ML20073G759

Forwards Endorsements 8 & 9 to Maelu Policy MF-108, Endorsements 23 & 24 to Nelia Policy NF-252,MAELU Certificate of Insurance M-78 & Nelia Certificate N-78 & Annual Financial Rept 1982

ML20073G759
Person / Time
Site:	Summer
Issue date:	04/04/1983
From:	Dixon O SOUTH CAROLINA ELECTRIC & GAS CO.
To:	Dinitz I NRC OFFICE OF STATE PROGRAMS (OSP)
Shared Package
ML20073G762	List: ML20073G759 ML20073G790 ML20073G812
References
NUDOCS 8304180379
Download: ML20073G759 (21)

Text

{{#Wiki_filter:, SOUTH CAROLINA ELECTRIC & GAS COMPANY Post orrics 7s4 COLUMaiA. south CAROLINA 29218

o. W. DixoN. JR.

p i Nuc EAR OPERAtlONS Mr. Ira Dinitz Office of State Programs (AR-5037) U.S. Nuclear Regulatory Commisrion Washington, D.C. 20555

Subject:

Virgil C. Summer Nuclear Station Docket No. 50/395 License No. NPF-12 10CFR140.15(a) and 10CFR140.21 Reporting Requirements

Dear Mr. Dinitz:

In compliance with 10CFR140.15(a) and 10CFR140.21 respectively, South Carolina Electric and Gas Company hereby submits eight (8) copies of four (4) Primary Liability Insurance Endorsements, two (2) copies of four (4) Secondary Liability Insurance Endorsements, and one (1) copy of the Annual Financial Report for both the South Carolina Electric and Gas Company and the South Carolina Public Service Authority. Very truly

ours,

• 4 O.

W. Di on, J i WRM:RBC/fjc gQ/ cc: V. C. Summer T. C. Nichols, Jr./O. W. Dixon E. C. Roberts H. N. Cyrus Group / General Managers J. P. O'Reilly R. B. Clary R. R. Mahan-H. M. Bryant A. R. Koon J. L. Skolds J. B. Knotts,Jr. NPCF File 8304180379 830404 PDR ADOCK 05000395 PDR

NUCLEAR ENERGY LIABILITY INSURANCE MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS ADVANCE PREMlUM AND STANDARD PREMlUM CALENDAR YEAR 1983 ENDORSEMENT 1. ADVANCE PREMlUM: it is agreed that the Advance Premium due the companies for the period designated above is: s 59,169.37 2. STANDARD PREMlUM AND RESERVE PREMlUM: In the absence of a change in the Advance Premium indicated above, it is agreed that, subject to the provisions of the Industry Credit Rating Plan, the Standard Premium is said Advance Premium and the Reserve Premium is: s 44,293.72 This la to certify that this is a true copy of the original Endorsement having the endorsement number and being made part of the Nuclear Energy Liability Policy (Facility Form) as des-ignated hereon. No Insurance is afforded hereunder. f 'P John L. Quattrocchi, Vice President Liability Unde i American Nuclear Insurers Effective Date of This Endorsement January 1,1983 To form a part of Policy No. MF-10R 12:01 A.M. Standard Time issued to South Carolina Electric & Gas ComDany and South Camlina Public Servico Authnrity Date of Issue December 15, 1982 For the s cribing com anies By /A b /' General Manager N-Endorsement No. 8 Countersigned by r

NUCLEAll ENERGY LIAIIILITY INSURANCE MUTUAL ATO MIC ENERG Y LIA BILITY UNDERW RITERS 1. Amendment of Advance Premium Endorsement 2. Standard Premium and Reserve Premium Endorsement 3. Additional Premium Due 1. Advance Premium It is agreed that the Amended Advance Premium due the companies for the calendar yea r 1983 is $63,317.02 2 Standa rd Premium and Reserve Premium Subject to the provisions of the Industry Credit Rating Plan, it is agreed that the Standard Premium and Reserve Premium for the calendar year designated above are: Standard Premium $63,317.02 Reserve Premium $47,445.94 3. Additional Premium $4.147.65 Effective Date of To form a part this endorsement January 1, 1983 of Policy No. MF-108 South Carolina Electric & Gas Company and South Carolina Issued to Public Service Authority Date of Issue December 28, 1982 For the Subscribing Companies l l MUTUAL ATOM C ENERGY LIABILITY UNDERV'RITERS I Y-DC DA_

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\\ I Endo rsement No. 9 Con: ersigned by [v &(( Authorized Representative This is to cortify that this is a true copy of the original Endorsoment having the endorcoraent number and being made part f the Nuclear Energy Liability Policy ( acility Form) as des-t.E-36 id, sted hereon. No insurance is afforde hareunder. 1 Jdm L Quattn"hi. Vice President Liabi!!ty Undernidr,# Anwrican Nuclear Insurers

n Nuclear Energy Liability Insuranca NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ADVANCE PREMlUM AND STANDARD PREMlUM CALENDAR YEAR 1983 ENDORSEMENT 1. ADVANCE PREMlUM: It is agreed that the Advance Premium due the companies for the period designated above is: 203,805.63 2. STANDARD PREMlUM AND RESERVE PREMlUM: In the absence of a change in the Advance Premium indicated above, it is agreed that, subject to the provisions of the Industry Credit Rating Plan, the Standard Premium is said Advance Premium and the Reserve Premium is: 152,567.28 This is to certify that this is a true copy of the original Endorsement having the endorsement number and being made part' of the Nuclear Energy Liability Policy (Facility Form) as dess ignated hereon. No Insurance is afforderd her er, [ i.Vice President Liabuity Ur eMrg john L Quatt Amencan Nuclear Irwuers Effective Date of This Endorsement January 1,1983 To form a part of Policy No. NF-252 12:01 A.M. Standard Time issued to South Carolina Electric & Gas Company and South Carolina Public Service Authority Date of issue., December 15,1982 For the s cribing com anies Louw /# General Manager Endorsement No. 23 Countersigned by 6 7E

Nuclear Energy Liability insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ADVANCE PREMIUM AND STANDARD PREMIUM ENDORSEMENT CALENDAR YEAR 1983 It is agreed that Items la. and Ib. of Endorsement No. 23 are amended to read: la. ADVANCE PREMIUM: It is agreed that the Advance Premium due the companies for the period designated above is: $ 218.091.98 Ib. STANDARD PREMIUM AND RESERVE PREMIUM: In the absence of a change in the Advance Premium indicated above, it is agreed that, subject to the provisions of the Industry Credit Rating Plan, the Standard Premium is said Advance Premium and the Reserve Premium is: $ 163,424.90 Additional Premium: $ 14,286.35 This is to cortify that this is a true copy of the original Endorsement having the endorcement number and being made part of the Nuclear Energy Liability Policy Pacility Form) as des-16 Tated hereon. No Inourance is affor c 1 hereunder. b Who Q John L. Qmttnechi. Vice President Liabihty Underwriting American NxWe b.m Effective Date of this Endorsement January 1, 1983 To form a part of Policy No NF-252 12:014.M. Standard Time issued to South Carolina Electric & Gas Company and South Carolina Public Service Authority Date of issue December 28, 1982 For the su scribing co panies By I / General Manager Endorsement No 24 Countersigned by / NE-36 ~ i

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4-MUTUAL ATOMIC El4ERGY LIABILITY UfIDERWRITERS 4> 6 %a, s

b Certificate tio. M-78 Wwh<! E REyf 5 Forming Part of Master < 4 mt,/ E D$5g g Policy flo. I En55 5c$ C[EWS$ m$d gg CERTIFICATE OF IllSURAflCE t iE.,, d a m cc 1h 5$'8N DECLARATI0 tis AtlD Eco E" zg U ! T.: 3

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B0tlD FOR PAYMEflT OF RETROSPECTIVE PREMIUMS t! SOMhM 5$ e%& A M g g Q g ",w<3 g Certificate of Insurance r v = a._ This is to certify that the persons and organizations designated in Item 1 of the Declarations are named insureds under the Master Policy - fluclear Energy Liability Insurance (Secondary Financial Protection),herein called the " Master Policy", issued by Mutual Atomic Energy Liability Underwriters. s Such insurance as is provided by the Master Policy applies, through this certificate, only: l i (a) to the insureds identified in Items 1 and 2 of the Declarations, I (b) for the certificate period stated in Item 6 of the Declarations. [ (c) to bodily injury or property damage (1) with respect to which the primary financial protection described in Item 4 of the Declarations would apply but 'for exhaustion of its limit of liability as described in Condition l 6 of the Master Policy, and l (2) which is caused during the certificate period stated in Item 6 of the Declarations by a nuclear incident arising out of. or in connection with the nuclear reactor described in Item i 3 of the Declarations, and MSFC-1 (1/1/83) Pa9e 1

-r (3) which is discovered and for which written claim is made against the insured not later than ten years af ter the end of the certificate period stated in Item 6 of the Declarations.

However, with respect to bodily injury or property damage caused by an extraordinary nuclear occurrence this subpar $ graph (3) shall not operate to bar coverage for bodily injury or property damage which is discovered and for which written claim is made against the insured not later than twenty years after the date of the extraordinary nuclear occurrence. Declara tions Item 1. Named insureds and addresses: (a) South Carolina Electric & Gas Company - 328 Main Street, Columbia, South Carolina 29218 (b) South Carolina Public Service Authority - 223 North Live Oak Drive Moncks Corner, South Carolina 29461 Item 2. Additional insureds:- Any other person or organization who would be insured under the primary financial protection identified in Item 4 of the Declarations but for exhaustion of the limit of liability of such primary financial protection. Item 3. Description and location of nuclear reactor: Unit 1 of the Virgil C. Summer Nuclear Station located in Fairfield County, South Carolina. Item 4. (a) Identification of primary financial protection applicable to the nuclear reactor and limit (s) of liability thereof: Nuclear Energy Liability Insurance Association's Policy NF-252 $124,000,000 Mutual Atomic Energy Liability Underwriters' Policy MF- $36,000,000 Page 2 of Certificate No. M-78

'M (b) The following endorsements, attached to the primary financial protection policies listed in Item 4 (a) also apply to the insurance afforded by'the Master Policy through this certificate as though they were attached hereto: (1) Waiver of Defenses Endorsement (Extraordinary Nuclear Occurrence)and (2) Supplementary Endorsement - Waiver of Defenses - Reactor Construction at the Facility, (c) The limits of liability provided under the primary financial protection specified in Item 4 (a) above are not shared with any other reactor except as follo*:ss: No Exceptions Item 5. Limits of Liability: The amount of retrospective premium actually received by the companies plus the amount of the companies' contingent liability, if any, pursuant to Conditions 2, 3 and 4 of the Master Policy. Item 6. Certificate Period: Beginning at the same time and date that the Facility Operating License issued by the United States Nuclear Regulatory Commission for the reactor described in Item 3 of this certificate becomes effective and continuing to the effective date and time of cancellation or tennination of the Master Policy or this certificate, whichever first occurs, eastern standard time. Item 7. Maximum retrospective premium (exclusive of allowance for premium taxes) payable pursuant to Condition 2 of the Master Policy with respect to each nuclear incident: $1,125,000 Item 8. Portion of the annual premium payable for the companies' contingent l liability described in Condition 4 of the Master Policy from the effective date hereof to the end of calendar year 1982

The pro rata portion of $1,350.00 for the period from the effective date of this certificate to the end of the calendar year during which such effective date occurs.

Page 3 of Certificate No, M 78 1 a

BOND FOR PAYMENT OF RETROSPECTIVE PREMIUMS Know All Men By These Presents, that the undersigned do hereby acknowledge that they are named insureds under the Master Policy described in the above Certificate of Insurance and Declarations. The named insureds do hereby covenant with and are held and are firmly bound to the members of Mutual Atomic Energy Liability Underwriters subscribing the Master Policy (here-inafter called 'the " companies") to pay to the companies all retrospective premiums and allowances for premium taxes which shall become due and payable in accordance with the Master Policy, as it may be changed from time to time, with interest on such premiums and allowances for taxes to be computed at the rate provided in the Master Policy from the date payment thereof is specified to be due the companies in written notice to the first named insured as provided in Condition 2 of the Master Policy until paid; l And it is hereby expressly agreed that copies of written notices of retro-spective premiums and allowances for premium taxes due and payable or other evidence'of such amounts due and payable sworn to by a duly authorized representative of the companies shall be prima facie evidence of the fact and extent,of the liability of-the named insureds for such amounts; t i' 1,. And.it is further. expressly agreed that the named insureds will indemnify the i companies against any and all liability, losses and expenses of whatsoever kind i or nature (including but not limited to interest, court costs, and counsel fees) ,which the companies may sustain or incur (1) by reason of the failure of the l named insureds to comply with the covenants and provisions of this Bond and - (2) in enforcing any of the covenants or provisions of this Bond, or any provisions'of the Master Policyi reiating to such covenants or provisions; + I ~ ! Fo,r the-purpose of recording this agreement, a photocopy acknowledged before l a Notary-Public to be a true copy hereof shall be regarded as an original. Page 4 of Certificate No. M 78

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The preceding Certificate of Insurance, Declarations and Bor.d form a part

' of the Master" Policy. Cancellation or termination of the Master Policy or the' Certificate of Insurance shall not affect the named insured's ~ -- 'obligati6nsjundcFthe policy'or the Bond to pay the retrospective premiums ~ and alf_owances for'prbmiun taxes, as provided in this Certificate and N. s, Condition 2 of.thd Master Policy. y IN WITNESS WHERE0F, the named insureds have caused this Certificate, these ~ DeclarationsandthisB)ndforPaymentofRetrospectivePremiums,tobe signed and sealed by a duly authorized officer, to be effective as of the itime and date of the inception of the Certificate period. . " = - Att'esE o'r Witness flamed Insureds: South Carolina Electric & Gas Company (Named Insur - Type or Print) ,,v \\ } H.,M.' Bryant, Se 'etery (Signature of Officer) William B. Timmerman Vice President - Finance (Type or Print Name & Title of Officer) c,- 6 Date: August 16, 1982 [ t f 4 \\ South Carolina Public Service Authority

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st (Named Insur d - Type or Print) By _#M 4C - (SEAL)

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,p,% L.'Pf INr$an,~. Corporate $ecretary (Signature'of Officer) .i m I t [/ - W. C. Mescher, President f- ? N,Ol.d'}<Y (Type or Print itame & Title of Officer)- ( Date: August 13, 1982 A T 2 (Named Insured - Type or Print)

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/ By (SEAL) (Signature of Officer) .o y (Type or Print Name & Title of Officer) v Date: u S (( y E Page 5 of Certificate No. M 78

.a ,,,,-b-IN WITNESS WHEREOF, the companies subscribing the Master Policy have caused the Certificate of Insurance and the Declarations to be signed on their behalf by Mutual Atomic Energy Liability Underwriters to be effective as of the time and date of the inception of the Certificate period, and countersigned below by a duly authorized representative. Attest or Witness For the Subscribing Companies of MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS g BY:# _'d,hh-I // L Qthorized AgenY ~ Countersigned by k (Authofized Representative) Subscribing Companies PROPORTION' 0F' 100% American Mutual Liability Insurance Company, Wakefield, MA 15.0000000 Employers Insurance of Wausau, A Mutual Company, Wausau,- WI 15.0000000 Liberty Mutual Insurance Company, Boston, MA 30:0000000 ~ Lumbermens Mutual Casualty Company, Long Grove, IL 30.0000000 Michigan Mutual Insurance Company, Detroit, MI 5.0000000 Sentry Insurance, A Mutual Company, Stevens Point, WI 5.0000000 Page 6 of Certificate No. M 78

NUCLEAR ENERGY LIABILITY INSURANCE MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS ENDORSEMENT TO CERTIFICATE NO. M-78 Forming Part of Master Policy No. 1 Nuclear Energy Liability Insurance (Secondary Financial Protection) ANNUAL PREMIUM ENDORSEMENT YU g, e It is agreed that the Annual Premiums applicable to the periods ggg g designated below are as follows: +a- $ $ l @. For Calendar Year 1978 o 5 m. EffectiveDateJagry1,1978 233*! Annual Premium %e%$gy For Calendar Year 1979 hgd4 f Effective Date January 1,1979 !.g "g % Annual Premium N/A eaow z. E:d6 a For Calendar Year 1980 " ~ P. 1 3 Effective Date January 1, 1980 l,-! j Annual Premium N/A 3 Se 3 [U For Calendar Year 1981 fi 8 j & tg Effective Date January 1,1981

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>g Annual Premium N/A h O i25 fv h "8o h h M ". y For Calendar Year 1982 Effective Date August 5, 1982 gay 8 g]z Annual Premium $ 550.80 ,e xe

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~ w a *c: Ehective Date of To form a part as stated above of Certificata Mn M-78 this Endorsement South Cfrolina Electric & Gas Company and South Carolina Public Service Authority Issue to l December 15, 1982 Date of Issua For the Subscribing Companies M UAL ATOMIC ENERGY LIApILITY U ERWRITERS o,yf ODY J,A s M. Endornement No. Counternignect by A,rimmn n.:ni.4,m m ME-S-3

NUCLEAR ENERGY LIABILITY INSURANCE MUTUAL ATOMIC ENERGY LIABILITY UNDERWRITERS ANNUAL PREMIUM END0RSEMENT Calendar Year 1983 ANNUAL PREMIUM: It is agreed that the Annual Premium due the companies for the period designated above is: $ 1,350.00 This is to certify that this is a true copy of the original Endorsement having the endorna..:o t. .kor and boicg made part of the Nuclear Energy Liabilit/ Po ticy (F2cility Form) as des-igpsted oreon. No Insurance is af rded hereunder. John L. Quattrncchi, Vice President-Liability Underwriting American Nuclecr insurers Cficctivo Date of To form n ontt this Endorsement January 1,1983 of Certificate No. M-78 South Carolina Electric & Gas Company and South Carolina Public Service Authority g, g Date of Inaua December 15, 1982 For the Subscribing Companies MI; 'UAI, ATOMIC ENERGY LIAjlILITY U JERWillTEllS N Ily L

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vLt Endoraement No. 2 Countersigncil by ,/ / A urnoiam. Ito:nw_*:n rmv>:

2 .R r(, g,gg .f $ E5 d8 g "J a g NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION c$9s > - J.J h 5, Q" 4, Certificate No. N-78

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%$W$o E Forming Part of Master " $ ".u s, d e$I>E gen Policy No. 1 G ri - e :5 0 S E, = 5"E E I N55 E CERTIFICATE OF INSURANCE iEndg8 - ge x DECLARATIONS AND 4 UpE N 35 gG $oj BOND FOR PAYMENT OF RETROSPECTIVE PREMIUMS N E e si e s er. S IE e E y Ce P gdy Certificate of Insurance o EOasE,>< This is to certify that the persons and organizations designated in Item 1 of the Declarations are named insureds under th'e Master Policy - Nuclear Energy Liability Insurance (Secondary Financial Protection),herein called the " Master Policy", issued by Nuclear Energy Liability Insurance Association. Such insurance as is provided by the Master Policy applies, through this certificate, only: ~ (a) to the i_nsureds identified in Items 1 and 2 of the Declarations, (b) for the certificate period stated in Item 6 of the Declarations, ' (c) to bodily injury or property damage (1) with respect to which the primary financial protectiorr described in Item 4 of the Declarations would apply but for exhaustion of its 1imit of liability as described in Co'ndition 6 of the Master Policy, and (2) which is caused during the certificate period stated in Item 6 of the Declarations by a nuclear incident arising out of or in connection with the nuclear reactor described in Item 3 of the Declarations, and NSFC-1 (1/1/83) Page 1

P ' t, 't k (3) which is discovered and for which written claim is made against the insured not later than ten years after the end of the certificate period stated in Item 6 of the Declarations. However, with respect to bodily injury or property damage caused by an extraordinary nuclear occurrence this subparagraph (3) shall not operate to bar coverage for bodily injury or property damage which is discovered and for which written claim is made against the insured not la'ter than twenty years after the date of the extraordinary nuclear occurrence. Declarations Item 1. Named insureds and addresses: (a) South Carolina Electric & Gas Company - 328 Main Street, Columbia South Carolina 29218 (b) South Carolina Public Service Authority - 223 No'rth Live Oak Drive Moncks Corner, South Carolina 29461 Item 2. Additional insureds: Any other person or organization who would be insured under the primary financial protection identified in Item 4 of the Declarations but for exhaustion of the limit of liability of such primary financial protection. Item 3. Description and location of nuclear reactor: Unit 1 of the Vi~rgil,C. Summer Nuclear Station located in Fairfield County, South Carolina. i Item 4. (a) Identification of primary financial protection applicable to the nuclear reactor and limit (s) of liability thereof: Nuclear Energy Liability Insurance Association's i Policy NF-252 $124,000,000 Mutual Atomic Energy Liability Underwriters' j Policy MF- $ 36,000,000 i Page 2 of Certificate No. N-78 l

~ .., s. .s (b) The following endorsements attached to the primary o financial protection policies listed in Item 4 (a) also apply to the insurance afforded by the Master Policy through this certificate as though they were attached hereto: (1) Waiver of. Defenses Endorsement (Extraordinary Nuclear Occurrence) and (2) Supplementary Endorsement - Waiver of Defenses - Reactor Construction at the Facility, (c) The limits of liability provided under the primary financial pro'tection specified in Item 4 (a) above are not shared with any other reactor except as follows: No Exceptions Item 5. Limits of Liability: The amount of retrospective premium actually received by the companies plus the amount of the companies' con-tingent liability, if any, pursuant to Conditions 2, 3 and 4 of the Master Policy. Item 6. Certificate Period: 'Beginning at the same time and date that the Facility Operating License issued by the United States Nuclear Regulatory Commission for the reactor described in Item 3 of this certificate becomes effective and continuing to the effective date and time of cancellation or termination of the Master' Policy or this certificate, whichever first occurs, eastern standard time. Item 7. Maximum retrospective premium (exclusive of allowance for premium taxes) payable pursuant to Condition 2 of the Master Policy with respect to each nuclear incident: $3,875,000. Item 8. Portion of the annual premium payable for the companies' contingent liability described in Condition 4 of the Master Policy from the effective date hereof to the end of calendar year 1982

The pro rata portion of $4,650 for the period from the effective date of this certificate to the end of the calendar year during which such effective date occurs.

Page 3 of Certificate No. N 78

BOND FOR PAYMENT OF RETROSPECTIVE PREMIUMS Know All Men By These Presents, that the undersigned do hereby acknowledge that they are named insureds under the Master Policy described in the above Certificate of Insurance and Declarations. The named insureds do hereby covenant with and are held and are firmly bound to the members of Nuclear Energy Liability Insurance Association subscribing the Master Policy (hereinafter called the " companies") to pay to the companies all retrospective premiums and allowances for premium taxes which shall become 4 due and payable in accordance with the Master Policy, as it may be changed from time to time, with interest on such premiums and allowances for taxes ~ to be computed at the rate provided in the Master Policy from the date. pay-ment thereof is specified to be due the companies in written r.otice to the first 4 named insured as provided in Condition 2 of the Master Policy until paid; s 1 And it is hereby expressly agreed that copies of written notices of retro-spective premiums and allowances for premium taxes due and payable or other evidence of such amounts due and payable sworn to by a ' duly authorized ~ representative of the companies shall be prima facie evidence of the fact and extent of the liability of the named insureds for such amounts; And it is further expressly agreed that the named insureds will indemnify the ~ L . companies against any and all liability, losses and expenses of whatsoever kind or nature (including but not' limited to interest, court costs, and counsel fees) which the companies may sustain or incur (1) by reason of the failure of the named insureds to comply.with the covenants and provisions of this Bond and (2) in enforcing any of the covenants or provisions of this Bond, or any 4 provisions of the Master Policy relating to such covenants or provisions; For the purpose of recording this agreement, a photocopy acknowledged before a Notary Public to be a true copy hereof shall be regarded as an original. l _ _ _ _. _ -._._.._., _ __ _ Pace 4 of _Certi fica te _ No. N 78

s Q ', .The preceding Certificate'of Insurance Declarations and Bond form a part of the Master Policy. Cancellation or termination of the Master Policy or the Certificate of Insurance shall not affect the named insured's obligations under the policy or the Bond to pay the retrospective premiums and allowances'for premium taxes, as provided in this Certificate and Condition 2 of the Master Policy. IN WITNESS WHERE0F, the named insureds have caused this Certificate, these Declarations and this Bond for Payment of Retrospective Premiums, to be signed and sealed by a duly authorized officer, to be effective as of the time and date of the inception of the Certificate period. Attest or Witness Named Insureds: South Carolina Electric & Gas Company (Named Insured - Type or Print) /b By (SEAL) H. M. Bryant, retary (Signature of Officer) William B. Timmerman i Vice President - Finance (Type or Print Name & Title of Officer) Date: Aunust 16, 1982 South Carolina Public Service Authority-(Named Insured - Type or Print) [/ fMan om dy_ 4w '(SEAL) 2.*.?. Doman, Corporate Secretary (SignafureofOfficer) f W. C. Mescher, President (Type or Print Name & Title of Officer) ,/ / f 'i \\, Date: August 13. 1982 (Named Insured - Type or Print) By (SEAL) (Signature of Officer) (Type or Print Name & Title of Officer) Date: __hn 8 af ewHficaen th M-7@

e , 71 ' ', ','I* IN WITNESS WHERE0F, the companies subscribing the Master Policy have caused the Certificate of Insurance and the Declarations to be signed on their bchalf by the President of Nuclear Energy Liability Insurance Association to be effective as of the time and date of the inception of the Certificate period, and countersigned below by a duly authorized representa tive. Attest or Witness For the Subscribing Companies of NUCLEAR ENERGY-LIABILITY INSURANCE ASSOCIATION .(& )/QY: 1 _*f Burt C. Proom, President Countersigned by (( M (Aut'horifed Representative) ~ a + Page 6 of Certificate No. N 78

e Nuclear Energy Liability insurance NUOLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ENDORSEMENT TO CEP.IIFICATE NO. N-78 Forming Part of Master Policy No.1 Nuclear Energy Liability Insurance (Seconda'ry Ff cancial Protection) ANNUAL PREMIUM ENDORSEMENT It is agreed that the Annual Premiums applicable to the periods designated below are as follows: For Calendar Year 1978 Effective Date January 1,1978 Annual Premium N/A For Calendar Year 1979 Effective Date January 1,1979 Annual. Premium N/A For Calendar Year 1980 Effective Date January 1, 1980 Annual Premium N/A For Calendar Year 1981 Effective Date January 1,1981 Annual Premium N/A For Calendar Year 1982 Effective Date August 5, 1982 Annual Premium $1,897.20 This is to certify that this is a tr'."i copy of the originalfear and boi's m Endor.ement having the endorsa.: cat.: 'Fac ci ty Form) as deo e o.' tha Nuclear Energy Liability Polh. ignated heroon. No Insurance is afiorded hocounder. s. Vice President. Liability John L. American Nucteerlasarera Effective Date of trus Endorsement as scated above To form a part of Certificate No. N-78 12:01 A.M. Standard Time Issued to South Carolina Electric & Gas Comany and South Carolina Public Service Authority "U Date of issue - Decenber 15, 1982 )1 + c.n...I .n.... Endo,sement No Countersigned by d NE-S-3

l Nuclear Energy Liability insurance NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ANNUAL PREMIUM ENDORSEMENT Calendar Year 1983 ANNUAL PREMIUM: It is agreed that the Annual Premium due the companies for the period designated above is: $ 4,650.00 This is to certify that this is a true copy of the original Endorsement having the endorcement.tdoor and being made part of the Nuclear Energy Liability Policy (Facility Form) as des-ignated hereon. No Insurance is afforded hereunder. John L. Quattrocchi. Vice President-Liability Underwritig American Nudear Insurers Effective Date of ines Encorsement January 1.1983 To f orm a part ofl Certificate N-78 12:01 A.M. Standard Time issued to South Carolina Electric r, Gas Company and South Carolina Public Service Authority Date of lasue December 15. 1982 For the su icribing co penlos By A /#~ General Manager 2 M M[ Endorsement No countersioned by e

SouthCarolinaElectric &GasCompany 1S82AnnualReport yr=,,yi,

i ABOUT THE COMPANY 4 South Carolina Electric & Gas Company is a combination utility primarily con-cemed with the generation, transmission and distribution of electric power and the transmission, distribution and sale of natural gas. He Company also renders urban transportation service in the metropolitan areas of Charleston and Columbia, South Carolina. Le Company's electric operations area encompasses 25 of the state's 46 counties. Within this area the Company provides electric service to approximately 357 thousand customers in 115 incorporated towns and surrounding areas. Elec-tricity is provided at wholesale to five cooperatives, one public power body and three municipalities for resale. De Company's gas operations area encompasses 43 counties in which natural gas service is provided to more than 186 thousand retail customers. Natural gas is j sold at wholesale to 11 resale customers who distribute natural gas at retail. The i Company and its subsidiaries operate more than 1,600 miles of gas transmission lines in this area. He Company has five wholly-owned subsidiaries: (1) Ca'olina Energies, Inc., a holding company with six wholly-owned subsidiaries owning over 1,000 miles of natural gas pipeline as well as propane transmission lines and storage facilities and engaged primarily in the transmission and sale of natural gas and the storage and distr bution of propane in South Carolina (2) South Carolina LNG Company, Inc., organized to own and operate liquefied natural gas storage facilities (3) South Carolina Fuel Company, Inc., organized to acquire, own and provide for financing of the Company's nuclear and fossil fuel (4) Energy Subsidiary, Inc., engaged in real estate development associated with presently held properties and (5) South Carolina Electric & Gas Finance N.V., organized undet the laws of the Netherlands Antilles for the primary purpose ofobtaining funds outside the United States. TABLE OF CONTENTS P, ige Financial and Operating Highlights 1 Repon to Shareholders 2, 3 1982 in Review 4-16 Management Report ?7 Management's Discussion and Analysis t of Financial Condition and Results of Operation 18.19 Consolidated Financial Statements 20-33 Report ofIndependent Certified Public Accountants 33 Selected Financial Data 34,33 Supplementary Financial Statements Adjusted for Changing Prices 36,37 Directors and Officers 38,39 Corporate Stock Information and Supplemental Investor Information 40 Corporate Information Inside Bx4 Corer

FINANCIAL AND OPERATING HIGHLIGHTS U/o Increase -~- ? stJtistics Jndper shJrf JMONHls) Financial Earnings Per Share of Common Stock S 2.32 S 2.19 5.9 Dividends Declared Per Share of Common Stock S 1.92 S 1.82 5.5 Operating Revenues S 859.0 $ 746.3 15.1 Operating Expenses S 711.5 $ 636.0 11.9 Earnings Available for Common Stock S 79.8 5 61.6 29.5 Common Stock Outstanding: Average (Thousands) 34,387 28,139 22.2 Year-End (Thousands) 36,526 29,690 23.0 Construction Expenditures S 200.1 S 184.1 8.7 Gross Utility Plant $ 2,411.5 S 2,131.7 13.1 Common Stockholders' Equity S 667.4 S 545.9 22.3 Book Wlue Per Share of Common Stock (Year-End)______ . _ _ _ _ _(.7) S 18.27 S 18.39 Electric Operations Electric Operating Revenues S 590.0 $ 555.7 6.2 Sales (Million KWH) 11,490 11,763 (2.3) Customers (Year-End) 356,709 350,596 1.7 Generating Capability - Net MW (Year-End) 3,359 3.359 Territorial Peak Demand-Net MW 2,463_ __ _(3.7) 2,557 Gas Operations Gas Operating Revenues S 266.4 S 188.2 41.6 Sales (Thousand Therms) 590,257 493,305 19.7 Customers (Year-End) 186,320 169,294 10.1 Notes: (1) Includes transactions of Carolina Energies, Inc. since April 1.1982. (2) 1981 Restated; 1982 indudes amounts subject to refund -see Note 2 of Notes to Consolidated Financial Statements. Estnings per Common Share Dividends Declared Return on Year-End per Common Share Common Equity <~ idORMS) (pe* Ce9) 3.00 3.00 13.0 h 11.9 11.9. 2.50 2.32 2.50 12.0 2.19 13,3 2.02 2.00 1.84 2.00 11.0 1.82 14 1.68 10.4 1.62 1.50 1.50 10.0 9.6 l 1.00 1.00 9.0 = .50 .50 80 1978 1979 1980 1981 1982 1978 1979 1980 1981 1982 1978 1979 1980 1981 1982 I

