ML20073G790
| ML20073G790 | |
| Person / Time | |
|---|---|
| Site: | Summer  |
| Issue date: | 04/04/1983 |
| From: | Summer V, Warren J SOUTH CAROLINA ELECTRIC & GAS CO. |
| To: | |
| Shared Package | |
| ML20073G762 | List: |
| References | |
| NUDOCS 8304180387 | |
| Download: ML20073G790 (43) | |
Text
{{#Wiki_filter:. . . 1 i SouthCarolinaElectric
&GasCompany 1982AnnualReport W' E3 + 98 st3T7
ABOUT THE COMPANY South Carolina Electric & Gas Company is a combination utility primarily con-cerned with the generation, transmission and distribution of electric power and the transmission, distribution and sale of natural gas. The Company also renders urban transportation service in the metropolitan areas of Charleston and Columbia, South Carolina. The Company's electric operations stea 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. The Company's gas operations area encompassqs 43 counties in which natural gas service is provided to more than 186 thousand retail customers. Natural gas is sold at wholesale to 11 resrJe customers who distribute natural gas at retail. The Company and its subsidiaries operate more than 1,600 miles of gas transmission lines in this area.
'Ihe Company has five wholly-owned subsidiaries: (1) Carolina 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 distribution 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 under the laws of the Netherlands Antilles for the primary purpose of obtaining funds outside the United States. TABLE OF CONTENTS Page Financial and Operating !!ighlights I Report to Shareholders 2, 3 1982 in Review 4-16 Management Report 17 Management's Discussion and t,alysis of FinancialCondition 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 SupplementalInvestor Information 40 Corporate Information Inside Back Cover
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FINANCIAL AND OPERATING HIGHLIGHTS j
% Increase yno (htm Cy% J /f7B 1982 1)81 (Decrease)
(AW! ions ofDollars except _ f St^)[Diwe4(Mu> p lg statisticsandpershareamounts) Financial Earnings Per Share of Common Stock M (g $ 2.32 S 2.19 5.9 f Dividends Declared Per Share of Common Stock 3 '/'/s S 1.92 S 1.82 5.5 Operating Revcnues / $ 859.0 $ 746.3 15.1 Operating Expenses qW4///- S 711.5 S 636.0 11.9 Earnings Available for Common Stock Common Stock Outstanding: j g,.f'7)
$ 79.8 $ 61.6 29.5 Average (Thousands) /Qn 34,387 36,526 28,139 29,690 22.2 23.0 Year-End (Thousands)
Construction Expenditures
/Mg I S 200.1 S 184.1 8.7 Gross Utility Plant JN' $ 2,411.5 $ 2,131.7 13.1 Common Stockholders' Equity S 667.4 S 545.9 22.3 Book Value Per Share of Common Stock (Year-End) 18.27 5 18.39 ) (.7)
Electnc Operations S (%-- - 2 Electric Operating Revenues S 590.0 $ $55.7 6.2 Sales (Million KWH) 11,490 11,763 (2.3) W Customers (Year-End) 356,709 350,596 1.7 Genen. ting Capability- Net h1W (Year-End) 3,359 3,359 - Territorial Peak Demand-Net AlW ; 2,463 2,557 (3.7) I Gas Operations [/ ) Gas Operating Revenues $ 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 includes amounts subject to refund-see Note 2 of Notes to Consolidated Financial Statements. E rningsperCommonShare Dividends Declared Retum on Year End
*** per Common Share Common Equity idows) (percenti l
3.00 3.00 13.0 l 1 19.9 11.9. 2.50 2.32 2.50 (N 12.0 8 99,3 2.19 2.02 % I 2.00 1.e4 2.00 e f 1.82 11.0 T4 10.4 1.68 ! 1.50 1.50 10.0 9.6 1.00 1.00 9.0 ( .
.50 .50 8.0 1981 1982 1978 1979 1980 1981 1982 1978 1979 1980 1981 1982 1978 1979 1980 1
d ' = FELLOWSHAREHOLDERS: 1983. adding an additional 600 megawatts of capacity j b to the sCEAG system. The remaining 300 megawatts 5 r"
- - will go to the South Carolina Public Service Authority.
which owns one-third of the station. Completing this ;
- m.- x . , . . huge proje t brought to a dose more than 11 vears of I-n
_ ! .Tf.. . _.3 ! S.D.. .., -J J' hard wurk We now look forward to operating this I [ j.[Q{. } ji)c<f: ].y:[Q3. h. .k 7 :V) S - Q%.k ( snte-of-the-an plant efficiently and safely and to pro- .
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- ducing eleuric energy at one-third the fuel cost of coal. --
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' P. ,.T fd' 7 We have continued to seek reasonable priang -
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- N}.;Q.Q .Qg for our services on a timely basis. The South Carolina w m
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Publit Servite Commission < PSC) granted $10.3 mil-
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..;.. g q .i h.on, or 63 % of our tsquested insease m natural gas u g(ye.g.- .g.77 .
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-( n y' ,,@. . g,J. '- 3 5,. J : .; rates in September 1982, approving a rate of return of f'
h .'i [ . I np .3 S Y c[ py.[g} ~ ['I N .[.4 . [; e. 14.5 % on common equitv. Also the PSC approved an [ p 4 , .y -
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g.jz.7.y. : increase in bus fares which is expeued to increase ', m - . . ,. . . . . . . . . . pf ' q . : s M wi 3 -E tp.4.. .r e transit revenues by about 5 15.000 a year. +-
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's 4.. Hearings before the PSC into the Companv's y.,pngl ( . +%
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. a .9 p. . ., - x .; & . , 3, i. request to inacase eleuric rates beganJanuary 24.
E f .;; % g.. M .K ; '- ; / g @ h '-!) '.- 1983 and ended io late hbruarv 1983. As a result of I
?. y improw'nwno in finandal mabg and a drop in ,
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; <, qe . $s ' ,- - propeny taxes because of a statewide reassessment a 3
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5A.1.jj t ;- 's} 3 program the C,ompany was able to redute its original i
.'. cleuric revenue request by $15 milhon. The updated
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request. tiled with the Commission on the first day of _ [ heanngs. would provide an additional $86.2 million
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1gt ... ~ * . in annual retail eleurh revenue and allow a return on - n tommon equity of 1675 W The Commission has until
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August 1.1983 to is ue a ruling b '. J Q g; *
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A In August the PSC ordered that a mandatorv M. j m.y..c .,p: r # E. .. Q N. R.;h R . . .
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' ? ? .f.d,}i ', nunagenwnt auWt be performed on the C,ompany by f% Q
;..gr a PSC-seleued outside (onsultant. The firm of Cresap. '
L p .y pyTMg %Rigf;yw.- Q f-5" MM;AF/ $li 60[af.ppy b'f . .. W .. WCormick and Paget Inc. began the audit inJanuarv 1983 and expeus to have it vmpleted in the summer of 1983. The Company views this as an exceHent 5 John A trhe n andiirgd( k nowr opponunity to demonstrate its effeuiseness in pro-n viding reliable and efficient servite to the citizens of i
-T 1982 was a year of managed transition in vour South Caroh.na Company daring which a number of well-conceived We feel panicularly well prepared for such an audit J plans were carried to successful contiusion. since the Company has worked with a management i Earnings rose to $2 32 per common share. up from tonsultant for several tears tc. inacase its operating effi- j S219 a share for 1981. At itsjanuary 1983 meeting the uenty Une of the most signitit ant improvements we i Board of Direuors approved an increase in the Com- have made has been the implementation of an -
pany's quarterly common stock dividend rate from extensise strategit planning program It has allowed , 5.48 to 5 50 per share. This inacases the indicated management to take an even doser look at the influ-annual rate from $1.92 to $2.00 per share. ente and impaa sut h fauors as the economy financing In the fall of 1982 the Company wmpleted the wsts. t onstruuion tosts and the training and
- VC. Summer Nudear Station. its largest single ton- utilization of our manpower have on our operations N E '
struuion project Tac Nudcar Regularon Commission In this process. strategn plans are developed to address isu es that are expeued to affeu the Compant E issued a full power license for the 900 megawatt gener-ating station November 12. Summer Station is expeued m the future. Developing these plans draws on the 3 to be operating at full power during the summer of talent. knowledge and experiente of employees i
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throughout our Company. This employee involvement coal-fired plant. Williams Station is the largest and is one of the strongest points ofour planning process. most efficient single fossil fuel generating unit in the
- Employees' willingness to panicipate in changes is - Company's sy stem. This project is scheduled for enhanced when they have helped formulate them. completion inJune 1984 and is exoected 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 forth in our operating - We also are completir.g the incorporation of facil-and strategic plans.- . - ities and management personnel at Carolina Energies, -
. The Board approved this summert he creation of Inc.(CEI)intothoseofSCE&G. Acquiredin AprilL 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 South Carolina.
El Company with theeffectively intention of preparing and efficiently in the future. themTheto operate theas a result of the merger with CEI, we are Partially average age of our vice presidents is now 45 years with - investigating the development of a' holding company
- ' an average of 16 years ofutility 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 ofstockholders in i employees who met certain age and length of service April 1982 the Board of Directors elected Virgil C.
