienon Totaloperating expenses 669,068 247,229 9,169 925.466',

and omom20!!cn

$20,291 275,934 9,737 906,012

-Operahng income (loss). $ 198,147 $ 29,513 $(5,300) - 222,360 Depreck: Hon und -

cmomzetten :

97,649 14,820.

175 112.844 Add y Other income, M 11,655 Totot coerctbg expenses 718.140 290.804 9 912 1,018.856 Less -Interest charges 4

- 91,458 Ope c+ing income (loss) $ 221,981 S 29.391 S(6.061) 245,311

. - Preferred stock dividends 6,706 '

Net income -

$ 135,851 '

. Add - Other iticome, net 30.076 Less - interest chTges '

101,189 Coplial expenditures:

- 89 $ 231,173

- Preferred stock cividends 6.217

. Identifiable

$ 205.704 $ 25,380 $

fut income fi5Uhii Utilized for overall Company operations 7,967 Co#tcI expenditures:

Total

$ 239,140 LienMicfale S ~ 279 062 S 28,761 S 604 S 308,447 Identifiable ossets of Utmzed for overett Company operctions 13,934 December 31,1991:

Tm NH' 81 Utility plant, not

$2,333,877 $280,805 $ 1,073 $2,615,755 inventories 83.637 7,242 7 476 91,355 Identificale ossets of Total

$2,417,514 $288,047 $ 1,549 2,707,110 December 31,1993:

Unby picat, rtet S2,628.374 S312A37 S 1.673 S2,942,484 Assets utilized for overoll Company operations.

598,752 ~

taventodes

. 77,805 22.019 463 100.287 Total ossets.

' $3,305,862 Totai 52306.179 $334,456 $ 2,136 3,042,771 Assets Ur! Dud for over08 Ocmpany operanons 997] 55 Totor essets

$4,040 526

12. QUARTERLY HNANCIAL DATA (UN AUDITED):

1992 I993 Electric Gas Transit Total fi'st Second Third Foumi.

Oncuance crosaro

&mde - Quader - Quarts Quader Amet Operating revenues

$ 829,477 $305.275 $ 3,623 $1,138,375 Operating expenses, Imm peg reewes (o00). 5321.840 $280,382 $359,453 $302.492 SI.26 t167 excluding depreciahon and omortization 554,897 256,178 9.205 820,280 098" " 0 D3preciation and bcctna (o00) ~

63.714 45,370 84,638 51,589

.245,311 omortization 93.978 14,174 163 108,315 Net income (ooo)

Clio 26,909 64A27 31,535 157,981 Total operating expenses 648,875 270,352 9.368 928,595 8' #8" Operatingincome(loss) $ 180,602 $ 34,923 $(5,745) 209,780

((((N[

s reponed 1 2 4i 1 41

.68 3 72 '

Add - Other income, net 11,883 Less -Interest charges 97,600

- Preferred stock dividends 6.473 Net income

$ 117,590 1992 First

.Second Third

. Fourth Quader Quader - Quader - Quader Anal t ab

$ 234,918 $ 33,495 $ 346 $ 268,759 Total operating Utilized for overall Company operations 8,877 revenues (000)

• S297,414 S255.343 S305,594 S280,024 ~S1,138,375 Total

$ 277,636 Operding income (000) 56,978 40,203 64,486 - 48,113 209,780 idantifiable ossets at ~

Net income (000) 34,132 16,753 39,643 27,062 117,590 December 31,1992:

Eamings per weighted Utility plant, net

$2,456,691 $299,591. $ 1,240 $2,757,522 overage s, re d w

inventories 82,717 8,155 481 91,353 common stock Total

$2,539,408 $307,746 $1,721_ 2,848,875 as reported

.83

.41

.96

.64 2.84 Assets utilized for overoII Company operations 708,846 Total assets

- $3,557,721 as

Management's fliscussion anti Analysis of f11?ancialCalidillan andliesults alOperations LIQUIDITY AND CAPITAL RISOURCES SCE&G has placed a new bond indenture (New Mortgoge) l The cash requirements of the Company onse primarily from dated April 1,1993 on substonhally oil of its electric properties -

' SCE&G's operational needs, the Company's construction program under which its future mortgage-backed debt (New Bonds) will be and the need to fund the oclivihes or investments of the Company's issued. New Bonds are expected to be issued under the New nonregulated subsidiaries. The obility of the Company's regulated Mortgage on the basis of a like principal amount of Class A Bonds subsidiaries to replace existing plant investment, os well os to issued under the Old Mortgage which have been deposited with the expand to meet future demono for electricity and gas, will depend Trustee of the New Mortgage (of which $157 million were available l

upon their abihty to attract the necessary financial capital on reason.

for such purpose os of December 31,1993), until such time os all l

Obie terms, The Company's regulated subsidiaries recover the costs presenity outstanding Class A Bonds are retired. Thereotter, New of providing services through rates charged to customers. Rates for Bonds will be issuable on the basis of property odd:tions in a princi-regulated services are generally based on historical costs. As -

pol amount equal to 70% of the original cost of electric and com-l customer growth and inflotion occur and the regulated subsidiaries mon plant properties (compared to 60% of value for Class A Bonds expand their construction programs, it is necessary to seek in, under the Old Mortgage), cash deposited with the Trustee, and ~

retirement of New Bonds. New Bonds will be issuoble under the creases in rates. As a result the Company's future financial position ond resuits of operations will be offected by the regutated subsidi.

New Mortgage only if adjusted net eamings (as therein defined) for -

ories' ability to obtain adequate and timely rate relief.

12 consecutive months out of the 18 months immediately preceding Due to continuing customer growth, SCE&G entered into a con; the month of issuonce are at least twice the annual Interest require-tract with Duke / Fluor Daniel in 1991 to design, engineer and build a ments on all outstanding bonds (including Class A Bonds) and New 385 MW cool-fired Nectric generating plant near Cope, South Bonds to be outstanding (New Bond Ratio). For tne year ended Carolino in Orangeburg County. Construction of the plant began in December 31,' 1993 the New Bond Ratio was 5.0.

November 1992 with comrnercial operation expected in late 1995 On April 29,1993 the Securities and Exchange Commission or early 1996 The estimated price of the Cope plant, excluding (SEC) declared effective o registration statement for the issuance of financing costs and allowance for funds used during construction up to $700 million of First Mortgoge Bonds by SCE&G under the (AFC) but including on a!!owance for escolation, is $450 million. In New Mortgage. The following series, oggregating $600 million, oddition, the transmission lines for interconnection with the have been issued under such registration statement: -

Company's system are expected to cost $26 million. Unhl the com.

• On June 9,1993, $100 million,7 5/8% Series due June 1, pletion of the new plant, SCE&G is contracting for odditional capact.