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l .. { managen nt Ahllt he pCfikirmCd ini the (i)mpam b\\ a m sekuta runnie tomukon. The tirm ottresar. 03 sg%;./. M - ? 198 4 and expcos to hne n uimpictCd in the summer u wrmit k ana eagCr int began the avait m ianvam 'WThf$M Y C.';& of P>s; The ( vmpam ucus thr e an ext ellent . i '. ~,, ed ! ( u rr/ tr/' ik'm M rMCnsl'ItCttiVCH N in phl-ar ( i tuunn\\ It ) \\ k}llig rellahlC ant} Clllt IC11t sCR R C tt) thC t Ill/CIb tit 14h2 w'as a \\ Car ()t nianaged transtt hin in \\tiur N Put h (. art)!!na ( ompam during whah a numhUr of wcil-iontUnUd We twl parta ularl\\ wUll prepared tor sut h an audit plam w ere t artic(1 to suu cwt'ul t ont lusnin. snu e thC (umpam has uorked with a management baInings rt WC til 52 52 pCr (()mmt al sllarC. uji irtim (illbtll tant IIlr NC\\Cral \\ Cars til lik rCasC lts ()pCrating Utli-( Int t >t the mint ugniti ant impn >Vemenn wt 5219 a sllart f or 14hl. At itsjanuan h)S 5 mCCtmp the ( Icth \\ Iblard ()l ()lrCt Itirs apph nCt} an Ilk rCast in thC ( tim-h '\\ C nlthlU lhb hCCn illU ImplCmUntat hln Ill all pam \\ quartCilV ti)mnhill sit h k dlVidend ratt tDim Uxtt:bl\\C st rattyk p!aHIllng ph) gram It he alhmed 5 48 to 5 in per shart Thn nu rCases the mdn ated n.anacemCnt to uke an c\\co ( loser look at ihr influ-annual r.uc f rom 5102 to 52 on pCr share Cnt U and imp.a t sut h t at ion e t he coinomv. tinant mg t omtrut non t osts and the t ranung and in ih tall of' 1952 the ('ompany < ompleted t he u ni s. I( NUInmcr NLh lCar Statitin. Its laigCst ungIC i tin-utllI/at h ill (II i nur man {h lu cr have iitl i)ur i >peratiinb strut flon projet i Ihr NullCar NCgulalon ( ommbslon In thh pDR Cst stratCph p!ans art dC\\Cloped to IwuCd J t1111 [h MCr la CIbc lk)r t he U(l(1 nlCgau at t MUNCr-Ji$drC" Iwue' t bal arU CxpClICd til attCL t t hO (.1)f npam ating st.Hliin N)VCmher 12 hummC[ Stat hin b Cxptt IUt } Ill tIlU tut urC ()c\\ cli >pilly t h aCs0 p!af b draw s < >Il the hC opCollfle al lull pow CT during the sunlmCT ill' t alUf H. kntiw lC(ict an(t ( xpenUn( C til emph ntes h) 1

throughout our Company. This employee involvement coal-fired plant. Williams Station is the largest and is one of the strongest points of our planning process. most efficient single fossil fuel generating unit in the Employees' willingness to panicipate in changes is Company's system. This project is scheduled for enhanced when they have helped formulate them. completion inJune 1984 and is expected to save our From our strategic plans, we have developed oper-customers millions of dollars in fuel costs over the life ating plans for the immediate future. Our overall of the plant. budget reflects the objectives set fonh in our operating We also are completing the incorporation of facil-and strategic plans, ities and management personnel at Carolina Energies, The Board approved this summer the creation of Inc. (CEI)into those of SCE&G. Acquired in April several new vice presidential positions. This realign-1982, CEI is primarily a natural gas pipeline company ment was made to ensure smooth management suc-which also operates a propane business and a retail gas cession and to bring fresh ideas for capitalizing on the system. The transmission facilities of SCE&G and CEI opportunities and challenges that face public utilities have been combined into one operation, resulting in in today's business and economic climate. This improved efficiency and the elimination of some reorganization brought talented younger men and duplicate facilities. The combined systems now provide women to positions ofleadership and responsibility primary gas service to approximately 80% of with the intention of preparing them to operate the South Carolina. Company effectively and efficiently in the future. The Partially as a result of the merger with CEI, we are average age of our vice presidents is now 45 years with investigating the development of a holding corapany an average of 16 years of utility experience. and the expansion of various operating companies In late 1982 the Board approved the establishment under it. of a one-time early retirement program, available to Following the annual meeting of stockholders in employees who met certain age and length ofservice April 1982 the Board of Directors elected Virgil C. requirements. This program was in keeping with our Summer chairman and chief executive officer and corporate plan and our desire to realign certain John A. Warren president and chiefoperating officer. supervisory and management positions. The Board also elected the following additional The Company is making significant progress in directors: John A. Warren, formerly vice chairman, l increasing productivity and cutting non-essential costs. president and chief operating officer of Carolina Our budgeting process is guided by our operational Energies, Inc. in Columbia; Francis M. Hipp, chairman plans and allows individual departments to develop of The Libeny Corporation in Greenville and E. Craig budgets which satisfy their missions and objectives, WallJr., president of Canal Industries Inc. in Conway. while simultaneously reducing expenditures in These new directors had previously served as directors many areas. of Carolina Energies, Inc. The Board also named A long range plan conceived in 1979 to improve Arthur M. Williams chairman emeritus. efficiency at our Canadys generating station produced The past year has been ene of exciting changes and an estimated 1982 savings of some $8.8 million. The unique opponunities that have reinforced our position refurbishing ofpollution control equipment at Wateree as a leader in efficient energy production and manage-Station is expected to produce an annual savings of ment. This would not have been possible without the more than $1.1 million. Total productivity and effi-willing support and assi3tance of our employees who ciency improvements in the power production and have consistently met the challenge of change with operation depanments should produce savings this hard work and thought. year in excess of $12.6 million. Sincerely, These savings demonstrate management's response '~ to current economic conditions and a commitment to controlling non-essential costs by increasing produc-tivity and efficiency. This vigorous program of strategic VIRGIL C. SUMMER plannmg and implementauon of cost-savmg measures (g,,,,,, oy,g, go,,,,,g (g;,757,,,,,,, o;;;,,, benefits both ratepayers and stockholders. To funher reduce future operating costs, con-struction began in December to conven the Company's 580 megawatt Williams Station from an oil fired to a JOHN A. WARREN President and ChiefOperating Officer 1 3 i

CORPORATEAND FINANCIAL REWEW y x EARNINGS AND DIVIDENDS Earnings per share of common stock in 1982 x were $2.32, which includes 41 cents per common share from a retail electric rate increase in effect, subject to refund, at year-end. Earnings per common 1 share in 1981 were $2.19, after restatement to reflect the effect on earnings of N an April 1982 rate order from The Public Service Commission ofSouth Carolina s (PSC). In that order, the PSC approved 76% of the Company's February 1981 request for increased retail electric rates. Earnings available for common stock in 1982 were $79.8 million, of which i $14.2 million was related to the pending retail electric rate request and is there-A fore subject to refund. Earnings available for common stock in 1982 were up ^N 29% over the $61.6 million earned in 1981, and provided an 11.9% return on common equity, up from 11.3 % in 1981. The improvement in earnings N during 1982 was due primarily to the retail electric rate increase filed inJuly 1982 and phased into effect. subject to refund, beginning in August 1982. InJanuary 1983 the Company announced a $15 million reduction in the $101.2 million retail electric rate increase request filed inJuly 1982. The reduc-tion was made possible primarily by improved conditions in the financial mar-kets sinceJuly 1982 which have lowered the Company's cost of capital. The Company's 1982 eamings have been adjusted to reflect effects of the reduced rate request. The number of weighted average common shares outstanding during 1982 rose by 22%. The increase stemmed from the public sale of 2.5 million shares in h1 arch, the issuance of 2.6 million shares in April as pan of the acquisition of Carolina Energies, Inc., and the issuance of 1.7 million shares during the year through employee stock purchase plans and the Company's Dividend N Reinvestment and Stock Purchase Plan. At year-end 1982 the Company's y common equity component of total capitalization had improved to 39% from 37% at year-end 1981. Further discussion of the Company's financial condition and operating results for 1982 begins on page 18. Dividends declared on common stock in 1982 totaled $1.92 per share, a 5.5 % increase over 1981. All dividends paid to stockholders by the Company during 1982 represent taxable income for federal income tax purposes except as noted on page 8 under " Dividend Reinvestment Plan'.' InJanuary 1983 the Company's Board of Directors declared a quanerly common stock dividend of 50 cents per share. This is a 4.2 % increase over the previous quarterly div-idend rate. The indicated annual dividend rate increased from $1.92 to $2.00 per common share. The Company's common stock dividend rate has been ( increased in 30 of the last 31 years. The new quanerly dividend will be payable 4 N on April 1,1983 to common stockholders of record on hfarch 10,1983. 3 v.c.sUMMERNUcLEARSTATION On August 6,1982 the Nuclear Regulatory i Commission (NRC) issued an operating license for the V.C. Summer Nuclear i Station. The license allowed the Company to load fuel into the nuclear reactor and begin low-power testing. The Company completed fuel loading one week later and on October 22 staned the plant's nuclear reactor for the first time. On November 12 the NRC issued a full-power operating license for the Summer Station authorizing the Company to increase the plant's power out-put to 50% ofits reactor power. Generation for testing reached that level on December 12. Before the plant may exceed 50% of reactor power, Westing-l1 house Electric Corporation must modify the plant's three steam generators to correct a vibration problem which has caused tube failures in foreign nuclear 4 l

plants withWestinghouse steam generators of the same mod. ' as theCompany's. ce The NRC previously had stated that it considered this pr iblem to be of scEagsygg,Reveme Doisu safety signiEcance. On the basis of recent studies made by Westinghouse, the Company, other utilities and the NRC staff, the Company believes that wne, nCavieFrom Westinghouse has developed a modi 6 cation that will correct the vibration c n.s. problem in the steam generators. Westinghouse is scheduled to begin install-ing the raodiEcation in March 1983. The work will take approximately three months, during which time the nuclear plant will be out of service. Upon f' completion of the work, the Company will resume normal testing procedures essmaec and make whatever additional tests that will be required to insure that the i steam generators are functioning properly. The Company currently expects to place the Summer Stanon mto full-power operanon dunng the summer of 1983. However, due to the uncenainties concerning the plant's steam gener-ators, the Company is unable to predict the exact date that Summer Station will be placed into commercial operation. The Company built Summer Station in conjunction with the South Carolina swewe c Public Service Authority, which is responsible for one-third of the construction gi g 5 3' ' and operating costs and will receive one-third of the plant's output. SCE&G is industnai..., . is.ic 14.2e the operator of the Station. Although Summer Station is not expected to begin - T. ' "**** ' 5 5* c full-power operation until the summer of 1983, electricity generated as a result man -m e of testing the plant's nuclear reactor has already begun to flow to homes, busi-nesses and industries in the Company's service area.

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If commercial operation were to commence in October 1983, the estimated total completed cost of Summer Station would be approximately $1.3 billion, or $1,459 per kilowatt. The Company's share of the total cost would be approx-imately $858 million. Any delay in commercial operation of Summer Station beyond October 1983 would result in its total cost increasing by approximately $11.5 million per month, of which the Company's share would be approxi-mately $7.7 million. MERGER COMPLETED In April 1982 the shareholders of Carolina Energies, Inc. (CEI) approved the merger of their company into a wholly-owned subsid-iary of SCE&G. This acquisition cost approximately $69.4 million. Cash pay-ments totaled $26.6 million, and approximately 2.6 million shares of SCE&G A Fuelfor lectne nd common stock, valued at $42.8 million, were issued to former CEI stockholders. .8 Gas Purchased for Resale The merger nearly doubled the Company's natural gas service area, which now o 7.y7ance,ciuoinoconstructoni : covers 80% of South Carolina. 5 E nT""S*"**'""*"c' CEI is a holding company which owns six subsidiaries that supply natural gas, propane and energy-related services to residenu,al, commercial and indus-Q'.cygo"ggoa n ow.o nosiorinveo.no trial customers primarily in the rural areas of northern and eastern South Retained Eanwngs Carolina. The Company currently is integrating its natural gas operations to enhance productivity and its ability to serve the natural gas and propane needs cathy a n,irim,icepresuent. of virtually the entire State of South Carolina. The Gnancial and operating carporee afsirs. ar rhe secunty des 4 in statistics in this annual report include the operations of CEI since April 1, JCE&G's computerferrices center 1982. (See Note 11, page 32.) ,m. lQp' )g%nf*: [.',- } ; REGULATION AND RATE ACTIVITY The Public Service Commission of South 1.' )N[ Carolina (PSC) regulates the Company's retail electric rates, natural gas rates 4 and coach fares. The PSC also sets accounting practices, approves the construc- '7

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' / Nl s of the Company's service arca and approves the issuance of some securities. Y t m The Federal Energy Regulatory Commission (FERC) regulates the Company's k U ,] transmission of electric energy in interstate commerce and its sales of electric ~ s c /j d energy for resale. The FERC also has jurisdiction with respect to licensed 1.,. p {.,[.;." j 5

T hydroelectric projects and certain other matters, including accounting and the C,','c:e et ca n seguirements issuance of short-term indebtedness. for construction and naturine The Company's rate-making philosophy is to request rates which cover the secup,ue. full, reasonable costs of providing its customers with safe and reliable service, 33o including the cost of capital. On April 1,1982 the PSC granted the Company 324 $56.4 million in additional annual retail electric revenues, a 12.8 % increase, l which was approximately 76% of the amount requested. The PSC's order was soo based on a test year ended December 31,1980 and allowed a return on com-mon equity of 14.7%. The Company had requested a 17% retum on .,,M, common equity. 2so On April 29,1982 the FERC approved a settlement agreement between the Company and its wholesale electric customers. The approved settlement L "'_p results in an increase of approximately $3.8 million, or 16.5 %, in annual 2n wholesale electric revenues, based on a 15.9% return on common equity. g;- El On May 28,1982 Carolina Natural Gas Corporation, a subsidiary of CEI, E* N )(; Gled a $1.1 million natural gas rate increase application with the PSC. On iso i*' w w August 20 the PSC approved an increase of $745,000 annually, or 66% of the if ,dEt Q amount requested, based on a 15.0% retum on common equity. M % h' pi( OnJuly 1,1982 the Company 61ed petitions with the PSC requesting l' ;h [; fh increases in retail electric rates, natural gas rates and coach fares. The $101.2 million retail electric rate application sought an 18.2 % increase in annual rev-M i i enues based on a test year ended March 31,1982. The Company requested the S78 S7S '880 'S8' "s2-opponunity to earn an 18% return on its common equity. The proposed elec-anna Frominternaisources tric rates were placed in effect, subject to refund, over a three-month period MR From ExternalSources beginning August 1,1982. includes acqu'saon of caronna ererg,es. inc. InJanuary 1983 the Company reduced the retail electric rate increase regt.est to $86.2 million. That amount was based on a 16.75 % retum on common equity and lower property tax expense. Public hearings on this rate increase request began inJanuary 1983 and were completed in late February. c,,,,, A Enal decision from the PSC is expected by August 1,1983. newfouity capiternaised The natural gas rate application requested a $16.4 million, or 14.5 %, rnroughmdends investment AndStock Purchase Plan mcrease m annual revenues. The increase was based on a test year ended ~, - March 31,1982 and requested a return on common equity of 18%. On Sep-is.o m tember 29,1982 the PSC granted the Company an increase of $10.3 million. The approved increase represented approximately 63% of the Company's request and was based on a 14.5 % retum on common equity. 1s4 The Company requested increases in coach fares in Columbia and Charles-ton, South Carolina, that would produce approximately $1.8 million in addi-tional annual revenues. On September 29,1982 the PSC granted less than half 24 n.3 of the Company's request. The approved fares are expected to generate approximately $715,000 in additional annual revenues. In August 1982 cenain industrial customer 3 of Carolina Pipeline Company 7, (CPC), a subsidiary of CEI, Gled a petition with the PSC seeking to obtain a tariff for Erm and interruptible natural gas service presently provided to such cus-u- tomers on the basis of mutually negotiated contracts containing competitive fuel clauses. On December 20,1982 the PSC denied the request for a tariff and authorized continuance of the mutually negotiated contracts contaming competitive fuel clauses; however, the PSC placed a ceiling on the price for firm and interruptible natural gas service to such customers. Petitions for rehearing of the decision Eled by CPC and the customers have been denied. Currently the price of competitive fuels generally is below the ceiling prices ~ established by the order. The Company is unable to predict the impact, if any, on the resul, ofoperations of CPC or the Gmpany. i 6

CONSTRUCnON AND FINANCING PROGRAM The Company's 1982 construc- 'c&a:Izatin tion cash expenditures totaled $154 million, up 8% over 1981. The 1982 figure includes $90 million for the V.C. Summer Nuclear Station and $3 million in nuclear fuel purchases. The acquisition of CEI cost about $69 million. An additional $101 million was needed to retire maturing obligations and meet j cash sinking fund requirements. This brought total 1982 cash requirements of j the Company and its subsidiaries to $324 million (see Chan 2). Total cash j requirements for 1983 are estimated to be S210 million. This includes $181 so million for construction, $18 million for nuclear fuel purchases and $11 million for maturing obligations and sinking fund requirements. l During 1982 $65 million, or 20% of total cash requirements of the Com-pany and its subsidiaries was generated intemally (see Chan 2). The balance came from the sale oflong and shon-term debt, preferred stock and common stock. In March the Company sold 2.5 million shares ofcommon stock to the j public at a price of $16 per share. Net proceeds to the Company were $38.6 i 40 million. In April the Company sold 250,000 shares of 13.88% preferred stock at a price of $100 per share. Net proceeds to the Company from this sale were $24.9 million. The Company raised an additional $25 million in May through : 20 the sale of 15-5 /8% first mongage bonds. In order to obtain long-term funds l at the lowest cost, the Company's Finance N.V. subsidiary sold $60 million of l 15-1/2% guaranteed notes in Aprilin the European market. Compared to " 78 " 7' "si n82 prevailing domestic interest rates at that time, the interest costs of this issue will be at least $3.5 million less during the seven-year life of the notes. The ! MEEE Longen den, NeMexcl cunent pMW Company also raised $17.1 million through the sale of 1.1 million shares of ",,", Eo!*"$ 8 common stock during the year to panicipants in the Dividend Reinvestment and Stock Purchase Plan (see Chart 3), and $9.8 million from the sale of $92,000 shares of common stock through employee stock purchase plans. l Proceeds from the sale of these securities were used to repay shon-term l debt incurred in connection with the Company's construction program, to Shon-term capitai needs were satisfied primarily through the sale ofcommercial l finance the acquisition of CEI and to refund outstanding long-term debt. !' ~~~ paper. There was approximately $21.8 million in commercial paper outstand-ing at year-end 1982. a.oo The Company anticipates that it will generate internally approximately 65% ofits 1983 total cash requirements. Current plans call for the remaining cash requirements to be obtained through obligations issued by the Company's ! 2.so fuel subsidiary, from the sale ofcommon stock through the Company's Divi-i 2.s7 dend Reinvestment and Stock Purchase Plan and employee stock purchase !n N [] 2 plans, and from short-term borrowings. l As of December 31,1982 the Company had improved its capital structure l T to 50% long-term debt,11% preferred stock and 39% common equity (see j E% Chart 4). The Company's long-term goal is to increase common stock equity ! 2m ( 3i to 40-45 % of total capitalization. Earnings coverage of fixed charges, under i 36 2 242 the SEC method, improved to 2.52 times in 1982 compared to 2.22 times in l @ j r2i 1981 (see Chart 5). Management's long-term objective is to achieve and ! 2.2o p, = k maintain a fixed charges coverage ratio of at least 3.50 times. e q w -_s a WILUAMS STAnON CONVERSION Construction began in late November {~ ? _Y 1932 to conven the Company's 580 megawatt Williams Station from oil-fired h~ to coal-fired generation. Completed in 1973, Williams Station is the Company's " 78 "7' "si us2 newest conventional steam plant, but has been operated infrequently in recent years due to the high cost of residual fuel oil. Contractors are convening the plant under a fixed price, turn-key contract at a cost of $118 million. The work should be completed byJune 1,1984 but payment for the conversion is not due until the later of December 31,1984 or final acceptance. 7

= The conversion of Williams Station from oil-fired to coal-fired operation is ~ expected to save the Company's customers millions of dollars in fuel costs over "# ' e 1i - ~ the life of the plant. Following conversion, Williams Station can be used 2%' e-either as a coal-fired generating plant or an oil-fired generating plant with j> minor modifications. The Company will utilize the converted Williams ,e 4 g Station as a base-load generating plant, thereby improving overall system ' b, ( efficiency. M.L L M, h %' F F X ' =l Dy? e NEWCORPORATE OFFICES Construction continued during 1982 on the 3 5 fy.O[gD GQ i Q@%@[f Palmetto Center, a hotel-office-convention center complex located in down-town Columbia. The development will consist of a 13-story hotel managed by I, M-A '.& the Marriott Corporation, a 21-story office tower, a multi-story parking garage f f.4 and a 3-story convention center with meeting rooms and other facilities. 'I Q}$g SCE&G will be the major tenant of the office building, which is scheduled for a completion in December 1983. The new office building will allow the Company to consolidate in one location a majority ofits offices which are i s,u,p,y, y ygy,,g y,,.j,,,,,,jj,,,,,poy.,, , j presently scattered in 13 locations throughout the city of Columbia. ply. ansceoiref. su//uinze/p. rice i president. Customer Opcutions. Souti,ern INDUSTRIAL DEVELOPMENT Despite the continuing economic recession, ['ki ";,,#j,' '",,',5'","),'"'"",','Q, { South Carolina had its best mdustnal development year dunng 1982. Total eoapresge,,euting aatjoy. announced investment in new and expanded industrial facilities was $2.4 bil-lion, a slight increase over the previous record set in 1981. These new invest-ments are expected to create about 11,600 new jobs. About $1.9 billion, or ~. ' me-79%, of these investments will occur in the Company's electric or natural gas I service area, creating about 7,100 new jobs. j g-~ xu The economic base in the Company's service area continues to diversify. l N During the decade ended in 1982, industries announced investments of more i F ~d-than $12.8 billion in new and existing facilities in South Carolina. The Com-g pany's service area (excluding the area served by CEI) received about 47 % of p ., Y that growth. This impressive record ofinvestment by new and existing industry [C reflects, among other attractive assets, the state's excellent business climate and F adequate, reliable sources ofelectricity and natural gas for industrial growth and -{ expansion. The Company con:inues to work closely with state and local devel- ,, J opment groups to bring new industry to South Carolina. STOCKNOLDERS At December 31,1982 there were 63,715 holders of record of the Company's common stock, a 7 % increase from year-end 1981. In addi. tion, there were several thousand shareholders who owned common stock held g!f1igmi un un s by banks, brokers, investment trusts or other nominees. South Carohna con-tinues to rank first in the number ofcommon shareholders and second (behind, The a-nory Ps/meno Centeuhe tallen New York State)in the number of shares held. The Company is not aware of l uructurein Co/urnbiabblineandthe any stockholder who owned beneficially more than 5 % of the Company's out ! {"'""' '#, ",",j7"'"'" M*"'" ,,f, standing common stock as of Decem ber 31,1982. i In 1978 a group of the Company's stockholders formed the Association of SCE&GInvestors. ActingindependentlyoftheCompany,the Associationworks j to advance the interests of all SCE&G investors. For information concerning l the Association's activities, write to: Association of SCE&G Investors,63 East i Bay Street, Charleston, SC 29401. l i ouvlDEND REINVESTMENTPLAN The Company offers its common stock- ) holders the opportunity to acquire additional shares of common stock through i a Dividend Reinvestment and Stock Purchase Plan. Panicipants in the Plan l may have all or a portion of their cash dividends automatically reinvested, and ' may make additional quarterly cash payments of up to $10,000 to purchase 8

stock at the market price. There are no brokerage commissions or service charges on such purchases. Enactment of the Economic Recovery Tax Act of 1981 made the Plan more attractive to investors. Under provisions of this Act, stockholders panicipating D in the Plan during the period 1982-1985 may elect to defer federal income taxes t h J. ^ f. 'f ig, on up to $750 annually ($1,500 on a joint retum)ofdividend income reinvested . L. .D' in new shares ofcommon stock. During 1982 panicipation in the Company's Plan increased to 33% of the total eligible stockholders, up from 21% at year-1.'- [_ [ y_ end 1981. 9'- M ~~ ?.- M.N d 5 C l1 TheTax Equity and Fiscal Responsibility Act of 1982 requires the .M %[J '. .V.4 Company to withhold tax on interest and dividends paid to investors begin-rlg f [7.---%jQ ningJuly 1,1983. Certain individuals and institutions may be exempt from the withholding provisions and be able to provide the Company with an em 2 exemption certificate. Panicipants in the Company's dividend reinvestment 14 if 7.cb J plan are exempt from the tax withholding requirement. Stockholders may . '.:Q H -...gy' l h.eQ M[ ? f Qy;.M wish to consult with their tax advisors regarding these new withholding .. TQe dha k provisions. % $'MW Y9 O i WWr L inquiries conceming the Dividend Reinvestment and Stock Purchase Plan %P.h should be directed to South Carolina Electric & Gas Company, Stockholder Relations Department (I-56), P.O. Box 764, Columbia, SC 29218. V R. Cowardy, ricepresident, Corporate l,C '"""".' ",",'; '",{R["( #f,'*[#- j EMPLOYEES At year-end 1982 the Company had 3,699 full-time employees, an mcrease of 9.4% over 1981. Staffing of the V. C. Summer Nuclear Station ! con,,ruction,j,,offhe P.dmeffy Cenfer and the acquisition of CEI accounted for the majority of the increase. l Scac s new corporate headquaners. Approximately 1,200 employees were represented by three unions at I December 31,1982. Wage negotiations with each union were completed during 1982 in accordance with terms of the three-year contracts signed in 1980. In an effort to restrain the growth of payroll costs, the Company instituted a hiring freeze in August 1982 that remains in effect. Except for critical staffing needs, new hires have been kept at a minimum. Justified replacements have been filled primarily through transfers within the Company. An early retirement program was offered in December 1982 to employees meeting certain age and service requirements. Qualified employees must decide by February 28,1983 whether or not they will retire. Approximately 6.5% of the Company's employees qualify for the program. The purpose of the program Patnkia LUarmisis, riupresident, is to reduce staffing levels as a part of the Company's continued emphasis on $",'"j"[,,',",,#',j,",,u$,'7 %,$,',,'"# p cost reduction and control. Finance. iri the heanng room ofthe South Carolin.: Public Service Commission. cuSTOMERASSISTANcf The Customer Assistance Department set records for helping needy customers during 1982. Since 1979 approximately 32,000 low-income, elderly and handicapped customers have received some $4.5 mil-lion in federal energy assistance funds to help pay their energy bills. Much of this assistance resulted from personal home visits and intervention by the {? depanment's representatives. The department's activities also foster a closer t' working relationship between the Company and federal and state agencies, the Govemor's office, and community organizations dedicated to helping the needy. During 1982 concerned Company employees established an Employee Good Neighbor Fund. This Fund enables employees to make contributions of money, food and clothing that are used to help needy citizens in the Company's service area. Membership in the Fund is voluntary and administration of the n' Fund is handled by a board of directors elected by the membership. At year-end 1982 more than 1,250 Company employees had participated in the Fund with combined pledges ofapproximately S50,000 annually. The Fund provided such vital necessities as food, medicine, clothing and shelter to more than 150 families in emergency situations during 1982. 9

ELECTRIC OPERATION 3 SALES AND CUSTOMEss Sales of electricity in 1982 totaled 11.5 billion C'icustomers-venr End kilowatt-hours (KWH), a 2.3% decrease from 1981. Milder weather, weak economic conditions and increased customer conservation efforts contributed to the decline. Sales ofelectricity by customer class are shown in the following table: 4oo Sales of Electricity (Millions of KWil) Number of Customerspicar.end)__ a,j 337 % increase % Increase 345 3so m Customer Class _ _ _ _ ___ 1982_ _ _1981__ _ (Det rease)__1982 1981 _(Decrease) 37, Residemial 3,620 3.705 (2.3) 311,919 306.847 1.7 Commercial 2,855 2.784 2.6 41,885 40.866 2.5 E Industrial 3.898 4.163 (6.4) 811 823 (1.5) 300 Sales for Resale 771 775 (.5) 13 13 Other 346 336 3.0 2.081 2.047 1.7 Total 11,490 11_ 763 (2.3) 356,709 3}0,596 1.7 2so At year-end 1982 the Company was serving 356,709 electric customers, a 1.7 % increase over 1981 (see Chan 6). Despite a 1.7 % increase in the Company's residential customer base, average annual residential usage ofelectricity declined 200 i by 3.9%, from 12,183 KWH in 1981 to 11,712 KWH in 1982 (see Chan 7). i i Current Company projections indicate that the total electric customer base will ! ' so grow at an average annual rate of1.9% over the five-year period through 1987. Total sales of electricity are projected to increase 3.7 % each year during the l(i same period. l1 1978 1979 1980 1981 1982 l GENEsATWG CAPANUTY The Company's peak generating capability at im c, year-end 1982 was 3,359 megawatts, unchanged from 1981. Approximately

um Electnc 49% of that capacity is in four steam plants which burn coal,20% in two j

steam plants fueled by residual fuel oil, and 23% in six hydroelectric plants. Sixteen internal combustion turbines and one combined cycle generator which ! c" burn either distillate fuel oil or natural gas provide the remaining 8%. The !,.7;'.sie.ntinifiectriccustomer ,,,,y,, Companys peak generating capabihty will increase by 600 megawatts when p,n the V.C. Summer Nuclear Station begins commercial operation. In 1982 coal was used to generate about 89% of the electricity produced 33 ooo by the Company, hydroelectric power 8% and oil 2% (see Chan 8). In addi-tion, electricity generated as a result of testing at the V. C. Summer Nuclear '" 58 Station provided about 1% of the Company's total 1982 generating require- ! i2.soo ments. Electric generation in 1983 is projected to be provided in the following 12.2s i2.iss proponions: 74 % coal,18 % nuclear,7 % hydroelectric and 1% oil and natural gas. 12.ooo FUEL SUPPLY During 1982 the Company bumed a total of 4.0 million tons ti.7ia of coal, a 2.3 % decrease from 1981. The weighted average cost of coal bumed during 1982 was $1.95 per million BTU, a 10.2% increase over 1981. At year-u.soo end 1982 the Company had approximately a 75-day supply of coal on hand. The Company has approximately 94 % ofits projected 1983 coal requirements under long-term contract, and plans to purchase the remaining requirements u.ooo on the spot market. Lower generating requirements allowed the Company to burn only about 270,000 barrels of residual fuel oil during 1982, an 81% decrease from 1981. . io soo The weighted average cost of residual oil bumed during 1982 was $4.15 per l( million BlU, a 14 % increase over 1981. Effective December 31,1982 the Com-l 1 pany cancelled a long-term contract for the residual oil burned at Williams is78 1979 isso issi iss2 Station. Based on projected generating requirements for 1983, the Company has sufficient supplies of residual oil in storage for use at Williams Station. The conversion of Williams Station to coal-fired generation will significantly 10