1 requirements. This program was in keeping with our Summer chairman and chiefexecutive officer and L ' corporate plan and our desire to realign certain John A. Warren president and chiefoperating officer.- 1 supervisory and magement positions. The Board Jso elected the following additional
- The Company is making significant progress in directors: John A. Warren, formerly vice chairman,.
increasing productivity and cutting non-essential costs. president and chief operating officer of Carolina . E Our budgeting process ns guided by our operational Energics, Inc. in Columbia: Francis M. Hipp, chairman ! ' plans and allows individual departments to develop of The Liberty 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 4
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 one of exciting changes and an estimated 1982 savings of some $8.8 million. The unique opportunities 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 hay- been possible without the (' more than $1.1 million. Total productivity and support willing effi- and assist,nce of our employees who 4
- ciency improvements in the power production and have consistently met the cliallenge of change with
- operation departments should produce savings this hard work and thought.
yearin excess of $12.6 million. Sincerely,
~ These savings demonstrate management's response h to current economic conditions and a commitment to
.V b controlling non-essential costs by increasing produc-tivity and efficiency. This vigorous program of strategic
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VIRGIL C. SUMMER planrung and nmplementatnon of cost-savmg measures 4 benefits both ratepayers and stockholders. Chairman ofthe BoardandChiefExecutive Officer To further reduce future operating costs, con-
- struction began in December to convert the Company's 580 megawatt Williams Station fcom an oil-fired to a yggy 3, ,3gggy President and ChiefOperating Officer i
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- A,s CORPORATEANDFiNANCIAL REWAW K
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'w7 h ESANMOSANoNFromos Eamings per share of common stock in 1982 .m\;s were $2.32, which includes 41 cents per common share from a retail electric Q,,
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rate increase in effect. subject to refund, at year-end. Eamings per common % share in 1981 were $2.19, after restatement to reflect the effect on eamings of an April 1982 rate order from The Public Service Commission ofSouth Carolina (PSC). In that order, the PSC approved 76% of the Company's February 1981 (M%j g% request for increased retail electric rates. Eamings available for common stock in 1982 were $79.8 million, of which
- 7. 3
-f w/ $14.2 million was related to the pending retail electric rate request and is there- p\ ,N 74W fore subject to refund. Earnings ami!able for common stock in 1982 were up ~ 1%
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 f- \ 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.
\'nj InJanuary 1983 the Company announced a $15 million reduction in the $101.2 million retail electric rate increase request filed inJuly 1982. The reduc-(A "Q y x tion was made possible primarily by improved conditions in the financial mar- -
m jf kets sinceJuly 1982 which have lowered the Company's cost ofcapital. The :~ , O Company's 1982 eamings have been adjusted to reflect effects of the reduced l rate request. " ' The number ofweighted average common shares outstanding during 1982 ~ .j ; rose by 22 %. The increase stemmed from the public sale of 2.5 million shares , '% in March, the issuance of 2.6 million shares in April as part of the acquisition m of Carolina Energies, Inc., and the issuance of 1.7 million shares during the I year through employee stock purchase plans and the Company's Dividend s- N Reinvestment and Stock Purchase Plan. At year-end 1982 the Company's common equity component of total capitalization had improved to 39% from t(N '" m 37 % at year-end 1981. Further discussion of the Company's financial condition and operating results for 1982 begins on page 18. (
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h~ 3 Dividends declared on common stock in 1982 totaled $1.92 per share, a 3 5.5 % increase over 1981. All dividends paid to stockholders by the Company ; % 0 during 1982 represent taxable income for federal income tax purposes except ' as noted on page 8 under " Dividend Reinvestment Plan'! InJanuary 1983 d the Company's Board of Directors declared a quarterly wmmc,u stock dividend of 50 cents per sh.ae. This is a 4.2 % increase over the previous quanerly div- -
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idend rate. The indicated annual dividend rate increased from $1.92 to $2.00 q per common share. The Company's common stock dividend rate has been g X l increased in 30 of the last 31 years. The new quarterly dividend will be payable on April 1,1983 to common stockholders of record on March 10,1983 A
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t i , v.c.SUMMERNUCLEARSTATION On August 6,1982 the NuclearRegulatory ; Commission (NRC) issued an operating license for the V.C. Summer Nuclear
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Station. The license allowed the Company to load fuel into the nuclear reactor
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.M and begin low-power testing. The Company completed fuel loading one week ,
_1 later and on October 22 started the plant's nuclear reactor for the first time. l J On November 12 the NRC issued a full-power operating license for the $ I ' Summer Station authorizing the Company to increase the plant's power out- ,
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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- II 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
plants withWestinghouse steam generators of the same model as the Company's. c= The NRC previously had stated that it considered this problem to be of scfags msn =- mn., safety significance. On the basis of recent studies made by Westinghouse, the Company, other utilities and the NRC staff, the Company believes that on ncamenom - Westinghouse has developed a modification that will correct the vibration c n .= , problem in the steam generators. Westinghouse is scheduled to begin install- p6g ing the modification in March 1983. The work will take approximately three gg g pig months, during which time the nuclear plant will be out of service. Upon 4g:r ; gQ < completion of the work, the Company will resume normal testing procedures t F 6, .,
- ,;. - .3 and make whatever additional tests that will be required to insure that the -
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steam generators are functioning properly. The Company current'y expects to %N? NY[ place the Summer Station into full-power operation during the summer of 1983. However, due to the uncertainties conceming the plant's steam gener-M.."s , pC J. l ators, the Company is unable to predict the exact date that Summer Station ' $% [" Lw , 6 $y.' l will be placed into commercial operation. ?W' The Company built Summer Station in conjunction with the South Carolina ... sw a.ei Public Service Authority, which is responsible for one-third of the construction -g- Jg . Q , I and operating costs and will receive one-third of the plant's output. SCE&G is mou.u . is.a . im 8***"" 5" the operator of the Station. Although Summer Station is not expected to begin o ,,
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full power operation until the summer of 1983, electricity generated as a result a , . js] p @ F of testirig the plant's nuclear reactor has already begun to flow to homes, busi-nesses and industries in the Company's service area. "h*" " " Ifcommercial 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 COMPLETfo 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 ~ ^ %*pMT,'J"*" , p ' - common stock, valued at $42.8 million, were issued to former CEI stockholders. B eas Purchased b Resh The merger nearly doubled the Company's natural gas service area, which now :l I"Es,ciowconsruc 9 covers 80% of South Carolina.
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CEI is a holding company which owns six subsidpries that supply natural 4 g ga=g g,j gas, propane and energy-related services to residenual, commercial and indus- a m.o.no.wm.er .no trial customers primarily in the mral areas of northern and eastern South p Carolina. The Company currently is integrating its natural gas operations to ' enhance productivity and its ability to serve the natural gas and propane needs c,,f,y a n,rgeuicepresidene. of virtually the entire State of South Carolina. The financial and operating corporaic affain, ae ihe s<cunty de14 in statistics in this annual report include the operations of CEI since April 1, SCE&G's compuecrfen> ices center 1982. (See Note 11, page 32.) RE:ULADON AND RATE ACnWTY The Public Senke Commission of South Carolina (PSC) regulates the Company's retail electric rates, natural gas rates and coach fares. The PSC also sets accounting practices, app: oves the construc-tion of new generating and transmission facilities, determines the boundaries of the Company's service area and approves the issuance of some securities. J The Federal Energy Regulatory Commission (FERC) regulates the Company's q j transmission of electric energy in interstate commerce and its sales of electnc .
-d energy for resale. The FERC also has jurisdiction with respect to licensed
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hydrociectric projects and certain other matters, including accounting and the *7,7ees
, orcash nequiremene issuance ofshort-term indebtedness. for constiverson endmaturrn, The Company's rate-making philosophy is to request rates which cover the $"f,?"
full, reasonable costs of providing its customers with safe and reliable service, 33, including the cost ofcapital. On April 1,1982 the PSC granted the Company 324
$56.4 million in additional annual retail electric revenues, a 12.8% increase, 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 of14.7%. The Company had requested a 17% return on common equity. 250 On April 29,1982 the FERC approved a settlement agreement between % ~
the Company and its wholesale electric customers. The approved settlement d' _ results in an increase of approximately $3.8 million, or 16.5 % , in annual 2co ,,, ,,, wholesale electric revenues, based on a 15.9% return on common equity. - 1 On May 28,1982 Carolina Natural Gas Corporation, a subsidiary of CEI, "' L filed a $1.1 million natural gas rate increase application with the PSC. On 150 W August 20 the PSC approved an increase of$745,000 annually, or 66% of the
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amount requested, based on a 15.0% return on common equity. : h k _@Ef; OnJuly 1,1982 the Company filed petitions with the PSC requesting # increases in retail electric rates, natural gas rates and coach fares. The $101.2 million retail electric rate application sought n 18.2% increase in annual rev-fN 5 'j L. M b; E enues based on a test year ended March 31,1982. The Company requested the $78 '7' 80 8' $82' opportunity to earn an 18% retum on its common equity. The proposed elec- muun Frominternaisources tric rates were placed in effect, subject to refund, over a three-month period MER From ExternalScurces beginning August 1,1982. *inclues acquisan of caroiina Energies. inc. InJanuary 1983 the Company reduced the retail electric rate increase request to $86.2 million. That amount was based on a 16.75 % return on common equity and lower property tax expense. Public hearings on this rate increase request began inJanuary 1983 and were completed in late February. A final decision from the PSC is expected by August 1,1983. Newrquity capitainaised The natural gas rate application requested a $16.4 million, or 14.5 %, jhroge,hy',dgd8*g' v**tm'at g ,, ,, mcrease m annual re-enues. 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. 1s o The Company requested increases in coach fares in Columbia and Charles-ton, South Carolina, that would produce approxnnately $1.8 mi2on in addi-tional annual revenues. On September 29,1982 the PSC granted less than half 2.o u.s of the Company's request. The approved fares are expected to generate approximately $715,000 in additional annual revenues. 8. 8' In August 1982 certain industrial customers of Carolina Pipeline Company 7, (CPC), a subsidiary of CEI, filed a petition with the PSC seeking to obtain a tariff for firm and interruptible natural gas service presently provided to such cus- ... 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 containing 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 filed by CPC and the customers have been denied.