2023 to repay short-term borrowings in a like amount.

ty as necessory to ensure that the energy demands of its customers

• On July 1,1993, $100 million, 6% Series due June 15,2000; can be met.

and $150 million,71/8% Series due June 15, 2013; and on July As discussed in Note 2A of Notes to Consolidated Financial 20,1993, $150 million,71/2% Series due June 15, 2023, to Statements, on June 7,1993 The Public Service Commission of redeem, on July 20,1993, $382,035,000 of First and Refunding South Carolina (PSC) issued on order gronhng SCE&G o 7.4%

Mortgoge Bonds maturing between 1999 ond 2017 and bearing onnual increase in retoit electdc rates to be implemented in two interest at rates between 8% and 9 7/8% per annum.

I phases of $42.0 million onnually effective June 1993 and $18.5

• On December 20,1993, $100 milliott 61/4% Series due million annually effective June 1994, based on a test year.

December 15, 2003 to repoy short-term borrowings in a like Approximately 28% of total cash requirements (excluding divi.

omount, oends) was provided from intemol sources in 1993 as compared to The following additional financing transactions have occurred 40% in 1992.

since December 31,1992:

The Company has in effect a medium-term note program for

• On January 15,1993 the Company closed on on unsecured the issuance from time to time of unsecured medium-term debt bank loan in the principal amount of $60 million, due January 14, securities. The proceeds from the sales of these secunties may be 1994, and used the proceeds to pay off a loon in a like amount.

I used to fund additional business activities in nonutility subsidiories, The interest rate is the three month UBOR plus 30 basis points and l

to reduce short-term debt incurred in connection therewith or for gen.

is reset quarterty. On January 14,1994 the Company refinanced eral corporate purposes. In 1993 the Company issued $60 million the loan with unsecured bank loans totaling $60 million, due of such medium-term notes. The proceeds from the sales of these January 13,1995 at interest rates between 3.875% and 3.89%

securthes were used for the funding of nonutility subsidiary ochvities.

• On April 15,1993 the Company arranged for a $15 million term At December 31,1993 the Company has available for issuance loan, due April 14,1994, to repay short-term borrowings in a like

$67.6 million under the current registration statement. -

amount. The interest rote is the three month UBOR plus 16 basis SCE&G's First and Refunding Mortgage Bond indenture, dated.

points and is reset quarterly.

April 1,1945 (Old Mortgage), contains provisions prohibiting the

• On June 1,1993 SCE&G redeemed the following amounts of First issuance of odditional bonds thereunder (Class A Bonds) unless net and Refunding Mortgage Bonds: $35 million,101/8% Series due eamings (as therein defined) for 12 consecutive months out of the 2009 and $13 million, 9 7/8% Series due 2009.

15 months prior to the month of issuance is of least twice the

• On June 2,1993 the Company entered into o $123 million annual interest requirements on oil Class A Bonds tu be outstanding =

90-day bank loan (90-day bank loon) to finance the acquisition by i

(Bond Ratio). For the year ended December 31,1993 the Bond '

Petroleum Resources of opproximately 125 billion cubic feet equivo-

'j Ratio was 3.70. The issuance of odditional Class A Bonds is lent of naturo! gas reserves through the purchase of NICOR -

l restricted also to on additional principal amount equal to 60% of Exploration and Production Company. (NICOR) unfunded not property additions (which unfunded nel property addi.

• On July 1,1993 the Cornpany issued $60 million of medium-tions totaled approximately $219.9 million of December 31,1993),

term notes bearing interest of the following rates and maturing on Class A Bonds issued on the bas) of retirements of Class A Bonds the following dates in the following amounts: $20 million, 5.76%,

(which retirement credits totaled $10.9 million of December 31, due July 1,1998; $20 million, 6.15%, due July 3, 2000; $20

{

1993), and Class A Bonds issued on the basis of cash on deposit million,6.51%, due July 1,2003. The proceeds were used to with the Trustee.

repay a portion of the 90-day bank loan discussed above.

o

i l

l

• In early August 1993 the Company issued 1,467,000 shares of Inc. of Greenville, South Carolino for $91.5 million. Under the terms common stock with net proceeds totaling $69,345,090. The pro-of the agreement, a porflon of the sales price will be received in ceerts were used to repay the remainder of the 90-day bank loan

. cash of the time of closing. The remainder of the sales price, which -

previously discussed and for general corporate purposes.

is related to certain projects currently under construchon, will be f e On September 30,1993 Pipeline Corporation sold unsecured received in cash as those projects are completed. The not proceeds promissory notes fotoling $25 million. 6.72% due September 30,

- from the sole will be used to retire Development Corporotton's debt 2013. The proceeds were used to repoy short-term borrowings in a and for general corporate purposes, including the funding of other like amount.

nonutility subsidiaries' business activities. The transoction will not l

Without the consent of of least a majority of the total voting..

have a material impact on results of operations;.

1 power of SCE&G's preferred stock, SCE&G may not issue or assume Estimated capital requirements for construction in the year.

j ony unsecured indebtedness if, offer such issue or assumption, the 1994 ore reflected in the Cosh Requirements chart.

j total principal amount of all such unsecured indebtedness would -

The Company anticipates that its 1994 cash requirements of.

.j exceed 10% of the aggregate principal amount of all of SCE&G's

$559.7 will be met through intemally generated funds (approxi-l secured indebtedness and capitol and surplus; provided, however,.

motely 38% excluding dividends), the sales of odditional equity '

.I thal no such consent shall be required to enter into agreements for.

securities and the incurrence of odditional short-term and long-term l

payment of principal, interest and premium for securities issued for

. indebtedness. The timing and amount of such financing will depend pollution control purposes.

Upon market conditions and other factors. Actual 1994 expendi; Pursuant to Sechon 204 of the Feoeral Power Act, SCE&G and

' tures may vary from the estimates set forth above due to factors.

l GENCO must obioin FERC outhority to issue short-term indebted-such as inflation and economic conditions, regulation and legislo-.

ness. The FERC has authorized SCE&G to issue up to $200 million -

tion, rates of load growth, environmental protection standards and of unsecured promissory notes or commercial paper with maturity.

the cost and ovaiiability of capitgt.

date2 of 12 months or less but not later than December 31,1995.

The Company expects that it has or con obtain odequate GENCO has not sought such authorization.-

sources of financing to meet its projected cash requirements.

The Company hos $175.0 million authorized lines of credit and has unused lines of credit of $148.0 million of December 31, Environmental Motters 1993. In addition, the Company has a credit agreement for a maxl_

The Clean Air Act requires electric utilities to reduce substan-mum of $75 million to finance nuclear and fossil fuel Inventories, tially emissions of suffur dioxide and rMtrogen oxide by the year ~

with $38.2 million ovalloble at December 31,1993.