ELECTRIC OPERATIONS AREA ll II. kih / [ft16 4 A . V' Q I ~ '< t,'eaf Shoats /' N & Pa' fair e d Purr r Columbsa Cana! / '?'"*" D ' ~ Stevens Creek ' e S A '"d" dTe'*e i Q AIKEN f D Uraha't l l' nadys l n'illiams CHARLESTON no, Hagood & l Faber Place j 1 3 c __; ex / / Q HydroGeneration g internaicombustion Generation ,/ 8 NuclearGeneration ~

reduce future requirements for residual oil. The Company has a separate l~ ' ~ ~ w " j_ " " 5 ~ " i@ contract for the residual oil burned at Plant Hagood. The Company has in storage or under contract sufficient quantities of '7 1 nuclear fuel and related services to operate the V.C. Summer Nuclear Station 1i M '1 through 1989. Westinghouse Electric Corporation is supplying approximately [c j-s m ~& 77 % of the uranium requirements under contract. The Company dou not x expect to have difficulty obtaining additional nuclear fuel to meet its total yd., 1 [. 3 'C i;O'$ requirements. Provisions have been made to store spent nuclear fuel on-site .g - y for at least ten years of operation. Wa g ' Q4 '9 i. d.. n InJanuary 1983 federal legislation established guidelines and procedures Fk" *i j M t .J for permanent away-from-reactor storage of high-level nuclear waste. This F V- ~' legislation includes a fee of one mill per KWH generated at nuclear plants to w-w s m m be paid by utilities to the Department of Energy. The fee covers, among other things, the costs of siting, licensing, and construction of a permanent waste g""[,]'Q;'"#"'y,",de storage site, construction of a monitored retrievable storage facihty, and other ,,,jo,,jy f,,,js,y,, p,,, geraf,0,,, o, activities involving the removal and transponation of spent fuel from those ehe gmunds ofsummerswio= near utilities' nuclear power stations. 1<"4ineri#<- PEAK DEMAND The territorial peak demand is the maximum requirement for electricity placed on the Company by its customers (excluding other utilities) for any one-hour period during the year. The 1982 peak occurred on August 25, when customer demand reached 2,463 megawatts (see Chan 9). This peak was 3.7 % lower than the 1981 peak and represented the first year-to-year decline in SCE&G's summer territorial peak demand. The lack of any sustained period of hot weather during the summer and the economic recession's effect on 's7dr'ces orfiectric ceneration industrial usage of electricity contributed to the decline. The territorial peak demand had grown at an average annual rate of 5.1% from 1976 to 1981. The Company bases its plans for the construction of new electric gener-wo ating facilities on the expected growth in the annual territorial peak demand. Current Company projections estimate that peak demand will grow at an @7 8Q[ 1 average annual rate of 3.1% through 1987. The Company anticipates that no additional base load generating capacity will be needed until the early 1990's. _l p}1 ,j 80 l e:

a cONsERVATIONANDLOADMANAGEMENT The Companyis vitallyinterested i e J (5 l k h1[j (Q3M in energy conservation and load management as a means of reducing energy g

so j [j f I

• PQ] Q]q[p'j O 1 costs and the need for additional generating capacity. During 1982 the Com-j(ijk, pany continued the Residential Conservation Service Program, which offers N

energy conservation assistance and advice to homeowners primarily by means t- ? M hE @Q K j iH h] kg] of a home energy audit. These audits are conducted by specially-trained Company personnel for a nominal fee to the customer. Each audit involves a comprehensive, computer-assisted, on-site survey of the various uses of energy Pi ! : if1 E a s 3 fi]Q [M Lj [:j F] in the home. Recommendations are offered on ways to reduce energy usage 20 [ q" p 1 y' [' 'j L ))[j through improved insulation, energy-efficient appliances and other conserva-p [ tion measures. 1 During 1982,2,900 customers requested an on-site audit. The Company ~ received requests from 6,200 additional customers for a do-it-yourself audit package. The Company expects to conduct approximately 3,000 home energy g pai %2aicas audits dunng 1983. 1 , nuciea, During 1982 the Company received approval from the PSC to offer two new conservation rates to its residential electric customers. The Residendal Energy Conservation rate provides a discount to customers whose homes meet specific construction and insulation requirements. By year-end 1982 more than 300 customers had qu:Jified for this rate. A Residential Time-of-Use Rate was made available to customers in the metropolitan Columbia and Charleston areas. This rate prices electricity higher 12

dunng periods of peak demand and lower during off-peak periods. providing a dm ount to ( ustomers who are willing to change their < nergy use habits. The ( ompany also offers an interruptible rate to its large industrial electnt ( ustomers Customers on this rate agree to allow the Company to interrupt their serva e during peak energy-use penods. In return. thev par a reduted rate. 9 The Compam currenth has three ongoing load management studies. i e s 9 I One analyzes the etfccts ofint reased levels ofinsulation in residential homes A sec ond studs is looking at heat-recovery systems for residential water heating. while a third is investigating the benefits of dact load control at commercial estabbshments The results of these studies will help shape a load management strategy that will be most beneticial to the Company and its customers ENVIRONMENTAL PROTECTION During 1982 the Company spent approxi-matelv $2.0 million on pollution control fat ilities to minimize the impact ot the Company's operations on the environment. Over the five-year period s 19s bs. the Company an<itipates spending some SS million on pollution tontrol finilities. including $19 million in 1983. GAS OPERATIONS w y The highlight of the Company's 1982 gas operations was the acquisition in April of Carohna Energies, int tCElt CEI is a holding company which provides un,"& sr.ugn a imn.- m eA 27 "" ' ' * < " " ^ " ' " " " * " " "' natural gas transmission sen-ice to resale and industrial customers in the ut - m. nonhern half of South Caroh.na and distnbutes natural gas at retail to approximatelv 15.000 residential and small commercial customers primarily in the northeastern section of South Carolina. In addition. CEI is involved in propane storage and sales activities. Electric TerritoriaiPeak Demand The prot ess ofintegrating the Company's gas operations (the South system) and LEli gas operarHns (the Nonh system) is well undenvay. Natural gas transmission pipeline operations. gas purchasing and dispatching have been 2m tentralized. Additionally. two of the major transmission lines have been inter-22s-t onnet ted. resulting in an improvement in overall system reliability. Combining the management and technical expenise of personnel from both systems has 2.48 2.500 2'463 cohanted operating eff,icienacs and system reliability for all of the Company's natural ga3 < ustomern 'Ille Sotith system primarily senes residential t ustomers with some tom-2m men ial and industrial load. The Nonh system primarily serves wholesale and indust rial customers. The combined systems have a load profile which is beuer balant ed and therefore stronger than either had as individual systems-2m 2.27 Management believes there still exists significant potential for expansion in residennal, commercial and tertain industrial markets in the combined service area. Current supplies of natural ga3 are adequate to meet existing D 2.20o c ustomer demands for service and to accommodate growth. During 1983 the j Company will implement a program to inform potential natural gas customers of the asailability of natural gas at compentive prices. While the availability of 2W ~ compeutivelv-priced alternate fuels has and may continue to adversely affett the Company's sales to low-margin. large-volume industrial boiler fuel cus-tomers. natural gas continues to be the most efficient and et onomical energv i978

is7, isso 4,si iser sourte for residential. commercial and <crtain industrial uses throughout M EM Ts senne area.

SALES AND CUSTOMERS lotal sales of natural gas in 1982 were 590 million therms. a 20% in(rease over 1981. The addition of the market served bv (E a

[ accounted for the increase. Otherwise, milder weather, weak economic condi-c-w tions, increased customer conservation effem and the changeovet of cenain 8%,f,","y",*18* 7s' customer a industrial customers to lower-priced attemate fuels resulted in a 17 % decrease in sales on the SCE&G system during 1982. Sales by customer class are sum-marized in the following table: [ Sales of Natural Gas 5 (Thommds of Therms) Number of Customers (Year.End) = 5Nhiced* kiad Only bmbined* sCIAG Only sw 7S1 ? % Intrease % increase D4 Customer Class 1992 1982 _1981, (Dcyrcase)_ _ _1_982 . 19_82 _1981 _ Decrease) ( 7" '" d Residential 95,Wf-92,438102.676 (10.0) 170,321 157,714 156.447 .8 G3mmercid

• 94,146
• /'.%3 85.946 2.3 15.440 12.696 12.501 1.6 M

M 665 Indust rial 280,250 N,333 268.991 (27.8) 548 408 344 18.6 k h f j W ' Sales for Resale i19,859 35,005 35,689 (l.9) 1I 2 2 j $7a g Ltal '.596,2s7 409.739 493.305 (16.9) 186,320 170,820 169.2%1 .9 L, m (D' s 71 .s-gi 4 t =

• indudes operahons of tarolina Ency:ies. Int. sinte April l.1982.

g fg 'q C N E At yearend 1982 the Corepany was serving a combined total of186,320 sa 4 _(h r natural gas customers (see Chan 6). The Company indirectly supplies natural M M '.? j gas to thousands of other residential, commercial and industrial customers Qf# ip_ gi g' through its resale customers. The average annual usage of natural gas by the T Company's residential customers declined in 1982 for the founh consecutive M,. v-g year (see Chan 10). Mildet weather and conservation effons were the primary ~ factors. lbal sales of natural gas are projected to mw at an average annual 978 1979 1980 1981 1982 i rate of 3.2% through 1987. ~ 7 SUPPLY The Company purchases natural gas under connacts with Southern i i Natural Gas Company (Southern) and Transcontin6ntal Gas Pipeline Corpo-ration (Transco). 'Ihe volume ofgas which the Company is entitled to receive a E through these contracts is shown below: .. m n Maximum Daily _ _ _ SUPPEC'. _ System \\ Comratt DemandplCF)._ ~ p f.authem South 165,000 buihem Nonh 45.000 AL n" b UN .k. ns o .- _ _ North 29,300. 7... c C L'21 _.., _ = - 239) g y7 = =

q

== These quantities are subject to cunailment plans approved by the Federal Epergy Regulatory Commission (FERC). During 1982 f~ull contract gas volumes i were available when needed. Ample supplies of natural gas are expected to be E available well into the future due to increased exploration and production by . natural gas producem and increased customer conservation HTons. r L To meet the requirements ofits high priority natural gas customers during 6 ~ periods of maximum demand, the Company supplements its supplies of nat-L ural gas from a liquefied natural gas 6NG) plant and from propane storage e m.. facilities as shown below: Maumum Daily / ( Type _ ' __ _ Sptetu _ _. CapabilitypfCF) E LNG South 60.000 ]a Propane x South 55.000 '4 s n7 u 'ff g g ? P'"P'_'2c {~ Nonh,,f 15_.000__ y L. k P* Ep@ x The LNG storage tanks, which 2re capable of storing up to 1,000.000 MCF b M 4 ~ l ofliquefied natural gas, are filled by liquefyiq natural gn: from incoming h wN pipeline supph during off-peak periods. During peak periods the plant can f iegasify up to 50,000 MCF per day. Pmpane storage facikies located throughout $',$"f"""0" #Nh"' the Companp? service area can supplement the supply of natural gas by approx-g- imately 70,000 MCF per day. The Company also has 1.3 million MCF of natural

i-t g

.s in storage fields.;

I. 1,14,

2 r ./,- c .,y openmonss y' 'f r r s f 5' 5 k 'Y Sup,>lements Gas Supplier ? I ag erns 5^' ROCK HILL .fi / PARR . hanscontrental S h f } COLUMBIA w - : Delivery Pomts MYRTLE BEACH l } llll AI.EN oggggggygg l 'n .k ll[ g I gutgr"natura' .II, ,,,,,,,,a Delivery Point s fu g l CHARLESTON .i l ,,) eeAur0$ {. f / l / = 5 ? 7 s

The improved gas supply. together with storage and peaking fiuilities. should allow the Company to meet the needs of existing high priority natural 3 gas (ustomers without (urtailment while expanding natural gas operations in .k the years ahead. t la CAS DECONTROL The Natural Gas Polky At t of lir8 i NGPA > is gradually ? demntrolhng the wellhead prae of natural gas divovered after February lir' OnJanuary 1,1985 all prae mntrols on "new" natural gas will be climinated, but (ontrols on "old" gas will remain. The goal of the NGPA was to promote greater exploration and development of new natural gas resources through int reased prke incentives. By phasing in demntrol over a period of several I vears, price increases were expec ted to occur in an orderly and gradual fashion ~ Certain provisions in the contracts governing the purchase of natural gas by the Company's suppliers, together with the decontrol features of the NGPA, have put upward pressure on natural gas pri< es whkh would not other-wise be expected in the mrrent economic environment. The Fuu. whk h regulates pipeline supphers' prices to the Company, retently issued an order " '#u X * '"s" 9 'a'" r ['f,"',,',"(' ",'l,#',"I',,','J"[,",,'""",' wha h calls into ques ion current pipeline pun basing arrangements and prking practices. Congress also has reviewed the impact of the NGPA and leg-i.,..,,, /, y,ya,,,,n,m,-n j, u.o,ux islation has been proposed This matter is filled with un(crtainty. and current

• " "< s' ( 4 '" ^u mnditions may t hange. Since the cost of natural gas sold is about 80% of every dollar generated by the sale of natural gas, the Company is vitally inter-ested in this ongoing mntroversy and intends to proret t its interests in this area The weighted average mst of natural gas pur hased during 1982 was W5 (ents per therm, a 22% increase from 1981 (see Chart 11). The Company ama-ipates that the cost of natural gas will mntinue to increase as a result of the phased in demntrol of gas prkes under the NGPA The Company is allowed to pa.ss through to (ustomers increases or decreases in the cost ef gas from suppliers The ability of the Company to pass along increases in the mst f**M "8f,"r8' ?as Purchased of gas to cenain industrial and resale ustomers is limited by the existerne of ahernate fuel tapabihties.

40 i PROPANE OPERATIONS As a resuh of the acquisition of Gl. the Company has significantly expanded its involvement in propane operations. Three of y' ( Efs six operating subsidiaries are involved in propane gas operations or related servacs. Carotane, Inc., is a retail propane operation whic h serves residential and small commercial customers kwated beyond the Company's natural gas T'" - 30 servke mains. At year-end 1932 Carotane wa3 serving appra mately 4,200 (ustomets. The retail propane distribution business should s.,ntinue to grow t reating additional opponunities fi)r the Company to expand and improve this i 25 portion ofits business. 22 7 GI through subsidiaries owns a 50% interest in three joint ventures with Trans o Companies, int. Two of these joint ventures own and operate an 80-f -~ 3-milhon gallon underground storage fatihty and a 62-mile propane pipeline Space in the cavern, w hk h is the largest ofits kind in the free world, is leased to customers for the smrage of propane until needed as an alternate fuel when ,s i37 natural gas supphes are cunailed. Sin (c the supply of natural gas has been adequate over the last several winter seasons, the demand fi>r propane storage 4 services has treri reduc ed. i,78

isr, isso

i9s, i982 16

MANAGEMENTREPORT The Management of South Carolina Electric & Gas Company is responsible for the preparation and integrity of the financial data induded in the accom-panying Consolidated Financial Statements. These statements have been prepared in conformity with generally accepted accounting principles as applicable to a regulated utility. In situations that prevent exact accounting measurements, management has used informed judgments and estimates in establishing accounting and reponing practices for such items. Financial information presented elsewhere in this Annual Repon is consistent with these financial statements. The Company maintains and relies upon a system ofinternal accounting controls which is designed to provide reasonable assurance that all trans-actions are properly recorded in the books and records and that assets are protected from unauthorized use. Tb degree ofintemal accounting control is based upon the determination of the optimum balance between the cost incurred and the benefits to be derived. The system ofintemal accounting controls is supponed by written policies and guidelines and is complemented by a staff ofintemal auditors who conduct comprehensive internal audits and by the selection, training and desclopment of professional financial managers. The Board of Directors, through an Audit Committee composed of non-employee directors, provides oversight for the preparatien of these financial statements. The Audit Committee meets periodically with internal and independent auditors and representatives of management to review their activities and responsibilities. The internal and independent auditors have fall and free access to the Committee to discuss internal accounting control, auditing and financial reponing matters. The Company engaged Deloitte Haskins & Sells as independent auditors to repon as to the fair presentation of management's Consolidated Financial Statements and their report appears on page 33 in this Annual Repon. Their examination is conducted in accordance with generally accepted auditing standards and is based upon their performing procedures which include maintaming an understanding of the Company's system ofinternal accounting control and such tests and other auditing procedures as they believe to be necessary. f/ h W/ - b/hW W. B. Timmerman R. W. Stedman Vice President-Finance Contml/er 17

i MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION LIQUIDITY AND CAPITAL RESOURCES Le Company's ability to Unance its construction For additional information conceming rate matters program and meet its working capital requirements is see Note 2 ofNotes to Consolidated Financial Statements. dependent upon rates suf6cient to provide funds from An accounting practice in the utility industry which intemal sources and to suppon the issuance of securities has had a major effect on the Company's results ofoper-on reasonable terms. The Company's liquidity and its ations in recent years is AFC. AFC is a utility accounting ability to obtain funds through shon and long-term practice whereby a portion of the cost of both equity borrowings and equity securities is subject to cenain and borrowed funds used to 6 nance construction is cap-earnings tests and market conditions. italized (which is shown on the balance sheet as con- %e Company's construction expenditures aggre-struction work in progress)instead of being expensed in gated approximately $682 million for the Eve years the period ofincurrence. Both the equity and the debt ended December 31,1982. Approximately $402 million ponion of AFC are non-cash items of non-operating of these expenditures were associated with the construc-income which have the effect ofincreasing the tion of the V.C. Summer Nuclear Station (Summer Company's reported net income by their full amounts. Station). The Company's estimated cash requirements Due to the high level of construction activity in recent for its 1983 construction program, excluding Allowance years (principally related to Summer Station) a substan-for Funds Used During Construction (AFC) but includ-tial portion of the Company's earnings has been attrib-ing nuclear fuel purchases, are approximately $199 utable to AFC. For the years 1982,1981 and 1980, AFC million. In addition to cash required for construction, contributed approximately 58%,67% and 66%, approximately $11 million will be required during 1983 respectively, of Eamings Available for Common Stock. to retire maturing obligations and ful611 sinking fund AFC will decline significantly after the Summer Station requirements. The Company anticipates that is placed in commercial operation. This decline in AFC, approximately 65% ofsuch cash requirements in 1983 as well as higher levels of depreciation expense and will be obtained from internally generated fund >. propeny taxes created by'the addition of Summer Sta-The Company periodically reviews its capital rion to the Company's plant-in-service, will result in a requirements, conditions in the financial markets and reduction in net income until rate reliefprovides its capitalization goals to determine the amounts, additional revenues to offset these factors. timing and types of extemal financings. Electric Sales RESULTS OF OPERATIONS The percent increase (decrease) from the prior year in Earnings electric sales (KWH) by customer class was as follows: Eamings per share ofcommon stock, based on the in<,,,msegmm p,;o,g, weighted average number of shares outstanding, were cusmmer class 1982 1981 $2.32 in 1982 ($ Al subject to refund) compared t Residential (2.3)% (1.0)% $2.19 in 1981 and $2.02 in 1980. The increases in per o>mmert ial 2.6 2.9 share earnings are primarily attributable to various rate Industrial (6.o 2.2 increases placed in effect during 1981 and 1982. The Sales for Resale (.s) (19.3) Other 3.0 2.3 follow.ing table sets fonh certain information with rwi g2.3) y) respect to significant current and previous rate cases for 1981 and 1982: The overall decrease in KWH sales is primarily the result of milder weather, weak economic conditions and REQt/EsTl_D APPROVED increased customer conservation. The substantial per- $el $E_n"1 R q f 1.) _ _at _.i - _G an cYi~ centage decrease in the Sa/effor Refale classification in sense n} 1981 was the result of the expiration in late 1980 of two Retal 2/27/81 $74 2 16.8 % 4/1/82 $%.4 760% contracts with neighboring utilities. Wholesale S/1/81 $42 18.2 % 4/29eK2 $38 000% Retail 7/1I82 $86 2 15.5 % Pending Electnc operaung revenues increased each year as Gn [ollows: Retal 7!1r82 $164 14 5 % 9/29/82 $ 10. 4 6Lo% n)Ibed on iesi gar used in rare use 18

Increase from Prior Year Operating Expenses (.\\lditorn ofDdl.tn) Classakarion 1982 1981 Increases or (decreases) in operating expenses, excluding taxes, from prior years are presented in the following saler Residential $16.0 $28.7 table: Commercial 14.3 22.0 Increase (Decrease)from Prior Year Indusuial .6 27.3 (3gg],v,,, ofg,jj;,.,; Sales for Resale 1.6 4.1 Classifkation 1982 1981 Other 1.5 2.7 Fuel used in electric generation $(19.6) $29.3 O_t_he. r Operating Revenues Power purchased, net 16.2 34 .3 .2

=== dSk==. = = =.=-

$.3 8M

Gas purchased for resale, 66.0 32.9 =.- Oti.er operation and maintenance 13.1 14.0 The increases in electric revenues are primarily the Depieciation and amortization 3.7 2.9 result of various retail and wholesale rate increases ~ 7 Total $79.4 $82.5 placed in effect in 1981 and 1982. The increase in Fuelusedm electricgeneration expense in 1981 was primarily the result of the increased Gas Sales average cosmf fuel bumed ($1.98 per million BTU in The percent increace (decrease) from the prior year in 1981 versus $1.77 in 1980). The decrease in such expense gas sales (therms) by customer class was as follows: in 1982 was primarily the result ofdecreased generation Inc rease(Decrease) from Prior Year (9,1%) as a result of reduced customer demand, de pur-Customer Chss 1982 1981 chase ofless costly off-peak power from other utilities Residential (6.5)% (.6)% and an 82% decrease in electric generation from No. 6 Commenial 9.5 (.3) fuel oil. Powerpun hafed, net expense has continued to s"f0f rkesale

23f, rise as a result of the Company purchasing power, where Total 19.7 (2.6) available, at costs lower than the Company would incur through generation at its own plants. Increases in Cas

, Iower unit sales of gas m. 1981 were a result of py7cf,asedforresale expense are a reflection of the con-milder weather, weak economic wnditions, increased tinued upward trend in the price of natural gas from the customer conservauon, and the changeover of certain Company's suppliers and since April 1,1982 the inclu-industrial customers to competing fuels. Although Ic32 sion of the cost of natural gas of Carolina Energies, Inc. gas sales were ad fersely affected by the same factors, tne Otheroperation andmaintenance expenses continue to overal1 increase in gas sales for 19,82 was the result of the rise as a resu't of higher payroll costs and related employee inclusion in the results ofoperations, smce April I, benefits, maintenance of generating units and the 1982, of the gas sales of Carohna Energies, Inc. (see impact ofinflation on the costs of materials and supplies. Note 11 of Notes to Consolidated Fmancial Statements.) The increases in Depreciation andamortization expenses Gas operating revenues increased (decreased) each are consistent with the increased amount of plant-in-year as follows: 3## Increase (Der rease) from Prior Year (Al!l!! M o/ O dl.In) jngegg,g(hg7Eeg 1981 Classitution 1982 Interest charges, excluding the credit for allowance for sales: Residential $ 2.6 $ 6.5 borrowed funds used during construction, increased Commercial 9.6 6.1 $3.8 million in 1982 and $16.6 million in 1981. These ["d j",[cs,i, O increases are a result ofincreased debt outstanding and 2 f y a higher average rate ofinterest on such debt. Other Operating Revenues (.1) .I ~ - ~ ~ $78.2 ~ ~ ~ ~$30.5 Total ~ ~ ~ ~~ Inflation The increases in gas revenues are primarily attrib-Supplementary financial information showing the esti-utable to the recovery of the increased cost of gas, which mated effects ofinflation on the Company's operations is passed along to gas customers through a purchased is shown on pages 36-37. gas adjustment clause, increased retail gas rates placed in effect August 1,1982 and the inclusion of natural gas sales of Carolina Energies, Inc. since April 1,1982. 19

CONSOLIDATED BALANCESNEETS SOUTH CAROUNA El.ECTRIC & GAS COMPANY December 31,1982and1981 ASSETS 1982 1981 (Thousands ofDollars) Utility Plant (Notes 1,3 and 4): Electric $1,237,972 S1,195,475 Gas 210,398 150,670 Transportation (coach) 4,618 4,567 Common 19,344 16,497 Total 1,472,332 1,367,209 Less accumulated depreciation and amortization 459,417 399,505 Total 1,012,915 967,704 Construction work in progress 831,123 706,801 Nuclear fuel 68,133 57,679 Acquisition adjustment-gas (Note 11) 39,891 Utility Plant, Net 1,952,062 1,732,184 Other Property and Investments: Nonutility propeny (substantially at cost) 11,2M 10,548 Investments in unconsolidated subsidiaries and joint ventures (Note 1) 23,227 10,259 Other investments and special funds (at cost or less) 108 97 Total Other Property and Investments 34,599 20,9M Current Assets: Cash, temporary cash investments and special deposits (Note 8) 18,553 3,235 Receivables 75,306 70,242 Inventories (at average cost): Fuel 73,602 83,694 Materials and supplies 7,626 7,786 Prepayments 6,846 6,299 TotalCurrent Assets 181,933 171,256 Deferred Debits: Unamortized debt expense 6,651 4,649 Funds on deposit (Note 9) 8,589 15,610 Other 10,593 14,169 Total Deferred Debits 25,833 34,428 i Total $2,194,427 $1,958,772

= = - -=====

== == __ = _- = . = _ =. = = = _ = l l See Notes to ConsoliktedFinancialStatements. 20

l ~ CAPITALIZATION AND LIABILITIES 1982 1981 (ThousanJs ofDoll.trs) l Stockholders' Investment (Exduding Preferred Stock l Subject to Purchase or Sinking Funds) (Note 5): Common Equity: Common stock (Authorized 50,000,000 shares) Outstanding 1982 - 36,526,499 shares 1981 - 29,690,064 shares $ 164,369 $ 133,605 Premium on common stock 344,571 267,049 Other paid in capital 4,882 4,687 Capitalstock expense (debQ (6,662) (6,175) Retained earnings 160,280 146,775 Total Common Equity 667,440 545,941 Preferred Stock (Not Subject to Purchase or Sinking Funds) 26,262 26,262 Total Stockholders' Investment 693,702 572,203_ Preferred Stock (Subject to Purchase or Sinking Funds) (Note 6) 163,619 141,217 Iong-Term Debt (Notes 3 and 4): Principal amounts 855,897 766,415 Irss unamurtized discount and premium, net 1,053 1,444 fong-Term Debt. Net 854,844 764,971 Total Capitalization 1,712,165 1,478,391 Current Liabilities: Short term borrowings(Note 8) 21,966 23,248 Current portion oflong-term debt 16,873 75,733 Accounts payable 58,012 71,067 Customer deposits 7,255 6,592 Taxes accrued 6,633 9,968 Interest accrued 21,164 15,914 Dividends declared 21,863 17,039 Tax collections payable 915 988 Other 1,755 1,201 Total Current Liabilities 156,436 221,750 Deferred Credits: Accumulated deferred investment tax credits (Note 1) 109,792 92,644 Accumulated deferred income taxes (Note 1) 183,422 140,971 Funds held in escrow (Note 9) 8,589 15,610 Other 24,023 9,406 Total Deferred Credits 325,826 258,631 Commitments and Contingencies (Notes 2 and 9) Total $2,194,427 $1,958,772 Note: 1981 Restated: 1982 includes amounts subject to refund-see Note 2. See Notes to ConsolidatedFinancialStatements. 21

CONSOUDATEDSTATEMENTS OFINCOME SOUIllCAROl1NA El.ECTRIC& GAS COAIPANY Forthe Years EndedDecember31,1982,1981 and1980 1982 1981 1980 (Thousands ofDollars exceptpershare amounts) Operating Revenues (Notes 1 and 2): Electric $590,044 $555,716 $470,765 Gas 266,389 188.167 157,643 Transportation (coach) 2,603 2,429 2,338 Total Operating Revenues Operating Expenses: 859,036 746,312 630,746 Fuel used in electric generation 214,617 234,243 204,948 Power purchased, net 32,501 16,271 12,860 Gas purchased for resale 220,502 154,502 121,642 Other operation 76,615 68,353 58,044 Maintenance 38,724 33,895 30,226 Depreciation and amortization (Note 1) 43,406 39,691 36,822 Taxes-other than income 33,453 34,672 31,219 Taxes-income (Notes 1 and 7) 51,635 54,377 42,137 __ Total Operating Expenses 711,453 636,004 537,898 Openting Income 147,583 _ 110,308 92,848 OtherIncome(Note 1): Allowance for equity ftmds used during construction 6,618 4,530 6,003 Income tax-credit (Note 7) 16,792 12,683 Other income (loss), net ofincome taxes (1,388) (227) 212 TotalOtherIncome 5,230 21,095 18,898 Income Before Interest Charges 152,813 131,403 111,746 Interest Charges (Credits): Interest on long-term debt 89,949 84,232 69,518 Amortization of debt premium, discount and expense, net 671 573 605 Otherinterest expense 5,591 7,604 5,649 Allowance for borrowed funds used during construction (Note 1) (39,519) (36,889) (27,726) Total Interest Charges, Net 56,692 55,520 48,046 Net Income 96,121 75,883 63,700 Dividends on Preferred Stock 16,371 14,245 12,949 Eamingpppglefoy_ Common Stock ____ $ 79,750 $ 61,638 $ 50,751 Weighted Average Number of Common Shares Outstanding (Thousands) 34,387 28,139 25,148 _Eamings Per Share of Common Stock S2.32 $2.19 $2.02 Note: 1981 Restated: 1982 includes amounts subject to refund-see Note 2. See Notes to ConsolidatedFinancialStatements. 22

CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION SOU711 CAROLINA ELECTRIC & GAS CO31PANY lbr the Years EndedDecember31,1982,1981 and1980 1982 1981 1980 Working Capital Provided: @""d/' flMid") Net income $ 96,121 $ 75,883 $ 63,700 Charges (credits) to income not requiring (providing) working capital: Depreciation and amortization 43,406 39,691 36,822 Deferred income taxes, net 34,021 17,697 9,274 i investment tax credit, net 15,034 19,128 13,187 Allowance for ftmds used during construction (AFC) (46,137) (41,419) (33,729) Other, net 5,284 1,215 500 Total from Operations 147,729 112,195 89,754 Sale ofsecurities: Mongage bonds, net of discounts and commissions 25,000 84,388 49,563 Guaranteed notes 60,000 Preferred stcxk 25,000 20,000 Common stock 65,512 48,983 30,217 Issuance ofcommon stock for acquisition 42,774 Issuance of secured notes - banks, net 15,000 30,000 Increase in: Nudear fuelliability, net i1,006 12,026 1,647 Fossil fuelliability, net 3,325 3,722 21,350 Decrease in: Other property and investments 872 1,495 Other non-current funds, net 17,423 5,888 Total Working Capital Provided 413,MI 262,809 248,419 Working Capital Applied: i Acquisition of Carolina Energies, Inc.: l Net assets acquired 69,339 less: working capital provided 8,112 Remainder representing the er. cess of gas utility plant ($67,430, induding acquisition adjustment of $39,891) and other assets ($16,109) over long term debt ($10,546) and other liabilities ($11,766) 61,227 Utility plant additions (excluding Arc but including nuclear fuel) 154,010 142,682 119,869 Cash dividends declared: Preferred stock 16,371 14,245 12,949 Common stock 66,245 51,1N 44,019 Reduction oflong-term debt 37,199 67,253 44,948 Retirement ofpreferred stock 2,598 3,432 1,715 Increasein: ) Other propeny and investments 844 Other non-current funds, net 1,012 _ TotalWorking Capital Applied 337,650 279,728 224,344 Ca D*IbSb" "b"8= {tal J=gl___$ (16,q)=J=2{,075