" ' ' " 7' "* "8 ' "
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 results of operanons of CPC or the Company. 6
coNSrnucnoNANDnNAnconaenoonau he Company's 1982 construc- y,3,,,,,,,,, non cash expenditures totaled $154 milhon, up 8% over 1981. The 1982 figure -o includes $90 million for the V.C. Summer Nuclear Station and $3 million in nuclear fuel purchases. The acquisition cf CEI cost about $69 million. An additional $101 million was needed to retire maturing obligations and meet cash sinking fund requirements. This brought total 1982 cash requirements of the Company and its subsidiaries to $324 million (see Chan 2). Total cash requirements for 1983 are estimated to bc $210 million. This includes $181 80 million for construction, $18 million for nuclear fuel purchases and $11 million for maturing obligations and sinking fund requirements. During 1982 $65 million, or 20% of total cash requirements of the Com- ,, pany and its subsidiaries was generated intemally (see Chart 2). Le 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 40
- public at a price of $16 per share. Net proceeds to the Company were $38.6 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 gdditional $25 million in May through ,,
the sale of 15-5 /8% first mortgage bonds. In order to obtain long-term funds at the lowest cost, the Company's Finance N.V. subsidiary sold $60 million of 15-1/2% guaranteed notes in Aprilin the European market. Compared to "7s are isso usi . ns2 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 amms tongerrn cent. Net (exct current porton) Company also raised $17.1 million through the sale of 1.1 million shares of ",,",,' $*77'$ 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 592,000 shares of common stock through employee stock purchase plans. Proceeds from the sale of these securities were used to repay short-term debt incurred in connection with the Company's construction program, to finance the acquisition of GI and to refund outstanding long-term debt. l E,%ngscoverne ornxed Shon-term capital needs were satisfied primarily through the sale ofcommercial chars **-sac merned
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paper. There was approximately $21.8 million in comrnercial paper outstand-ing at year-end 1982. 3.00 The Company anticipates that it will generate internally approximately 65 % ofits 1983 total cash requirements. Current plans call for the temaining 2.so cash requirements to be obtained through obligations issued by the Company's fuel subsidiary, from the sale ofcommon stock through the Company's Divi- 2.s7 dend Reinvestment and Stock Purchase Plan and employee stock purchase @@ 2.so "g ,,,, plans, and from short-term borrowings. As of December 31,1982 the Company had improved its capital structure
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l a " l to 50% long-term debt,11% preferred stock and 39% common equity (see l 24* Chan 4). The Company's long-term goal is to increase common stock equity l to 40-45 % of total capitalization. Eamings coverage of fixed charges, under 7@ ,.,, the SEC method, improved to 2.52 times in 1982 compared to 2.22 times in 2.2o .- P7y 1981 (see Chart 5). Management's long-term objective is to achieve and g maintain a fixed charges coverage ratio of at least 3.50 times. s WILUAMS STADON CONVERSloN Construction began in late November f 1982 to conven the Company's 580 megawatt Williams Station from oil-fired to coal-fired generation. Completed in 1973, Williams Station is the Company's [f " 78 j newest conventional steam plant, but has been operated infrequently in recent years due to the high cost of residual fuel oil. Contractors are converting the piant 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 unti! the later of December 31,1984 or final acceptance. 7
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The conversion of Williams Station from oil-fired to coal-fired operation L - - y.. T expected to save the Company's customers millions of dollars in fuel costs over . #ig -{ L the life of the plant. Following conversion, Williams Station can be used @c' * $ l. 6 ,.. ~ 3 4 either as a coal-fired generating plant or an oil-fired generating plant with .S' j 1[ minor modifications. The Company will utilize the converted Williams
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9s . Station as a base-load generating plant, thereby improving overall system
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efficiency. _; ; .-
. . 3:
-3 [f k.d.: 3 %.y .i
.,n.... .
NEW CORPORATE OFFICES Construction continued during 1982 on the i Palmetto Center, a hotel-office-convention center complex located in down- 'i[. .f.g z
- f. 'i i ?g *< f J town Columbia. The development will consist of a 13-storv hotel managed by ;..q. .f a @7#U Q., ?
the Marriott Corporation, a 21-story office tower, a multi-storv parking garage T ~, Td " E and a 3-story convention center with meeting rooms and other facilities. I " " R9 [.? / *%T f. - SCF&G will'be the major tenant of the office building, which is scheduled for completion in December 1983. The new office building will allow the " " ' Company to consolidate in one location a majority afits offices which are 3,,,g g g ,,,g ,, q ,m,3 ,, y o , presently scattered in 13 locations throughout the city of Columbia. sufg ansire aus,ywp. r,m ['rc s,E rl! (lk sfo!!?fr ()[Y rJllc ori s. % >Hlly rr) INDUSTRIAL DEVELOPMENT Despite the continuing economic recession, l',',',j""; 'Gj'",l""""n,,"[','k , South Carolina had its best inducial development year during 1982. Total mafures ,yerau,,x aanoy - announted 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 mnmpgnywg?- ~9% , of these investments will occur in the Company's electric or natural gas service area. creating about 7,100 new jobs.
' MfiQ v W %tM Hl' ~
$ " Q E M 'ii l @l M :J% [? h
$$!P %
^ * * , _i The economic base in the Company's servicc area continues to diversify.
During the decade ended in 1982. industries announced investments of more Q %_ than $12.8 billion in new and existing facilities in South Carolina. The Com-E' > khe ' pany's service area (excluding the area served by CEI) received about 47 % of ' that growth. This impressive record ofinvestment by new and existing industry $~'&' "l ' ? __ _ f _ reflects, among other attractive assets, the state's excellent business climate and t he r :~ adequate. reliable sources ofelectricity and natural gas for industrial growth and x expansion. The Company continues to work closely with state and local devel- %, , - opment groups to bring ne v industry to South Carolina. c STOCKHOLDERS At December 31.1982 there were 63.15 holders of record a_ of the Company's common stock, , ~ % increase fron rear-end 1981. In addi- ( mi un un a _ tion, there were several sousand shareholders who owned common stock held V', ~ by banks. brokers. investment trusts or other nominees. South Carolina con-unues to rank first in the number of common shareholders and second (behind m .S vor,, viry, um ye eA una New York State)in the number of shares held. The Compant is not .. ware of "uaur<'"r Ju"'/"a A "<s"a"> any stockholder who owned beneficiaily more than 5 % of th'e Company's out- ["'"'g [ ,$"f"""" " '" standing common stoc k as of December 31,1982. In 19 8 a group of the Company's stockholders formed the Association of SCE&G Investors. Acting independently of the Company. the Association works to advance the interests of all SCE&G investors. For information waterning the Association's activities. write to: Association of SCE&G Investors. 63 East Bay Street, Charleston, SC 29401. DIVIDEND REINVESTMENTPLAN The Company offers its common stot k-holders the opponunity to acquire additional shares of common saxk through a Dividend Reinvestment and Stock Purchase Plan. Participants in the Plan 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 i on such purchases. ,
~
n . Enactment of the Economic Recovery Tax Act of 1981 maae the Plan more - attractive to investors. Under provisions of this Act, stockholders participating Q
- in the Plan during the period 1982-1985 may elect to defer federal income taxes I
;g on up to $750 annually ($1,500 on a joint return) ofdividend income reinvested ,
I in new shares of common stock. During 1982 panicipation in the Company's f/
' y.
Plan increased to 33 % of the total eligible stockholders, up from 21% at year-end 1981.
% ~
(h e The Tax Equity and Fiscal Responsibility Act of 1982 requires the N' -' - l Company to withhold tax on intoest and dividends paid to investors begin- - tg . ningJuly 1,1983. Cenain individuals and institt tions may be exempt from g the withholding provisions and be able to provide the Company with an exemption cenificate. Panicipants in the Company's dividend reinvestment plan are exempt from the tax withholding requirement. Stockholders may l wish to consult with their tax advisors regarding these new withholding y l provisions.
; Inquiries concerning the Dividend Reinvestment and Stock Purchase Plan should be directed to South Carolina Electric & Gas Company, Stockholder Relations Depanment (I-56), P.O. Box 764, Columbia, SC 29218.