2000. These requirements are being phased in over two periods. '

SCE&G's Restated Articles of Incorporation prohibit issuonre of The first phase has o comphance date of January 1,1995 and the odditional shores of preferred stock without consent of the preferred second, January 1, 2000. The Company meets all requirements of stockholders unless net eamings (as defined therein) fur the 12 Phase I and therefore will not have to implement changes until com-consecuhve months immediately preceding the month of issuance is pliance with Phase 11 requirements is necessary. The Company then at least one and one-half times the aggregate of all interest charges will most likety meet its compliance regulrements through the bum-and preferred stock dividend requirements (Preferred Stock Ratio).

ing of natural gas and/or lower sulfur coal, the addition of scrubbers For the year ended December 31,1993 the Preferred Stock Ratio to coal-fired generating units, and the purchase of sulfur dioxide was 2.52.

emission allowances. Low nitrogen oxide bumers will be installed On October 12,1993 the Company registered with the SEC to reduce nitrogen oxide emissions.

2,000,000 odditional shores of the Company's common stock to be The Company is continuing to refine a compilance plan that issued and sold under the Dividend Reinvestment and Stock must be filed with the U.S. Environmental Protection Agency (EPA)

Purchase Pian (DRP).

by January 1,1996. The Company currently estimates that air During 1993 the Company issued 529,954 shares of the emissions control equipment will require capital expenditures of Company's common stock

$252 million over the 1994-1998 period to retrofit existing facilities E

>ICmCHIS.

under the DRP. In addition, and an increased operation and maintenance cost of $31 million the Company issued per year. To meet compliance requirements through the year 2003, ns) 705,498 shores of its com.

the Company anticipates total capital expenditures of $275 million, mon stock pursuant to its The South Carolina Solid Waste Policy and Monogement Act of 5 mcwam Stock Purchase-Savings Plan 1991 requires promulgation of regulations addressing specified h

h,,

(SPSP). The Company has subjects, one of which affects the management of industrial solid '

g onorcor,syvenon authorized and reserved for waste. This regulation will estublish minimum criteria for industrial G NuclearFw/ Purchases issuance, and registered landfills as mandated under the Act. The proposed regulation, if G uorurgoolgonons

$350 under effective registrahon.

odopted as a final regulation in its present form, could significantly statements,2,065,824 and impact SCE&G's and GENCO's engineering, design and operation of a

$300 872,420 shares of common existing and future ash management facilihes. Potential cost stock pursuant to the DRP impacts could be substantial.

g s250 and the SPSP, respectively.

As described in Note IL of Notes to Consolidated Financial d

in January 1994 the Statements, the Company hos on environmental assessment pro-4

?

s200 Company signed on agree-gram to idenhfy and assess current and former operations sites that ment to sellin 1994 could require environmental cleanup. As site ossessments are initi-y siso substantiallyallof thereal oted, an estimate is made of the amount of expenditures, if any,

[ - - $100 estate assets of SCANA

' necessary to investigate and clean up each site. These estimates

- Development Corporation are refined as additional information becomes avoilable; therefore 7

h l

$50 (Development Corporation) actual expenditures could significantly differ from the original esti-I f;

to Liberty Prop 9rties Group, mates. Amounts estimated and occrued to date ($19.6 million) for so 27 lexclu:1m fuelItabrlines and stanum borrowings

h

(-

L site assessments and cleanup of regulated operations have been The Company's regulated business operations ara likely to be h

deferred and are being amortized and recovered through rates over o impacted by the Nahonal Energy Pobey Act (NEPA) and FERC Order '

ten-year period. Estimates to date include, among other things, the No. 636. NEPA is designed to create o more competitive wholesale -

costs estimated to be associated with the matters discussed in the power supply market by creating

• exempt wholesale generators

• and by potentially requiring utilities owning transmission facilities to pro.

following porographs.

vide transmission access to wholesalers. Order No. 636 is intended

• The Company and its principal subsidiary, SCE&G, each own two decommissioned manutoctured gas plant sites which contain to deregulate the markets for interstate sales of natural gas by residues of by-product chemicals. The Company and SCE&G have requiring that pipelines provide transportation services that are equal -

each maintained on active review of their respechve sites to monitor in quality for all gas suppliers whether the customer purchases gas the nature and extent of the residual contamination.

from the pipeline or onother supplier, in Ifie opinion of ine In September 1992 the EPA notified SCE&G, the City of.

Company, it will be able to meet successfully the challenges of l

Chor!cston and the Charleston Housing Authority of their potential these o!!ered business climates, f

liability for the investigation and cleanup of the Calhoun Park Area Other Site in Charleston, South Carolina. This site originally encompassed in November 1992 the Financlot Accounting Standards Board opproximately 18 acres and included properties which were the issued Statement No.112 ' Employers' Accounting for locations for Industrial operchons, inclucing a wood preserving (cre-Postemployment Benefits.* The Statement, which is effective for cal-osote) @l and one of SCE&G s decommissioned manufactured endar year 1994, establishes certain conditions for the recognition ps plants. The original scope of this investigation hos bosn of costs of benotits to former employees offer employment but before expanded to approximately 30 acres including adjacent p perties retirement. The Statement requires recognition of the obilgation to owned by the National Park Service and City of Charleston, and prl-provide postemployment benefits if such obligation is offributable to vote properhes. The site has not been placed on the National -

services previously rendered, the obligation relates to rights which Priority List, but rnoy be added before cleanup is initiated. The vest, payment of the benefits is probable and the amount of such i

potentially responsible parties (PRP) have ogreed with the EPA to benefits can be reasonobly estimated. The Company does not participate in on innovative approach to site investigotion and anticipate that opplication of this Statement will have a significant cleanup colled "Superfund Accslerated Cleanup Model, allowing the impact on results of operations or financial position, pre-cleanup site investigahons process to be compressed signifi-cantly. The PRPs have negotiated on administrative order by con' RESULTS OF OPERATIONS sent for the conduct of a Remedial investigation / Feasibility Study (Rl/FS) and a corresponding Scope of Work. Actual field work Eomings and Dividends begon November 1,1993 after final opproval and authorization was Eamings per share of common stock, the percent increase granted by EPA. SCE&G is also working with the City of Charleston (decrease) from the previous year and the rate of retum somed on to investigate potenhol contamination from the manufactured gas common equity for the years 1991 through 1993 were as follows:

plant of the city's aquarium site.

1993 1992 199i During 1993 SCE&G settled its obligations at the Yellow Water Road Superfund Site near Jacksonville, Florida, the Spencer Eomings per share

$3.72

$2.84

$3.37 Percentincrease (decrease)

Trenstormer and Equipment Site in West Virginia and Elliott's Auto I

Pods in Benton, Arkansas. No farther expenses are anticipated for Retum d co mon eguity (year-end) 12 6%

10.1%

13.2%

E kG has been listed as a PRP and has recorded liabilities, which are not considered material, for the Mocon-Dockery waste

• 1993 Eamings per share and retum on common equ!!y increased disposal site near Rockingham, North Carolino, the Aquo-Tech in 1993 primarily due to o higher electric sales margin and addi-Environmental, Inc. sita in Greer, South Carolino and a landfill tional nonoperating income.

owned by Lexington County in South Carolina.