= _ = = _ = = = = =

= = = _ Incream (Decrease) in Working Capital by Component: Cash, temporary cash investments and special deposits $ 15,318 $ (5,240) $ 1,514 Receivables 5,064 11,964 (2,120) Inventories (10,252) 7,705 16,860 Prepayments 547 (3,683) 5,879 Short term borrowings 1,282 18,032 (5,125) Current ponion oflong-term debt 58,860 (21,867) 11,624 Accounts payable and accruals 5,172 (23,830) (4,557) Incicase (Decrease) in Working Capital S 75,991 $ (16,919) $ 24,075 Note: 1981 Restated; 1982 indudes amounts subject to refund -see Note 2. See Notei to ConsolidatedFinanculStatements. 23

CONSOLIDATED STATEMENTS OF CAPITALIZATION SOUTH CAROllNA ELECTRIC & GAS COMPANY Daember31,1982and1981 8982 1981 (Thousands ofDouars) Common Equ.ity (Note 5): Common Sto(k, $4.50 par value, authorized 50,000,000 shares, issued and outstanding; 1982 - 36,526,499 shares, 1981 - 29,690,064 shares $1M,369 $133,605 Premium on common stock 344,571 267,019 Other paid-in capital 4,882 4,687 Capital stock expense (debit) (6,662) (6,175) Retained earnings 160,280 146,775 Total Common Equity 667,440 39 % 545,941 37 % Preferred Stock (Not Subject to Purchase or Sieding funds) (Cumulative) Shares Outstanding Redemption Price Eventual 1982 1981 Current Through Minimum $100 Par 8.40% 200,000 200,000 106.50 11-30-86 101.00 20,000 20,000 50 Par 5% 125,234 125,234 52.50 52.50 6,262 6,262 Total Preferred Stock (Not Subje to Purchase or Sinking Funds) 26,262 1% 26,262 2% Preferred Stock (Subject to Purchase or Sinking Funds) (Cumulative) (Note 6) $100 ParValue-Authorized 1,550,000 shares Shares Oatstanding Redemption Price Eventual Stries 1982 1981 Current Through Minimum 7.70 % 126,000 126.080 103.85 6 30-87 101.00 12,600 12,608 8.12 % 180,600 184,800 101.06 6-30-86 102.03 18,040 18,480 10-3/4 % 174,000 187,000 110.75 10-01 85 100.00 17,400 18,700 11.08 % 200,000 200,000 111.08 10-01-85 100.00 20,000 20,000 13.88 % 250,000 113.88 7-01-87 100.00 25. $50 ParValue-Authorized, 1982 - 1,779,586 shares; 1981 - 1,792,286 shares Shares Outstanding Redemption Price Eventual Series 1982 1981 Current Through Minimum 4.50 % 38,400 40,000 51.00 51.00 1,920 2,000 4.60 % 20,334 21,831 50.50 50.50 1,017 1,092 4.60% (A) 52,052 54,052 51.00 51.00 2.602 2,702 4.60% (B) I19,000 122,400 50.50 50.50 5,950 6,120 5.125 % 85,000 86,000 51.00 51.00 4,250 4,300 6% 124,800 128,000 50.50 50.50 6,240 6,400 8% 300,000 300.000 56.00 1-31-84 50.00 15,000 15,000 8.72 % 400,000 400,000 54.36 1-01 84 50.00 20,000 20,000 l 9.40 % 272,000 276,300 $ 2.35 10-01-85 51.175 13,600 l'),815 $25 ParValue-Authorized 2,000,000 shares Outstanding Total Preferred Stock (Subject to Purchase or Sinking Funds) 163,619 10 % 141,217 9% l 24

1982 1981 - lang-Term Dein (Thouunds ofDdlan) ' First and Refunding Mortgage Bonds: - Year of Series Maturity -7% 1982 50,000 41/8% 1983 2,500 - 2.560 9-3/8% 1984 25,000 25,000 31/2% 1985 3,275 3,275 14 3/8 % 1986 15,000 15,000 15 5/8 % 1987 25,000 5-1/2% 1987 6,850 6.850 4 7/8%. 1988 10,000 10.000 10-1/2 % _1990 10,800 11.400 5% 1990 10,000 10,000 5% 1991 ' 8,000 8,000 4 7/8 % 1995 16,000 16,000 5.45 % 1996 15,000 15,000 6% 1997 15,000 15.000 6-1/ 2 % 1998 20,000 20,000 8% 1999 35,000 35,000 9-1/8% - 1999 15,000 15,000 8% 2001 35,000 35,000 71/4% 2002 30,000 30,000 91/8% .2006 50,000 50,000 8.40 % 2006 50,000 50.000 83/8% .2007 30,000 30,000 8.90%.. 2008 30,000 30,000 10-1/8 % 2009. 35,000 35,000 9-7/8 % 2009 50,000 50,000 12,15% ~ 2010 50,000 50,000 16 % 2011 -70,000 70.000 Pollution Control Facilities Revenue Bonds: - 41/2 % Series, bearing interest at 70-75% of applicable . prime rate until maturity in 1987 5,155 5,155 5,95% Series,duc 2003 7,500 7,500 5 % Consohdated Mortgage Gold Bonds, due 1999 (non-callable) - 1,050 1,054 ' Bank Notes-Secured 15,000 45.000 First Mortgage Bonds-South Carolina LNG Company, Inc., 101(2% Series,due 1990 7,360 8,050 South Carolina Fuel Company Inc.: Nuclear fuelliability 68,361 57,358 Fossil fuelliability 28,397 25,072 )- . South Carolina Electric & Gas Finance N.V., .- 151/2% Guaranteed Notes due 1989 60,000

Carolina Energies,Inc.:.

First Mortgage Bonds: 10% Senes B, due 1985. 1,050 6% Setics A,duc 1988 4,302 Term loan,9%, due 1985 4,699 1 Sinking Fund Notes: 6-1/4 %, due 1983 40 16%, duc 1988 450 Iraseobligation,5 3/4%,due 1997 ' 300 . Capitaliicd lease obligations - vehicles 6,678 4,874 sTotal. 872,770 842 148 . less: Current portion oflong term debt 16,873 75,733 Unamoniicd dixount and premium, nu I,053 1,444 Totallong Term Debt (Notes 3 and 4) 854,844 50 % 764,971 52 % l ._TotalCapitalization ' m ___...,._ ..m m m_.._ = $1,712,165 100 % $1,478,391 100 % . See Notes to Consolid.stedFin.rncidSt.rtementv. 25

CONSOUDATED STATEMENTS OF RETAINED EARNINGJ SOURI CAROL 1NA ELEC7RIC& GAS CO31PANY For the Years EndedDaember 31,1982,1981 and 1980 1982 1981 1980 (1honunds ofDollars) Halance at Beginning of Year $146,775 $136,241 $129,509 _ Addyetpcome __ 75,883 ___ 63,700 96,121 Total 242,896 212,124 193,209 Deduct-Cash dividends declared: Preferred stock (at stated rates) 16,371 14,245 12,949 Common stock (at an annual per share rate of $1.92, $1.82 and $1.74 for 1982,1981 and 1980, respectively) 66,245 51,104 44,019 lotal Deductions 82,616 65,349 56,968 Balance at End of Year (Noy 5) $160,280 $146,775 $136,241 Note: 1981 Restated; 1982 includes amounts subject to refund-see Note 2. See Notes to ConsolidatedFinanchiStatements. l l l NOTES TO CONSOUDATED FINANCIAL STATEMENTS

1.

SUMMARY

OFSIGNIFICANT charges for engineering, supervision, and an allowance ACCOUNTING POI.ICIES: for funds used during construction, are added to utility A. System of Accounts plant accounts. The original cost of utility property The accounting records of the Company are maintained retired or otherwise disposed ofis removed from utility in accordance with the uniform system of accounts pre-plant accounts and charged, with the cost of remo.21, scribed by the Federal Energy Regulatory Commission less salvage, to accumulated depreciation. 'lhe cost of (FERC) and The Public Service Commission of South rep rs, replacements and renewals ofitems of property Carolina (PSC). determined to be less than a unit of property is charged to maintenance expense. B. Principles of Consolidation c The accounts of the Company's wholly-owned subsidi. D. Allowance for Fais Used During Construction aries are conmlidated in the accompanying Consolidated Allowance for funds used during construction (AFC), a Financial Statements except for investments in its real n n-cash item, reflects the penod cost ofcapital devoted j estate subsidiary, Energy Subsidiary, Inc., and certain to plant under construction. This accountmg practice investments of Carolina Energies, Inc. in joint ventures results in the mclusion, as a component of construction (see Note 11)which are reported using the equity method 'c st (construction work in progress), of amounts of AFC of accounting. Significant intercompany transactions n hich will ultimately be included in rate base in estab-have been eliminated. lishing rates for utility charges. The Company has calcu. lated AFC using a 6.5% rate (except for nuclear fuel C. Utility Plant which is capitalized at the acual interest amount), which is less than the maximum al! >wable rate as calculated Utility plant is stated substantially at original cost. The cost of additions, renewals and betterments to utility under FERC Order No. 561 plant, including direct labor, material and indirect 26 j

E. Depreciation H. Revenue Recognition ne Company provides for depreciation for financial Customers' meters are read and bills are rendered on a reporting purposes on a straight-line basis over the esti-monthly cycle basis. Base rate revenue is recorded during mated useful lives of utility plant. Annual rates averaged the accounting period when the meters are read. Revenue 3.16%,3.12% and 3.02% for 1982,1981 and 1980, attributable to gas costs (to the extent collectible through respectively. adjustment clauses)is accrued and recorded in the month during which the gas is used rather than when the reve-F. Income Taxes nue is billed. Deferred income taxes, arising principally from the use ot The Company collects projected fuel costs in accelerated amonization and depreciation, are charged electric base rates, as established by the PSC during semi-to income currently with corresponding credits to annual hearings. Any resulting over-recoveries or accumulated deferred income taxes. Deferred income under-collections will be included during the next PSC taxes are credited to income in appropriate amounts hearing to consider if any adjustment is necessary in the when subsequent income tax liabilities are greater as a fuel component in electric base rates. At December 31, result of this practice. 1982, the Company had over-recovered fuel costs of Pursuant to an agreement with FERC effective approximately $8.4 million which are included in January 1,1982, the tax deductions related to interest " Deferred Credits-Other". expense arising principally from investments in construc-tion work in progress, which previously resulted in an I. Debt Premium, Discount and Expense income tax-credit under "Other Income',' are accounted Long-term debt premium, discount and expense are for in " Taxes-income" under " Operating Expenses". being amortized over the terms of the respective debt Investment tax credits on eligible property are being issues. amonized over the useful lives of the respective assets. He Company has approximately $5.0 million of unused

2. RATE MATTERS:

1982 investment tax credits available for carryover t OnJuly 1,1982, the Company Gled an application with the PSC for an increase in retail electric rates. The Company's Federal income tax returns have been examined by the Internal Revenue Service (IRS) "E'"*! E*E sed ekctnc rates wouM p generated 2PPmximately $101.2 milh,on annually in addmonal through 1981 and have been closed through 1974; electnc revenues (18.2 %) based on the test year ended however, Gnal repons have not been received for 1975-March 31,1982. OnJanuary 24,1983, the Company 1981 returns. reduced its sngmal request by approximately $15.0 G. Pension Plan million. If approved by the PSC, the Company's revised request would generate approximately $86.2 million The Company has pension plans covering all employees. annu lly m additional electnc revenues (15.5 %) based Total pension contributions, including amortization of r n the test year ended March 31,1982. The 1982 Con-unfunded prior service cost over a twenty-year period solidated Financial Statements reGect the effect of ending in the year 2000, were approximately $7.8 mil-the January 24, 1983 revised rate request. The total hon, $6.7 milhon and $5.8 milhon for 1982,1981 and 1980, respectively. The Company's policy is to fund pension costs accrued. Based on the latest actuarial valuation atJanuary 1, 1982, the actuarial present value of accumulated plan bene 6ts, assuming a 7% rate of return, was approx-imately $68.4 million for vested bene 6ts and approx-imately $7.6 million for nonvested bene 6ts and plan net assets available for bene 6ts were approximately l $60.5 million. 27 l l

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) amount collected relating to the electric rate increase is nuclear fuel and fossil fuel agreements (see Note 4), for subject to refund with interest on any ponion not the calendar years 1983 through 1987 are summarized appro ed by the PSC. At December 31,1982, the as follows: amount of revenues included in 1982 operations subject year amouni vear Amount to refund was approximately $28.0 million. There can %,g ogy be no assurance that all or any part of the requested 1985 s 16.873 1986 sim.73 electric rate increase will be granted. ms4 s2.393 1987 27.20 W85 29 297 On April 1,1982, the PSC granted an electric retad rate increase amounting to approximately $56.4 million annually, or approximately 76 % of the amount requested

4. FUEL FINANCINGS:

m 1981. The Company madc refunds te its customers The Company has assigned to South Carolina Fuel dunng hfay 1982. The auompanying Consolidated Company, Inc. all ofits nghts and interests in its various Financial Statements have been restated to reflect the c ntr tts relatmg to the acquismon and ownership of effect of the refund in the proper periods as follows: nuclear fuel and fossil fuel. That subsidiary finances these Year Ended pnember H. tysi investments through the issuance of shon-term com-Previously As mercial paper supported by an irrevocable letter ofcredit _ RcP"ned ^d.i.usiment Ad,umi (nuclear fuel) which expires in 1986 and an irrevocable m on w.m m m aam."""N bank line of credit (fossil fuel) which expires in 1984. Totalele tric operating revenues $ s69. i su u ss55.7 Due to these arrangements which suppon the commer-operating inmme (net cial paper borrowings, the amounts outstanding have scYiCn*e'"' Q, y 7, been included in long-term debt. The agreements, as ramings availabic for amended, provide for maximum amounts ($70 milhon wmmon m k ox 6 (7 o) ci.n related to nuclear fuel and $30 million related to fossil ""r"C,Nk fuel) that may be outstanding at any time. 2.4 i t.2s>

2. m 146.8 At December 31,1982, the amount outstanding for Retained eamings~~

133.8 (7.o)~~ nuclear fuel was approximately S68.4 million at a w eigh ted ~ average interest rate of 8.94% and the amount out-

3. LONG-TER51 DEBT:

standing for fossil fuel was approximately $28.4 million The Company's bank note ($15 million due h1 arch 9, at a weighted average interest rate of 8.98%. 1984)is secured by a like principal amount of First and Refunding hfortgage Bonds,14 % % Series. Interest on the note is pegged to various prime rates at the option

5. STOCKHOLDERS'INVESTAIENT of the Company and the interest rate was 9.7% at (EXCLUDING PREFERRED STOCK-December 31,1982.

SUBJECT TO PURCHASE OF SINKING FUNDS): The 15 % % Guaranteed Notes of South Carolina Increases in " Premium on common stock" for 1982 Electric & Gas Finance N.V. duc 1989 are secured by First (approximatelv $77.5 million),1981(approximately and Refunding hfortgage Bonds. S33.6 million)'and 1980 (approximately $20.9 million) Substantially all utility plant and fossil fuel inven' represent the premium on issuance of additional shares tories are pledged as collateral in connection with the of stock as follows: various issues oflong-term debt. Approximately S8.6 million of the current portion oflong-term debt for 1983 y,st. _ wso _ ns2 '"""""" m k - pu bik s21e 2.500.000 2.000.000 1.000.000 may be satisfied by deposit and cancellation of bonds Common stot k -Carolina Energies, issued upon the basis of propeny additions or bond ine aquisition 2.6i8.400 retirement credits. Snx k Purtbase-Savings Program The annual amounts oflong-term maturit;es, includ-niIilenIf Sstment and ing sinking fund requirements and amounts due under Stoc k Purt hee Plan i,126.350 845.898 651.M 6 Employer Stot k Ownership Plan 193.5i6 270.249 166.824 Total Shares Iwurd 6.836.43s 3.428.807 2.J66.394 18

The Restated Articles ofIncorporation of the acquire for value any shares of preferred stock except out Company and the indentures underlying certain bond of moneys set aside as purchase funds or sinking funds issues contain provisions that limit the payment of cash for one or more series of preferred stock, at any time dividends on common stock. Approximately $116.2 when it is in default under the provisions of the purchase million of retained earnings were not restricted as to pay-fund or sinking fund for any series of preferred stock, ment of cash dividends on common stock at December The aggregate annual amounts of purchase fund or 31,1982. sinking fund requirements for preferred stock for the The increase (decrease) in Stockholders' Investment calendar years 1983 through 1987 are summarized (Excluding Preferred Stock Subject to Purchase or as follows: Sinking Funds)is summarized as follows: Year Amount year Amount 1982 1981 1980 (Thonumh ofDE.in) Italance at lleginning of Year $572,203 $512,420 $475,659 Changes in Common stak: Sta k Purchase-Savings Program gmQ'*(('g*' Ownership Plan s The increase (decrease) in " Preferred Stock (Subject f Dividend Reinvestment and Stak to Purchase or Sinking Funds)" outstanding is summar-Purthase Plan 5.068 3,806 2.930 ized as follows: Public sale 11,250 9,000 4,500 Acquisition of Carolina Energies, Inc. 11,783 1982 Changes in Premium on common stat k: Numl$ct Thot5saEli Stm k Purt hase Savings Program ofShares of Dollars for Employees 4,765 3.017 . 50, Employer Srm k Ownership Plan 2,337 2.542 1,647 Iwued: Dividend Reinvestment and Stock $100 par value 250,000 $25,000 Pimhase Plan 12.054 7.495 6,n19 50 par value Public sale 27.375 20300 10,720 Redeemed: Acquisition of Carolina Energies, Inc. 30.991 $100 par value (17.480) (1,748) Changes in Other paid-in capital, net 195 378 150 _ _ 50 par value (17,000) (850) Changes in Capira* sta k expense. net (487) (l12) (338) Total 215.520 $22.402 Changes in Retained camings: =

= - - -

-== = Net income 96,121 75,883 63,700 1933 Cash dividends: "'"fC[ 'y'f[ Preferred stoc k (at stated rates) (16.371) (14.245) (12,949) 3j Common stak (at an annual per share rate of $1.92, $1.82 and Issued: $1.74 for 1982,1981 and $100 par value 1980. respettively) (66,245) (51.101) (44,019) 50 par value llalance at End of Year $693,702 $572,203 $512,420 Redeemed:

== -

." = = =- = = = =

==- $100 par value (21,320) (2.332) 50 par value (22,000) (1,100) ^ I" M52 L -$(M32t

6. PREFERRED STOCK

= (SUBJECT TO PURCHASE OR SINKING FUNDS): 1980 The call premium ofthe respective series ofpreferred stock Numher husands in no case exceeds the amount of the annual dividend. "f Shares of Dollars Retirements under sinking fund requirements are at IQ par value 2m.000 $20.0m par values. 30 pa,,2;oc At any time when dividends have not been paid in Redeemed: full or dedared and set apart for payment on all series of $1N Panalue (7.4m) (740) 5 P'" '"' " "") (" preferred stock, the Company may not redeem any shares T I $18.2s7= ofpreferred stock (unless all shares ofpreferred stock then - = =- outstanding are redeemed) or purchase or otherwise acquire for value any shares of preferred stock except in accordance with an offer made to all holders of preferred stock. The Company may not redeem any shares of pre-ferred stock (unless all shares of preferred stock then outstanding are redeemed) or purchase or otherwise 29

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continusd)

7. INCOMETAX EXPENSE:

Provision for deferred taxes, net results from timing He Company's income taxes differ from amounts com. differences in recognition of the following items: puted by applying the Federal income statutory rate of 1982 1981 1980 Y)"/o to pre-tax income as follows, ggg_j, gjgjf,,,g 1982 1981 1980 Auelaat,ed @predanon and amomzation $ 37,941 $ 10,065 $ 8.518 (Thouwidt o/D //,m> Interest on nutlear fuel 3,562 4,312 3,000 Net irwome $ 96,121 5 75.883 $63,700 Deferred fuel revenue (6.532) 3,%0 815 Add (dedua) components ofintome Other, net (950) (260) (3,059) '2" "I*c: Total provision for deferred income tax expense tharged to income taxes, net $ 34,021 $ 17,697 5 9,274 operanng expenses (irkome taxes - =- ----- ' = = = = = = - = - - - - - - - - - - - = and credits and investment tax uedits. net) 51,635 54,377 42.137 income t2x ucdited to other

8. SHORT-TERM BORROWINGS:

intome (16,792) (12.683) huome tax expense (harged to The Company maintains compensating balances of up ot her inc ome. nee 1,321 902 102 to 10% for certain ofits bank lines and pays fees in lieu wtal ina,me tax npense 52,956 38.487 29,556 of balances in connection with its other lines of credit. _ Jotal pre-tax income _ $149,077 $114,3'O $93.256 The lines supported by compensating balances may be Iniome taxes on above at siarutory reduced or withdrawn at the banks' options, with all Federalincome iax rate $ 68,575 $ 52,610 $ st898 compensating balances available for use as general oper- '"YUCab'r,*N*1["l'h" ating funds, Bank loans are for 270 days or less. Details of during u>nstruoion lines ofcredit and short-term borrowings at December 31, (excluding nudear fuel) (17,374) (15.021) (12,712) 1982,1981 and 1980 and for the years then ended are Depreaanon difTerences 1,924 1,858 1,333 Amortization ofinvestment as follows: tauredits (1,706) (1,374) (1,16 7 State income taxes (less Federal ___ December 31, income tax cffet t) 5,057 3,No 2,174 1982 1981 1980 Taes, pensions and other items ggf,ggf,g,,g capitalized on books (2,437) (2,403) (2,175) lines of acdit at end of ycar $130.7 $134 2 $89.0 Ot her differentes._ne_t_ _. _ _ 1_,083..). ( _22_0.)_ _ _(_795. ) ( Borrowmgs agamst uedit hne income tax npeme _ _$ 5_2,956 $ 38,487 $29.556 at end of year $ 6.0 ~' Inuime tax expense is compmed of: Average bank balantes during the year $ 3.4 $ 4.8 $ 3.1 Provision (credit) for current taxes: Short-term borrowings(induding '"mmunal aper)durmg ihe year: P Federal $ 1,866 $ (127) $ 4,520 M**i"* * ""'*"'h n g $ M.8 $ 74.0 574.5 State 1,655 2,089 2.575 Foreign 380 Avaage ountanding $ 36.2 $ 32.7 $41.6 Weighted daily average interest rates: _ _. Total < urrent taxes. net _ __ __ 3,901 1,662 7.095 Bank loans 11.88 % 15.44 % 13.29 % Deferred tars, net: Commercial paper 12,96 % 16.78 % 13.49 % Federal 29,316 15.324 8,497 Notes payable outstanding at State 4,705 2,373 777 end of > ear: Ltal deferred taxes. net 34,021 17.697 9.274 Bank loans .6 $ 8.2 Weighted average interest rate 12.13 % 18.22 % Investment tax tredin: Commer(ial paper $ 21.8 $ 22.5 $32.2 Amount deferred 16,740 20,502 14,354 Weighted average interest rate 9.02 % 13.09 % 18.98 % Amortization of amounts Otha 2 1 11 9 deferred (aetht) (1,706) (1.374) (1,167) Weighted average interest rate 95% 935 % 11 % Total investment tax t redits 15.034 19.128 13,18, Total intome tax npen $ 52,956 $ 38.487 $29,556 30

9. COMMITMENTS AND CONTINGENCIES:

ments at December 31,1982 with respect to non-capitalized A. Construction financing leases is less than five percent of the total capi- 'Ihe Company and the South Carolina Public Service talization of the Company. Authority (a public corporation of the State of South D. Lease Commitment Carolina) are joint owners (two-thirds and one-third, respectively) of the 900 megawatt V.C. Summer Nuclear During January 1982, the Company entered into an agree-Station (Summer Station). The parties share in financing, ment to lease a building currently being constructed in costs of construction, costs of operation, and in energy downtown Columbia for use as its corporate headquarters. output on this basis. The total cost ofconstruction of the The Company has also entered into a financing agreement Summer Station was approximately $1,203.5 million at ".nder which the owner could require the Company December 31,1982 and the Company's share was approx. either to purchase the building, at cost, not to exceed imately $800.3 million which is included in construction $50 milhon, or lease it, if certain conditions are not met. work in progress. In addition to routine commitments for operating

10. SEGMENT OF BUSINESS INFORMATION:

materials and supplies, the Company at December 31, Segment information at December 31,1982,1981 and 1982 had major construction commitments of approxi-1980 and for the years then ended is as follows: mately $158.3 million for construction of the Summer Station, the conversion of the 580 megawatt Williams

393, Station from oil-fired to coal-fired operation and the 7,,,,_

acquisition of nuclear fuel. ponation On November 12,1982, the Nuclear Regulatory Com. Electric Gas (coach) Total mission issued a full power operating license for the F-4 o/M"# Summer Station, which restricted gcnerating capacity P"i"8 *""et s 5904u s2u,,389 s 2,603 _s 859,o36 to 50% until cenain modifications are made to the P"g,iggQ;,, Westinghouse steam generators. The Summer Station and amoniurion 4:2,252 250,284 s,sn 668,o47 reached 50% of generating capacity in December 1982. Depreciation and amoniurion 36.u6 7m 2n 43 m Modifications to the steam generators are scheduled to begin in March 1983 and will take approximately three T ' ' "P"i"8 P'"-- us.398 2s7.333 s,722 7nas3 months to complete. The Compa.y presently expects to P"ating uimnic y==s Hig=s y,oppnw u7.583 = place Su mmer Station in commercial operation in October ^dI,,thainmin V'j g 1983, subj,ect to satisfactory completion and testing of Net income s 96,12i the modificanons and the complenen of power ascension

= = = = = = = = = = = = = = =

to 100% ofgenerating capacity. capital expenditures: Identit'uble (Indudes B. Westinghouse Fuel Settlement @,",[','","c'3 camuna s 186,871 s 7i,947 s 44 s 258,862 During 1982, the IRS determined that the cash proceeds =lQM,fgt!compar@Mn7 2 si2 received as a result of the settlement in 1980 of the Total s 261.374 uranium supply law-suit with Westinghouse Electric = = = = = = -

= = = = =

Corporation, should be treated as income for income identifiable assets at '3

• 9 2:

tax purposes. The determined tax liability was paid in p, ';,,,",t si,763,203 si70,631 s i,4sa si 935,292 December 1982 from funds held on deposit. Inventories 7: 3 17 7,847 176 79,970 Total si,83s, iso si78,478 s1,634 2,015,262 C. Irases

= = = = = = = = - = = = = =

Assets utilized l'or overall Company operations 179,16s Minimum lease commitments as of December 31,1982 7,,,j,,,,,, s2,iu,427 under all non-cancellable non-capitalized leases are not

== =

====- =-

= = = ~

material. The present value of minimum lease commit-l l 31 ~ .E

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (centinued) 1981(2)

11. ACQUISITION OF CAROLINA ENERGIES,INC.:

lp,",L In April 1982, a wholly-owned subsidiary ofthe Company Electric Gas (coat h) ._ Tot.al acquired all the stock of Carolina Energies, Inc. (GI). Operating rnenues $ Sn.716 $188,167 $ 2.429 $ 746.3i2 million in cash and 2,618,400 shares of the Company's I common stock with a market value ofapproximately $42.8 Oreming expenses. N"fn'i1aiIn"""" million. CEI is a holding company engaged through its 413.266 177.9s t 5.063 596.313 Depruiation and six wholly-owned subsidiaries in the purchase, transmis-amonizanon 33.ss9 5.393 209 39.691 sion and distribution of natural gas at wholesale and Total operating expenses 447.155 183.577 5.272 636,0o4 retail, retail distribution of propane and ether related Operating ir.o>me doss). activities including oil and gas exploration through $ 108.561 $ 4.590 $(ts43) 110.308 Add -Other income. net 21.095 joint ventures. Irss-Interesuharges 55.52 The acquisition has been accounted for under the N i"T", 5 2 885 purchase method of accounting and the accompanying = = =. Capital expenditures: Consolidated Statements of Income include the results $ 173.833 $ 8.840 $ 145 $ 182,818 Idemi6abic of CEl's operations from date of acquisition. Utiliicd for overail Company operations i.a3 The acquisition adjustment (approximately $39.9 I"'ai _ million), included in Gas Utility Plant at December 31, $ 184.101 = = _ _ Idenn6abic assets at 1982, is expected to be amortized over a forty-year Period using the straight-line method. i t. t $i.616.249 $ 99.327 $ i.598 $ 1.717,174 Inventories 83,955 6.o32 147 90.134 Had the acquisinon of CEI been consummated as of the beginning ofeach ofthe years shown below, pro-forma Ti>ial $i.700.2n4 $105.359 $ i 745 1,807.308 perating results, excluding amortization of the acquisi-Asseis utaired for overall Compam opeEions pi_.4s4 ~ tion adjustment, would have been as follows: $ i,958.772 liit21 axsets

- =

=. = = 1982 1981 (a) Restated -see Note 2. I980 (Thousands ofDollars Trans-eue?!?ershareamounts) ponation Operating revenues $900.978 $876.801 Elatric Gas (coach) Total Operating intome 149,073 117,872 (Thousands ofDu//arsj Other income, net 7,016 2i,226 Operating revenues $ 470,765 $157.643 $ 2.338 $ 630.746 income before interest (harges 156.089 139,098 Pref ne d vidends 7 44 I ng ation and amonization 352.598 144.417 4,431 501.076 Eamings available for common stock $ 80,921 $ 08.181 Depretiation and amortizarion 33,4i_7 5.24i _ 164 3_6 822 Weighted average number of Total operating expenses 381.015 149.288 4,595 537.898 Jommon shares outstanding (000) _ _ _ _ 35,194._ _ 30.758 Eamings per sharc ofcom__ on sta k_ _ _ _ ___$2.30 _ _ $2.22 Opc rating in(ome (loss) __$ 86.750 $ 8.3% $(2 257) 92,848 m Add -Ot her inc ome. net 18,898 Irss-Interest < harges 48,ol6 Net intome $ 63.700 Capital eSpenditures: Identi6able $_143.376 $ _.836 $ 699 $ 150,9 1 6 Utilized for overall Company operations _ 2._68_7 liital $ 153.598 ldenti62ble assets at Dnember 31,1980: Unlity plant, net $1a76.730 $ 96.i85 $ i,642 $1,574.557 Imentories 76.556 5.6% til 82,322 Total $1.M3.2s6 $i01.840 $ i.'53 i.656,879 Assets utihred for overall Company operations _ 145.513 $ i.802.392 Total assets 32

1981

12. QUARTERLY FINANCIAL DATA First Second Third Founh (UNAUDITED):

Quarter Quaner Quarter Quaner Total The following data have not been audited, but in the 7,,,,,p,,,;n, opinion of the Company, include all adjustments (con-resenues (Ooo) si:6.961 si:3,st2 $2i7,831 sirs.oos s:46.3 2 sisting only of normal recurring accruals) necessary for a operating mcome(000) 25.069 26.466 38.085 20.688 1i0,308 fa.ir presentation of such amounts. Amaunts for the sec-Net inwme (ooo) 16.367 16.984 30,58o 11,952 75.883 ond, third and founh quaners of 1981 haw been restated Eamings available f* to reflect the effect of an electric retail rate refund. , j}mga t u sa 13 m n ots s,c3 6u38 (see Note 2.) Eamings per share of wmmon stock .48 .49 .93 .28 2.19 First Semnd Third Founh Quaner quaner Quaner Quaner Total