V R. Cowardy, ricepresident. Corporate EMPLOYEES At year-end 1982 the Company had 3,699 full-time employees, j'"""{'j,",';f",[#pj ('"{#$l- ,,j, , an increase of 9.4% over 1981. Staffing of the V. C. Summer Nuclear Station co,,yrnctio,,,it, ofth, Pafmeuo Cer,ter and the acquisition of CEI accounted for the majority of the increase. SCE&G's ne w corporatc headquarters. i Approximately 1,200 employees were represented by three unions at l December 31,1982. Wage negotiations with uch 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. l An early retirement program was offered in December 1982 to employees meeting cer ain age and service requirements. Qualified employees must decide by February 28,1983 whether or not they will retire. Approximately 6.5% of Paris p the Company's employees qualify for the program. The purpose of the program otfifgiupr;1
,, g ,, den ;,, ,,
is to reduce staffing levels as a part of the Companys continued emphasis on irali,m a. rim,-rman, ricepresident. cost reduction and control. Finance, in the nearing room ofthe Sotah Carolina Public Service Comni. cion. CU2TOMERASSISTANCE The Customer Assistance Depanment 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 cncrgy bills. Much of F9 ~
- this assistance resulted from personal home visits and intervention by the g l department's representatives. The department's activirk s also foster a closer ! 4-
~
l working relationship between the Company and federal and state agencies, the l Govemor's office, and community organizations dedicated to helping the needy. During 1982 concemed Company employees established an Employee Good Neighbor Fund. This Fund enables employees to make contributions of e money, food and clothing that are used to help needy citizens in the Company's O' service area. Membership in the Fund is voluntary and administration of the j Fund is handled by a bard of directors elected by the membership. At year-end 1982 more than 1,250 Company employees had participated in the Fund - [ l with combined pledges ofapproximately $50,000 annually. The i md provided l such vital necessities as food, medicine, clothing and shelter to more than 150 families in emergency situations during 1982. I 9
ELECTRIC OPERATIONA SALES AND CUSTOMEa5 Sales of electricity in 1982 totaled 11.5 billion Yo9 customers-y r.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 KWH) Number of Customers (Year-end) 357
,s,
% Increase % Increase 345 350 Customer Class 1982 1981 1 Decrease) 1982 1981 (Decreasel 329 Residential 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 Industrial 3,898 4.163 (6.4) 811 823 (1.5) soo Sales for Resale 771 775 (.5) 13 13 -
Other M 336 3.0 2,081 2.047 1.7 Total _1_l,490 11,763 (2.3) 356,709 350,596 1.7 250 At year-end 1982 the Company was serving 356,709 electric customers, a 1.7 % increase over 1981(see Chart 6). Despite a 1.7 % increase in the Company's residential customer base, average annual residential usage ofelectricity declined 2n by 3.9% , from 12,183 KWH in 1981 to 11,712 KWH in 1982 (see Chart 7). ,, Current Company projections indicate that the total electric customer base wiil grow at an average annual rate ofl.9% over the five-vear period through 1987. iso Total sales of electricity are projected to increase 3.7 % each year during the ( same period. I 1978 1979 198o 1981 1982 GENERATING CAPA8ILITY The Company's peak generating capability at a n ,m , year-end 1982 was 3,359 megawatts, unchanged from 1981. Approximately M Electnc 49% of that capacity is in four steam plants which burn coal, 20% in two steam plants fueled by residual fuel oil, and 23 % in six hydroelectric plants. Sateen internal combustion turbines and one combined cycle generator which bum either distillate fuel oil or natural gas provide the remaining 8% . The c7,',',,, ,,,,,, y,, Company's peak generating capabihty will increase by 600 megawatts when ,,,n sigentinificerriccustomer
~""
the V.C. Summer Nuclear Station begins commercial operation. In 1982 coal was used to generate about 89% of the electricity produced ! ,3,o. by the Company, hydroelectric power 8% and oil 2% (see Chart 8). In addi- l
58 tion, electricity generated as a result of testing at the V. C. Summcr Nuclear !
Station provided about 1% ef the Company's total 1982 generating require- 1 i2.soo ments. Electric generation in 1983 is projected to be provided in the following 12.2s9 i2.ies proportions: 74 % coal,18 % nuclear,7 % hydroelectric and 1% oil and natural gas. 12.000 fufL SUPPLY During 1982 the Company burned a total of 4.0 million tons ; 11.7 2 ofcoal, a 2.3 % decrease from 1981. The weighted average cost ofcoal burned during 1982 was $1.95 per million BTU, a 10.2 % increase over 1981. At year- n,sw 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.wo on the spot market. Lower generating requirements allowed the Company to burn on': about 270,000 barrels of residual fuel oil during 1982, an 81% decrease f rom 1981. . io,sw The weighted average cost of residual oil burned during 1982 was S4.15 per ;( million BTU, a 14 % increase over 1981. Effective December 31,1982 the Com- ! l pany cancelled a long-term contract for the residual oil burned at Williarns 1978 is79 isso i9si 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 !
I l NealShoa!s Fairfield Pun Pa' olumbia Canal l' '?'*~" ' Ste ens Creek AIKEN Saiuda Wateree quhart l
; O ll nadys q
wahams l
'* ll CHARLESTON m, {
Face P. ill]; I
\ " '_g* ,
!!il l li l 0 Steam Generation C HydroGeneration g InternalCombustion Generation l NuclearGeneration
r reduce future requirements for residual oil. The Company has a separate r-e ,. q
'y j contract for the residual oil burned at Plant Hagood.
The Company has in storage or under contract sufficient quantities of nuclear fuel and related services to operate the V.C. Summer Nuclear Station through 1989. Westinghouse Electric Corporation is supplying approximately 77 % of the uranium requirements under contract. The Company does not [ expect to have difficulty obtaining additional nuclear fuel to meet its total requirements. Provisions have been made to store spent nuclear fuel on-sia for at least ten years ofoperation. ' InJanuary 1983 federal legislation established guidelines and procedures for permanent away-from-reactor storage of high-level nuclear waste. This legislation includes a fee of one mill per KWH generated at nuclear plants to 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,","[,r' o , nupre, ,,jua<,r ; storage sitC, Construction of a monitored retrievable storage facihty, and other ,,,jor ,jc,fr,,jj,,,, pou ,, ope,,, joy,, o, activities involving the removal and transportation of spent fuel from those degrounds o/Summerswion near utilities' nudear power stations. 1<" din 1riE<- PEAKDEMANo 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 's2r'ces orEiectric cenernuon l industrial usage of elecuicity 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- lwo ating facilities on the expected growth in the annual territorial peak demand. Current Company projections estimate that peak demand will grow at an average annual rate of 3.1% through 1987. The Company anticipates that no m t additional base load generating capacity will be needed until the early 1990's. so CONSERVATIONANDLOA.2 MANAGEMENT The Companyis vitallyinterested .l \} in energy conservation and load management as a means of reducing energy ,o p, _ b % Mf . i costs and the need for additional generating capacity. During 1982 the Com-pany continued the Residential Conservation Service Program, which offers p 6]kN;
,j {7 d
j l energy conservation assistance and advice to homeowners primarily by means
'O +kd &l MM1 d ,J M{ ,h]W 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 m
comprehensive, computer-assisted, on-site survey of the various uses ofenergy in the home. Recommendations are offered on ways to reduce energy usage Q Ri @ MO ] cp rd d through improved insulation, energy-efficient appliances and other conserva- I 1 20 9 13 A iM p {' $j % tion measures. During 1982,2,900 customers requested an on-site audit. The Company {' - f' received requests from 6,200 additional customers for a do-it-yourself audit ! package. The Company expects to conduct approximately 3,000 home energy l = y aud.ts dunng 1983
= gm,,,,,
wa nacie., During 1982 the Company received approval from the PSC to offer two new conservation rates to its residential electric customers. The Residential 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 qualified 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
during periods of peak demand and lower during off. peak periods, providing a discount to customers who are willing to change their energy use habits. The Company also offers an interruptible rate to its large industrial electric customers. Customers on this rate agree to allow the Company to interrupt their service during peak energy-use periods. In return, they pay a reduced rate. The Company currently has three ongoing load management studies. One analyzes the effects ofincreased levels ofinsulation in residential homes. A secc,nd study is looking at heat-recovery systems for residential water heating, while a third is investigating the benefits of direct load control at commercial establishments. The results of these studies will help shape a load management strategy that will be most beneficial to the Company and its customers. ENVIRONMENTAL PROTECTION During 1982 the Company spent approxi-mately $2.0 million on pollution control facilities to minimize the impact of the Company's operations on the eraironment. Over the five-year period , 1983-87, the Company anticipates spending some $87 million on pollution control facilities, including $1.9 million in 1983. GAS OPERATIONS The highlight of the Company's 1982 gas operations was the acquisition in April of Carolina Energies, Inc. (CEI). CEI is a holding company which provides Summustation tuhnicians uauh as ihr /asi natural gas transmission service to resale and industrial customers in the ""*/" *'"'"' i' l ""h"'o 4 nonhern half of Scath Carolina and distributes natural gas at retail to approximately 15,000 residential and small commercial customers primarily in l the nonheastern section of South Carolina. In addition, CEIis involved in i' propane storage and sales activities. c- . The process ofintegrating the Company's gas operations (the South system) Ei.cege Territo,vair k o.m.,wi and CEI's gas operations (the Nonh system) is well underway. Natural gas l transmission pipeline operations, gas purchasing and dispatching have been
'" 2 557 centralized. Additionally, two of the major transmission lines have been inter-connected, resulting in an improvement in overall system reliability. Combining 2.489 the management and technical expertise of personnel from both systems has '#" "'
enhanced operating efficiencies and system reliability for all of the Company's natural gas customers. The South system primarily serves residential customers with some com- ;,,oo mercial and industrial load. The Nonh system primarily serves wholesale and I industrial customers. The combined systems have a load profile which is better balanced and therefore stronger than either had as individual systems. ,,3o, ,,,, Management believes there still exists significant potential for expansion in residential, commercial and cenain industrial market 3 in the combined - ! service area. Current supplies of natural gas are adequace to meet existmg 2.20o customer demands for service and to accommodate growth. During 1983 the Company villimplement a program to inform potential natural gas customers ~ of the availability of natural gas at competitive prices. While the availability of 2 competitively-priced alternate fuels has and may continue to adversely affect ! (,ioo the Company's sales to low-margin, large-volume industrial boiler fuel cus- 1 tomers, natural gas continues to be the most efficient and economical energy 1978 1979 198o 1981 1982 source for residential, commercial and cenain industrial uses throughout SCE&G's service area. CALES AND CUSTOMERS Total sales of natural gas in 1982 were 590 million therms, a 20% increase over 1981. The addition of the market served by CEI 13
I accounted for the increase. Otherwise, milder weather, weak economic condi- c-tions, increased customer conservation efforts and the changeover of certain 8',ff7f,',yffo7s' customer industrial customers to lower-priced alternate fuels resulted in a 17 % decrease in sales on the SCE&G system during 1982. Sales by customer class are sum-matized in the following table: '" Sales of Natural Gas (Thouunds of Therms) Number of Customers (Year.End) l 800 Combined
- SCE&G Only Combined' SCE&G Only 7s1
% Increase % Increase Customer Class 1982 1982 1981 (Decrease) 1982 1982 1981 (Decrease)
Residential 95,993 92,438 102,676 170,321 157 714 156,447 .8 7" ses (10.0) Commercial 94,146 87,963 85,946 2.3 15,440 12,696 12.501 1.6 Industrial 280.259 194,333 268.994 (27.8) 548 408 344 18.6 Sales for Resale 119,859 35,005 35.689 (1.9) 11 2 2 - soo s70 Total 590,257 409,739 493.305 (16.9) 186,.%:0 170,820 169.294 .9
- Includes operations of Carolina Energies Inc. since April 1,1982 At year-end 1982 the Company was serving a combined total of186,320 sa natural gas customers (see Chart 6). The Company indirectly supplies natural gas to thousands of other residential, commercial and industrial customers through its resale customers. The average annual usage of natural gas by the da Company's residential customers declined in 1982 for the founh consecutive year (see Chart 10). Milder weather and conservation effons were the primary factors. Total sales of natural gas are projected to grow at an :nerage annual 'S78 'S7s saa iss es2 rate of 3.2% through 1987.