1992 Eamings per share and retum on common equity in 1992 Litigation decreased primarily due to the recording of on $11.1 million (after in January 1994 SCE&G, octing on behalf of itself and the PSA interest and income taxes) reserve ogainst eomings related to the (os co-owners of Summer Station), reached a settlement with August 31,1992 refait electric rate ruling from the South Carolino Westinghouse resolving a dispute involving steam generofors pro-Supreme Court (see Note 2F of Notes to the Consolidated Financfoi vided by Westinghouse to Summer Station which are defective in Statements) and increases in other operating and interest expenses.

l design, workmanship and materials. Terms of the settlement are The Company's financial statements include AFC. AFC is a confidential by agreement of the parties and order of the court.

uWy accounting practice whereby a portion of the cost of both SCE&G nod filed on action in May 1990 ogainst Weshnghouse in equity and borrowed funds used to finance construction (which is the U.S. District Court for South Carolino; on order dismissing this shown on the balance sheet as construchon work in progress) is

- suit was issued on January 12,1994.

capitalized. _ Both on equity and debt portion of AFC ore included in nonoperating income os noncash items which have the effect of -

Regulatory Motters increasing reported net income. AFC represented approximately On June 7,1993 the PSC issued an order on SCE&G's pend,

5.8% of income before income taxes in 1993, 5.5% in 1992 and ing electric rate proceeding allowing an authorized retum on com-3.9% in 1991, mon equity of 11.5%, resulting in o 7.4% annual increase in retail in 1993 Ine Company's Board of Directors rotsed the quarterly electric rates, or a projected $60.5 million annually on a test year cash dividend on common stock to 68.5 cents per share from 67

)

basis. These rates are to be implemented in two phases over a cents per share. The increase, effective with the dividend payable.

Two-year period: phase one, effective June 1993, producing $42.0 on April 1,1993, raised the indicated onnual dividend rate to $2.74 million annually, and phase two, effective June 1994, producing per share from $2.68. The Company hos increased the dividend

$18.5 million annually, on a test year basis.

rate on its common stock in 40 of the last 41 years.

'm

Electric Operations Increase in incomo and reflects the increase in the corporate tax rate (1993 The increase in electric sales margin from 1992 to 1993 is from 34% to 35% retroactive to January 1,' 1993J primar!!y a result of increased residential and commercial KWH

= 1992.0ther operation and maintenance expenses increased for -

- sales due to weather and customer growth, on increoso in retail 1992 primarily due to increoses in administrative and general electric rates beginning in June 1993 and the recording in 1992 of '

expenses, increases in nuclear regulatory fees and nuclear and a $14.6 million reserve os discussed below.

transmission systems maintenance. The increase in depreciation

• 1992 The 1992 electric sales margin decreased from 1991 due and omortization expense reflects additions to plant in service.

. to the recording of a $14.6 million reserve, before interest and Income taxes decreased primanly due to the tax impoci of the rate income taxes, related to the August 31,1992 ruling from the South

. refund (see Note 2F of Notes to Consolidated Financial Statements)

Carolina Supreme Court (see Note 2F of Notes to Consolidated and to other decreases in income. Other taxes increased primarily Financial Statements) and a $1.9 million billing-related litigation from higher property taxes caused by property additions and settlement included in 1991 electric operating revenues.

Increased millage rates. In addition to the above, other taxes

' Wormer weather and on increase in the number of electric cus-Increased due to increases in state license fees, tomers resulted in on oil-time peak demand record of 3,557 MW on Other income July 91993. he previous years record of 3,380 MW was set Other income, net of income taxes, increased approximately.

$14.7 million in 1993 primarily due to additionalincome from <

Gas Operottons Petroleum Resources related to higher natural gas prices and addi-

• 1993 in 1993 the gas soles margin decreased from 1992 as a tional income resulting from the acquisition of NICOR in June 1993.

result of h!gher gas prices which reduced Pipeline Corporchon's soles due to the competitiveness of citemative fuelsf This reduction Interest Expense was partially chset by increases in higher margin residentic! and

• 1993 Interest on long-term debt increased approximately $5.6 commercial sales and increased transportation vorumes.

million in 1993 compared to 199? due to the issuance of $72.4 '

• 1992 The gas sales margin for 1992 increased from 1991 as a million medium-term notes + ring the lotter part of 1992 and $60 result of recoveries of $4.2 million allowed under a weather normal-million medium-term notes m July 1993 to finance acquisitions of tzat!on adjustment which became effective the first billing cycle in natural gas reserves and tha issuonce of $200 million of SCE&G's December 1991; increases in residential usage due to cooler weath.

First Mortgage Bonds to finana utility construction. The resulting er during 1992; and increosed transportation volumes.

Increases more than offset the interest savings resulting from the redemption of $382 million of First and Refunding Mortgage Bonds Other Operating Expenses with the proceeds from the issuonce of $400 million of Firs!

• 1993 Other operation and maintenance expenses increased for Mortgage Bonds by SCE&G at lower interest rates. -

1993 primarily due to the implementation of Financial Accounting

• 1992 Interest on long-term debt increased approximately $4.4 Standards Board Statement No.106 (see Note IJ of Notes to millionin 1992 compared to 1991 due to the issuonces of $145 Consolidated Financial Statements) pursuant to the June 1993 PSC million and $155 million of First and Refunding Mortgage Bonds on electric rate order and the amortization of environmental expenses.

July 24,1991 ond August 29,1991, respectively, which more than The depreciation and amortization increase retler,,t additions to offset the decreases in interest expense resulting from the repayment plad in service. The increase in income taxes corresponds to the of debt and lower interest rates on remaining debt.

Sales Margin fxpens5s-Es Ewnc sales Moram n operanons oncuaintenance l3 two ree Deu g Gas sates Margin s7%

g Derxeaanon and Anahton@

U 0#"

8 f

8 Income rows

?p

_4._

_ _sec_o (a ottw roxes

$300 e

_p4 sao

_Ldp

- ssa a

w -- - $m i

n a

1 r

g t

1 1

4 pm

_J, _y9

- sim S3*

S9 p

( ___ sw c

g;{[

_(g, j

t s2m y

[

[

3t J

S20 a

a sm i

g so

N SelectedfinancialData For the Years Ended December 31, 1993 1992 1991 1990 1989~

11983 Statement ofincome Dato Chousands of Doaors scept statsfics and per stxve amounts)

Operating Revenues:

- Electric S 940,121 - S 829,477

$ 867,215

$ 851,146

$ 841,453

$636,319 Gas 320,195 305,275-276,742 292,380 297,069 337,282, Transit 3.851 3,623 3,869 -

4,033 4,102 3,242-Totol 0perating Revenues 1,264.167 1,138,375 1,147,826

,1,147,559 1,142,624 976,843 Operating Expenses:

Fuel used in electric generation

- and purchased power 241,745 213,474 -

234,683 '

223,972 241,352 272,716 -

Gos purchased for resole 209,743 191,577 171,869 191,939

- 212,112 277,091 Other operchon ond mointenance 290,091 281,242-270,213 265,887 249,464 125,231 Depreciation and amortization.