13. ACCOUNTING FOR CHANGING PRICES (UNAUDITED):

en ( ) $200,i7 $197,256 $232.385 $229.224 $8';9,o36 operating In compliance with Financial Accounting Standards Board inmme tooo) 35,6<>6 28,832 44,474 38,58i 147,ss3 Statement No. 33," Financial Reporting and Changin8 Net income (000) 22,933 16.062 30,783 26.343 %,12i Pn.ces", the Company has prepared certam supplementary Earnings available f=mmma financial statement data in constant an ' current dollars i k 19,425 t i,898 26,4i6 22 oin 79,750 (as defined). See pages 36 and 37 for constant and current ormmmon stak .M .34 .74 .60 2.32 dollar supplementary financial statement data. REPORT OFINDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS South Ca:alina Eletric & Gas Company: We have examined the Consolidated Balance Sheets and Financial Statements, that matter has now been resolved and the Consolidated Statements of Capitalization of South Carolina 1981 Consolidated Financial Statements have been restated. Electric & Gas Company and consolidated subsidiaries Accordingly, our present opinion on the 1981 Consolidated (" Companies") as of December 31,1982 and 1981 and the Financial Statements, as expressed herein, is different from that related Consolidated Statement 3 ofIncome, Retained Earnings expressed in our previous report, and Changes in Financial Position for each of the three years in In out opinion, subject to the effects, if any, on the 1982 the period ended December 31,1982. Our examinations were Consolidated Financial Statements of final determination of the made in accordance with generally accepted auditing standards matter referred to in the second preceding paragraph, such and, accordingly, included such tests of the accounting records Consolidated Financial Statements present fairly the financial and such other auditint procedures as we considered necessary position of the Companies at December 31,1982 and 1981 and in the circumstances. the results of their operations and the c hanges in their financial As explained in Note 2 to the Consolidated Financial position for each of the three years in the period ended Decem-Statements,1982 electric revenues include amounts which are ber 31,1982, in conformity with generally accepted accounting subject to refund pending the outcome of a rate hearing before principles applied on a consistent basis. the South Carolina Public Service Commission. In our report dated February 8,1982, our opinion on the 1981 h hM q {M Consolidated Fmancial Statements was qualified as bemg subject to the effects, if any, of final determination of a request Da.onn llAsKINs & SEUS for electric rate increases filed with the South Carolina Public Columbia, South Cam /ina Service Commission. As explained in Note 2 to the Consolidated February 7.1983 33

SELECTEDMNANCIAL DATA SOU111 carol 1NA ELECTRfC & GAS CO31PANY 1982 1981 1980 1979 1978 1977 1972 Statement ofIncome Data (Thousands of Dollars Except Statistics and Per Share Amounts) Operating Revenues: Electric $590,044 $555,716 $470,765 $401,281 $382,370 $344,964 $143,190 Gas 266,389 188,167 157,643 138,386 101,804 78,405 35,240 Transportation (coach) 2,603 2,429 2,338 2,146 1,927 2,023 1,953 Total Operating Revenues 859,036 746,312 630,746 541,813 486,101 425,392 180.383 Operating Expenses: Fue! used in electric generation 214,617 234,243 204,948 185,624 184,047 155,132 45,440 Gas punbased for resale 220,502 154,502 1e1,642 110.702 73,455 51,321 19,042 Other operation and maintenance 147,840 118,519 101,130 67,963 55,352 50,144 34,570 Depreciation and amortization 43,406 39,691 36,822 35,444 32,643 30,339 18,197 Taxes 85,088 89,049 73,356 62,008 65,853 66,684 23,317 Total Operating Expenses 711.453 636,004 537,898 461,741 411,350 353.620 140,566 Operating Irxome 147,583 110,308 92.848 80,072 74,751 71,772 39,817 Other Income: Allowance for funds used during construction: Borrowed and equity 16,610 l 6,230 Equity 6,618 4,530 6,003 16,608 18,340 Other (1,388) 16,565 12,895 10,348 10,935 8,956 2,197 Total Other Income 5,230 21,095 18,898 26,956 29,2/5 25,566 8,427 I: ome Beforc Interest Charges 152,813 131,403 111,746 107,028 104,026 97,338 48,244 Interest Charges (Credits): Interest %,211 92.409 75,772 64,263 54,527 46,881 21,461 Allowance for borrowed funds used during construction (39,519) (36,889) (27,726) (12,916) (10,848) (7,878) Total Interest Charges, Net 56,692 55,520 48,046 51,347 43,679 39,003 21,461 Net income 96,121 75,883 63,700 55,681 60,347 58,335 26,783 Dividends on Preferred Stotk 16,371 14.245 12,949 12,315 10,600 10,653 5,682 -Earnings Available for Common Stock $ 79,750 $ 61,638 $ _50,751 $ 43, _ -._-. _366 $ 49,747 $ 47,682 $ 21,101

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___-w=

Weighted Average NumberofCommon Shares Outstanding (Thousands) 34,387 28,139 25,148 23,540 22.029 19,833 10,669 Earnings Per Share of Common Stock $2.32 $2.19 $2.02 $1.84 $2.26 $2.40 $ 1.98 Dividends Dedared Per Sharc of Common Stock $1.92 $1.82 sl.74 $1.68 $1.62 $1.56 $1.38 Percent of Operating Income (loss) Before IncomeTaxes: Electric 98 101 95 97 94 94 88 Gu 5 2 8 6 9 8 14 Transportation (coach) (3) (3) (3) (3) (3) (2) L _ (2) Note: 1981 Restated; 1982 indudes amounts subject to refund - see Note 2 of Notes to Consolidated financial Statements. l t 34

l 1982 1981 1980 1979 1978 1977 1972 flalance Sheet Data (Housands ofDollars Except Statistics and Per Share Amounts) Gross Utility Plant $2,411,479 $2,131,689 $1,952,309 $1,804,289 $1,661,880 $1,489,111 $812,098 Total Assets $2,194,427 $1,958,772 $1,802,392 $1,650,395 $1,522,707 $1,361,222 $711,667 Capitalization: Common equity $ 667,440 $ 545,941 $ 486,158 $ 449,397 $ 417,471 $ 366,813 $201,827 Preferred stock: Not subject to purchase or sinking funds 26,262 26,262 26,262 26,262 26,262 26,262 6,262 Subject to purchase or sinking funds 163,619 141,217 144,649 126.364 128,019 109,794 82,329 fong-term debt (excludes current portion) 854,844 764,971 731,007 672,958 641,457 585,307 313,441 Total Capitalizvion $1,712,165 $1,478,391 $1,388,076 $1,274,981 $1,213,209 $1,088,176 $603,859 Common Shares Outstanding (Year.End)(nousands) 36,526 29,690 26,261 24,195 22,440 20,359 11,679 Bcak Value Per Share of Common Stock (Year End) $18.27 $18.39 $18.51 $18.57 $18.60 $18.02 $17.28 Other Statistics Electric: Customers (Year-End) 356,709 350,596 344,588 336,700 328,797 320,476 278,610 Sales (Million KWH) 11,490 11,763 11,809 11,252 11,621 11,155 9,84', Residential: Average annual use per customer (KWH) 11,712 12,183 12,580 11,627 12,269 12,146 10,324 Aserage annual rate per KWH $.0656 $.0577 $.0499 $.0464 $.0437 $.0412 $.0221 Generuing Capability-Net MW (Year End) 3,359 3,359 3,359 3,359 3,364 2,852 2,456 Territorial Peak Demand-Net MW 2,463 2,557 2,489 2,299 2,271 2,216 1,646 Gas: Customers (Year-End) 186,320 169,294 166,470 164,277 162,412 161,850 147,646 ') Sales (Housand Therms) 590,257 493,305 506,528 545,387 501,273 468,786 433,933 Residential: Average annual use per customer (therms) 570 665 682 684 751 734 714 1 Average annual rate - per therm $.56 $.A9 $.44 S.34 $.31 $.26 $.16 Transportation (coach): Number ofCoaches 104 104 102 96 96 102 Revenue Passengers Carried (Rousands) 10,720 10,820 10,357 9,548 8,658 8,971 9,044 ' Note: 1981 Restated; 1982 includes amounts subject to refund -see Note 2 of Netes to Consolidated Financial Statements. 35

i \\ SUPPLEMENTARY FINANCIAL STATEMENTS j ADJUSTED FOR CNANQlNG PRICES (UNAUDITED) l Financial statements prepared in auordante with generally auepted The current cost amounts reflect changes in specific prkes of the Company's l auounting piinciples have traditionally provided a quar tifiable basis for property, plant and equipment. The data presented were developed in assening financial results. Becau e these reports refint dollars of varying accordance with the partial restatement provisions of Financial Aucunting purt hasing power, the traditional financial statements are not designed to Standards Board Statement No. 33, and are not intended to adjust actual turnish data nn essary to evaluate inflation's impact, 'Ihe following constant reponed eamings nor do they provide a basis for income tax reponing dollar and current (ost supplementary financial statement data are presented or rate making. in an attempt to provide certain information regarding the estimated effa t See the accompanying Notes to Supplementary Financial Statements l ofinflation on the Company's operations. The constant do!!ar presentation for additional information. l indicaies the estimated etfett of the general rate ofinflation on the Company. l

SUMMARY

STATEMENT OFINCOME ADJUSTED FOR CHANQiNG PRICES Furthe Year EndeJDaember31,1982 llistorical Cost Constant Dollar Current l As In Average in Average Reponed 1982 Dollars 1982 Dollars + (ThouunJs ofDollars) Oprating Revenues $859.036 l $859,036 $ 859,036 Expenses: I tuel used in elettric gence tion 214.617 214,617 214,617 l Gas purchased for resale 220,502 220,'M2 220.502 Depreciation and amonization (a) 43,406 101,902 110,127 Other operation and maintenance 181,293 181,293 181,293 Income taxes 51.6 % 51,635 51,635 1nterest < harges $6,692 56,692 56,692 Other int ome, net (a) (5,230) (5,474) (5,442) Uel expenses, net 762,915 821,167 829,424 Net income $ 96,121 l $ 37,869(b) $ 29,612 4 r inflation adiusiments-l i Reduction of plant to hiwer rnoverable value $ (31,923) $(109,154) Unrealized ;3 n resulting from det rease in purchasing i power of net monetary liabilities 75,051 75,051 Increax in current cost of propeny, plant and equipment (c) $ 87,636 } Effect ofincrease in general price level 171,533 l i ___Inc rease in general prkes over specific prkes }' 83,897 l inflation adjustments, net l 43,128 l 49,794 _==.=_======_====_=========.=t p Net income after inflation adjustments l l $ 80,997 L. 5 79,406 i _______t d (a) As permitted in Financial Aucunting Standards Board Statement No. 33, items in the summary statement ofincome, other than depreciation Q expense, were not adjusted. (h) including the reduction to net recoverable cost, net income on a constant do!!ar basis would have been $5,946 for 1982. (t ) At Decctnher 31,1982, the current cost of net utility plant wo $3,957,225 mhile net historical cor, or net cost recoverable through depreciation was $1,952,061 36

FIVE YEAR CON 9ARISON OF SELECTED SUPPLEMENTARY FINANCIAL DATA ADJUSTED FOR EFFECTS OF CNANDING PRICES (AVERAGE 1902 DOLLAPS) Years Ended December 31, 1981(b) T 1980 f 1979 1978 1982(b) ! (Thouunds Eu ept Per Share A mounts and Con sumer Pnce Inda) Net inco.ne (exduding net inflation adjustments, other than deprniation): As Reponed $ %,121 $ 75,883 $ 63,700 $ 55.681 Constant Dollars 37,869 25,802 26,027 30,365 Current Cost 29,612 15,803 15.232 15,972 I Income per share ofcommon stock (after dividend requirements on preferred stot k and exduding net inflation adjustments other than depreciation): As Reponed 2,32 5 2.19 2.02 1.84 Constant Dollars .63 .41 .44 .59 Current Cost .39 .06 .002 (.01 ) GeneralInformation Operating revenues: As Reponed $859,036 $746,312 $630,746 $541,813 $486,101 Constant Dollars 859,036 791,837 73H.821 720.328 719,142 Unrealized gain resulting from darease in punhasing power of net monetary liabilities 75,051 101,802 144.675 160,190 Net assets at year.end at net recoverab!c cost (a) 686,072 SW,852 573,211 593.757 Increase in general price level over specific prices 83,897 113,434 (14.623) (95.278) Cash dividends dedared per share of common stock: As Reponed 1.92 1.82 1 74 1.68 1.62 Constant Dollars 1.92 1.93 2.M 2.24 2.40 Market price per share ofcommon stock at year-end: Aa Reported 18.00 15.00 14.25 14.75 17.00 Constant Dollars 17.80 15.41 15.95 18.56 24 21 4 A~erage Consumer Price Index (cpl.U)(c) 289.1 272.4 ] 246.8 l 217.4 195.4 (a) Exduding preferred sto k (subject to punhase or sinking funds). (h) 1981 Restated; 1982 indudes amounts subject to refund - see Note 2 of Notes to Consolidated Financial Statements. (c) 1%7 = 100. NOTES TO SUPPLEMENTARY FINANCIAL STATEMENTS

1. Plant and equipment he data adjusted for general inflation were

4. Reductions of plant to lower recoverable value The rate regulatory determined by converting historical costs of utility plant and certain non-process limits the Company to the recovery of the historical costs of plant utility property into dollars of the same general punhasing power using and equipment. Therefore, the value of the plant and equipment deter.

J the Consumer Price Index for All Urban Consumers (CPI.U). This method mined under the constant dollar and current cost methods must be shows the effect of general inflation on the Company (constant dollars). reduced to the lower recoverable amount, which is historical cost. De current cost data reflect the cost of currently replacing existing

5. Unrealized gain resulting from decrease in purchasing power of net plant assets. Rese costs were determined through use of the Handy monetary liabilities ne Company, by holding monetary assets such as Whitman Index of Public Utility Construction Costs and other valuation cash and receivables, loses purchasing power during periods # inflation methods tailored specifically to the type asset being restated. Even so, because the,c items will punhase less at a future date. Alternatively, by replacement of some existing plant and equipment will take place over a incurring monetary liabilities, primarily Icog. term debt, the Company period of time and may not result in replacement which would duplicate benefits because the payment in the future will be made with dollars existing facilities.

having less purchasing power. Because the Company has significant 2, Accumulated depreciation ne related accumulated depreciation amounts oflong. term debt outstanding, this results in a net monetary for calculating current cost of net property, plant and equipment was gain. His gain does not represent an exchange of cash at present or in developed by applying the same percentage relationship that existed the future, but represents the effect of the changing value of the dollar. between gross plant and accumulated depreciation by functional groups

6. Increase in general price level over specific prices his results from the on a historical cost basis at December 31,1982 and 1981, to the respective value ofthe particular plant and equipment held by the Cc:npany increasing balances of the restated depreciable plant.

at a lesser rate than the rate of general inflation as measured by the cpl.U.

3. Depreciation expeme Depreciation expense for both the constant

7. Other Fuel inventories, the cost of fuel used in electric generation and dollar and current cost methods was determined by applying the same gas Purchased for resale have not been restated from their historical cost in rates and methodology used in computing historically booked depreciation nominal dollars. Regulation allows the recovery of fuel and punhased gas to the restated depreciable plant.

costs through the operation of adjustment dauses or adjustments in basic rate sthedules to actual costs. 37 l

MMMNE DmECToRS ' J. K. Addy J. F. HamellJr. J. B. Rhodes J. A. Warren' President. Addy Dodge,Inc. Chairman of the Board and President President, Rhodes Od Company. Inc. President and Chief Operating Officer trxington, South Carolina Pre. Stress Concrete Company. Inc. Walterboro, South Carolina of the Company Charleston, South Carolina Columbia, South Carolina O. B. BookhartJr. J. E. Schachrejr.' Partner. W. B. Bookhart Farms . F. M. Hipp* President,Schathre Agerxy,Inc. Arthur M. Williams Elloree, South Caro!ina Chairman of the Board Real Estate and Insurance Chairman Emeritus The Liberty Corporation Charleston South Carolina South Carolina O. R. Bruce

• Greenville. South Carolina Electric & Gas Company Chairman and Chief Executive Officer Virgil C. Summer Columbia. South Carolina a

The Seibels Bruce Group. Inc. Avram Kronoberg Chairman of the Board and Columbia, South Carohna President, Edward's. Inc. Chief Executive Officer Owar S. Wooten Charleston, South Carolina of the Company EFecutive Vice President.Finante K.W. French Columbia. South Carolina of the Company Retired Plant Manager J. H. Lumpkin Columbia. South Carolina E.1. duPont de Nemours & Co. OfCounselto the firm of Boyd. W. H. Taylor Savannah River Plant Knowlton, Tate & Finlay Chairman of the Board and President. DIRECTORS EMERm Aiken SouthCarolma Columbia South Carolina Twin City Motor Company, Inc. Batesburg, South Carolina D. H. Banks J.B.GuessIII. F. C. McMaster. W. B. Bookhart Owner. Edisto Farms President and Manager E. C. WallJr. W.J. KeenanJr. Denmark, South Carolina Winnsboro Petroleum Company President Edward Kronsberg Winnsboro, South Carolina CanalIndustries F. R. McMeekin B. A. Hagood Conway, South Carolina A. C. Mustard President,Wm. M. Bird and Co. Inc. E.W. Pikejr. W.J. Ready Charleston, South Carolina President John C. B. Smith Colonia! Development Company Beaufort, South Carolina

• Meaberofthe Ewerative Committee 38

r OFHCERS V. C. Summer VICE PRESIDENT AND D. E. HayJr OTHER Of FICERS Chairman of the Ekurd and GROUP EXECUTWES Customer Operations-My '"' Northern Division Chief Executive Officer ,g, c, gg g,,,,y,, y (62P {45)t Rate Regulation and Purchasing (58) [32) (61) [37) (58) [37] J. A. Warren J. W. Huggins H. H. Gaddis President and T. M. Groetzinger Property Management Twasm Chief Operating Officer Accounting and Computer Services and Facilities Planmng (60) [13) (57) [25] (SS) [30] R.W. Stedman Patricia T. Marcossi, EXECU11VE VICE PRESIDENTS B. M. SmichJr. Controller C.J. Fritz Marketing Governmental and Regulatory Affairs (41) [10] (51) [24) (35) 17] (64) l12] G.C. Meetre H B SpeiweggerJt Cathy B.Novinger ASSISTANT OFFICERS Operations Customer Operations Corporate Affain Betty C.Biwll (57) [35) (33) [12] Assistant Secretary (63) [44] (50) [25] E. C. Roberts O. S. Wcoten J. W. Wedding GeneralCounsel Finance Corporate Planning and J.G. Black II (59) (28) Management Servues 45) (13] g;,g,, s II3I (44) [19] W. B.Timmerman Finance SENIC3VICE PRESIDENTS H.W.Welh I E. H. CrewsJr. Automotive and Transit Operations (36) [4] A it te ry Engineenng and Construction (61) [36] (48) [26] J. H. YoungJr. (60) [36l (45) [ ] Gmup Manager and Assistant Secretary G. II. Fiwher legalandGovernmental Affairs G.J. BullwinkelJc (59) [23] ASSISTANT VICE PRESIDENTS t t D T. R. Lide (34) lII] E. E frickJr. Assistant Treasurer M. C. Johnson Auditing Special Assignments (62) [36l (63) l43] V. R. CowardJr. (57) [24] Corpo. ate Communications R. D. Hazel (44) (17] T. C. NicholsJr. Planning Power Operations G. C. CroftJr. (46) [26] (54) [30] Tranmission and C. L Rye Distnbution Engineering B.T. HortonJr. F,mance CAROLINA ENERGIES. INC. Customer Operations (37) [33) (39) I4] ($3) [30) Max Eared O. W. DixonJr. President and General Manager Nudear Operations S. C. McMeekinJr. Assistant to the President (50) [25) (52) [12] (40) [11) EXECUTIVE VICE PRESIDENT W. N. Ackerman 9 (55) [33] b VICE PRESIDENT AND1REASURER

• (age as ofDecember31.1982)

T. H. Hearn tl years ofsmice es ofDecember31.1982] (56) [24) l 39

CORPORATESTOCKINFORMATION Common Stock (a) 1982 1981 4th 3rd 2nd 1st 4th 3rd 2nd 1st .Qtr..__Qtr. Qtr. _._Qtr. Qtr. Qtr. Qrt. Qtr. Piice Range: (b) High 19-1/8 18-1/8 17-5/8 16-1/8 16 15-1/8 15-3/8 14-5/8 Inw 16-5/8 15 15-1/2 14-1/2 13-3/4 13-3/4 12-1/2 13-1/8 Dividends Per Share: Declared S.48 S.48 S.48 S.48 S.455 S.455 S.455 S.455 Paid S.48 S.48 S.48 S.455 S.455 S.455 S.455 S.435 - - - December 31, 1982 1981 Number ofcommon shares outstanding 36,526,499 29,690,064 Number ofcommon stockholders of record 63,715 59,494 (a) The principal market for SCE&G common stock (SCG)is the New York Stock Exchange. (b) As reponed on the New York Stock Exchange Composite Listing. Preferred Stock Series 7.70 % 8.12 % 8.40 % 11.08 % 13.88 % 4.50 % 5% 8.72 % 9.40 % Valuation Price-Year.End 19_82 _ $62.857 S66.285 $68.571 $98.00 $113.50 $18.367 $20.00 $38.50 $38.367 SUPPLEMENTALINVESTORINFORMATION Annual. leeting and Soliciration of Pnnies f orm 10-K Dnidend Heimestment and Snak Purchase Plan 1 he anr.ual mecung of sn= Lholden u di be behl at A copy of the Company's 1982 Form to K rep >n as f or mformation t ontait: Seamelfs at the Fairgrounih.1200 Roseno =1 Dr <c. 6 led with the 5ei unnes and En hange Commission South Caruhn2 Eleuric & Gas Company Columna. South Carohna on Wedneslay. Apnl 27 is atadable to sn=Lholders upon request. Post Ofth e M 'M 198 5. Proues a dl be requeste.! for sut h meeung and ColamNa, South Car hna 29218 o m di tv seni to sn= kholders in Wn h 198 4 Stathrical Supplement Atrention: Suu khohict Relatiom Depanmen--(1-56) Thh report h hsued solely for the purpise of pro-A tory of the Stathrital Supplement to thn report h whne mformation. It n not intended for uw in uin-avadable upon request. l neinon miih an> sale or purthase of, os any offer or Please call or addresnour request for any of the solititaiion ofoffers to hus or sell. an> wturitits. abine reports or information u.nternmg finantial and operating data io ll John Winn Ill. manager-imestor Relanons. &o3) Ns.32 to 40

CORPORATE l'ilORM AllON Maihng Aikirew Cumulative Preferred Stak: Trustee and Paying Agent P O Box 764 The Chaw Manbettan Bank. N. A. Fine and Refundmg Mortgage Bonds: Columbia. South Carolina 29218 New York, New York Manufaturenllanover1 rust Company ( New York, New York Corporate fleadquarten The South Caruhna Nuional Bank 328 Mam Street Columbia SouthCarohna Dividend Reinsestment Agent Columbia. South Carolina South Carolina Elettri & Gas Company (bol)748 3000 Registran Sta kholder Relations Common Sunk: Independent Certified Public Accountants Manufactureis llanoser Trust Company The Company's common sim k and 5 % tumulative Deloitte lladins & Sells New York. New York preferred sim k are hsred on the New York Sim k Columbia SouthCarohna Ext hange (NYM t. Company Stoc k Symbol - KG. De Citizens and Southern Trander Agents National Bank of South Carohna Common Stak: Columbia. South Carohna Manufaturen llanover Trust Company New York. New York Cumularise Preferred Sux-k: ne Chase Manhattan Bank. N. A. 1he South Carolina National Bank New York, New York Columbia. South Carohna The Citizens and Southern South Caruhna Eintric & Gas Company National Bank of South Carohna Sax kholder Relations Columbia, South Carohna (Retord Keepmg and Dividend Paying only) 4 )

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PUBUC POWER 1882-1982 A ACENTURYOF:sEiSERVICE Completing its 40th year of opera-tion. Santee Cooper joins the American Public Power Association in celebrating 100 years of consumerewned power productior; in this country. The electric light bulb - itself a product of the ingenuity, persistence. and resourcefulness of Thomas Alva Edison - has become the most used symbol for electric power and the electric power industry. Edison's light bulb has also evolved as an equally universal symbol for ideas. creative thinking, and what we call resourcefulness. Santee Cooper is proud of its resourcefulness as an electric utility and its role in the first century of service provided by America's public owned utilities. Its board and management are commit-ted to provide the resources necessary to continue the same quality and reliability of service which has helped Santee Cooper become one of America's most re-sourceful electric utilities. Santee Cooper is a major source of reliable, economic electric power for 35 (J South Carolina's 46 counties. COVER PHOTO A lack-in-the-Pulpit. Arisaema triphyllum, plant grows in a delicate environment - part of the 2.400 acre site purchased by Santee Cooper for construction of a new generating station in the 1990's. Pampering that en-vironment and carefully planning the con-struction that will occur there in the nett decade is part of the resourcefulness employed by the company in meeting the growing demands for power. See special feature on page 8.

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CHAIRMAN'S VIESSAGE Resourcefulaess continues to be a As maior shifts in industrul growth in a chain of renewal which ultr major steppin6 stone for man s prog-and activity are made primarily mately results m the harsesting of ress and survival toward the Sun Belt a local victim of marketable foodstuf ts ornamental History was not being recorded industrial cutbacks searches diligently flowers and exotic fish that rid when a member oi a tribe dis- 'or new employ ment. ponds and reservoirs of pesky covered that the burning fight that And as the statistics of lobless aquatic plants resulted when he struck a certain Americans accumulate a middle-This is iust one example of Santee type of roc, could warm him in the income homeowner w ho became Cooper resourcefulness This same Mrir and ward off his enemies at established' when the economy commitment of getting the most nignt Monu nental as that event may was more stable continues to waste benefit of every dollar earned and seem this pteh3 toric harnessing of almost as much energy as he uses spent is prevalent throughout the energy was. in simple terms the use From its beginnings as an electnc compa n y in production systems of resoarcefuiness in an attempt to utility which used water to provide ope rations finance engineering in-su rv ive. elect ricit' for its traditionally dustrial deselopment commercial And throughout the biographv of agrarian service area Santee operations and other areas depend-man the undercurrent of sursival Cooper s relatisely short histor 3 is ing on effectise use of human and has flowed between peop;e and one of resourcefulness man made resources our employees resources In its use of America s most abun-hase maintained ef tlcient c reat is e. Millions of years later with South dant energy resource coal Santee and productive operations The Carolina s labor torce seserely Cooper has taken advantage of a results base been an assuring strained by economic depression in source of power which remains one reliability and quality of performance the 19Ms and the nation on the of the most economical methods of to meet the needs at < ustomers and brink of war. a project was created producing electricity for its provide a major source of energs for to use existing water supplies in elec-customers Compans-committed coal continued economic growth and trifying a portion of rural America rescries and company-owned development throughout Santee Vital to the Santee-Cooper Hydro-railroad cars are key planning pro-Cooper s,ersice area For Santee electric and Nasigation Project were duction and financial resources that Cooper and its employ ees the maior the thousands of workers who follow the fuel-to-energy c3 cle f rom stepping stone for this success has placed tht nselves between earthly the mine to the meter been their resourcefulness resources and the concrete link Yet ti e job of a lump of coal is not As you wdl find in this report it is which would ensure their economic completed as it is consumed by a an attribute w hich appears 'r each survisal and help our national furnace The main by-product of this fatet of the company s operations defense combustion heat has become for as if a reminder that being born of We in the United States again race Santee Cooper another resource link resourcefulness treates a constant et-the ogre of economic instability it fo

• at finding new methods of tarry is an ogre which knows no social ing on that legac y limitations gcc We are proud of Santee Cooper s

[ ' 3f j contnbution to our state and nation As a multi-million dollar airkne shps into the abyss of bankrupto an l. ~ _A[. ~ '3' AM and look forward to an mierestina ciderly woman shivers in a draft) f M"'" ' f and esciting future dweihng with no money for fuel oil

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~ g As the nation reels under the .a c s J' O pressures of a stagnant economy and - ~ h '~ M - ' dethning productisity a young mar-L. 1 O' * ~ 7, 1? - ~ ried couple tinds that rising interest r gg rates have made the reahts of their - 4. ". ' f '. ". t hairmar i ' dream home nothing more than v. 4*T. Q ' y- } l e,. g ~k' an illusion f ' 'g. w.... . Vy gj;, ~ i 4

PRESIDENT'S MESSAGE Once again, resourcefulness has At a time when the economy, a we continue to take great pride in played a major role in the success of relatively cool summer, and the those projects which make use of Santee Cooper. This success is increased cost of energy caused a waste by-products, the natural - reflected not only in the bottom line reduction in energy sales by most resources around our lakes, and the figures within this report - which are electric utilities across the nation, desire of our customers and the best in the history of the Santee Cooper saw its energy use employees to conserve our scarce company - but also in the continued figures increase for all customer resources. progress of those programs aimed at classifications except municipalities At the end of the fiscal year. 90 reducing the cost of generating and the REA cooperatives. Although percent of our new building complex electricity for our customers, the construction was somewhat below was completed. The complex will utilization of natural resources to normal in our service area, the provide a better and more efficient improve the quality of life, and the number of customer meters on our working environment for our person-creation of programs which make it system increased six percent. nel in the Moncks Corner area in a casler for customers to control the included were two new industries facility designed to exceed federal dollar amount of their electric bills. providing much needed jobs for our energy conservation recommenda-growing population. tions. We have continued our prac-Our construction program tice of providing community meeting necessitated three bond sales - one facilities by the installation of an of $150 million at an interest rate of auditorium having a seating capacity 13.4 percent, a second of $165 of 250. The auditorium. kitchen. million at an interest rate of 14.1 stage, and meeting rooms are percent. and a third of $165 million available, without charge, to the at an interest rate of I 3.0 percent. communities cultural. civic, social. The major portion of the monies and service organizations. will be used to complete the Through our test programs of first 450 megawatt coal-fired unit at waste heat utilization, we are our Cross Station. At fiscal year end, searching for new methods of the project continues ahead of creating useful products for the schedule and below budget, being consumer. Our aquaculture project 54 percent complete and scheduled produced 65.000 fish which were for commercial operation in May of sold as an algae prevention tool. 1984. Also, progress continued to be made in our agricultural research program using heated water as a year 'round growing environment for vegetables and flowers. 2

- Sharing Santee Cooper's resources Their dedication to finding new Santee Cooper continues to with the people who live in and visit methods for assisting and com-provide its customers with reliable South Carolina can best be illu-municating with our customers electric service at rates consistently strated by the fact that an additional continues to help improve the below the national average and 2.610 acres of land around our lakes responsiveness of our organization among the lowest in the State. was made available to the public this and the quality of life throughout our However, we're not content with past year, and 125 acres of land service area - which I believe is one that record or the advancements . Is reforested. of our major goals. we've made to date in making use of l w Of particular note for our These innovative ideas continue to available resources. residential customers was the receive the full support of our Board Our greatest challenge is to sustain cration of Santee Cooper's Wea-of Directors, which has shown both these achievements in the economic therization. Insulation, and Solar the confidence and the responsibility climate we face today. But public Energy program, Operation WISE. necessary to retain our role as one power has met and addressed such We tre very enthusiastic about this of America's most resourceful elec-challenges for the past century, and assistance program for those who tric utilities. Santee Cooper has played a major w:nt to weatherize their homes to role in that achievement. l help reduce their power bills. It will pg w I can assure you that Santee provide them with a low cost loan to jf meet the commitments to those who 'AS Cooper will maintain its efforts to have energy conserving methods and equipment installed in their homes. depend upon us as a source of low ~ A special component of the WISE cost electric power and a resource program is aimed at low income and %;? for improving the quality of life in ciduty, disadvantaged citizens. 5 South Carolina. The programs which we have planned and executed this past year are. I believe, indicative of the k/g g. >fQ l calibre of individuals we have been able to attract to Santee Cooper. We William C. Mescher y are especially pleased with the safety f President record of our personnel. They again 5 C I d received the American Public Power Association's coveted First Place 'C Safety Award - the 12th first place ~h award in the last 18 years-for the best safety performance of any public power utility in the nation. l l 3

FUEL & EFFICIENCY ARE KEYS TO PRODUCTION & CONSTRUCTION ' KyQ} ' v7 y&; gym q:f-' ?gp3 J"";Q ; }} 'e . '~ 'r;; - p. :... ![, 3 g q:- -+ v ~; ..t . [$5p $g,q,, yq-9

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. n (. m # w' ' * " ;' " I h d4 p (' , 4.. 4 -sr ,-.. w,,. CW, $/ '.l ' ' ' ' ^ " '?t e c , ?: 4 3 .r d 1. y ~ s ~,. a! y Nl.. '.. ' , y . (s.f l - h.J,,. GENERATION 6 l OAD GROWTH Santee Cooper has coal-fired PRODUCTION Santee Cooper facilities generated generating stations located at Winyah Unit 4, located near l 9.032,371 net kilowatthours of elec-Moncks Corner, Conway, and Georgetown, began commercial l tricity this year. a decrease of 32,387 Georgetown; hydro stations at operation November I,1981. The l kilowatthours, or 0.36 percent under Moncks Corner and Wilson's additional 270 megawatts of coal-l last year. Landing: and combustion turbines fired generation increased the Of this energy. 93.67 percent was at Myrtle Beach and Hilton Head Winyah Station's generating capacity i produced by coal. 0.55 percent by Island. to 1.080 megawatts, making it the oil and gas, and 5.78 percent by largest fossil-fueled electric i l hydro generation. generating plard in South Carolina. l Peak demands for the fiscal year Final construction cost of the fourth reached an all time high of 1,754 unit was $115.24 million or $427 per megawatts. kilowatt. Construction of the four-unit i l 4 i

Survey Party Chief Mark liderton makes an electronic measurement at the Cross Generating Station site using a theodolite, a laser-based survey instrument with accuracy within ll8 of an inch. m sr en n.ym m.sm sg-gg.y4 ~w:s & y gg ~a w m. W.u n+s m' n ~.e ;;+ a w z. m? q;;q p,s;:ry A M R $ p /, My.pr@ ,; w - x. e , g4 y 2 ,gx mun M %,~,% J %::;?";!?Y' n Wj#w,re g ' e 've:J' igg %w:w %?%;;% T,MH cs 4 u f %'.y %,. n.+:e;~B ' W x;,;A 9 F : m w,- ; gb9g - pn4 4y AWJW N v yw . a a[j Ov1 't@w4.Q? 5[; y.. y, dWYK*,$m.6W6. $hd}[/1lGS*.8 Q e M ESf Wy p? ~ m%.,p. gnaw wm w w, 11,C w - n.r % *

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l ENGINEERING DESIGN Increased efficiency, faster project turn-around. and reduced design jj costs were achieved in 1982 through th. use of new technologies. standardized designs. computerized o - + scheduling. and improved personnel management by Engineering Design. \\.g Survey teams using theodolites. s, ~3 >? (_ electronic distance measuring equip-ment. and computerized graphics in- { f creased the accuracy. timeliness, and a ( efficiency of system surveys and mapping. p j improved accuracy and efficiency f in line design substation layout, and 4 1 standards were also achieved by 7 } drafting and engineering personnel q usmg computerized techniques. Computerized scheduling and con- $4 4 struction cost monitoring also pro-y'c vHed more timely financial informa-3- M tion and gave management better d control. which reduced design and construction costs.