SUPPLY The Company purchases natural gas under contracts with Southern Natural Gas Company (Southern) and Transcontinental Gas Pipeline Corpo-ration (Transco). The volume ofgas which the Company is entitled to receive through these contracts is shown below:
- Supp!ier _ System Sfaximum Daily C_ontract Demand (Mco Southem South 165.000 Southem Trar.sco Nonh Nonh 45.000 29.300
( e ~m
~b
____ To3al_ _ _ ___ _ _ _ _ __ _. _ __ _ _ _ _ 2 39,300. _ _ _ _ _ f-These quantities are subject to curtailment plans approved by the Federal Energy Regulatory Commission (FERC). During 1982 full contract gas volumes were available when needed. Ample supplies of natural gas are expected to be i l available well into the future due to increased exploration and production by natural gas producers and increased customer conservation effons. E To meet the requirements ofits high priority natural gas customers during U periods of maximum dem and, the Company supplements its supplies of nat- , ural gas from a liquefied natural gas (LNG) plant and from propane storage
- facilities as shown below:
Maximum Daily Type System Capability (MCF) _. LNG South 60,000 " Propane South 55.000 Propane North 15.000 g syf h_ Total . _ _ - .1 3. 0.000 - _. - NN l The LNG storage tanks, which are capable of storing up to 1,000,000 MCF ~- Jp ofliquefied natural gas, are filled by liquefying natural gas from incoming .A . pipeline supply during off-peak periods. During pa periods the plant can I regasify up to 60,000 MCFper day. Propane storage facilities located throughout $ c"j M [ " # " '#' " " " # #'"' the Company's service area can supplement the supply of natural gas by approx. ! imately 70,000 MCFper day. The Company also has 1.3 million MCF of natural gas in storage fields. 14 l
SupplementalGas Supplier Tirzah Propane ROCK HILL li Tanscontinental
&# COLUMBIA Dettvery MYRTLE BEACH )
i ; AIKEN gggggggygg l l l "l fb Delivery Poont b Liquefred J u nie, l CHARLESTON #1 Ill!!l l BEAUFORT ll I!! i;
~ Gas Transmission E
The improved gas supply, together with storage and peaking facilities, should allow the Company to meet the needs of existing high priority naturai , ," I gas customers without cunailment while expanding natural gas operations in ' " j the years ahead. g CAD DECONTROL The Natural Gas Policy Act of 1978 (NGPA)is gradually decontrolling the wellhead price of natural gas discovered after February 1977. OnJanuary 1,1985 all price controls on "new" natural gas will be eliminated, but controls on "old" gas will remain. The goal of the NGPA was to promote greater exploration and development of new natural gas resources through increased price incentives. By phasing in decontrol over a period of several years, price increases were expected 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 prices which would not other- .
~"" '
wise be expected in the current economic environment. The FERC, which regulates pipeline suppliers' prices to the Company, recently issued an order INiam K Merman. mcutiw ria which calls into question current pipeline purchasing arrangements and yt ## f "'Q'j'[',%, f,,, _ pncmg pracuces. Congress also has reviewed the impact of the NGPA and leg- inc., in f4,gaf fran, mission si,patcAing l islation has been proposed. This matter is filled with uncertainty, and current opu near columbia. conditions may change. 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 controversy and intends to protect its interests in this area. The weighted average cost of natural gas purchased during 1982 was 36.5 cents per therm, a 22% increase from 1981 (see Chart 11). The Company anticipates that the cost of natural gas will continue to increase as a result of the phased in decontrol of gas prices under the NGPA. The Company is allowed to pass through to customers increases ar decreases in the cost of gas c=n , from suppliers. The ability of the Company to pass along increases in the cost f**' ***'"r*j Gas Purchased , of gas to certain industrial and resale customers is limited by the existence of alternate fuel capabilities. 40 PROPANE OPERATlONs As a result of the acquisition of CEI, the Company *" has significantly expanded its involvement in propane operations. Three of 33 CEI's six operating subsidiaries are involved in propane gas operations or related ! services. Carotane, Inc., is a retail propane operation which serves residential and small commercial customers located beyond the Company's natural gas i 3. service mains. At year-end 1982 Carotane was serving approximately 4,200 { customers. The retail propane distribution business should continue to grow, ; creating additional opponunities for the Company to expand and improve this 2s ponion ofits business. l 22.7 CEI through subsidiaries owns a 50% interest in three joint ventures with ' Transco Companies, Inc. Two of these joint ventures own and operate an 80- '" 20 l million gallon underground storage facility and a 62-mile propane pipeline. Space in the cavern, which is the largest ofits kind in the free world, is leased to customers for the storage of propane until needed as an alternate fuel when i3.7 is l
- natural gas supplies are cunailed. Since the supply of natural gas has been <
adequate over the last several winter seasons, the demand for propane storage ] services has been reduced. im 1979 1980 1981 1982 i s 16
d 4-x e LThe Management 'of South Carolina Electric & Gas Company is responsible 1 for the preparation and integrity of the financial data included in the accom- . panying Consolidated Financial Statements. These statements have been prepared in confomiity 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 reporting practices for such items. Financial - -i
;information presented elsewhere in this Annual Report is consistent with ~
Tthese financial statements.
- The Company maintains and relies upon a system ofintemal 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. The degree ofinternal accounting control
- is based bpon the determinatior. gf the optimum balance between the cost 4
~ incurred and the benefits to be derived. The system ofintemal accounting c controls is supported by written policies and guidelines and is complemented by a staffofintemal auditors who conduct comprehensive internal audits -
! an'd by the selection, training and development of professional financial managers. . . n '
<The Board of Directors, through an Audit Committee comoosed of non-employee directors, provides oversight for the preparation of these financial statements. The Audit Committee meets periodically with intemal
- e and independent auditors and representatives.of management to review 1 their activities and responsibilities. The internal and independent auditors have full and free access to the Committee to discuss intemal accounting . control, auditing and financial reporting matters _.' _ The Company engaged Deloitte Haskins & Sells as independent auditors l to report as to the fair presentation of management's Con 3olidated Financial ! . Statements and their report appears on page 33 in this Annual Report.