112,844 108,315 102,669 97,801-102,296 45,000

~ Taxes 163,633 133,987 146,032 142,003 124,216 106,932 Total 0perating Expenses 1,010.856 928,595

- 925,466 921,602 929.440 826,970 Operating income -

245,311 209,780

-222,360 225,957 213,184 149,873 Other income 30,076 11,883 11,65E 54,874 7,125-

- 11,5?l-Income Before interest ChorDes and Preferred Stock Dividends 275,387 221,663 -

234,015

, 280,831-220,309 161,444 interest Charges, Nel 101,189 97,600 91,458 92,317 90,421

57,506 Preferred Stock Cosh Dividends of Subsidtory

-6,217 6,473 6,706 6,911 7,263' 17,186 Net income S 167,981

$ 117,590

$ 135,851 S 181,603

$ 122,625

$ 86,751 Percent of Operating income (Loss)

Before inc6 ie Taxes Electric 90%

85 %

89 %

89 %

91 %

93 %

Gas 13 %

18 %

14 %

14 %

12 %

10%

Transit (3%)

(3%)

(3%)

(3%)

(3%)

(3%)

I Common Stock Data

)

Weighted Average Number of Common i

Shores Outstanding (Thousands) 45.203 41,475 40,361 40,882 40,296 37,844 Eamings Per Weighted Average Shore of Common Stock

$3.72 S2.84

$3.37 S4.44

$3.04

$2.29 Dividends Declared Per Shore of Common Stock

$2.~74

$2.68 S2.62

$2.52

$2.46

$2.00 Common Shores Outstanding (Year-End)(Thousands) 46.619 43,911 40,784 40,882 40,296 38,728 Book Value Per Shore of Common Stock (Year-End)

$28.59

$26.46

$25.23

$24.56 S22.79 S18.33 ao

i I

t For the Years Ended December 31, 1993 1992 1991 1990

-1989 1983 80tance Sheet Doto (Thousands of Donors except statistics andper share amounts)

Utility Plant, Net

$3,004.075

$2,810,279

$2,664,651

$2,549,763

$2,444,278

$2,018,942 Total Assets

$4,040,526 ' $3,557,721

$3,305,862

$3,144,936 ~ $2,984,507

$2,365,777 -

Ce nmon Equity

. $1,333,045 ' $1,161,896

$1,028,990

$1,003,877

$ 918,235

- $ 709,908 Pieferred Stock (Not Subject b Purchase or Sinking Fund Requires 'ents) -

26,027.-

26,027 26,027 26,027 26,027 26,262 -

Preferred Stock, Net (Subject to Purchase -

or Sinking Fund Requirements) 52,840 56,154 59,469 ^

62,704-66,099

-157,589 Long-Term Debt, Net 1,424,399 1,204,754 1,122,39C 938,933 '

1,003,972 796,518 Total Capitalization

$2,836.311

$2,448,831

$2,236,882

$2,031,541

$2,014,333

$1,690,277 Other Statistics Electric:

Customers (Year-End) -

468,874 461,900 453,660 446,516 435,004 366,424 Territorial So!es (Million.W/H) 16,880 15,794:

15,695 15,385 14,885 12,063 Residentiol:

Average annual use per.

customer (KWH) 14,077 13,037 13,246 13,330 12,891 12,009-Average annual rate per KWH

$.0707.

.S.0695

$.0700!

$.0707

'$.0699

-$.0642-

. Generating Copability - Net MW (Year-End) 3,864 3,912-3,912 '

3,891 3,891 3,359 Territorial Peck Demand - Net MW 3,557 3,380 3,300 3,222 3,144

- 2,700 Gos:

Customers (Year-End) 234,736 231,153 225,819 220,817 205,657 187,638 Sales (Thousand Therms) 717,417 761,721 694,801' 711,821 714,585 671,429 Residential:

Average annual use per customer (therms) 605 577 621 497 575 610 Average annual rote per therm S.76

$.74 S.77 S.77

. $.69

$.65 Transit:

Number of Coaches 93 95 102 109 84 112 Revenue Passengers l

Corried (Thousands) 4.568 5,837 6,395 6,788 6,430 9,744 l

l l

1 31

1 1

ComnmaRieckMarmatica i

I IW3 1992

.l 4th 3.J 2nd 1 st.

= 4th.

3rd

'2nd-1st

-)

Ott.

.- Ott.

Orr.

Otr.

Otr '

- Qtr.

Qtr.

Otr. '

l Price Range: (a)

. High,

52 1/4 51 7/8

48 3/B

-48 1/2 43 1/8

. 44 3/4 41 3/4 44 3/8

-l Low -

47 7/8 47 5/8-45

'40 1/8

' 39 3/8' 40 1/2 38 5/8 38 5/8-Dividends Per Shore:

1993

- Amount Date Dettored

Date Pold First Quarter

. $.085 February 16.1993 Apr!I1,1993 Secend Qucrter

.685 April 29,1993 -

' July 1,1993 TNid Quarter

.685

.. August 2$,1993 October 1,1993 Fourth Ouorter

.685 October 19,1993-Jor ucry 1,1994 '

1992'

~ Amount Date Declared Date Poid First Quarter _

$.67 February 18,1992 April 1,1992 Second Quarter

.67 April 22,' 1992

. July 1,1992 Third Quorier 67 August 26,1992 -

October 1,1992 -

Fourth Quarter -

. 67 October 20,1992 January 1,1993 '

l u

December 31, il 1993 1992-Number of common shores outstanding 46,619.457-43,910,631 Number of common stockholders of record 41,564 42,937-The principal market for SCANA common stock'is the New York Stock Exchange.. The ticker symbot '

used is SCG. The corporate nome SCANA is used in newspaper stock listings.

(a) As reported on the New York Stock Exchange Composite Listing.