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OPERATIONS AND MAINTENANCE While coal-fired generation made Santee Cooper's coal-fired Resourceful operation of its up 78.3 percent of the company's generating units operated at a 62.1 generating facilities during 1982 summer peak generation capacity, percent net capacity factor during allowed Santee Cooper to function along with 17.3 percent oil and gas the past fiscal year. as a reliable and the most economic and 4.4 hydro. 93 percent of the The average cost of production for source of electric power in South power produced by Santee Cooper Santee Cooper generated power was Carolina. for its customers was from coal 2.24 cents per kilowatthour. resources. 6 percent from hydro, and I percent oil and gas. Less than 4 percent of Santee Cooper's total energy supply was from purchases and net interchange sou ces. The r majority of that was from a hydro-electric supply of power from the Southeastern Power Administration l at Clark Hill. s,% f Eji

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RELIABILITY IS STRENGTHENED THROUGH SYSTEM UPGRADING - _~ ~^ I J. - j I i ( J. a : ,w.- L l i i RELIABILITY Lugoff, and Robinson. The intercon-Santee Cooper is also one of seven Santee Cooper maintains intercon-nection with the Southern Company power systems in the Virginia-nections with South Carolina Electric was added in 1982, providing the Carolinas Reliability Group (VACAR), company an ac ditions! Interconnec- .,nich includes Carolina Power and i and Gas Company at Bushy Park, North Charleston. St. George. Colum-tion and source of purchase power. Light Company. Duke Power Com-bia. and the Summer Nuclear Sta-Santee Cooper is one of 30 pany, South Carolina Electric and s tion; with Southeastern Power Ad-member organizations in the Gas Company Southeastern Power ministration and the Southern Com-Southeastern Electric Reilability Administration. Virginia Electric and pany at Clark Hill; and with Carolina Council (SERC), which includes all Power Company, and Yadkin. Inc. Power and Light Company at Dar-power suppliers in the region with at lington. Heraingway, Kingstree, least 25 megawatts of generating l capacity. The Council assists member systems in their coordination of overall planning and in efforts to achieve maximum reliability of power supply. I2

Santee Cooper's Batesburg crew replaces in-line H structure on l l 5.000 volt line between Batesburg and Columbia. Crews in outlying areas such as this provide vital links in several parts of the company's service area. _'.g s 1 I 't n g h 1' c -e r-M c General Maintenance Services con-TRANSMISSION customers, and 15 of the state's 20 structed all of the substation founda-Santee Cooper's transmission electric cooperatives which includes tions needed during FY-82. main-system consists of approximately 180 delivery points. Over nine billion tained hundreds of miles of roads in 2.969 miles of lines.14 transmission kilowatthours of electricity were Santee Cooper's 56 recreational sub-substations. and 62 distribution delivered to these customers through divisions, and kept the 410 miles of substations. Voltages range from Santee Cooper's transmission system shoreline around Lakes Marion and 34.000 to 230.000 and power lines during the year. Moultrie and the navigation system extend through 35 of South through these lakes clear of debris. Carolina's 46 counties. This makes The navigation aide system was Santee Cooper's service area the upgraded during FY-d2 by the in- ?.argest of any power system in stallation of new metal directional the state. markers on the creosote pilings. Santee Cooper provides retail ser-i vice to customers in three Lowcoun-try counties and generates power for two municipalities, three military in-g stallations. 25 large industrial I 13

'[ f The Winyah-to-Charity 230.000 volt ,m .. w-65% ' ~ 1 line was placed in service during the 27

e. g.,( ' # 1 41 N N year This increased Santee 2 jjf ?@(; 0, j d~hig".h ?$1.

k]fpf Cooper's 230.000 volt systern to ap-M,4 s~- proximately 450 miles of line with W ~ g-another 250 miles in the planning / engineering stage. Approximately 60 -:en, g j,,,., g gya ' g ggM, _ %-gfeW tp;gN upgraded in size while 10 substations miles of transmission lines were 27 [ ~ J MR$; have been or are in the process of I NN _. g being increased in size and capacity. 3N W @h h@ M U C. -w[% - , %,o. _dy NO - Mb MM[g,[]yyy Transmission forces constructed and [j$ pl ced into service eight new substa-d Eidi M I h"w ~ % e-tions and began work on a new I - Q. y p ^ ..A 230.000 volt switching station. u.u, .W: 7S 3:$M"w'*?,yl@hA,m mgms ' %f: %g, -

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nu c s a~ ~ -s NT c. + g >y 7.g GENERAL MAINTENANCE ~ s Maintenance of Santee Cooper's 42 miles of dams and dikes is one of the largest ongoing projects of General Maintenance. Various in-T spections by General Maintenance. outside consultants. and the Federal i ~ r l Energy Regulatory Commission were l i i'm. M made to insure that the 42 miles of I dams and dikes meet modern stan- .T t 4 dards of safety even though the i structures are over 40 years old. 3 fg gj The Harza Engineering Company recently completed the company's -M V i fourth five-year project inspection re-  ? quired by the Federal Energy , ', M~ "c'rc Reguiatory Commission and reported M that the dams and dikes were well g J.. maintained and in good overall con-C G.' ~ dition. The report also noted the re-x ,jh@I[ h cent completion of drainage projects @ dS!f A behind some of the major structures <%h which further increased the safety of I" Dr;; the dams. f EM-g D }p; p,. L,G3 + .x A. x. - . ~ - ; 4. O ~ ) p 7 t' u Mike Wooten. Dam Maintenance l Supervisor. holds a core sample taken from West Pinopolis Dam in sertes of tests conducted to evalvale the seismic stability of impoundmcnt Ia structures.

a-g nu m However, based upon revised . RIGHTS-OF-WAY RECLEARING FLOOD CONTROL earthquake standards. FERC con-General Maintenance maintained Santee Cooper conducted spilling ciuded the West Pinopolis Dam and and recleared 9,700 of the com-operations for 67 days during the the North Santee Dam were only pany's more than 36.500 acres of ' months of January, February, and " marginally _ safe' when subjected to transmission rightrrof-way in 1982. March.1982. as part of its flood seismic stresses' equivalent to those During this period a record 170 control program.

estimated to have occurred in ~

acres were site-prepared for even-The maximum daily average inflow Charleston in 1886. The commission tual wildlife plantings by the land-for this period occurred on January informed Santee Cooper March 12. owners, thereby relieving Santee 5,1982. with over 800.000 gallons of 1982, that th company may be re - Cooper of subsequent maintenance. water per second. This resulted in (quired to rebuild or reinforce the Highly' specific herbicides were ap-the flood crest on the lower Santee West Pl_nopolis and Nortie Santee plied by helicopter in the treatment River being reduced to about 52 per- ^. Dams for pub!ic safety purposes. of an additional 1,400 acres. cent of what it would have been ' More indepth evaluations are : without Santee Cooper's flood ' underway to determine the condition control program. . of the dams, i l1 I5

a WHERE THE POWER COMES FROM Generating Commercial Construction Generating. . Commerdal Construction - Capability Operating Cost Capability .. Operating Cost -

l Generating Unit Location (megawatts) Fuel Date

' ($/KW) Generating Unit Location (megawatts) Fuel . Date ' ($/KW).

.l

1. 1, 2. 3. 4. & 6 Corner 128 Hydro 1942 S 458.

Turbine #5 Beach 30 Oil. .1976 - 90... Jefferies Hydro Moncks Combustion. Myrtle Santee Wilson's Winyah , 1977 269. Spillway Landing 2 Hydro 1950 200. Steam #2 Georgetown 270 . Coal 'I Jefferies Moncks Combustion - Hilton Steam #1 & 2 Corner 92 Oil 1954 171. Turbine #3 ?Iead 57 -- OG~ 1979 m l 72;- Combustion Myrtle Winyah Turbine #1 & 2 Beach 20 Oil 1962 145. Steam #3 Georgetown 270 . Coal '1980 469.! Grainger Winyah h Steam #1 & 2 Conway 170 Coal 1966 172. Steam #4 - Georgetown 270 Coal 1981-427,. .I lefferies Moncks Generating Units Planned (estimatedi & Under Construction Capadty.

1. 3&4 Corner 306 Coal 1970 179.

Summer Combustion Myrtle Nuclear

• Parr 300. Nuclear Nov.1982.

1,159. Turbine #3 & 4 Beach 40 Oil 1972 113. Cross #2 Cross-450 Coal May 1984 856. Turbine #1 Head 20 Oil 1973 135. Cross #I Cross 450 Coal May 1988'. 957. Combustion Hilton a Turbine #2 Head 20 Oil 1974 110. Winyah 'One third ownership, being jointly cpnstructed with South Carolina Electric - Steam #1 Georgetown 270 Coal 1975 246. & Gas Company. o 9 i T3 0.$'$ N ENERGYDEMAND FORECASTS PEAK DEMAND FORECASTS 16 GroAwArinouns MECAWAHS l

WHERE THE POWER GOES Retail Customer Area Industrial Customers Military Installations Arcadian Shores Albany International. Inc. - Charleston Air Force Base Atlantic Beach Alumax of South Carolina. Inc. Charleston Naval Shipyard Bonneau Beach, Amoco Chemicals Corp. ~ Myrtle Beach Air Force Base Briarcliffe Acres Andrews Wire Corp.. Chestnut Hill A.O. Smith Corp. Conway AVX Ceramics Corp. Garden City C.R. Bard. Inc. Electric Cooperative Distributors Utchfield Beach Georgetown Steel Corp. Little River Georgia-Pacific Corp. Aiken Electric Cooperative Imris Giant Portland Cement Co. Berkeley Electric Cooperative tower Waccamaw Neck Grove Mfg. Co. Black River Electric Cooperative Moncks Corner international Paper Co. Coastal Electric Cooperative Myrtle Beach loris Mfg. Co., Edisto Electric Cooperative N. Myrtle Beach Macalloy. Inc. Fairfield Electric Cooperative P;wleys Island Mobil Chemical Co. Horry Electric Cooperative Pinopolis Plusa. Inc. Lynches River Electric Cooperative St. Stephen - Santee Portland Cement Co. Marlboro Electric Cooperative SurIside Uniroyal. Inc. Mid-Carolina Dectric Cooperative United Merchants and Manufacturers. Inc. Newberry Electric Cooperative Waccamaw Clay Produas Co. Pa!metto Electric Cooperative Waccamaw Lumber Co Pee Dee Electric Cooperative Municipal Distributors lim Walter Metals Corp. Santee Electric Cooperative Wellman industries. Inc. TrKounty Electric Cooperative ha nberg Georgetown 4 G, - y- - ^ {.wa.c Greenville + , em SUMMER' m ams s r >GRAINGER w am = Cdumbia w am P. EE DEE n/p u wuv n aq W "L_ D HYDRO q"* / MYRTLE BEACH Q COAL / [j 3 -l Q OIL hls lWINYAH COMBUSTION ~ N. TURBINE r= l ~ * - ~ A NUCLEAR .JEFFERIES l n am,),, wm l & SUBSTATION AND LINES ? '* Charleston -4 l-INTERCONNECTION l PROPOSED OR $0 UNDER CONSTRUCTION INDUSTRIAL CUSTOMER - - SERVICE TERRITORY ~, w-Q INDUSTRIAL, COMMERCIAL AND W. RESIDENTIAL CUSTOMER SERVICE TERRITORY SERVICE TERRITORY, GENERATING STATIONS AND TRANSMISSION LINES 17

GROWTH IN ENERGY SALES CONTINUES DESPITE SLOWED ECONOMY Q&ff50 ? DO ~ ', ^ O ,Th&l DNY - 1

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7 g g g,. '?y \\ k l[{lh t b $$$UNY$ $?h bY $QIShYbc 7[,A A e-M a 2 %, p g ::: y c ni g = a.t o. $g wh .w g s f ~h 4;M"4:;pgp$<3:: ..j-Mtr.;a& W & ) ?B w-4 /ry-g e-4 ,[ # -7 l g% s , 'su d ~ s k_ M m. r-4 ?) g .- / I ,3

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c L i ENERCV SALES customers were 1.128.837 megawatt-The average cost per kilowatthour The number of residential. com-hours of electricity. up 2.3 percent for Santee Cooper residential mercial. and other retail customers over the previous year. This com-customers was 5.01 cents. 22.5 per-served by Santee Cooper totaled pares to last vear's growth of 7.9 cent greater than the previous year. 56.663. an increase oi L231. or 6.01 percent in the number of customers but 17.9 percent less than the na-l percent over the preva>us year. Of and 10.2 percent in energy sales. tional average of 6.10 cents per l this increase. 2.848 were new resi-and it reflects the leveling off in kilowatthour. dential customers while 375 were energy consumption that is occurring commercial. Sales to these as a result of rising energy costs and conservation. The average annual consumption of electricity by Santee Cooper residential customers declined to i 2.093 kilowatthours. about 6 per-cent less than the previous year. yet 35.9 percent greater than the na-tional average 18

Power from Winyah Generating Station is distributed to Santee Cooper's residential, commercial, and industrial customers and to i 5 REA cooperatives for distribution to their customers. w% W 4+'mW~... ~.yy;mcQ@ik.2&s*,cw%t n: .wa Q l -;4q, ;y,w ]C ll.'. j.,l h>,!nqc ~

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N q um O J; ? r_ e.: [ i.,_j. b h h;i$ k.g w@$ $j m. f, < *. % g : y y m%y g.- t cp r h hk$h W m sw n d pw rsy+p s. ce om,ru wt my m ~s s m me. u i..,p;. > '. f W r gqc pyps,3fffQggg - Q,o g~ o, a,q;n/gw%gga;Oj; Qb%y%2xg!&g;&yg' Q w, p:gm9;sm. r. _: E :@ e% @g$% Q MdiM@p(I M @p $* fkf &>w w,m%u.. me ww a s. ig&,-e, w pusg y 4 w ;n.,n,.&rmo m.m f ,yy:,? m:n S..e4. w.QQ.A.ww@n,., y g < a.u, r.fw s c w mg c n ,,a m a ua o e nhN$ k kw. '4 "dMW% & Aaw... hiM5' %m Mygmm$se h -p x 2 = .< x, Y%w jkh % Two additional industries - National Meanwhile. Macalloy. Inc. of Macalloy's energy use for the year Twist Drill in Loris and Conbracct Charleston saw the chromium market declined 49.3 percent from the Inc.. in Corway - were added during shrivel as it responded by operating previous year. On the other hand. the year. at half production. then sliding into Alumax Santee Cooper's largest in-Saies to large industries increased bankruptcy and operating under dustrial customer continued in spite 2.46 percent in spite of the drasti-Chapter i 1. of a slack aluminum market situation cally reduced ferrous metals market to produce with two full potlines in and generally declining industrial operation Alumax used approx-output throughout much of the coun-imately 26 percent more electric try. Georgetown Steel, for instance. power than it did the year before. operated at reduced capacity much thus offsetting declines in energy use of the year and experienced about a experienced with other industrial 31.6 percent decline in energy use. customers 19

Sales to U.S. Air Force bases at Charleston and Myrtle Beach and the si U.S. Naval Shipyard at Charleston in-creased about 2 percent compared to a 12 percent increase last year. Sales to 15 of the state's 20 elec-tric cooperatives through Central Electric Power Cooperative. Inc. and to the municipalities of Bamberg and Georgetown were 3.351.388 mega-j gg. watthours, a decrease of about 3 g percent over the previous year, com-l pared to a 12.0 percent increase in i 6 1981. The electric cooperatives and i municipalities distribute Santee Cooper power to more than 250.000

• }

customers in 35 of the state's 46 + ~% s [ j counties. u. z_ d - The decline in total kilowatthour Q 3 i'- 4*> N f. sales to electric cooperatives and the t@h dAdv#,k f-f m '.'..'.1,., F reduced average energy consump-g_u~ tion by Santee Cooper customers Qjf resulted from milder weather condi-T tions and increased conservation \\ f i;fforts being practiced by y { W4Q pAWT consumers.

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"i- % n' yfWp .w ~ ..._;_r. w e y / l Y l d 4 l 2. . zg$* uh*y: - y. l l~ f,4 &g?$ '5 a 1 f f %[. 1 i N j i f p;I - -n,, Energy Administrative Associate Glenn Cannon examines computerized I hand-held meter reading device being ~ _l examined by company for potential use in improving retail billing 20 system. m a

While national trends continued to in line with those trends. new increased energy consumption is impose an economic squeeze on construction in South Carolina anticipated in all customer classes . much of the country. Santee Cooper dipped below traditional levels. The with recovery of the economy. when saw its energy use figures climb for exception to this was along the industrial production returns to its most of its customers. Exceptions Grand Strand where recreation and normal growth. housing construction were municipalities and REA resort devdopment flourished. The rebounds. and commercial develop-cooperatives. number of customer meters on the ment continues its pace, particularly company's system, in fact, increased along South Carolina's resort coast. by more than 6 percent. S'inificant in this increase was the addition of the two new industrial plants. which is helping to add to the employment rolls in Santee Cooper's service area. 4\\N ur w tg sh {% ';iQ r / y _3 4 , fj n

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COMMUNICATIONS & CONSERVATION HIGHLIGHT COMMERCIAL OPERATIONS $8,?@%,p){ $f Q@. I,Qd,6 n.m l@ g hMWh &W ad maagg yg FL LIFE $ I Md.l p

c

-.N. I k h b .~ $ffR%$khk~$$"f. { 'c f O 's V hrL k-k-t'f f p Santee 1 ..Y gCoope j V ' VL - 2 CORPORATE COMMUNICATIONS communicate Santee Cooper's role presentation won i.ational recogni-New means and methods for com-as a major economic resource and tion from the American Economic municating with employees. source of energy for South Carolina's Development Council. customeis special groups. and the con'inued industrial growth and Computenzed typesetting equip-general public were employed. These development. ment was added by Corporate Com-included multi-image slide presenta-A multi-image presentation. " Winds munications which improved the effi-tions. a variety of energy manage-of Change. was produced for ciency. economy. capability. and flex-ment publications ,r customers. and precentation to groups involved in ibihty in processing information and communication materials in support tn. econor k growth and develop-preparing it for publication. of industrial development. en-ment ".roughout Wantee Cooper s Produced on a regular basis. vironmental resources. and other service area. The cooklet and slide p blications provided information to operations ' For Industrial Power in employees. power distributors and South Carolina. Come to The business and civic organizations on Source" was a booklet produced to the company s operations and some .l

" Life Line" identification markers have been placed on equipment provid:ng service to customers depending on electric power for life support systems. Service representative Fritz Seay explains markings to customer. 1 of the major issues and challenges ENERGY MANAGEMENT construction in Santee Cc er's facing the utility industry. Major The consumer's increasing retail service districts, indicating a publications include a feature awareness of energy costs and the changing trend in housing develop-magazine, weekly newsletter, and in-knowledge that he must strive to use ment in respor.se to rising interest formation bulletins which address energy resources more efficiently and constructian costs. With more ef-specific issues and communications have had an increasing influence on ficient use of both land and energy requirements. Santee Cooper's energy mana;;c-resources. this trend toward more ment program. Through programs multrfamily and resort development designed to maintain the efficient use is becoming the predominant charac-of generatir.3 xilities by reducing teristic of Santee Cooper's residen-f peak load growth, the customer is tial growth. assured of mas.imum use of his energy dollar. Multi-family dwellings represented over 80 percent of new residential 23 i

g- .r s [" 5 Promotion of efficient thermal p r c - :'e: a w e-e..:w;< design and greater use of the electric - p heat pump was achieved through ~ ,g((.gh' ~ " '['. .f Santee Cooper's Energy Efficient l. ;. -: 5.g.s Home Awards Program and the Cer- .... i. ~ ' - g*:, :q {f[.( j~.) tified Heat Pump Dealers Program. .J 3#. These programs benefit the customer I ..79 9 + :- p 7.1

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". I ~ through a greater degree of comfort ? and an assurance of efficient use of f.,.,' d. Kymea%i #. %a energy resources in maintaining .i 7 .. ' 7 3 bmy ~ f[4. 4 ..I ,h,f <M 'f that comfort. . [ During 1982. over 300 customers -:yy., _.; -i,.>. received assistance in efficient ther- .g _g mal design which led to an addition f.. - (. y, 'M c.?

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.,1 .-g f.7;s.h *.. of 406 homes receiving the Energy e. j, ( f - gil.. _l-

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1 Efficient Home award and reducing a p :E. ' Santee Cooper's peak for each \\ . 4 q g y : -l,

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. t ~ M.:' 4..,' d.3 ' I i' ' K:~ one kilowatt in summer. These hot.se by 4 kilowatts in winter and j g-r1

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./ ^ { f ~q. dd M i: a savings to the compar of over Ii .~.t .1. 3 I k.k ' *M^ N. 'w l.600 kilowatts in winter and 400

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.,. t.' WE.'[,. [J[c. .. ph.h $ - s kilowatts in summer. Presently. 2 I mechanical contractors are par- . < +, . E.' 'a. [..jI '. ;j, , 'M '.e D_.. i ).( b ticipating in the Certified Heat Pump '. N ' . Y: Dealers Program. )g..h ?{ All residential customers were of- ' [ y o ~, iraph - a fered energy audits through the . A. -;. 1, y.. m .J -.m a.rw ... c ;f - S.; Residential Conservation Services j. I; Program in compliance with the Na-5 J 2' ' de. .. 7 - '.... ' '. p tional Energy Conservation Policy l. %. V J '..': i gy-Act. Rising inflation and higher c J ; J._ .j ; l's.!f. G.*y g

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energy costs coupled with increased c m: + )..s 7- -

• gr,wth has created an increased

[' kj[ flow of requests for assistance in this ' [.,. ' } yp}, g area. from both residential and com-mercial customers I ~. '. I '.. .N

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,; A- .t ...,(. ?;q g 3 ].k+ ".g * - 'A h gg hf Ph.e f.f l, pgotograpne,igy speciagis -); ,[.. ;+ ( J..' } v?', : ' : ' \\ I. Wilson Baker previews some of $g & c-..... ; g 9.k.y. l-fj f Santec Cooper's multi-image presen-talions. designed to keep customers informed of the companu's progress 2a l

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[ ( Q analysis. each audit customer was .. -?tc M M M',.:o.N. s*y^a++.a* ^. V.h. J.. 5N M: $p.: 4,3 e m 9 i "- %,., w -a provided a detailed description of ' '.' ' ' Sk.'? h. <. S.. *' J r i t.- ' 0. sym [,.. N.,. NM the total energy use pattern and - - v 4 recommendations for more efficient .,,.r,, p l use of energy resources Audits were

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. 1 y imately 700 customers through this -. i *i *., r C.=

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sf - 'M ,s, a _y Customer Service program shich u_s 7 - Q..:[ip;(-N, g : % Ig.g.h; ;l4. $,gl4. .y y- ,/: c r,. - 1 designed to contnbute to balanced ~ S Q g b,. -.. growth of Santee Cooper s load- . 4. ' ". t '

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...' Y- [ )h 1' s- [3.. i. i growth patterns Through the conser-p .a g " i - .s.- - r..,W; '>.. ' i -V vation efforts of customers as a n.9

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". g*.., i. .+ s >. s. x y ~ N u %. WP. n. ?..' +'^, g. s;y. - - %'. S%e result of those audits. oser 2 million s,, r, ,,.s 4 @ *(,5p{g,%y ["77 d;.y~ y, . yg. ]. S-,t 1. .c

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kilowatthours.in energy savings were

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g., ; ;. g l. '7 f ",,,. p.. - fg. hd"..., ]:7 y [' % \\(- l citimated Ihe Weatherization Insulation. and 1 .9 ., '..._.H[,, - 1. f. s, ' e.., i Solar Ener.,y (WISEI Program was " g ;;, 4 ; ; 7.. - 4 :,./.y . i. ; f. l deseloped and approsed by the "q.g. d .3 N. %.. ' . 9. ;.. * - -;. 3 J. s + w M.y.,. %. . i. ... ! :,f ~'.* *.. t.. s 3 - ~..C. ' ( v.,' E M Board with introduction of the new e e# .s, A.#... -.J.f ',,., {. e P,... - ~t customer sersice scheduled for early ? h. c.)..C.k,j.[ff j(;% c G ".. [ e [4. C," (,{W $ f fall IW2 T he program will offer low v interest loans for adding energy con- .,'J.. J't.>, *4' 'a'KW c J. v *.I ' ' $ I 7 'l J '; -h 5e. , h M a, ek... j 's., j. servation improsements systems to 'b y - i s. r," ".. m %' l ?.4T...CN use renewable resources and M b 's s,;~. '.4 " : 6: ; .n .. W~ee ,a .a ,5g.-m.,,..;,7. 3, assistance for low income and el-4 ' ;,. 3 9.. h, g. - ~' ;C h. 6 t. V + "

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D 4. Y j. V %. ',3.- r ~jV I' b. derly disadsantaged (ustomers 4-se S O..t c x. ^ '....' Q ;.;D {.*: h y 'g d h, ((') ' [' f ' ;. - n'[ sersed by Santee Cooper A clearer anderstanding of Santee Q, M*i.' , j#. /... {r,.. J (. C ; ( Cooper s energy resource utilization and a greater awareness of the effi-MG P,4.I.c:.. *.4

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~s. i E 4 2 uent use of electnc power was a, 5ED T ': N' ' M '.. ' > ' ;.. WM Q " \\ achiesed through intensified public information and education etforts 'J v 4 Presentat:ons demonstrations and /, f N..y %:.( j ' (h '. ?. (([,h g [ V V, I publications were presented to ~' (14 a..g Dj schools. business and professional 4( audionisual library and special pro- ,,7 " ~Q (9 ' M s ' groups. and trade organizations An o

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s n - f '; grams were among resources used 4,, Mt s.Q,. W-v f.f N M i d -., g 4 -{'..'.',n- $ % / y, %g x ' .... A ' ' [ @ '* - for expandmg contact with 4 , s; Ep r < o custorners and community members ,q t-k,:' d ,,..,,v. -r. m.s.'.,.. -. ~.' %.." g. .; e. : e s .m. c., c,- s. '.., n. .g .- l.. -u.' !,: Y >l:=:. ;'

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• ", 'g.:~ M '%i5 Harrelson unrolis'fiberalass

~ ?.'$YkOW.N insulation recontntended for k%Y.M$< ? m :.s w' -

• installation in customer's attic as M-part of new Weatheruation.

l insulation. and Solar Encrau i ~ ..t:. (WISE) Prodram. 25

I HORTICULTURE / AQUACULTURE MAKE USE OF AVAILABLE HEAT RESOURCES i t, / ..,s @;$ %y. _l ffj O [ E u ?, s 1 1 EN\\ IRONMENT AL RESOURCES Federal funding by the U.S Army The biological control agent A new water quahty limnology Corps of Engineers under the Rivers Bacillus thuringiensis Ivar. israelensis) laboratory was constructed and Harbors Act in the amount of was evaluated as a larvicide and equipped. and staffed during the $62 000 for noxious aquatic weed shows euellent promise as an en-year This facility will provide in-control resulted in the treatment of vironmentally safe control tool house capabihts to conduct intensise 500 acres of Brazihan elodea in Lake More than 65 000 Tilapia zillii fish assessments of the nutrient content Marion Aquatic weeds were also raised at the Winyah Aquaculture of Lakes Marion and Moultrie deter-treated in the Goose Creek Reservoir Center were sold for noxious aquatic mine the trophic lesels of each lake for Berkeles County and in the weed control during the year De-tompile baseline data to determine Backriser Reservoir for South niand for the fish was greatest from trends in water quahts and measure Carolina Electric and Gas Company the imnatt on water quality of Mosquito abatement operations ses ere aquatic w eed intestations were conducted on all project lands in the combined interest of disease sector control and outdoor recrea-tion and tourism in the hse counties surrounding the Santee Cooper lakes 2n

Environmental Resource crews spray for mosquitoes in one of 52 residential subdivisions around Santee Cooper lakes. Aerial spraying and truck fogging are used for mosquito abatement. k 1

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k;DjGi~ W :n,' 7 tf@YQts ' 3' b M.' a .w. h? ~. \\ 'G e. ..m.. r# $bv (f !?yi-dM,4 ew n mtss.;qq r. MI$}" M ' fh 's

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brM. 21 yy y 4 'G.. ^ r g: ,y _ ~ _ _ ~2.- .1 '"~ m _.. r* the gnif course industry where use of The Residual Energy Application returns per square foot of produc-pond water for irrigation precludes Program by Horticulture was further tion area Tomatoes cucumbers and the use of herbicides Additional refined to include nutrient flow potted flower crops were also pro-broodstock ponds were constructed through hydroponic culture This duced successfully with the at the Center w hich will permit in-system has the potential of sig-generating station s discharged con-creased production next year Tilapia nificantl3 increasing the resource densor cooling water contmue to provide excellent control capabiiity of the program by reduc-of aquatic weeds and algae in the ing plant diseases. reducing labor 1(X) acre Winyah cooling reservoi-and increasing production per which required an expenditure of area unit. SXO (XK) annually for chemical Snapdragons and Chrysanthemums control until stocked with Tilapia were in great demand as cut flowers in lo7X from local a holesale floral dw tributors and snowed excellent 27

NLw BUILDING COMPLEX Construction of Santee Cooper's new headquarters complex was over ) 40 percent complete at the end of the fiscal year with mostly finishing \\ touches remaining on the seven-story. [ ..:f j M.2.Q.., i 25 000 square-foot office building. [ ..j " j. ~ ~ ..E. The move had been completed for ) personnel working in the transporta-1 y 27 1;f tion service center and more than 90 .h:.' [4,,k 3, j percent for units assigned to the ~ ,y ?. warehouse and operations service T[ center. There will be an additional ]' i q g 4,_ X

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'[ eight or nine months before all the v.gt,;.M.....[. . gh:yi ) A i s L. ;, new equipment is installed and h 9 power dispatch personnel move into 39 c.: - - ' ~ 2.'.: My.. .,1 s the energy control center. 4 ' 5 e- ,Q:@~. ]dd.; - .7 The seven-story office building is ^ . [. ". s. ij. ' t M "i.. one of the most energy efficient of-q ...c. .1 , \\ +:y.,.. 2 A n' . ',. '. ^ fice buildings in the state. and all , %w; 4.a - A~. ... c ++ . s.2. ', 4 buildings within the complex exceed "+, F 3-the U.S. Department of Energy's g q+~

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g .s c i ey 7 p..;., [ [. j. building energy performance i i ~;.. sta ndards. .u ae N u .;... 4 -) V - y l- +. W..>..,. f a n,s.' - .;..f,c , m*..' y _ > s. r c. ..7 .;.~... u './ ^ -y 2: .s .::,, y en - ,..a i.l;,_ J

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winsor at nenomplet otters Q: & fr#y Corner customer. Drive-through _c,uc,(c,o i,,,,ciai,,,,me,, .m in pagina bills.