- Their examination is conducted in accordance with generally accepted auditing standards and is based upon their performing procedures which
, include maintaining an understanding of the Company's system ofintemal e accounting control and such tests and other auditing procedures as they
'~
- believe to be necessary. -
N , l; $/ n j k/ Mtjpc a ' ' W. B. Timmerman - R. W. Stedman
- Vice President-Finance - Contm/ler -
h 1-t N
.p i
k 17 7
,n . --s ._ -, ,e- - - ,s -, , - - e-, v- c, . - e - ---,e a r --- w ,n--,
m MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION LIQUIDITY AND CAPITAL RESOURCES The Company's ability to finance its construction For additional information concerning rate matters program and meet its working capital requirements is see Note 2 ofNotes to Consolidated Financial Statements. dependent upon rates sufficiem to provide funds from An accounting practice in the utility industry which internal sources and to support the issuance of securities has had a major effect on the Company's results of oper-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 ponion of the cost of both equity borrowings and equity securities is subject to cenain and borrowed funds used to finance construction is cap-camings tests and market conditions. italized (which is shown on the balance sheet as con. The Company's construction expenditures aggre- struction work in progress) instead of being expensed in gated approximately $682 million for the five years the period ofincurrence. Both the equity and the debt ended December 31,1982. Approximately $402 million portion of AFC are non-cash items of non-operating of these expenditures were associated with the consruc- income which have the effect ofincreasing the tion of the V.C. Summer Nucicar Station (Summer Company's reponed 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 Earnings Available for Common Stock. to retire maturing obligations and fulfill sinking fund AFC will decline significantly after the Summer Station requirements. The Company anticipates that is placed in commercia} operation. This decline in AFC, approximately 65 % ofsuch cash requirements in 1983 as well as higher levels of depreciation expense and wi!! be cbtained from internally generated funds. propeny taxes created by the addition of Summer Sta-The Company periodically reviews its capital tion to the Company's plant-in-service, will result in a requirements, conditions in the financial markets and reduction in net income until rate relief provides its capitalization goals to determine the amounts, additional revenues to offset these factors. timing and types ofex:ctnal 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 of common stock, based on the Increase (Decrease) from Prior Year weighted average number of shares outstanding, were customer Class 1982 1981 $2.32 in 1982 ($.41 subject to refuad) compared t Residenti21 (2.3)% (1.0)% $2.19 in 1981 and $2.02 in 1980. The ncreases in per commerdai 2.6 2.9 share earnings are primarily attributa; le to various rate Irviustrial g.4) 2.2 increases placed in effect during 1981 and 1932. The following table Rts fonh cenam informan,on with
$'5,,f r Resale rotal Q
(2.33 (1 (.4) y respect to significant current and preve us rate cases for 1981 and 1982. The overall decrease in KWH sales is primarily the 1 result of milder weather, weak economic conditions and REQUESTED nPPROvED in'reased customer conservation. The substantial per-serme $ $tS"') R te 1) a f ) G n ch"1 Centage decrease in the SalesforResale classification in acane 1981 was the result of the expiration in late 1980 of two Retsi 2/27/81 $74.2 16.8 % 41U82 $ 56 .! 76 0 % wholesale 5/1/81 $ 4.2 18.2 % 4/29/82 $3> 90 0 % contracts with neighboring utilities. Retad 7/1/82 686.2 15.5 % Pending Electnc operaung revenues increased each year as Gm follows: Retail 7/1/82 516.4 14.5 % 9/29/82 $ 10.3 6LO% (t) Based on test gear used in rare case. 18
k '_ - q J n,
, s 9
- 4
~ Increase from Prior Year i piillionsofDollm)
< Gassificatien 19 s 2 - '1981 Increases or (decreases) in operating expenses, excluding
, , S,ies. . taxes, from prior years are presented in the following c Residential 1 $16.0 $28.7 table: _
[ Commercial [ 14.3 22.0 Increase (Decrease)from PriorYear
; Industrial - . . .6 27.3 Midlions ofDollan)
- SalesforResale ~ . 1.6 ; 4.1 Gassificadon 1982- 1981 13 2J Fuel used in elettric generation
.- - $(19.6) $29.3 -
.:.Other Operatmg Revenues .3 - .2 Power purchased, net 16.2 1.4 l' Total - - $34.3 - $85.0 Gas purchased for resale 66.0 32.9 Otheroperation and maintenance 13.1. 14.0
~ L he increases in electric revenues are primarily the - Depreciation and amortization - 3.7 2.9 7
" i result ofvarious retail and wholesale rate increases Total $79.4 $82.5
'placed in effect'in 1981 and 1982.
The increasein Fueluseda.n electricgeneration g,, 3,3,, ' expense in 1981 was primarily the result of the increased - v -- - average cost of fuel bumed ($1.98 per million B'IU in < -'Ihe percent increase (decrease) from the prior year in' - 1981 versus $1.77 in 1980). The decrease in such expense : 4 gas sales (therms) by customer class was as follows: in 1982 was primarily the result ofdecreased generation Increase (Decrease) from Prior Year (9.1%) as a result of reduced customer demand, the pur .-
- i customer aassi 1982 ' 1981 chase of less costly off-peak power from other utilities -
, ) Residential - . (6.5)% (.6)% - and an 82% decrease in electric generation from No. 6 : jj*II j9-,2 (35j 3 fuel il. Porcerpurrhased, net expense has continued to ,
. nse as a result of the Company purchasing power, where :
t Sales foritesale : 235.9 (6.7) fTotal' , 19.7- (2.6) ' available, at costs lower than the Company would incur : ,
- . through generation at its own plants. Increases in Gas -
3-
~ lower unit sales ofgas in 1981 were a result of 1 purrhasedforrefale expense are a reflection of the con- .
4 nulder weathet, weak economic condnuons, increased tinued ut iward trend in the price of natur.tl gas from the customer conservation, and the changeover ofcertain , Company's suppliers and since April 1,1982 the inclu- , 'Industnal customers to compermg fuels. Although 1982 sion of the cost of natural gas of Carolina Energies, Inc.- gas _ sales were adversely affected by the same factors, the Other operation andmaintenance expenses continue to - 1 overall increase in' gas. sales.for 1982 was the re> ult of the rise as a result ofhigher payroll costs and related employee ;
- qmclusion in the results of operations, since April 1, benefits, maintenance of generating units and the
- 1982, ofthe gas salesof Carolina Energies,Inc. (see : impact ofinfbtion on the costs of materials and supplies.-
l3 Note 11 of Notes to Consoliqated Financial Statements.) The increases in Depreciation andamortization expenses - p7 _ Gas.operatmg revenues mcreased (decreased) each are cons: stent with the increased amount of plant-in-tyear as follows: - Increase (Decrease) from PriorYear , Mliainsn/Dullan) -Interest Charges a J. q Gassificau.on 1982 - 1981 g;,,. Interest charges, excluding the credit for allowance for . , F ? Residential . $ 2.6 - $ 6.5 borrowed funds used during construction, increased y . commercial 9.6 - 6.1
$3.8 million in 1982 and $16.6 million in 1981. These .
F QT*[,,j, % 'N increases are a result ofincreased debt ouutanding and (Other Operating Revenues - ~ (.1) .: a higher average rate ofinterest on such debt. . Total $78.2 $30.5 Inflation The increases in gas revenues are primarily attrib- Supplementary financial information showing the esti-L . utable to the recovery of the increased cost of gas, which mated effects ofinfhtion on the Company's operations iis passed along to gas customers through 'a purchased is shown on pages 36-37.
- i gas adjustment clause, increased retail gas rates placed
~
, - t ni effnt August 1 1982 and the inclusion of natural gas
; sales of Carolina Energies, Inc. since April 1,1982. ;
l 19 ^h n , .. u _ _ _ . , . _ . ,_. . - _ -. _ _ . - _ _ . - ~ _._ .. _ . - _
CONSOLIDATED BALANCESNEETS l SOUTH CAROIJNA ELECTRIC & GAS COMPANY December 31,1982and1981 ASSETS 1982 1981 Utility Plant (Notes 1,3 and 4): Electric $1,237,972 $1,195,475
' 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 amonization 459,417 399,505 j Total 1,012,915 967,744 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 1,732,185
' Other Property and Investments:
Nonutility property (substantially at cost) 11,264 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 20,904 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 a Total _ = _ _ _ = = = = ___ $2,194,42{ =__ $1,958 1772_ See Notes to ConsolidatedFinancialS:atements. 20
-t CAPITALIZATION AND LIABILITIES . 1982 1981 (Thousana's ofDouan) Stockholders' Investment (Excluding Preferred Stock 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 sbares $ 164,369 $ 133,605 Premium on common stock 344,571 267,049
- Other paid-in capital 4,882 4,687
. Capital stock expense (debit) (6,662) (6,175)
Retained eamings - 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
-Long-Term Debt (Notes 3 and 4):.
Principal amounts - 855,897 766,415
- Less unamortized discount and premium, net 1,053 1,444 long-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 Currert 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 pavable - 915 _ 988 Other 1,755 1,201 Total Cntrent Liabilities 156,436 221,750 Deferred Credits:
109,792 92,644
' . Accumulated deferred investment tax credits (Note 1)
Accumulated deferred income taxes (Note 1) 183,422 140,971 Funds held in escrow (Note 9) 8,589 15,610 24,023 9,406 _Other LTotal Deferred Credits 325,826 258,631 Commitments and Contingendes (Notes 2 and 9) - Total $2,194,427 $1,958,772_ Note: 1981 Restated; 1982 includes amounts subjut to refund-see Note 2. See Notes to ConsoliahtedFinancialStatements. 21
=
CONSOLIDATED STATEMENTS OFINCOME SOUTH CAROL 1NA ELECTRfC & GAS COMPANY Forthe Years EndedDecember31,1982,1981 and1980 1982 1981 1980 (173ousands ofDollars exceptpershare amounts) Operating Revedues (Notes 1 and 2): Electric $590,044 $$55,716 $470,765 .. Gas 266,389 188,167 157,643 Transportation (coach) _ _ 2,603_ 2,429 2,338
'Ibral Operating Revenues 859,036 746,312 630,746 Operating Expenses:
Fuel used in electric generation 214,617 234,243 204,948 Power purchased, net 32,501 16,271 12,860 .. Gas purchascd for resale 220,502 154,502 121,642 - Other operation 76,615 68,353 58,044 Maintenance 38,724 33,895 30,226 Depreciation and amortization (Note 1) 43,406 39,691 36,822 Taxes-other than income 33,453 34,672 31,219 Taxes-income (Notes 1 and 7) _ 51.635 54,377 42,137
- Total Operating Expenses 711,453 636,004 537,898 Operating Income 147,583 110,308 92,848 OtherIncome(Note 1)
Allowance for equity funds used during construction 6,618 4,530 6,003 - Income tax-credit (Note 7) - 16,792 12,683 Other income (loss), net ofincome taxes (1,388) (227) 212 Total Other Income 5,230 21,095 18,898 Income Before Interest Charges 152,813 __1 31,403 111,746 Interest Charges (Credits): Interest on long-term debt 89,949 84,232 69,518 - Amortization of debt premium, discount and expense, net 671 573 605 . Otherinterest evpense 5,591 7,604 5,649 Allowance for bon awed funds used during construction (Note 1) (39,519) (36,889) (27,726) Total Interest Charges, Net 56,692 55,520 48,016 Net Income 96,121 75,883 63,700 <A ~ Dividends on Preferred Stock 16,371 14,245 12,949 .