SECURITIES RATINGS (As of December 31,1993)

SCANA CORPORAll0N SOUTH CAROLINA ELECTRIC & GAS COMPANY Rating First Mortgage First and Refunding Preferred Commerctol A_gency Medium-Term Notes Bonds Mortgage Bonds Stock Paper Duff & Phelps NR A+

A+

A NR Moody's '

A3 Al

. Al al P-1 Standard & Poors A-A A

A-A-1 NR - Not Roted 1'l 32 l

x INHSTDHi1NIORM AT10NM Il0!!c0 DI $Uflual MUClkl[I by making an initial cash investment of at least $250 but l

not more than $36,000. A Ptospectus descnbing the Plan SCANA Corporation's 1994 Annual Meeting of Stockholders will be faldin Columbia SCon Thursday, Apal28. The meeting willbegin and enrollment information are available upon request.

at 10:00 a.m. in the Ballroom of the Adam's Mark Hotel (formerly Siccii RCCDIfLCCQing BCd IlanS{Ci lhe Columbia Marriott Hote0,1200 Hampton Street. A lbrmal SCANA Corporation maintains stockholder records, issues i

notice of the meeting and a proxy statement will be mailed to all dividend Checks and acts as Transfer Agent and Registrar for l

stockholders in March. Stockholders who are unable to attend the the Company's common stock and SCE&G's preferred stock.

1 Annual Meehng should retum their proxy card promptly by malI.

Stockholders may send certificates oirectly to the Company's MBIIIUDEddIUSS Shoreholder Services Department (Mail Code 054) for trans-SCANA Corporation, Columbia. SC 29218 fer. There is no charge for this service. The Company recom-CUTp0fH10 UBBdyUailDIS mends that certificates be mailed by registered or certified 1426 Main Street, Columbia, SC 29201 mail. Signatures required for transfer must be guaranbod by Phone: (803) 748-3000 an official of a financial institution that is an approved mem-

)

l Stcck hchanna Listings ber of a MedaHion Signature Guarantee Program.

l The common stock of SCANA Corporation is listed and trad-UUUdhDIdDIIUQUIFIDS l

ed on the New York Stock Exchange and has unlisted trad-Questions conceming replacement of interest checks, tax l

ing privileges on the Boston, Cincinnati, Midwest, Pacific information, transfers and other bond account information and Philadelphia exchanges. The trading symbol is SCG.

should be directed to the appropriate Bond Trustee and Newspaper listings of daily stock transactions use the name Paying Agent listed below. A listing of issues under each SCANA. The 5% Series cumulative preferred stock of South classification of SCE&G bonds is shown under the heading Carolina Electric & Gas Company (SCE&G), SCANA's princi-

'Long-Term Debt" on page 17 of this report.

pai subsidiary, is also listed and traded on the NYSE. The SCE&G first and Refunding Morfgage Bonds:

trading symbol is SAC Pr; the newspaper listing is SCIE pf.

Chemical Bank l

SCE&G's other series of cumulative preferred stock are not Corporate Trust Department-15th Floor actively traded and market prices are not published.

450 West 33rd Street, New York, NY 10001 hpected ISB4 Comman Stock Dividend Dales Phone: (800) 648-8380 j

Declaration Ex-Dividend Dividend Dividend SCE&G FirstMorfgage Bonds:

Date Date Record Date Payment Date NationsBank of Georgia, N.A.

A n'

715 Peachtree Street, NE - 6th Floor, Atlanta, GA 30308 u

Aug.24 Sep.2 Sep.9 Oct.1 Phone: (800) 848-8198 Oct 18 Dec. 5 Dec.9 Jan.1 (95)

AudilDIS Note: Dividend declaration, record and payment dates are Deloitte & Touche, Certified Public Accountants subject to the discretion of the Board of Directors. Dates 1426 Main Street, Columbia, SC 29201 shown are based on the assumption that past pattems will IRVBSIDI CommullicaliG!1S prevail. Dividends on SCE&G's issues of cumulative pre-Interim reports providing summary financial statements and ferred stock are paid quarterly on the same dates as the Company news are mailed to stockholders following the common stock dividends.

close of the first, second and third quarters. A copy of StockhJ! der InquirlBS SCANA's 1993 Annual Report on Form 10-K (as filed with Stockholders with questions about stock transfer require-the Securities and Exchange Commission) and the ments, replacement of lost or stolen stock certificates, divi-Statistical Supplement to the 1993 Annual Report to dend payments (including replacement of lost or stolen divi-Stockholders are available without charge. Inquiries con-dend checks), direct deposit of dividends, address changes, ceming activities of SCANA Corporation and its subsidiaries elimination of duplicate mailings or other stock ownership and requests for Company publications should be addressed matters may write the Shareholder Services Department to the Investor Relations Department (Mail Code 054) at the (Mail Code 054) at the Company's mailing address, or call Company's mailing address.

(800) 763-5891. Calls not received during normal busi-InV8 Star Contact ness hours (8:00 a.m. to 5:00 p.m., Monday through H. John Winn, Ill Friday) will be recorded and handled the next business day.

Manager - Investor Relations and Shareholder Services l

Dividend DeinveSiment Fian Phone: (803) 748-3240, FAX: (803) 733-2887 l

The Plan provides stockholders and other investors with a lilVESIDTS' ASSDclatiDD convenient end economical method of purchasing shares of For information about this organization's activities, write to:

SCANA's common stock witnout brokerage commissions or Association of SCANA Corporation Investors service charges. Participants in the Plan may purchase c/o Mr. Paul Quattlebaum, Jr.

shares through automatic reinvestment of cash dividends 22 Broughton Road, Charleston, SC 29407 and/or by making optional cash payments of up to $36,000 during a calendar year. Persons not presently owning This report is issued solely for the purpose of providing information.

shares of the Company's common stock may join the Pian It is not intended for use in connection with any sale or purchase of, or any solicitahon of offers to buy or sell, ony securi!'es.

as

-:f; 2 :?

k-[M f' f

'/. /// ' *,' A ':

'f_

jrj. 3 9

ay N;wyl.',_.

r i..

g: t'

-aQy fi *h 33, > w k)" t n, mf s

a j%

- *W

.~ ij hy;.

~

h&Q, 3,

5..

ppg-p" "'M -

Aph., n

.wa m.

' d'

.'i"N w %?. Ah, h[ '

U

'W

' ?:4 3

Th

!.,,u.9. (i;W, -'%

-V A);

,, me.g;c$i* g';

Mk 5

f U3i,

c

,.g g z a _3 g _ p_

"}

N

+

+ ;

o

• n fiq

,y

! l%

h[

~

j b

.,j jggf p%a$,.

O I. $ 9.'

g'D

'f q

ny w ect,

.Nkhb M:W

%$%k%

,h w&DQ&

~ *p:$

g

.y ni

.. % Nr L :u;x

~

'I ($(i5' 64

[ kh # '

b N g--

s.'

- r

'b,.3

.,,. y C '

?

j cf. W

=

ry.....,

' =,a y

a e

9

.(

~

,s v -..

.a fk

^

d 7-'

, ^* e>cs

,*r -

2"

n 4;, _

6

'

• a-

.,gd h.

. +m$, '0i-

- %'5 -

gQy

'l h

~

' _Q

,y _

e Q

',3.