The new complex uses some of the A total of 668 construction permits Approximately 125 acres of most advanced technologies avail-were issued by the Inspection and woodlands were reforested to main-able in the areas of comfort condi-Compliance Section. Of these 35 tain sustained maximum yields. f tioning. lighting. ventilation. space permits were issued for piers and Data relative to the characteristics utilization, and communications. A docks. 23 for retaining walls.18 for of various shoreline areas adjacent t drive-through window provides con-boat ramps. 4 for dredging. 350 to the Santee Cooper lakes were venience for customers paying bills, for building and accessory buildings. compiled for publication in a and a 250 seat auditorium is avail-and 238 for miscellaneous projects. shoreline erosion control plan re-able for community activities. Site plans were developed for six quired by the Federal Energy The total cost of the new complex public recreational areas to be con-Regulatory Commission. including property, site development. structed on the company's unde-and construction, is approximately veloped properties in Berkeley. $25 million. Clarendon. and Orangeburg Counties. PROPERTY MANAGEMENT Approximately 2.610 acres of addi- = tional land was made available for Effective and resourceful manage. ment of environmental and natural public hunting through the resources is a major responsibility of cooperative Game Management Area the company's property manage-Program administered by the South Carolina Wildlife and Marine ment division. This includes the administration of Resources Department. 4.050 leases around the Santee Cooper takes. Of these. 2.951 are recreational lots in Santee Cooper subdivisions: 968 are marginal lots adjacent to privately owned sub-divisions: 86 are commercial lots: 8 are miscellaneous leases: and there are 37 gratis leases to public and quasi-public entities. Revenue col-lected from these leases for the fiscal kg year was $542.907. The sale of forest products produced $79.393 in revenue and agricultural leases totaled $91.742. s, g 4 '4 b - 4 4r N %g%k g% _ (h RATE COMPARISON FY 82 1000 KWH RESIDENTIAL (AVERAGE 0)S1) 29

E L GRAND STRAND LEADS STATE IN RETAIL = CONSTRUCTION & RESORT DEVELOPNIENT m p.(A % (

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e I O' g F "I.. j!!!! ..k... W w IJIfl Hill e ' as:b ..~ &,,J a. m E q - i s $glg ..i w- .~ p a mm y l j AQ l nu- - } 1 b g g. 'A 7~ [ ~ . i- -M JQ L 5: .~~hEg'?'4KV m ~ YY ?E Y^;!I ?Y l? a Y5 "Y5$. M:'?" ? ?$ SERVICE TERRITORY popular Grand Strand where resort MONCKS CORNER Santee Cooper provides retail ser. and multi-family construction has The Moncks Corner District pro-uce to more than so 000 customers almost totally replaced single-family vides service to Berkeley County in three South Carolina Lowcountry construction. In fact the majority of customers in Moncks Corner St counties This was a growth of the new construction building per-Stephen and the areas of Pinopohs almost 6 percent in the number of mits for housing in the state in the and Bonneau Beach The number of customers sersed during the past previous year were issued in customers increased 4 03 percent in year and a 2 3 percent increase in Horry County 1982 to a total of 4 3X8 energy consumed The maiority of In addition to normal load growth this growth occurred in Horry and underground seruce was prouded to Georgetown Counties along the 40 residential apartments a new K-Mart store and a l 4 2-bed con-salescent center in Montks Corner 1

i South Carolina's fabulous Grand Strand has maintained a steady growth in recreation, tourism, and resort development, with corresponding increases 'n number of customers and energy use. U ~,a {} ~ 4 ~ f . ja ~ b' F ,M " S~.. [ J j? i. n:m a ~' te gl .] Q a " R:%hd $a>Y y a e 9 ,! M l\\ ~~; y. I grsPsh ' ~ ' ' '~ l' >}#7M: g .. -. - m myynyp 'Lu gf%gQ y[ 'If' L ^ " j " M 9 Q" ~ m~.~,- 2 .y MNw _ d.4.: ,,&png em:r 1 W > v.g o -LR;h mauwa ' :. % '.crm '.c6 hALA4 A 2.6 mile 12.000 voit line was MYRTLE BEACH DISTRICT Most of the expansion of Santee built to provide service to the new The Myrtle Beach District serves Cooper facilities in the district was Trident Technical College. Berkeley approximately 44.000 customers required due to the construction of Campus. on Highway 17-A South, along the Grand Strand from condominiums and other medium to Several feeder lines in the district Georgetown to the North Carolina high density residential develop-were reconductored for present and state line. The district includes the ments. These residential units are future load growth. municipalities of Myrtle Beach. North Purchased for rental and for full-Myrtle Beach. Surfside Beach. Atlan. time occupancy by people retiring tic Beach, and Briarcliffe Acres. and and moving to the area. the unincorporated areas of Horry and Georgetown Counties along the Grand Strand. The economy in the district is related mainly to recrea-l_ tion and tourism: however, the !f retirement populace is becoming a significant part of the community. 31 =

_ af ., s q. .g .~ .,,.. [ 'g, [P M ; 7;,;, f. During the year the district gained }' 4-g: l.J.,.. .g. [ *

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3 ? 2.913 customers. a 7.1 percent in- . '.. ' f' % ..,?l;,...:. ' ' 4.$ crease over the previous year This 'T: 7 [ :', ~.. :., a, ....y /~;\\g ,,; ; - gj :.; +.. increase is reflected by a total of x .., - ' l <.. -. y . 3;. .. l, 25.842 customer transactions from ^ e. offices located in Myrtle Beach ... ?....' ' r..-- ?, ,$,. i

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... - / 1.: 'r North Myrtle Beach. and

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,/ ,.[ .g.. l '[ c'." -..j - - 'a -[ Pawleys Island. . y l, _.;" .i 3. Five line crews performed all of p 3. ; ':. 'f c,.,

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~ A,- .W,. t? .;g maintenance work on the distribu-w ..c y, +,.- ,3 L tion system in the district During the g ;.g.

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• IO poles 85 864 feet of underground grs.

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ip..l'; p "4Nf,i j'f'y,;,; '.... 'A . '.. j .-l.? '. with other normal and emergency 3 .z. g + t i.'.s '.... wc,rk. These crews performed the ..- -.-,,.g;p. u,. y ^ i t 4 w' ~. 'c-i.34,.[! - # g; 7 V[.j 'J -/ worl< required to keep up with the 'i rapid development occurring F.C .~? n 'r-7fy. -l 1-j, - s b g(- ' g throughout South Carolina s fastest ry/ q. growing tourist area .f,y,., q. A major improsement in Santee fQ j'g Cooper facilities was the completion of a 4 000 square-foot addition to l (p: 7, 7 the Myrtle Beach office. Members of g ig. the Myrtle Beach Technical Sersices l d ',- f. Section mosed into their new offices f in January 19X2. The expansion pro-M. vides engineering work stations of-3;Y-@8-1 l /p.6 fice facilities for the Myrtle Beach metering section a meeting and files g area and room for future expansion 1 r*f.,3 ya y J _. x q-:: Enaineerina Assistant Charmairte N Narciso uses a diaiti:ina cursor to .e.. ,re,,,,c,ecom,,~,. de, a s Iransmission lines to computer used 42 In HCW dh_nll:Cd mappina sHsicm l

CONWAY The number of customers in-Power to industrial plants, schools. The Conway District provides creased 1.7 percent, to a total of and other large customers is being power to customers in the cities of 8.452. Er.ergy consumption in the fed from sub-transmission lines Conway and Loris and in several district increased 1.79 percent to where available rather than distribu-unincorporated communities, in. 194.441.683 kilowatthours. tion lines. This method of feed ciudir.g Cool Springs. Bucksport. A long-term project was begun to reduces the cost of providing service Homewood, and Red Hill. Service is convert the distribution circuits in by eliminating one step of transfor-also given to rural customers in an Conway from 4.000 to 12.000 volts.. mation which decreases transforma-area from the North Carolina state This conversion will allow existing. tion power and losses and lessens line near Loris to the intracoastal conductors to carry more power the likelihood of power interruption Waterway at Myrtle Beach and to with less line losses than the to customers. the Waccamaw River at Bucksport. existing voltage. The growth in this area has been Two new substations were built. primarily commercial and industrial one at North Conway and one at during the past 12 months. Klondike, near Bucksport. The two new substations were fed directly r from transmission lines rather than from sub-transmission lines, elim-inating one step of transformation with its accompanying losses. The saving in building these substations in this manner has been substantial. t \\ FY 1961 1982 F Y 1961 1962 j CONSUMPTION (KWH) COST ( $/KWH) M tarmAL AVERAGE SANTEE COOPER AVERAGE RESIDENTIAL CONSUMPTION & COST 33

l l TECHNOLOGY HELPS HUMAN RESOURCES ADVANCE TRAINING & DEVELOPMENT J P  ? N ..: n,y = m J p_..- s~ wol mns 7 m g [en'~{\\ 9 4 V.;.; .n. a ' ~M' 4 gl b' ' ' 7 l (7 m < No2 l l a _:: w ,l. s_ - l I I% o, -f l pa ran s a g T ,-[ [ B A "~ ef .VNn 1 !.'N _- b f i INDUSTRIAL RELATIONS EMPLOYMENT - Extensive other programs such as the junior Resourcefulness is a necessity in recruiting was conducted through the Engineering Technical society. were areas such as employment. compen-use of advertising. college campus used as a long range recruiting tool sation. training. employee relations, visits. lob service. and other to encourage students to enter and occupational health, especially methods. This resulted in over 4.350 electric utility related career fields. during periods of rapid growth and external applicants and the hiring of Continued use of an effective job changing conditions. The personnel 186 new employees. Employment posting system emphasized promo-function has met these challenges growth was approximately 10 per-tion from within and resulted in 160 with proven methods and innovative cent, and the total number of employees being selected for other employees by the end of FY 1982 jobs in the organization. programs. was1.202. Participation in cooperative educa-tion programs career day programs at various colleges. technical educa-tion schools and high schools and 34

Training instructor Harvey Harrell sets controls on new computer-driven simulator used to train unit operations personnel on start-up. operations, and emergency procedures for coal generating stations. r iQ %~*. T, L

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,i ~4 ); s j [ 3 m 'u'j.. N' m l l \\n 3[(((({ll 111 [p..N 6 rr ns >r t = 'I 5 W Wa f;' ,g j [ Q[pypi.te t.g ~ / / y A/ p q -) ' i y ( / q y 4 A% R EMPLOYEE RELATIONS - Open WAGE AND SALARY AD-EMPLOYEE BENEFITS - Im-communications were stressed for ef-MINISTRATION - The exempt provements were made in both the fectise employee relations through salary plan was extensively reviewed health and dental insurance pro-the use of personal contact and updated with adjustments made grams The dental program em-employee advisory committee to reflect current job responsibilities. phasizes routine and preventive care meetings the suggestion program Emphasis on pay for performance with hopes of red scing major prob-and an 'open door'~ policy continued to be a trademark of lems in the future. Participation by employees in-this program Participation in pre-retirement treased in company-sponsored off-The unique non-exempt hourly counselling and regularly scheduled ? duty recreational programs such as wage program which permits benefits briefings offered to basketball softball volleyball and rewards for superior performance employees was excellent a golf Employee insolvement in such was effective and received high Increased company support was programs had a positive impact on employee acceptance prosided to the tuition aid assistan e morale and improvements were program and oser 100 employees made to most of the recreational receised financial assistance in tur-facilities thering their education

ff[S,MQ)NN@M M /4N]:EN-s nC OCCUPATION AL HEALTH - W] D e g,' W [m MNSODP;5f(p( r%g.M, y* >QI7 Y Q f $9%j

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G. 4Ma gMMffi' y, With health and welfare of p p. 7 ps m L3 NfM M $[h h b NOhhhp employees a major goal. several new T Q 9 9 ' ' N y @y $.aeM[e@lg g[J. bj qg approaches for better health care yf'M 4- ?? h g @x/4) were begun. These included a lQ nth .xs %;cqpa.y lN behavior modification program 4;a.. s ' nwy 'y h%;fg*y[gk featuring non-smoking and weight pfy.' - 1; g,#

w A.. w control sessions.

q y /e

Mygc4, Over 500 personnel were trained

%Q $ jgQRr in First Aid and Cardiopulmonary "%k Resuscitation. Twelve new employee fM instructors were certified and CPR W~ training was also offered to x2 yQ employees. families My Exter.sive multiple health tests gpd were given to over 800 employees at several company locations using a %[.-3 ] mobile health van to accomplish this ' hj goal. Early recognition and identifica- ] [5 ^~( tion of health problems and a com-9 l 4 ffQ prehensive hearing conservation pro-gram resulted in employees receiving I ~ .mqj timely medical attention. l q .N.a ) s oci;q TRAINING AND DEVELOPMENT ' :3.:n 7 g '} A generating station control room Dj simulator was acquired and training gh of unit operators on this equipment

• j began It is expected to produce cost o

.j]~[h and equipment savings and improve

r - M the efficiency of operations and

-b W <,W. f@ maintenance in all of Santee h k' "c~.'i N Cooper s generating facihties. - ~ ~ 4J@~ g 4" .F g c over i 000 personnel completed training courses cenducted by in-house and external instructors on subiects that included management. supervisors desefopment. customer relations employment interviewing power plant fundamentals. basic electricity. mechanical maintenance. data processing. and blueprint reading 1 Naticy Gressette. Caner Foursdatiott Admittistrative Associate. examittes otte of several flusrescent replacement fittures beina recommended for conservina encray in hom< Itahtina

L=: EQUAL EMPLOYMENT The first place award has been. A special plaque was awarded to OPPORTUNITIES earned 12 times in the past 18 years Santee Cooper dispatchers for 40 Employment. compensation, pro, and for the fourth consecutive year years' meritorious service without an motion, and other'related decisions by Santee Cooper. Injury to an employee caused by a tra based solely on job-related in addition to this recognition; 34 dispatcher's instruction during that qualification without regard to race, units of Santee Cooper earned addi- - period. - color, sex, religion, n' tional origin. tional awards from the National Spedal 40-year service plaques for a age, or handicap: except where sex. Safety Council and the South safe driving and safe working were - cg s, or handicap is a bona fide oc-Carolina Occupational Safety Council, presented to four long-term cupational qualification. The company also received a first employees. place award from the Council for - Seventeen employees became electric utilities operating in excess. members of various safety clubs. o. .TY of 500.000 manhours annually. designated to recognize those who g in 1981, Santee Cooper again Santee Cooper President's Safety avoided injury by wearing safety i carned the first place award from Award, presented for crew and sec-devices or equipment. the National Safety Council ani ihe tion safety while operating under American Public Power Association hazardous conditions without a for having worked in excess of disabling injury, was earned by 82 2.000.000 manhours annually crews or sections during 1981. without a lost time injury, an in-Safe Service pins were presented cidence rate of 0. to 177 employees who worked for periods of up to 40 years without a disabling injury. Safe Driving Awards were presented to 155 drivers of company vehicles for driving without a preventable motor vehicle accident for periods of up to 40 years. l 37

PLANNING & RESOURCEFULNESS NIAINTAIN COMPANY'S STABILITY NM- "f "'k[W[$$$?E 7/IfN]p.?O..f({k; Ny&b ikV 'lI- 'd FM ~' h.n~v k?, OY,<00. k '797.1 p g &g e :u; E =. l{t*h _M&'$.Q{%,N. 6p.y6::. ?.6.v wp wy% ? Q,Q y*& -W l,)f}. %c, -* . L2 M""# 'W Y : i.:. M$'? , fqKip. WWMP5Pc %i . (;! fd. 'r. ; ;-}L Q - W 7 - m '-;ff '.-;._Q L['" ' .V' g(, Q

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'N ?? FINANCE & ACCOUNTING allocations, allowance for funds used CORPORATE FORECASTING. RATES CONTROLLER's OFFICE - Accounting during construction, and construction AND STATISTICS - SIMPLAN. Santee j methods and procedures were re-overhead. It also allows completed Cooper's Corporate Forecasting com-t fined and streamlined through con-construction projects to be allocated puter modeling system, was used for l tinued improvements made in using directly to plant-in-service detail strategic financial planning and short the computer. These included new or records. and long-range budgeting. It provided expanded capabilities which allow All employees were provided an on-line information for the cor-l lournal vouchers to be entered on-option for direct deposit of payroll porate financing program and line and updated immediately to the checks, and a popular provision of assisted in the development of cost l gerieral ledger; and automatic entries the program permits deposits to be were programmed to handle leave pro-rated among up to three separate accounts or banking institutions. E 38 y

l i Long-term contracts such as with Bow Valley Coal y Resources. Inc. located in Bell and Harlan Counties. Kentucky. assure Santee Cooper of fuel resources beyond the year 2000. . w - ss. ~ kh t-5 2 I 'dy.- 1 '.,: a LQ1 .n .%,ii,7 i : ( : ~. s y,,- s d ,L[ -

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as .9 ($Yh.I iM@ U* pp' n ~' +. % ..M w ."A ' Y q cs. ha O S L data under the new Central Electric improve the timely processing of in-backup tapes was begun to protect Power Cooperatise Coordination dustrial and wholesale customer bill-against loss or destruction of impor-a Agreement and in connection with ings it also assists in the day-to-day tant data A total test version of the the deselopment of a Key Corporate analysis of load researcF data which company s data base operating Indicator program which will assures the availability of current in-system is now being used to allow measure Santee Cooper s operating formation for rate design test program changes and results and compare them to those M AN Ac,EMENT INFORM A rloN enhancements during the prime of like entities Sisitus - On-line instantaneous in-shift without affe-cting production A new translator! computer system formation processing systems were processing was installed early in 1982 w hich will provided throughout Santee Cooper during the past year for accounts payal>le. metering records manage-ment and direct deposit of payroll checks A tape management system was installed and off-site storage of 3

bl -l TREASURY - A new cash manage-ment system was implemented dur- ) ing the year with one of Santee Cooper's major banks to allow longer investment of funds, resulting I- ~fb "I in higher interest income. Three k ~ b2 b~ ~ ~ ~ F-i; disbursing accounts were con- ~ 3-i solidated into one account and, to k b produce more efficiency in handling di r :.:~ Mi._'1 I; ' ~MCJ receipts seven checking accounts were closed by consolidating collec- -w g4 tion functions. Four major financings E : 't 4P totaling $530.000.000 were suc-cessfully marketed as part of Santee ~- l e [ Cooper's ongoing financing program. [ Three of these financings were tradi-F tional, long-term bond issues and s e one was a one-year note sale F -; ~ through competitive bid. s L y FINANCIAL

SUMMARY

1934-1982 Since Santee Cooper was created in 1934, a net amount of $1.621.171.000 has been invested in its production, transmission. distribu-tion and general plant facilities. d; These capital additions have been financed through reinvested earn-I ~ 3 Ings, issuance of electric revenue bonds and notes, lease contracts. \\ and a federal grant-in-aid of S34,438.000. Santee Cooper's net earnings before taxes since the first power was generated in 1942 total l S195.286.000. Payments in lieu of taxes have been made to the State of South Carolina totaling $19.723.000 and to the counties and municipalities within our service ter-ritory totaling S7.436.000. The re-maining net earnings of l i $168.127.000 have been reinvested in system improvements. l In a new working environment, Emily Brown. Supervisor, Treasury Accounting and Wayne Bridges, Supervisor, Data Center use Management Information System data terminal in assessing cash flow 1 40 disbursements.

Revenue bonds totaling $215.674.000 at the time they were As of June 30.1982, unexpended $ 1.987.594.000 have been issued refunded. Principal payments on all funds from the sale of bonds since the creation of Santee Cooper. bond issues, including the issues amounted to $180.207.000 in addi-Bonds which were originally issued refunded, total $36.070.000. Out-tion to debt reserve debt service, in 1949,1971, and 1976 were ad-standing bonds as of June 30.1982, and interest funds which totaled vanced refunded in 1973 and 1977 totaled $1.735.850.000. The average $446.851.000. and have been defeased. These annual interest cost on these bonds bonds had an outstanding balance of is 8.82 percent. N $164.923769(51.43%) It f i $131,18S755 (4091%) ld $101,801,652(31.74%) l;<ga; F hl j{k $ 58.37680s (18M%) 52.137.m16W/c) V $2a14528e (g 7a%) $ 27,121,191 (9.46%) (;i $129mos(t os%) t._; ,2gg2a, cg 42s,

1. 'A E

$9.259,015 (289%) Y-b o) fo) %$@:g, 'k$3[ SOURCE OFINCOME DISTRIBUTION OF INCOME REVENUE DOLLAR REVENUE DOLLAR

i T y APPLICATIONS OF REVENUE D 1978lesse 1979A issue 1900A lasse D YEARS ENDED JUNE 30,1982 AND 1981 (1) I k det. Int.Ilote Amt. Int. llete Amt. Int.llete Amt. 4 Y 1982 1981 420 4.30 200 5.40 70 81/2 135 g Total Operating Revenues $307,731.125 $246.346.151 r

410 4.40 895 5.40 575 8.60 145 g

Operating Expenses. ,435 41/2 780 5.40 955 8.60 680 Operation 445 4.60 970 5.45 985 8.70 740 q_ Production 172.205.118 149.427.242

470 4.70 1.015 51/2 1,025 8.80 800 Purchased and Interchanged Power - Net 9.259.015 9.275.103 490 4.80 1,070 5.55 1,065 8.90 875 Transmission I,798.806 1.873.222 515 4.90 1,125 5.60 1,105 9.00 950 Distribution 1.059.489 1,190.841 Sf,,**# ^

5 3/4 1 9 r 85 590 5.10 1,220 5.85 1,240 91/4 1,235 y Administrative and General 11.744.316 5,739.323 Maintenance 24.403,893 18.626.164 h 625 5.15 1,285 5.90 1,300 9.30 1.350 660 5.20 1,355 5.95 1,360 9.40 1,475 ' Total Operation and 720 51/4 1,440 6.00 1,425 9.45 1,615 Maintenance Expenses 226.320.042 187.889.825 785 5.30 1,515 6.05 1,490 91/2 1,765 Sums in Lieu of Taxes 564,554 965.799 830 5.35 1,585 6.10 1,565 9.80 !,930* lr Total Operating Expenses 226.884.596 188.855.624 5.40 1,670 6.20 1,645 9.80 2,120* 890 935 5.40 1,760 6.30 1,725 9.80 2,330* E-Met Operating Revenues 80.846.529 57.490.527 005 5.70 1.850* 6.35 1,815 9.80 2,560* Other Income 12.976.995 8.657,508 065 5.70 1,940* 6.40 1,915 9.80 2.810* 130 5.70 2,045* 6.45 2,025 9.80 3,085* Revenue Available for Debt Service and Other Purposes 93.823,524 66.148.035 220 5.70 2,145' 61/2 2,135 9.80 3,385* Z Total Debt Service 45.491.037 37.017.536 295* 5.70 2,260* 61/2 2,260 101/8 3,720* "N Lease Payments to Central 5,248.662 5.263.000 380* 5.70 2,380* 63/4 2,390* 101/8 4,095* 2 Prindpal and interest on Other 460* 5.70 2,500* 63/4 2,540* 101/8 4,510* Obligations 83.215 79.816 570* 5.70 2,630* 63/4 2,695* 101/8 4,965* Balance after Debt Service, lease 795* 5.70 7,385* 63/4 2,865* 101/8 5,470* Payments, and Other Ob!!gations 43.000.610 23.787,683 945* 5.70 7,845* 63/4 3,010* 101/8 6,025* r, Payments to the State of South Carolina 1,400.006 1.300.296 080* 57/8 8.330' 63/4 3,160* 101/8 6,635* Q. L Payment to the Specla! Reserve 225* 57/8 8.845* 67/8 3,335* 101/8 7,305* Fund - Net 1.004.761 946.397 180* 57/8 9.390* 67/8 3,525* {_- Mandatory 8% Allocation for Capital lmprovements 24.807.196 19.673.469 500* 57/8 10,590* 67/8 3,925* [ Revenue Available for Operating Requirements $ 15.788.647 $ 1.867.521 235* 57/8 12,555' 67/8 4,610' 580* 57/8 13,190* 67/8 4,870* '.2 7/8 50,600* 67/8 50l (1) This summary has been prepared from the financial statements y8 and other data of the Authority and has not been examined by the independent auditors. This summary presents the net -W revenues available to the Revenue Fund for purposes such as providing for increases in working capital requirements. It differs Qy from the Statement of Reinvested Eamings in that it represents g; cash transactions on debt service and, accordingly. exdudes non-M' ' ^ cash items such as depredation, allowance for funds used during construction and amortization of debt discount and expense. X)0 199,900 109.865 74.875 d ,35 ,25 X)0 200,000 110,000 75.000 . go ' +

ITIAlssue IM1B Issue IMIC issue IM2A issue 1M2B Issue Total Total Principal Accruing Debt pt. Rate Amt. Int. Rate Amt. Int. Rate Amt. Int. Rate Amt. Int. Rate Amt. Maturities Interest Service 6.305 115.945 122.250 7.795 154.577 162.372 9.060 152.447 161.507 1/2 555 10.500 151.988 162.488 65 615 101/2 710 91/2 1.375 91/2 565 13,720 151.435 165.155 I80 680 10 3/4 785 10.00 1,465 10.00 655 14.590 150.583 165.173 l00 760 11.00 865 10 1/2 1.595 10 1/4 740 15.545 149.649 165.194 15 845 11 1/4 965 11.00 1.735 101/2 835 16.590 148.623 165.213 30 940 11 1/2 1,070 11 1/2 1.905 10 3/4 940 17.730 147,501 165.231 45 1.050 11 3/4 1.185 11 3/4 2.105 11.00 1.060 18.950 146.299 165.249 60 1.165 12.00 1.315 12.00 2.335 11 1/4 1.195 20.290 144.979 165.269 f/4 1.295 121/4 1,470 12.30 2.590 11.60 1.345 21.760 143.524 165.284 .90 1.435 121/2 1.635 12.60 2.895 11.90 1.515 23.375 141,923 165.298 00 1,600 11.00 3.090 131/4 1.875 12.10 1.815 25.195 140.117 165.312 15 1,775 11.10 4,000 131/4 1.530 12.20 2.040 27,150 138.174 165.324 30 1.970 11.20 4.220 13 1/4 1.925 12.30 2.295 29.230 136.053 165.333 D/4 2.190* 11.30 4.590 13 1/4 2.250 123/4 85* 29.120 133.725 162.845 D/4 2.430* 11.40 5.090 131/4 2.545 123/4 95* 31.385 131.464 162.849 D/4 2.700* 111/2 12.010 37.235 128.992 166.227 D/4 2.995* 13 1/4 9.875* 123/4 100* 36.895 125.950 162.845 ij/4 8.000* 13 3/4 5.265* 12 3/4 1.330' 40.000 122.846 162.846 13 3/4 14.735* 12 3/4 1.530* 43.265 119,583 162.848 14 1/8 1.170* 123/4 17.320* 47.205 115.643 162.848 141/8 1.320* 123/4 19.540* 51,420 111.428 162 848 141/8 1,495* 13.00 915* 34.935 106.783 141.718 14 1/8 1.685* 13.00 1.050* 37.370 104.351 141.721 14 1/8 - 1.905* 13.00 1.200* 40,065 101.655 141.720 14 1/8 2.155* 13.00 1.375* 42.975 98.745 141.720 14 1/8 2.440* 13.00 1.570* 46.130 95.588 141.718 01/4 1.300* 91/4 8.520* 14 1/8 985* 13.00 1.800* 49.550 92.171 141.721 l D 1/4 1.430* 91/4 9.310* 14 1/8 1.115* 13.00 2.040* 53.085 88.635 141.720 01/4 1.580* 91/4 10.170* 14 1/8 1.260* 13.00 2.320* 56.895 84,826 141.721 01/4 1.745* 12.00 1.195* 10 00 9.365* 14 1/8 1.980* 13.00 2.625* 60.995 80.722 141.717 01/4 1.920* 12.00 1.335* 10.00 10.635* 141/8 1.910* 13.00 2.990* 65.690 76.031 141.721 01/4 2.120* 12.00 1.480* 13 3/4 8.475* 141/8 5.395* 13.00 3.395* 70.550 71.168 141.718 i )1/4 2.330* 12 00 1.655* 13 3/4 9.625* 14 1/8 6.130* 13 00 3 885* 76.265 65.451 141.716 pt/4 2.575* 12.00 1.845* 13 3/4 10.930* 14 1/8 6.965* 13.00 4.445' 82.495 59.222 141.717 p1/4 3.500* 12.00 34.905* 13 3/4 12.420* 14 1/8 7.905* 13.00 5.095* 89.375 52.346 141.721 $1/4 23.500* 12.00 46.585* 13 3/4 14,270* 141/8 8.980* 13.00 5.830* 99.165 42.555 141.720 10 1/2 50.000* 13 3/4 44.280* 14 1/8 10.205* 13.00 6.665* 111.150 30.568 141.718 14 1/8 62.000* 13 00 62.800* 124.800 16.922 141.722 75.000 200.000 150.000 165.000 165.000 1.735.850** 4.571.187 6.307.037 0-0- 0-22.250 75.000 200.000 150.000 165,000 165.000 1.758.100 43

y. ELECTRIC STATISTICS RecalYear 6/30/82 6/30/81-6/30/80 6/30/79 6/30/78 6/30/77 6/30/76 6/30/75 6/30/74 6/30/73 Total Utthty Plant-net including - nuclear fuel (at year end) (2 thousands of dollars) 1,465,919 1,204,325 950,628 759.839 577,936 437,162 355,971 277,976 223,633 166,261 Bonded indebtedness (at year end) -(in thousands of dollars) '1,735,850 1,261,420 990,100 917,690 810,190 495,190 481,210 383,050 383,905 175,720 Operating Revenues (7 thousands of dollars) Residential 27.121 21,949 17,639 15.255 14,585 10,801 9,109 8,354 4,910 4,266 Commercial. 28,145 22,452 18,835 16,822 15.530 12.439 10,738 9,665 5,703 4,833 industrial 131,189 99,551 40,417 35,131 26,672 21,557 19,357 20,929 11,349 9,624 Mihtary 12.4S7 9,225 6,954 6.567 6,330 5,049 4,754 4,564 2.834 2.410 Municipal 955 704 587 546 526 422 391 257 217 196 Whdesale 105,994 90,971 65,997 59,975 54,101 42,265 36,215 32,038 16.512 13,594 Other Electric Utilities

• 975 507 1,021 4,220 5,196 Miscellaneous 1,840 1,494 1,364 1,401 1,236 1,219 1,168 (1,516) 1,009 1,012 Total 307,731 246,346 151,793 135,697 118,980 94.727 82,239 75,312 46,754 41,131 Operation & Maintenance Expenses

. Charged to Operations (in thcasands of dollars) 226,320 187,890 109,997 103,928 88,144 71,904 57,737 59,214 36,861 26.958 Payments in Lieu of Taxes Charged to Operations (in thousands of ddlars) 565 966 928 726 658 734 550 405 126 124 Payments to the State Charged to Reinvested Earnings (in thousands of dollars) 1,400 1,300 1,300 1,200 1,201 1,797 844 764 1,093 1,007 Net Operating Revenues Available For Debt Service (il thousands of dollars) 94.219 66,503 46,732 35,958 33,796 28,091 29,799 19,983 13,604 16,889 Reinvested Earnings" - (in thousands of dollars) 38,610 21.048 21,406 10,791 5,516 8,978 11,902 8,060 3,704 12,530 Debt Service Coverage: Expansion Bonds 2.18 1,90 2.41 2.12 2,30 3.34 3.25 4.52 12.60 Priority Obligation & Expansion Bonds 2.07 1,79 2,14 1.88 1.98 2.46 2.45 2.56 2.69 3.87 Kilowatthour Sales (in thousands) Residential 541,522 536,461 472,495 443,186 446,247 403,107 342,232 319,744 287,653 267,471 Commercial 569,474 549,737 511,726 506,243 489,437 449,333 404,501 375,320 333,608 303,306 Industrial 4,049,632 3,952,408 1,890,415 1,788,087 1,441,494 1,35f 706 1,202,291 1,240,927 1,255,888 1,181,805 Mditary 350,127 343,258 306,582 316,537 323,763 302.789 301,172 291.632 284,449 285.440 Municipal 17,841 17,572 17,506 16,966 16,670 15,495 14.381 13,075 10.690 9,687 Whdesale 3,351,388 3,470,042 3,099,574 2,881,781 2,843,955 2,576,794 2,220,559 2,018.602 1,795,621 1,575,921 Total 8,879.984 8,869,478 6,298,298 5,952,800 5,561,566 5,104,226 4,485,136 4,259,300 3.967,909 3,623,630 Number of Customers (at year end) Residential 46,310 43,462 40,053 38,058 35,590 32,513 30,738 28,580 26,958 25,254 Commercial 10,129 9,754 9,236 8,859 8,466 8,102 7,558 7,280 7,122 6,760 Industrial 25 25 24 21 20 19 21 21 20 21 Mihtary 3 3 3 3 3 3 3 3 3 3 Municipal 224 216 212 207 197 189 183 163 144 119 Whdesale 3 3 3 3 3 3 3 4 4 4 Total 56,694 53,463 49,531 47,151 44,279 40,829 38,506 36,051 34,251 32,161 Residential Statistics (average) Kilowatthour Consumption / Customer 12,093 12,875 12,151 12.097 13,174 12,832 11,551 11.487 11.060 11.018 Cents /Kilowatthour 5.01 4.09 3.73 3.44 3.27 2.68 2.66 2.61 1.71 1.59 Generating Capabihtv (year end) (megawatts) 1,965 1,9E5 1,736 1,456 1,400 1,120 1,120 1.092 792 772 Pow;t Requirements and Supply (kilowatthours in millions) Generation-Hydro 522 414 824 680 702 715 739 784 707 826 Steam 8,492 8,620 5,800 5.343 5,238 4,402 3,779 3,012 3,399 3,459 Combustion Turbine 18 31 10 6 38 21 2 11 11 7 Total 9.032 9,065 6.634 6,029 5,978 5,138 4,520 3,807 4.117 4,292 Purchases Net interchange, Etc. 378 371 193 429 95 474 429 882 303 (213) Totd 9,412 9,436 6,827 6.458 6.073 5.612 4,949 4.689 4,420 4.079 Calender Year 1981 1980 1979 1978 1977 1976 1975 1974 1973 1972 T: ritonal Peak Loads (megawatts) 1,754 1,554 1,352 1,231 1,161 1,065 943 911 829 736 ) Denotes Negative 44 (' Effective July 1,1977, interchange sales were reclassified as a credit to purchased power. " Reinvested earnings referred to above and on pages 48, 49, and 50, reflect revenue available to meet Santee Cooper's Bond indenture and Resolution requirements.