" "E?=$?*5b'Y ='E**"** 5'*'b====== = := ====== $ ]9y =S y,6[8 _
= = = S 5og51 Weighted Average Number of Common Shares Outstanding (Thousands) 34,387 28,139 25,148 .
Earnings Per Share of Common Stock _$2.32__
$2.19
__ _ _ $2.02 ; Note: 1981 Restated; 1982 includes amounts subject to refund-see Note 2. See Notes to Consolid,ztedEnancialStatements. 22 b
CONSOLIDATED STATEMENTS OF CNANGES IN FINANCIAL POSITION SOUTH CA 4011NA ELEC7RIC & GAS COMPANY lbrthe Years EndedDecember31,1982,1981 and1980 1982 1981 1980 Working Capital Provided: O""'## M'#'"> Net income S 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 Investment tax credit, net 15,034 19,128 13,187 Allowance for funds used during censtruction (AFC) (46,137) (41,419) (33,729) Other, net 5,284 1,215 500 Total from Operations 147,719 112.195 89,754 Sale ofsecurities: Mortgage bonds, net of discounts and commissions a-25,000 84,388 40,563 Guaranteed notes - 60,000 - - Preferred stock 25,000 - 20,000 Common s:ock fM5;5J2j ~ 48,983 30,217 Issuance ofcommon stock for acquisition 42,774 - - Issuance of secured notes - banks, n-t 15,000 - 30,000 . Imrease in: Nuclear fuelliability, tiet 11,006 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: Acquisition of Carolina Energies, Inc.: Net assets acquired 69,339 - - Less: working capital provided 8,112 - - Remainder representing the excess of gas utility plant ($67,430, including 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 AFC 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,lM 44.019 Reduction oflong-term debt ---=37,199 67,253 44,948 Retirement of preferred stock - 2,598 3,432 1,715 Increasein: Other property and investments - - 844 Other non-current funds, net - 1,012 - TbtalWorking Capital Applied 337,650 279,728 224,344 Increase (Decrease) in Working Capital $ 75,991 $ (16,919) $ 24,075
= - . = _ = = = = = = = = = _ = - - = = = = = = = = = = = = = _ = _ = = = = = = _ = = = = = - _ _ = . _ = = = = - -
Increase (Decrease) in Working Capital by Component: Cash, temporary cash investments and special deposits S 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 portion oflong-term debt 58,860 (21 867) 11,624 Accounts payable and accruals 5,172 (23,830) (4,557) Increa,ejDecreay)jn Working Capital $ 75,991 $ (16,919) _ $ 24,075 Note: 1981 Restated; 1982 includes amounts subject to refund - see Note 2. See Notes to ConsolidatedFinancialStatements. 23
CONSOLIDATED STATEMENTS OF CAPITALIZATION .. . ,. SOUTH CAROL 1NA ELECTRIC & GAS COMPANY December 31,1982.ntd1981 1982 1981 (Thousands ofDollars) Common Equ,ty i (Note s): Conanon Stock,54.50 par vaiue, authorized 50,000,000 shares, i sued and outstanding; 1982 - 36,526,499 s%rrs,1981 - 29,690,064 shares $164,369 $133,605 Premium on common stock 344,571 267,M9 Other paid-in capital 4,882 4,687 i Capital stock expense (debit) (6,662) (6,175) . Retained earnings 160,280 146,775 Total Common Equity 667,440 39 % $45,941 37 % Preferred Stock (Not Subject to Purchase or Sinking Funds) (Cumulative) Shares Outstanding Redemption Price Eventual 1982 . 1981 Current Hrough 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 Subject to Purchase or Sinking Funds) 26,262 1% 26,262 2% Preferred Stock (Subject to Purchase or Sinking funds) (Cumuiative) (Note 6)
$100 ParValue- Authorized 1,550,000 shares Shares Outstanding Redemption Price y Eventual Series 1982 1981 Current Through Minimum 7.70 % 126,000 126,080 103.85 6-30-87 101.00 12,600 12,608 8.12 % 180,400 184,800 104.06 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 25,000 -
$50 ParValue- Authorized, 1982 - 1,779,586 shares; 1981 - 1,792,286 shares Shares Outstanding Redemption Price Eventual Series 1982 ,
1981 Current Through .}linimum 4.50 % 38,400 40,000 51.00 - 51.00 1,920 2,000 4.60 % 20.334 21,834 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) 119,000 122,400 50.50 - 50.50 5,950 6.120 5.125 % 85,000 86,000 $1.00 - 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 9.40 % 272,000 276,300 52.35 10-01-85 51.175 13,600 13.815
$25 ParValue- Authorized 2,000,000 shares
__ Outstanding _ _ _ _ _ _ _ _ _ Total Preferred Stock (Subject to Purchase or Sinking Funds) 163,619 10 % 141,217 9% v
,m
.M 24
-. .W
I . I [ 1982 1951 tong Term Debt fT/umun/> oflA/hN First and Refunding hiongage Bonds: e Year of ' hiaturity Series 7% 1982 - 50,000 4-1/8% 1983 2,500 2,560 9-3/ 8 % 1984 25,000 2 3,lXK) 31/2% 1985 3,275 3.275 14 3/8 % 1986 15,000 15,(NR) 15-5/8 % 1987 25,000 - 51/2% 1987 6,850 6,b50 4-7/8% 1988 10,000 10.(Khl I 10-1/2 % 1990 10,800 11.400 5% 1990 10,000 10.(NX) 8,000 8,0(K) 5% 1991 47/8% 16,000 16.000 ( 1995 15,000 15,000
- 5.45 % 1996 f 6%
6-1/ 2 % 1997 1998 15,sXM) 20,000 15.(NR) 20.000 D 8% 1999 35,000 35,0M 91/8% 1999 15,000 15,000 8% 2001 35,00u 35,0f x) _ 71/4% 2002 30,000 30JH4) [ 91/8% 2006 50,000 50,000 50.000 50.000 [ 8.40 % 2006 30,000 30,tMM) -- -
) 8-3 / 8 % 2007 8.90 % 2008 30,000 40,000 I!
10-1/8 % 2009 35,000 35.000 9-7 / 8 % 2009 50,000 50 AKM) s 12.15 % 2010 50,000 501100 f . 16 % 2011 70,000 70.000 , i Pollution Control Facilities P Revenue Bonds: ~~ y j 41/2% Series, bearing interest at 70-75% of applicable - r prime rate until rratunty in 1987 5,155 5,155 .. 5.95% Series,duc 2003 7,500 ',500 t 5 % Consolidated hiongage Gold Bonds. due 1999 (non<allable) 1,050 1.054
- Sank Notes- Secured 15,000 45 JN K)
P First hjortgage Bonds- South Carolina I NG Company. Inc.,
't- 10-1/2% Series,due 1990 7.360 8.050 i- South Carolina Fuel Company, Inc.:
1 Nutlear fuel liability 68,3M 57.358
# Fossil fuelliability ~ 28,397 25.072
'I
- South Carolina Electric & Gas Finance N.V.,
60,000 15-1/2% Guaranteed Notes due 1989 - F, Carolina Energies, Inc.: First Alongage Bonds: .
" 10% Series B, due 1985 1,050 -
6% Series A, due 1988 4,302 - i Term Inan,9% , due 1985 4,699 - [
~
Sinking Fund Notes: F 6-1/4 %, due 1983 40 - [ 16%, due 1988 Lease ebhgation,5 3/4%, due 1997 450 300 .g - Capitalized leaw obligatiens - vehicles 6,678 4.874
=
- TotaI 872,770 s 12,1-48
~~
1.ess: .. t Current ponion of long-term debt 16,873 '5. 33 Unamortized discount and premium, net 1,053 1,444 y ' 854,844 764,971 Totallong Term Debt (Notes 3 and 4) 50 % 52 % l 100 % 100 % i Total Capitalization $1.712.165 $ 1.~178. 391 .
- =====-- = = = . _ ::==== :_.- ~ .
ljl See Nota to Consoli.htedFinancu/Sutementt . 25 g __ a
t .