-f';

dp N

.l f3

?.Q "i p'p 4

)lN, f%ad[4 '

3:

~,

~

~

s

~i N"N '.

ll 7?,Z%. Mgij $'",

~.

p.q p g

.yl:

pJ p

~4 y

y q

g s,

y 2

{-

'0X _.

t i

b b

3 1

6.

2' D

m, e,a 5-

~

.\\

E

..h,.{+L.

.-.},f

.N

", *j\\W.,,

l l

v.

5 h e,

,. et._.

t

-+

<4

,a pr.

s.

g.b

+y-y; g _.,

% %.%g

.w.

,1

='

f

}w$L.,,

.s

,;-. M

y Q

>s I-* -

n $

e

["

j^

]-

'.h,~~',

s t

q h l^ 2-

~

3

. -: ~.,Q u

c/ g) r W*-

' ;c.

s l

va. 6;'>:

l 3

x; j%

., nL4 l

ai s'

.y ny.

+

gjf B

^;

-% 5 j

5 y

?

xv a.

A I

~

.w

-.2 4QL g'

n.

g t

v, c

.it; y

' n,} -

4 y

4

E L Iffl FOR, ATID-g N0!iC0 DI AHHU31 McCling by making an initial cash investment of at least $250 but not mom an %

A OspQ sc%ng he man SCANA Corporation's 1994 AnnualMeeting of Stockholders willbe heidin Columbio, SC on Thursday. April 26. The meeting u1// begIn and enrollment information are available upon request.

of 10:00 a.m. in the Ballroom of the Adam's Mark Hotel (formerly UlBCk BBCDrdkCCping and TranS(CT 1he Columbia Morriott Hotel),1200 Hampton Street. A formal SCANA Corporation maintains stockholder records, issues nohce of the meMng and a proxy statement will oe mailed to all dividend checks and acts as Transfer Agent and Registrar for stockholders in March. Stockholders who are unable to attend the the Company's common stock and SCE&G's preferred stock.

Annual Meeting should retum their proxy cord promptly by mail.

Stockholders may send certificates directiy to the Company's

%Iailillg address Shoreholder Services Department (Mail Code 054) for trans-SCANA Corporation, Columbia, SC 29218 fer. There is no charge for this service. The Company recom-C0fTsarate IIcadquarti:rs mends tnat certificates be mailed by registered or certified 1426 Main Street, Columbia, SC 29201 mail. Signatures required for transfer must be guaranteed by Phone: (803) 748-3000 an official of a financial institution that is an approved mem-SIDd bdan@ USlingS ber of a Medallion Signature Guarantee Program.

The common stock of SCANA Corporation is listed and trad.

80HdhDldDTlHyuHlBS ed on the New York Stock Exchange and has unlisted trad.

Questions concerning replacement of interest checks, tax ing privileges on the Boston, Cincinnati, Midwest, Pacific information, transfers and other bond account information and Philadelphia exchanges. The trading symbol is SCG.

should be directed to the appropriate Bond Trustee and Newspaper listings of daily stock transactions use the name Paying Agent listed below. A listing of issues under each SCANA. The 5% Series cumulative preferred stock of South classification of SCE&G bonds is shown under the heading Carolina Electric & Gas Company (SCE&G), SCANA's princl.

long-Term Debt' on page 17 of this report.

pal subsidiary, is also listed and traded on the NYSE. The SCE&G first and Refunding Mortgage Bonds:

trading symbol is SAC Pr; the newspaper listing is SCrE pf.

Chemical Bank SCE&G's other series of cumulative preferred stock are not Corporate Trust Department-15th Floor actively traded and market prices are not published.

450 West 33id Street, New York, NY 10001 hpCClud 1894 CummDG SIDCh UlVid8Hd DalHS Phone: (800) 648-8380 Declaration Ex-Dividend Dividend Dividend SCE&G first Mortgage Bonds:

Date Date Record Date Payment Date NationsBank of Georgia, N.A.

Feb.15 Mar. 4 Mar.10 Apr.1 715 Peachtree Street, NE - 6th Floor, Atlanta, GA 30308 Apr. 28 Jun.6 Jun.10 Jul.1 Phone: (800) 848-8198 Aug.24 Sep.2 Sep.9 Oct.1 Oct.18 Dec.5 Dec.9 Jan.1 (95)

AuditurS Note: Dividend declaration, record and payment dates are Deloitte & Touche, Certified Public Accountants subject to the discretion of the Board of Directors. Dates 1426 Main Street, Columbia, SC 29201 shown are based on the assumption that past patterns will lilVDSluf C0mmtmlBaliDf1S prevail. Dividends on SCE&G's issues of cumulative pre-Interim reports providing summary financial statements and terred stock are paid quarterly on the same dates as the Company news are mailed to stockholders following the i

common stock dividends.

close of the first, second and third quarters. A copy of Stockholder InquiricS SCANA's 1993 Annual Report on Form 10-K (as filed with Stockholders with questions about stock transfer require-the Securities and Exchange Commission) and the ments, replacement of lost or stolen stock certificates, divi-Statistical Supplement to the 1993 Annual Report to dend payments (including replacement of lost or stolen divi.

Stockholders are available without charge. Inquiries con-dend checks), direct deposit of dividends, address changes, ceming activities of SCANA Corporation and its subsidiaries elimination of duplicate mailings or other stock ownership and requests for Company publications should be addressed matters may write the Shareholder Services Department to the Investor Relations Department (Mail Code 054) at the (Mail Code 054) of the Company's mailing address, or call Company's mailing address.

(800) 763-5891. Calls not received dunng normal busi-lDVCSlur Curitact ness hours (8:00 a.m. to 5:00 p.m., Monday through H. John Winn, lil Fnday) will be recorded and handled the next business day.

Manager - Investor Relations and Shareholder Services DhidBild IlcillVUStment Flari Phone: (803) 748-3240, FAX: (803) 733-2887 The Plan provides stockholders and other investors with a IHVESIDfS' ASSDClaliDil convenient and economical method of purchasing shares of For information about this organization's activities, write to:

SCANA's common stock without brokerage commissions or Association of 3CANA Corporation Investors service charges. Participants in the Plan may purchase c/o Mr. Paul Quattlebaum, Jr.

shares through automatic reinvestment of cash dividends 22 Broughton Road, Charleston, SC 29407 and/or by making optional cash payments of up to $36,000 during a calendar year. Persons not presently owning This report is issued solely for the purpose of providing information.

shares of the Company's common stock may }oin the Plan It is not intended for use in connection with ony sole or purchase of or any solicitation of offers to buy or seII, any securities.

33

( _

t

• }.

4,

.~,I g

, 9 4

L

[....

.. : y

. '. ?

. ~,,.<

^

i [... : '

' : - L-

../. :,, -

.'.v :ce.;. '_.

7

~

s

.~.'..:._

...'W

[.

'+. -

[+'

.s 1-O..' j $

?.C0WMB1(A

,.w ?y..drind South comM29MS.. * $

'.a'...:L......

s 1

.; pga e 71 px.o.