/ ,4 u AUDITOR'S OPINION . The Advisory Board :~ 1 ~ and Board of Directors. South Carolina'

Public Service Authority--

Columbia, South Carolina E - We have examined the balance ~ . sheets of the South Carolina Public / ~

Service Authority at June 30.1982 ^

and 1981, and the related state-ments of reinvested earnings, accumulated earnings reinvested in the business, and changes in financial - position for the years then ended.- Our examinations were made in < accordance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing'- procedures as we considered necessary in the circumstances. In our opinion. the above-mentioned financial statements present fairly the financial position of - the South Carolina Public Service Authority at June 30,1982 and 1981, and the results of its operations and the changes in its financial position - for the years then ended, in con-formity with generally accepted -- accounting principles applied on a consistent basis. 4 I Coopers & Lvbrand Columbia. South Carolina August 27,1982 45

o M Z'., ,y n - + 1 e ':f- ,K' a s j, ~.'-'# ' + ;- ) y r % ~ n $ 7?;l Yh ?.42 G r rU y k s

• J.,

1 2 ' ^ a y r - s g.; 4 =.s. s-> a s q --.j, ^p f g sqm. ~ a

..Q)

L , y %;- 'L @ . / 's .,; -.,3 ^ -f , {.g ~ + ~ s :M t e p. { F d Assets ~ ' ' 1 f, 8982[, w 'il9813 1 Utility Plant - At Cost (Note 11: ? ' ~ 99 M

• _..L  ; e, ?qff f

~i,' ~l.g' dl$f 888,738,742! (Sib 703,271,968-.

D' Electric plant in service c7 J 1717,935.5780, [615,301 A557 Construction work in progress ; ' ' ~ 1 m u#7

~

, 41,599,674,313 L A j318.573,423 l Total - 7;; ~ 4 il55,251',632 s ' ':_132A01,145S Less accumulated depreciation: ' ~* 4 f

.1,444,422,68I; f 1 186.172.2781 ' '

1 Electric plant - net w Nuclear fuel (Note 3) ~ A.. " ' n2 8,496,546 C, y- ' 18.I 52i742 m.27 Utility plant - net ' N' 11,465,919,227:5 (l.204,325.020? j ~W 1431,8601 ' ' ~ 446.889 9 Other Physical Property (Net of Accaneulated Depreciation) Unexpended Funds front Sale of Electric Systems E pension: M 4 lf r,,l 57,5 56,248 ' 41SO,207,240j' Revenue Bonds (Note 2)- a ~4; 4483,888,680?- [247.359,232) Debt Service and Other Special Funds (Note 21 2 Current Assets: ' ^ r Cash and securities: N' V^ s . - iI I',587,386 c "10,736i424 Held by trustee ~ 1 Accounts receivable. less al'owance for doubtful accounts? ' ' 1473,221) ?- 2.709,016; Other

--28,253,694 ?

129.9.45.276s 1 72,906,953 / 1.538.544-Accrued interest receivable s >a _,.. f L f _f Inventories, at average cost- _ f 39,112,475 ' ' T32.2 51.003~.. Fuel (coal and oill + Prepaid expenses

• [4,068,012?

(3l4'07.847/ ~ Materials and supplies 32 ,.: 1,127,677J ~ ;599.618 Total current assets 'E i 287,529;418: 181;187.728 Diferred Debits: X Unamortized debt expense (Note 1)-- ~ 123,548,387 J i11,634,937 e ~

9,220,762 >

> 19,594,766 !. Unamortized loss on reacquired debt (Note 1) Other ~ 31,021,594' F339.226 Total deferred debits 33,790,743 4 ' 21,568,929 ~ e i Total L $2,251,760,168. L$l.712.444.046 - 4 t s L V 46 The accompanying notes are an integral part of the financial staternents.

r 4 Liabilities 1982 1981 Long-Term Debt (Note 4): ~ Priority obligations 69,063,527 70,594,343 . Electric System Expansion Revenue Bonds: I,667,835,000 1,192,285,000 ' Subtotal 1,736,898,527 1,262,879,343 Electric Revenue Notes. 125,000,000 75,000,000 l Capitalized lease obligations. '85,609,546 87,930,536 Bank credit agreement - 50,000,000 Other I50,000 -225,000 ' Tota' long-term debt 1,947,658,073 1,476,034,879 Less: Reacqt. ired debt,. 660,000 '320,000 Unamortized debt discount and premium ~ net 26,876,2*8 21,070,747 Long-term debt - net -1,920,121,775 1,454,644,132 Accrued Interest on Long Term Debt 72,499,660 36,531,682 . Construction Fund Liabilities - Accounts Payable .21,423,149 17,178,485 - Crrrent Liabilities: Accounts payable ' 18,343,881 23,609,256 Customer deposits 2,484,948 2,614,965 Accrued sums in lieu of taxesi 408,208 453,962 Other 185,697 242,126 ~. Total current liabilities. 21,422,734 26,920,309-Commitanents and Contingencies (Note 7) Deferred Credits: Unamortized ain on reacquired debt (Note 1) - I,078,851 1,267,439 S Nuclear fuel settlement (Note 3). 12,343,731 10,546,135 - Other 304,359 Total deferred credits: 13,726,941 11,813,574 ~ Capital Contributions - U.S. Governament Grants 34,438,264 34,438,264 A cfmulated Earnings Reinvested in the Business 168,127,645 130,917,600 Total . $2,251,760,168 $1,712,444,046 j' l t c 47

^ ~ ~ ~ r-il L I 7 e [ c s .. j 98, i A'ccumulated.' ear #ags reinvested in the business l-beginning of ' period . $I 30,917,609 Si11.169.624 ' ' Reinvested earnings for the period ( ~ 'T' .38,6?O,951: 21.048,272 Total J

a-. :...

= Distribution' to the State'of South Carolina 369,527,655'. 1.132,217,896 - I,400,e06 1.300.296 Accu'mulated earnings' reinvested in the business -- end of period. - $168,127,645 $130.917,600 7 y T b ) s- ~ Y-s 1 4 m. E 1 ~ 48 The accompanying notes are an integral part of the financial statements.

~ T v +- t - s ,= [ ~- s e" '981 ~ 519821 1 l Operating Revenues:- 7 g_ Sales of electricity ' ~ i $305,891,111.1. J$244.851.426 a 51,840,014 -l 11.494.7251 Other operating revenues ~ - q l ~ " Total operating revenues. ,;307,731,125 - 24.,.346.151' 1 Cperating Expenses:

7 Operation expense

~ ~ " I 72,205,I I S ". ' :/I49.427,242 Production l Purchased and interchanged power.-- net _., 9,259,015:. 9.275,103 Transmission , i t,798,806 ', 'l.873.2227 Distribution I,059,489; ..I.190.841' Custcmer accounts 5,763,477c

1.590.345 Sales

85,928

~ 1167.585 Administrative and general s t 1,744,316 - 5.739,323l Maintenance expense 24,403,893: L18.626.164 Total operation and mamtenance expense 226,320,042 E 1187.889.825 Depreciation 26,535,302-

21.237,703 Sums in lieu of taxes 564,554'

965.799 Total operating expenses.

- 253,419,898 ~ .210.093.327 s Cperating Income '54,311,227-36.252.824 i Other Income: interest income: j 1 Other funds 12,955,699 .8.612.182 - Borrowed funds 47,588,457 ' 22.407.053; Allowance for funds used during construction - other than borrowed funds (Note 1) 591,264 83.422 Other - net 21,296 45.326-l Total other income 61,156,716 31.147.983 Total 115,467,943 67.400.807 Intsrest Charges: Interest on long-term debt 123,563,330 75.628,944 Allowance for funds used during construction - borrowed funds (Note il (48,595,856) (30.425.506) ( Other 1,890,418 1.149.097 i l Total interest charges 76,857,892 46,352.535 R invested Earnings $ 38,610,e51 $ 21.048.272 The accompanying notes are an integral part of the financial statements. 49

w + r 'e

1982

1981I - F."nds Provided By:

Operations:

$. 2 't.048.2 72._ Reinvested earnings - $. 38,610,05I Charges (credits) to reinvested earnings not providing or. requiring funds: ~ ~ - Depreciation -

26,535,302' 21.522.875:

Allowances for funds used during construction 1 (49,I87,120)- (30.508.928) Amortization of debt discount and expense. I,691,677' '926.484. ' Amortization of gain or loss on reacquired debt - net . (8,709) I 15.108 f Total from operations - 17,641,201. 13.103.811 Sale of bonds / notes - ~

530,000,000

'350.000.000-Capitalized lease obligations ~4.000.000 Increase in accrued interest on long-term debt - 35,967,978 ~ 7.144.634 4 increase (decrease) in construction fund liabilities- ~ 4,244,664 ; (3.270.378) Nuclear fuel settlement - I,797,596., 372.490 Other. ~ 304,359 '144.790 - Total funds provided. .589,955,798' 371.495.3.47-Fcads Applied To: Increase in utility plan: 238,927,360' 244.697.487 Retirement of long-term debt i56,055,816' -4.158.012 l Principal payments - capitalized lease obligations '2,320,990. 2.146.746. l Increase in unexpended funds from sale of l Electric System Expansion Revenue Bonds 22,650,992- ' 9.256.200 - l Increase in debt service and other special funds 236,522,448 84.291.927. Distributions to the State of South Carolina 1,400,006 1.300.296 Additions to unamortized debt discount and expense 19,410,678 > 14.467.651 ~ Reacquired serial bonds 145,875. 190.750 Other 682,368 Total funds applied 578,I I 6,533 360.509.069 Increase in Working Capital $ I1,839,265 $ 10.986.278 Increase (Decrease) in Working Capital by Component: Cash and securities: Held by trustee 850,962 S 2.580.779 Other (2,235,795)- 15.017.486) Accounts receivable, less allowance for doubtful accounts (1,691,582) 14,154.300 Accrued interest receivable 1,368,409 'I. I 39,791 inventories 7,521,637 8.364.638 Other current assets 528,059 149.031 Accounts payable 5,265,375. (10.324.33I) Customer deposits 130,017 l197.319) Accrued sums in lieu of taxes 45,754 (48.078) Other current liabilities 56,429 184.953 increase in working cap;tal $ 11,839,265 S 10.986.278 50 The accompanying notes are an integral part of the financial statements

l l l ll construction periods and is capitalized in the same manner as constru:tfon' labor and material costs. Co,nstruction projects are substantiaIly financed by Identifiable borrowings, and AFUDC on specific A - System of Accounts -The accounting records : c nstruction projects is calculated using the effective. of the Authority are maintained substantially ni interest rates of the respective borrowings. accordance with the Uniform System of Accounts c mp unded annually. AFUDC for other funds prescribed by the Federal Energy Regulatory utilized was calculated based on the Authority's Commission (FERC). See Note F below relating average rate of return for the last three years. to calculation of allowance for funds used G - Am rtization ' Unamortized debt discount. during construction.. - premium, and expense are being amortized over the B - Utility Plant Capitalization and Maintenance - lives of the related debt issues. Unamortized gains Additions to plant are recorded at cost, which. and losses on reacquired debt are being amortized indudes material, labor, overhead, and allowance for ver the respective lives of the refunding debt issues. funds used during construction. The costs of current H - Allowance for Doubtful Accounts The repairs and minor replacements are charged to ap- - Authority maintains an allowance for doubtful propriate cperating expense and clearing accounts. accounts receivable which had balances of - Costs of renewals and betterments are capitalized. $4.201.872 and $269.832 for the years ended June The original cost of utility plant retired and the 30.1982 and 1981, respectively. cost of removal less salvage are charged to accumu-lated depreciation. C - Depreciation - Depreciation is provided on a straight line basis over the estimated useful lives of the various classes of the plant.' Annual depreciation provisions. expressed as a percent of average depre-ciable utility plant in service, we.re approximately Unexpended funds from the sale of expansion. 3.30% and 3.25% for 1982 and 1981 respectively. bonds, debt service funds. and other special funds D - Operating Revenues and Energy Costs - are held and maintained by trustees'and their use Revenues from sale of electric energy, including restricted in accordance with applicable provisions of amounts resulting from application of fuel adjust-various trust indentures. bond resolutions, lease mer.t clauses, are recorded as meters are read. Fuel agreements, and the Enabling Act included in the costs are reflected in operating expenses as South Carolina law. Such funds consist principally of consumed. Investments in government securities carried at E - Pension Costs - Employees of the Authority amortized cost.. are covered by a State Pension Plan administered by the South Carolina State Retirement System which provides for employee and Authority contributions. Contribution rates are fixed by State statutes. The Authority's contributions to the State Pension Plan The Authority and South Carolina Electric and Gas were S1.782.093 and SI.417.837 for the years (SCE6G) are parties to a joint ownership agreement ended June 30.1982 and 1981. respectively. Data providing that the Authority and SCE6C shall own concerning accrued benefits and pension fund assets the Summer Nuclear Station presently under con-relating to Authority employees are not available. struction as tenants in common with undivided F - Allowance for Funds Used During Construction - interest of 33-1/3% and 66-2/3%. respectively. The allowance for funds used during construction SCE6G. as agent for itself and the Authority, is solely lAFUDC) reflects the cost for the period of capital responsible for the design, construction, operation. devoted to plant under con <,truction. Including maintenance and decommissioning of the Summer nuclear fuel. This cost represents interest charges on Plant. and the Authority is obligated to pay its borrowed funds and a reasonable rate of return on ownership share of all costs relating thereto. At other funds used to finance plant additions during June 30.1982 and 1981. construction work in 51

U ~ r. - progress included approximately $364.930.000 and - (commence in the year 2013. The Authority will begin - $300.691.000, respectively. representing the'. accruing over the remaining life of the facility, its ' Authority's investment including AFUDC. In the. share of the estimated decommissioning costs whel Summer Plant. Nudear fuel represents the nuclear generation commences. These costs will be Authority's investment in the initial core of three. . recovered threugh the Authority's rates. . r:gions and a major portion of Region Four that will The supplier under the original uranium supply - ' be used for the first reload. contract breached the contract in 1975 due to-The Nuclear Regulatory Commission issued a. uranium market conditions. SCEGO mitiated action Facility Operating License for the Virgil C. Summer. seeldng specific perfortrance of the contract Nuclear Station on August 6,1982, with a condition provisions. and a final settlement.was reached and currently limiting operation to five percent of full approved by all parties in April 1980. By terms of power. Authorizatica to operate beyond five percent ' the order approving the settlement. the court ' of full power will require specific Commission imposed confidentiality upon the details of the-cpproval. settlement. The Authority has received approxi- . mately $10.201.000 in cash as partial settlement of When the Summer Plant commences nuclear . the lawsuit. Additionally', the agreement pro'vides for 3 power generation the Authority will amortize delivery of some uranium, long-term deliveries of - nuclear fuel costs based on the energy expended, equipment and services (including fuel fabricationi at which will include a component for estimated. a discount. and the prospect of additional cash 1 disposal costs of spent nuclear fuel. Such amortiza-payments pending the outcome of litigation between tion will be included in fuel expense and will be hthe supplier and a group of uranium producers. recovered through the Authority's ratemaking-Amounts received have been includsd in deferred process. . credits and will be applied as a reduction of uranium Decommissioning costs (costs to take the plant out. - fuel costs consistent with'SCEGG's treatment. of service in the futurel for the Summer Pl ant are . pursuant to an order from the South Carolina Public estimated to be $249 million based on a 30.5 year . Service Commission.' Costs of fuel for Regions 1-4' useful life with decommissioning expected to -have been' reduced by approximately $3.674.000. Priority Obligations: June 30. Electric Revenue Bonds. Series of 1950, bearing interest at. '1982 1981-2.70% and due 1982 to 1993 10,380,000 10.635.000 Electric Revenue Bonds. Series of 1967, bearing interest at 4.10% and due 1982 and 2006 50,425,000 50.575.000 Electric Revenue Bonds. Refunding Series of 1973. bearing interest at 5% and due 1982 to 1989 7,210,000 7.925.000 Contract Obligations, payable 1982 to 1985 I,048,527 1.459.343 Total Priority Obligations 69,063,527 70.594.343 Electric System.xpansion Revenue Bonds: c i Expansion Bonds 1973 Series. bearing interest from 5% to 5-3/4% and due 1982 to 1993 and 2013 98,305,000 99.175.000 Expansion Bonds.1974 Series, bearing interest from 6% to 6-3/4% and due 1982 to 1999 and 2014 108,020,000 108.900.000 Expansion Bonds.1977 Refunding Series, bearing interest from 4.15% to 6% and due 1982 to 1997 and 2002 and 20!6 206,870,000 209.275.000 l Expansion Bonds 1977 Series, bearing interest from 4% to 5-3/4% and due 1982 to 2002 and 2017 I15,000,000 115.000.000 Expansion Bonds.1978 Series. bearing interest from 4.30% to 5-7/8% tnd due 1982 to 1998 and 2008 and 2018 199,900,000 200.000.000 Expansion Bonds 1979 Series A. bearing interest from 5.40% to 6-7/8% and due 1982 to 2003 and 2009 and 2019 109,865,000 109.935.000 Expansion Bonds.1980 Series A. bearing interest from l 8-l/2% to 10-l/8% and due 1982 to 1995 and 2002 and 2010 74,875,000 75.000.000 Expansion Bonds.1981 Series A. bearing interest from 7-l/2% to 10-l/4% and due 1985 to 1997 and 2002 and 2020 75,000,000 75.000.000 Expansion Bonds.1981 Series B. bearing interest from 52 9-1/4% to 12% and due 1995 to 2000 and 2013 and 2020 and 2021 200,000,000 200.000.000 l

f- ] l c 1 i June 30. 1982 1981 Expansion Bonds.1981 Series C bearing interest from 10 l/2% to 13-3/4% and due 1986 to 1994 and 2001 and 2015 and 2021 150,000,000 Expansion Bench 1982 Series A. bearing interest from 9-l/2% to 14-113% and due 1986 to 1994 and 2003 and 2022 165,000,000 Expansion Bonds.1982 Series B. bearing interest from 9-l/2% to 13% and due 1986 to 1997 and 2005 and 2022 165,000,000 Total Expansion Bonds 1,667,835,000 1.192.285.000 Electric Revenue Notes: Electric Revenue Notes.1980. bearing interest at 5-1/2% and due December 1,1983 50,000,000 50.000.000 Electric Revenue Notes.1981 bearing interest at 7-3/4% and due lune 1.1984 25,000,000 25.000.000 Electric Revenue Notes.1982. bearing laterest at. 8-l/2% and due April 15.1983 50,000,000 Total Electric Revenue Notes 125,000,000 75.000.000 Bank Credit Agreement 50.000.000 Capital Subordinated Lease Contracts, payable 1982 to 2015 85,609,546 87.930.536 Other 150,000 225.000 Total long-term debt $ 1,947,658,073 S t.476.034.879 The Authority utilizes proceeds of debt issues Authority's Consulting Engineer certifies that net primarily in financing its construction program. revenues las defined) in each succeeding fiscal The Electric System Expansion Revenue Bonds. year after the date on which such additional 1971 and 1976 Series were advanced refunded and bonds are sold to and including the later of (a) the defe sed in 1977 by issuance of 1977 Refunding third succeeding full fiscal year after such date or Series Bonds and Special Obligation Refunding Ib) the first full fiscal year after the estimated date Series Bonds. The principal amount of the refunded of commercial operation of any power plant to bonds and Special Obligation Bonds remaining out-pay the cost of construction of which additional standing at June 30.1982, totaled $218.725.000, expansion bonds have been. are being. or are Such bonds will be retired as they mature from the then authorized to be issued. shall be at least proceeds of government obligations held by the equal to the sum of the amounts required in such Refunding Trustee. fiscal year for ill debt service on the priority The Authority's bond indentures provide for obligations and the expansion bonds then out-certain restrictions. the most significant of which are: standing. being issued. or authorized but not yet The Authority covenants to establish rates and issued. (ii) payments into the lease fund. and iiii) charges adequate to provide revenues sufficient. payments into the capital improvement fund. among other things, to pay debt service when due Maturities of electric revenue notes, priority on the priority obligations and expansion bonds, obligations and expansion bonds during the years to make required payments when due into the ending June 30.1983 through 1987. are as follows: lease fund and the capital improvement fund, and to pay the costs of operation and maintenance of the Authority's electric system and all necessary Electric Priority repairs. replacements. and renewals thereof. Revenue Obliga90ns 6 The Authority is presently required to pay Notes Expansion Bonds Total annually into its capital improvement fund an June 30.1983 s 50 000 000 s o.719 728 s 56.719,72s amount which. together with the amounts lune 30 198: 7s comiou 8 2io ni7 s3.216.017 deposited therein in the two preceding fiscal { years is at least equal to 8% of the Authonty's lune 3a 1985 M79 os i 9.479,05 gross revenues las defined) in the three preceding lune 30 198o 10 500 000 10.500.000 fiscal years-June 30.1987 13 720 000 13.720.000 The Authority may issue additional parity 7,t,, 3,7 3 gg g 3,3 g, 79, 3, 7 3,3 3 4,,,, expansion bonds if. among other things. the 53

The_ contract obligations included above arose ' Future minimum lease payments on Central leases through an agreement to purchase certain at June 30.1982. were; tr:nsmission lines (generally known as the "A-B" Years endinglune 30: Amount System) from Central Electric Power Cooperative. 1983 $ 5,459 537 inc. Principal and interest at 2% per annum are 1984 5,490$221 payable in semiannual installments. See Note 6 for 1985 5,503,800 details conceming long-term lease obligations. 1986 5,503,800 1987 5,503,800 Thereafter 108,438,987 The Authority's bank credit agreement, with Total minimum lease payments 135,900,145 pv:llable loans up to $50.000.000. expired on April Less, amounts representing interest 50,290,599 30(1982. All loar:s were repaid prior to the Balance at June 30.1982 $ 85,609,546 . c.xpiration date. Leases, other than Central leases. are not material. The Authority has lease contracts with Central Electric Power Cooperative. Inc., covering a steam The Authority's Construction Budget. as adjusted . electric generating plant, transmission facilities, and for known changes, provides for expenditures (prin-v;rious other facilities. The lease terms range from cipally consisting of generating facilities - Summer thirteen to thirty-three years. Quarterly lease pay-Plant Cross '84 Cross '88 and other construction) of ments are based on a sum equal to the interest on approximately $237.199.000 during the fiscal year end principal of Central's indebtedness to the ending June 30.1983, and $560.333.000 during Rural Electrification Administration for funds later years. borrowed to construct the above-mentioned During 1982 the Federal Energy Regulatory facilities. The Authority has an option to purchase Commission IFERC) notified the Authority that the the leased properties at any time during the period - West Pinopolis Dam and the North Santee Dam, of the lease agreement for a sum equal to Central's which form a part of the Authority's electric utility indebtedness remaining outstanding on the property system, possessed marginal seismic stability under involved at the time the option is exercised or to applicable design earthquake criteria. FERC indicated return the properties at the termination of the lease. that remedial measures should be undertaken by the The Authority plans to exercise each and every Authority to provide an increased level of seismic option to acquire ownership of such facilities prior to stability. The Authority has engaged an engineering expiration of the leases. In addition. the Authority firm to perform studies and planning to determine and Central are parties to a power contract which the extent and cost of work necessary to correct the provides that the Authority will provide and Central design weaknesses. Until the engineering study is will purchase all of its energy requirements less completed and submitted to FERC. It is not possible l amounts which Central purchases directly from the to estimate the extent or cost of remedial measures l Southeastern Power Administration through required. Based upon the facts now known to the December 1982, at which time power supply and Authority. management believes that any costs 3 transmission services will be provided to Central in incurred related ta the dams would not materially accordance with the Power System Coordination and affect the financial position of the Authority. Int:gration Agreement dated January 19.1981. This (' agreement also provides that each party will have an option to share ownership of future generating facilities to be constructed by the other. Central has Sales to the two major customers. Central Electnc advised the Authority that it will not exercise its Power Cooperative. Inc.. and Alumax of South I option with respect to Cross '84 but will exercise its Carolina. Inc.. were $101.801.652 and $78.963.489 option to own 45% of Cross '83 and the Pee Dee respectively, and $87.528.539 and $50.840.814. generating stations subject to obtaining financing respectively, for the years ended June 30.1982. guaranteed by RFA. and 1981. Photo - opposite page: 1 The main building of Santee Cooper's new office complex is an example of energy elficiency. The csmplex was designed 54 to exceed all Department of Energy recommendations for energy conservation.

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c STATE OWIN ERSHIP l Santee Cooper is an electric utility Acts of the General Assembly of which is owned as an asset by the South Carolina in 1934 for the State of South Carolina, it was purpose of developing the Cooper. established in 1934 as the South Santee, and Congaree Rivers as Carolina Public Service Authority, instrumentalities of interstate and A This ownership is unique because the intrastate commerce: for the state has no investment in the production, distribution and sale of c mp ny but still owns all its electric power: the reclamation and r / i (,;},t. properties and assets. The original drainage of swampy and flooded 4'. financing (1938-1942) was by a loan land; and the reforestation of lands and grant from the United States around its lakes. Originally known as through the Public Works Admini-the Santee-Cooper Hydroelectric and stration, with subsequent major Navigation Project. the organization additions funded partly by earnings is commonly referred to as Santee but primarily by revenue bonds sold Cooper. to private investors. The South Carolina Public Service Authority was l established by Act No. 88/ of the ADVISORY BOARD Richard W. Riley Governor Daniel R. McLeod Attorney General Grady L. Patterson, Jr. state Treasurer Earle E. Morris. Jr. Comptroller General John T. Campbell Secretary of State l l 56

BOARD OF DIRECTORS Robert S. Davis B. G. Alderman H. M. Robertson Chairman President President Chairman Emeritus The Alderman Agency Inc. Robertson of Walterboro The R.L Bryan Co. Mannlng. SC Walterboro. SC Columbia. SC C.B.Boyne Marvin M. Thomas J. Thomas Grier Farmer and Retired Merchant Owner-Operator First Vice<hairman Eastover. SC Georgetown Laundry. Inc. President. Grier & Co. Georgetown. SC Spartanburg. SC George W. Jones. Jr. Clyde UmPhiett Businessman Waltir T. Cox Lorts. SC Farmer and Businessman Second Vke-Chairman Moncks Comer. S.C. Vice President of Student Affairs John E. Miles and Dean of Students Attorney-at-Law J. l. Washington.111 Clemson University Sumter. SC Businessman Clemson. SC Orangeburg SC MANAGEMENT William C. Mescher Robert V. Tanner Albert Boyt. Jr. Pres' der.t and Chief Executive Officer Vice President Group Manager Produdion Transmission Henry N. Cyrus Senior Vice President W. Andrew Burke David E. Jeffcoat Engineering Assistant Vice President Group Manager Industrial Development District Operations Clarence S. Gramling Senior Vice President Hiram M. Hicks. Jr. Robert E. Petracca System Operations Assistant to the Vice President Group Manager Engineering Design Property & Transportation Systems Vke President Charles H. McGlothlin. Jr. Byron C. Rodgers Finance General Counsel Group Manager Production Operations Joe C. Norman John E. Bishop Vice President ControIIer Ronald H. Holmes Commercial Operations Manager L. P. Dorman Industrial Relations Lucas C. Padgett Corporate Secretary V!ce President Jerry L. Stafford Industrial Development Denise McWhorter Director Assistant Corporate Secretary Corporate Communications Vice President Engineering Design 57

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