. ~

.c~

x +..

L g % yge ',

'~

.y.-

.~

~..

,,.. &.h, ; ?

',J..},'. ; 'l~

~

'^'..

'.. ? -

I'

. '.,t

'.L

~.. '.,

..g Gi.

. :... ::.n

.,3 +.. ;

. $"..h A[?.; ;;.:;. :;

... J. !

g,,'.

.y l'

. _~.k.'4

_t.

-m s,

?

m l:{ h n..n.

c.

e h;

y f,

}'..

, cglf ;

j

~

.........%.;.m. - :.s...U4N@. :, k.

l.. n?..'.. l l.._ _. -_ -( '.- *- '~ ' ' '

lh.

l n.

.:.. r. a,

.v..

.,.....,.... 7 M

- y '..

w

.I U. lp w.. . t C '..... ;....

y %v..... s...

a s.

y.

..,.....c."

s.

..... ' '.'.._...s..'.

~

.,.L

~ '..

.:,}+~,'

.__': _. * ~

?

' ~ ':

p:

s

. s W,

a f

s ' '

'g

'f,,.. : '

r*

.>,_.4' V R.'y j :'3:..)._.:-

J.f...'.

J *

'. ; '. I. -. ' ~ -

,J.

p.. 4.

f

g.. ', {*

.Q. _

.i

. :.'.??.:ll,.e f W '

f }, ;.f.; }

i c w u

w.

.c

.., hh. ;

' 5. M..,h..:., 3 N f M,$[.,,1.,

~

n [^ 2. '.. + f4 b

.,. w

~. 7,.

9:..p: y q':y.:.

w..-

4-

-. u,_

'... h',

.(.',_

t/

38b

.eI-t

',.,Q:

m..x,.._

..:.__ _ 3 - s ;..

c:

y.

7:,

.J':

.9.

,s.~',_

u. m u

.. # ww.q 3

.'r. : Y.' :

q

_- ' _., [' - ', ',...-'

• 7;.J.;;;

• =

- ;. <,,y,[l :...

2:L:

.,;+

j g

. l.'

.._-... ', '. :i *..

i 2 ;.*. - :"; L

~

i.

• .'O.

d-

?

?'^

.'}_

_ ___, [;. _ ~

.' '.. }, t,...}:

Q.l.h, j._. 3

.g 3..,. -,;

,i.

_s

, ll,F-; ' ;f}.((N

}'

_f:l:; JI.; I l.

'L

[ {.

y

? '

'. + ". :'..

n Jv

..... e. m.n b : ::,. y. &.

...g.-

s.

... _g e

~ ~ '

J-

.s 4 : w W, f...., ".y: y.,

D-

..;,e

_.;4,y

,y :: -

.7...

w;

.t:v : '. : :-

. t ' :: -

,')? - '

C.

f

'. ^'- ' ' '

..,f

.wl. _,..(:t ; ~

. n

..n

\\

c +..

.. ~

+.y;

~

~ r+

4.,. :

-3n.

v.

e 9, '. - -

- [.'._.: [

, ;.~.......' ',. E i'...,. -.

.. y :.;;

.". y f..

r.........[m:pg

.fy

. l ; '. _ ( ;.

,..,...... 7, rg. _g-t'

- 4 f. 4.,.

kl.

. gt'.l,{Jp\\y3pp 9 i

7

.r

',',.T.

' [;'..:.l))Of. L.y%

.,..._..-.,,;.. >:;; :...'.f f:

y

3 ;.y

?

u.-@

_, ' /..;;

• ly

-., [.i. a._ :.;

..,... '; y,,

.p

g.,... -

y 5... _...

,.7.:o,.g 7

. '..a

s. :.:

J. y;.. ;, _...,, ;. : : g, :

..-. ;v.:

. : ;i.

G;.

> ;. * ;. 7 :

,.... 3n,..

....?}g;; ", [ ' %. -;r

., j.gy,-7, : 3. q_G.fu

,,. s}..:..,'. r..(. :;9.v,

y.

s }.' '

1 W

., hh 5 :

- 'sL m.q(q.ug.

'f ;$h,

@d

. ?. '..i [ I. l U,

[,

y' - -

7.:. ;

3.;

.. _ v.:.:L.-

. p ;;

4

. ; a3 5.:..

. +.

y

.a.,a.u...... ::3.,. v,;.:.,, ;.: ~ ;.

y..

c._ '

I' JV j.'

.. 3 t

~

.. e.

a p;.,,

.,,,,y y

1. m.

n.g f.ht:

'=..;-'....,

..;'.: l

..... z.ll

%d:' ;

. y j;, %.~... l.'.. ' '.

k_ . :Q[. ?.l

/.

l. '.

• . c

... ': J R ~ <. ' '

":-g l

.. c d. fp

..? % g i.

fp

'. M'.j;&#...[M YEf '

c.:3 A :,

ji.3

.',].{.[,[ g' [Tyfjf.y

%%4[y4 Qz r,l 7f 7

..f. ",y

?.. ; '

. 3.

./

II :.

.le

'. : { -

j

/..Q g j1.

. Qt n'!; - ',. '- '

.M j ' ?..d L,-

,'e f

. y..g..t

..,.7( _ Q:j.;.1 :

', %.R p,

vy,;{, %' ;.. '.' f

s:.::

q :;

.2

')-

c e

,4 p-p@&:- 7 j,3.. [r,;, i.y *"M.. y

2.Q

.D.f-t.' 1*

• /.e f

r. ;..: -

.M. *. f, :c.@e

^ ~ -

,_f Arf

+

u j,,_..e,".

' {

l *

' p;,

.,.,..;.t '. k. :.

Q,.

8q,_=,',,.,,

f,

.,;,f,..,.'..'.,v'-,..,., '.,,.,..

_,/}

';- }... t

?,*

_._p s

[.

j.,l f

.h

[*..

i

,4 W, $kg &$C.c ' lL P Q. ;74

.

.... ::$!'W, y -

%/.. ;

Q l ilQ,.'k;l

.J: ?

4 f p %[i k W W.. y:-

3 1

Q:r:g;.::/y;;.%y.3.yg z[. s.-/}ff.

CQ

.. v.:,a y y',

'. p y.:..:;. L.. ~.

pg.

y' y;.3.,.

.m o.: -y v

.... r.m,

gt. :

- o..

e gg;.....y#

(

n. m. -

- y,. y'.,... p.;....

s

....._.Q',,.,j,,

5 7

j i

&' ;*, *......,./. 4.g

' 9...

ap>

,m ;~ : :. ,....,. ;.. :..,:.,.,..1,.~.

,e

• i,

,s

~; r,>,

l,,'

w&.g m.a -lR.

g.c

'.,% p..

,. ., ';. / '_

y

• s m ;,; ;,; a, 3

J

/.