- f,g4.~
I CONSOLIDATED STATEMENTS OF RETAINED EARNINGS Q:. W.g
,y '
- SOUTH carol 1NA El.EC1RIC & GAS COMPANl' ?
c For the 1 cars &JedDecember 31,1982.1981 and 1980 . 1982 1981 1980 {dI n. p Ba'ance at Ileginning of Year $146,775 $136,241 $129,509 $ l-Add -Net Income 96,121 75,883 63,700 C,. a. Deduct-Cash dividends declared: .c W . _ Preferred stock (at stated rates) 16,371 14,245 12,949 . - ], r
- Common stock (at an annual per share rate of $1.92, $1.82 x and $1.74 for 1982,1981 and 1980, respectively) 66,245 51,104 44,019 <3 Total Deductions 82,616 65,349 56,968 f." '
Halance at End of Year (Note 5) S160,280 $146,775
$136,241 f;,h, . .
( Note: 1981 Restated: 1982 includes amounts subject to refund -see Note 2. (N; l; E. See Notes to ConsolidatedFinancialStatements. n. T'1 ~ Q .s m NOTES TO CONSOLIDATED FINANCIAL STATEMENTS : * :. W:,e ;
.,?
,8.Y ,
- 1.
SUMMARY
OF SIGNIFICANT charges for engineering, supervision, and an allowance J.m. ACCOUNTING POLICIES: for funds used during construction, are added to utility .,f A. System of Accounts plant accounts. The original cost of utility propeny , The accounting records of the Company are maintained retired or otherwise disposed ofis removed from utility @Mrg in accordance with the uniform system of accounts pre. plant accounts and charged, with the cost of removal, #:e scribed by the Federal Energy Regulatory Commission less salvage, to accumulted depreciation. The cost of 7,} . repairs, replacements and renewals ofitems of property q.f (FERC) and The Public Service Commission of South determined to be less than a unit of propeny is charged y.i Carolina (PSC). w to mamtenance expense. . c t-k II. Principles of Consolidation D. Allowance for Funds Used During Construction The accounts of the Company's wholly-owned subsidi-aries are consolidated in the accompanying Consolidated All wance for funds used during construction (AFC), a Financial Statements except for investments in its real n n-cash item, reflects the period cost of capital devoted estate subsidiary, Energy Subsidiary, Inc., and cenain to plant under construction. This accounting practice 4 investments of Carolina Energies, Inc. in joint ventures results in the mclusion, as a component ofconstruction
'c st (construction work in progress), of amounts of AFC f; (see Note 11)which are reponed using the equity method of accounting. Significant intercompany transactions w hich will ultimately be included in rate base in estab-g have been eliminated. lishing rates for utility charges. The Company has calcu-2 lated AFC using a 6.5% rate (except for nuclear fuel ; & C. Utility Plant which is capitalized at the actual interest amount), which 4 Utility piant is stated substantially at original cost. The is less than the maximum allowable rate as calculated ;
cost of additions, renewals and betterments to utility under FERC Order No. 561. E- plant, including direct labor, material and indirect 3 .:, r! l 26 l i li.
. -----------mm~
.q I
l E. Depreciation H. Revenue Recognition ] i The Company provides for depreciation for financial Customers' meters are read and bills are rendered on a reponing 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. IncomeTaxes nue is billed. Deferred income taxes, arising principally from the use of he Company collects projected fuel costs in accelerated amonization and depreciation, are changed electric base rates, as established by the P3C during semi. to income currently with corresponding credits to annual hearings. Any resulting over-recoveries or accumulated deferred income taxes. Defened 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 fiel component in electric base rates. At December 31, result of tHs pmctice. 1982, the Company had over-recovered fuel costs of Pursuant to an agreement with FERC effective approximately $8.4 milhon which are included in January 1,1982, the tax deductions related to interest " Deferred Credits-Otber". , 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'l are accounted long-term debt premium, discount and expense are for in " Taxes-income" under " Operating Expenses". being amonized 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. The Company has approximately $5.0 million of unused 2. RATE MATTERS: 1982 mvestment tax credits available for canyover t OnJuly 1,1982, the Company filed an application with the PSC fo. an increase in retail electric rates. He Company's Federal income tax returns have DEm I P roposed electnc rates would have generated been examined by the Internal Revenue Service (IRS) aPPmximately $101.2 milhon annually in addmonal through 1981 and have been closed through 1974; ciectnc revenues (18.2 %) based on the test year ended however, final repons have not been received for 1975- March 31,1982. OnJanuary 24,1983, the Company , 1981 returns. ,, reduced ts onginal request by approximately $15.0 million. If approved by the PSC, the Company's revised G. Pension Plan request would generate approximately $86.2 million : The Company has pension plans covering all employees. , nnually m ddinonal elecmc re.enues (n.5%) based , Total pension contributions. including amonizadon of
. . n the test year ended March 31,1982. The 1982 Con- -
unfunded pn.ot semce cost over a twenty-year penod solidated Financial Statements reflect the effect of end,mg in the yea 2000, were approximately $7.8 mil- the January 24, 1983 revised rate request. The total lion, $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 benefits, assuming a 7 % rate of return, was approx-imately $68.4 million for vested benefits and approx- - imately $7.6 million for nonvested benefits and plan : net assets available for benefits were approximately -
$60.5 million.
r 27 [(c
a .m
.,l*h f
&y NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (contlnuect) 7.8 \
2 ..
.. ,x .
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 portion not the calendar years 1983 through 1987 are summarized approved by the PSC. At December 31,1982, the as follows: amount of revenues included in 1982 operations subject year Amouni year Amount to refund was approximately $28.0 milhon. There can %,g, pgj, be no assurance that all or any part of the requested 1983 s 16.873 1986 stoi 73: electric rate increase will be granted. 1984 82.593 1987 27.201 1985 29.297 On April 1,1982, the PSC granted an electric retail rate increase amounting to approximately $56.4 million annually, or appmximately 76 % ofthe amount requested, 4. FUEL FINANCINGS: m 1981. The Company made refunds to its customers The Company has assigned to South Carolina Fuel . dur;ng May 1982. The accompanymg Consolidated . Company, Inc. all ofits nghts and interests in its various Financial Statements have been restated to reflect the , mntr cts relaung to the acquisinon and ownership of effect of the refund in the proper periods as followr, nuclear fuel and fossil fuel.That subsidiary finances these year Ended Desember 31.198t_ _ jnvestments through the issuance of short-term com-Previously As mercial paper supported by an irrevocable letter of credit _ Reponed Adj.ust ment Ad.!ustec (nuclear fuel) which expires in 1986 and an irrevocable 6w/mi ons mrefer Ar"*""'d bank line of credit (fosdl fuel) which expires in 1984. lotal clettric operating revenues $ 569. i so3a) $555; Due to these arrangements which support the commer-operating ina>mcJnct cial paper borrowings, the amounts outstanding have Ne i e ( 00 U U US O E 5' 5 Eamings available for amended, provide for maximum amounts ($70 million wmmon stoc k 68.6 (10) 61 6 related to nuclear fuel and $30 million related to fossil EanngZ s k 2M 025) M9 fuel) that may be outstanding at any time. Retained eamings 15} 8 (To) 146.8 At December 31,1982, the amount outstanding for nuclear fuel was approximately $68.4 million at a weighted average interest rate of 8.94% and the amount out-
- 3. LONG-TERM DEBT: standing for fossil fuel was approximately $28.4 million The Company's bank note ($ 15 million due March 9, at a weighted average interest rate of 8.98%.
1984)is secured by a like principal amount of First and Refunding Mortgage Bonds,14 % % Series. Interest on , the note is pegged to various prime rates at the option 5. STOCKHOLDERS' INVESTMENT of the Company and the interest rate was 9.7 % at (EXCLUDING PREFERRED STOCK-December 31,1982. SUBJECT TO PURCHASE OR SINKING FUNDS): The 15 % % Guaranteed Notes of South Carolina increases in " Premium on common stock" for 1982 Electric & Gas Finance N.V. due 1989 are secured by First (approximately $77.5 million),1981 (approximately and Refunding Mongage Bonds. $33.6 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 $8.6 i982 m two million of the current portion oflong-term debt for 1983 may be satisfied by deEUsit and cancellation of bonds
'**"" * k - P"h'i' s le 2.500.000 2.000.000 1.000.000 _
Common stin k-Carolina Energies, issued upon the bas.is of property additions or bond int . at quisiiion 2.618,400 - - retirement credits. St't k Purthase-Savings Program n;[;Y"$,1, men,,na m m 2m ; The annual amounts oflong-term maturities, includ-ing sinking fund requirements and amounts due under Sitak Purchne Plan 1.126.350 845.898 651.016 Emplo> ce Stot k Ow nership Plan 193.516 270.249 166.824 local Shares Inued 6.836A35 3.428,80' 2.066.394 4 s. C 28 qi
.~f
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 ofcash for one or more series of preferred stock, at zay time dividends on common stock. Approximately $116.2 when it is in default under the provisions of the purchase million of retained eamings were not restricted as to pay- fund ca sinking fund for any selies of preferred stock. ment of cash dividends on common stock at December 'Ihe 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: ye,, 3 m ,,n, ye,, 3,,,,,, 1982 1980 1981 (Thouuml> ofDollm) Y N Balance at Beginning of Year $572,203 $512,420 $475.659 m3 $3,0n m $W Changes in Common stak: . Srmk Purchase-Savings Program P ' g[p('*,$EOwnership Plan The increase (decrease) in " Preferred Stock (Subject Dividend Reinvestment and Stak to Purchase or Sinking Funds)" cutstanding'is summar-Purchase Plan 5,068 3,806 2.930 4,500 ized as follows: Public sale 11,250 9,000 - - Acquisition of Carolina Energies, Inc 11,783 - - 1982 Changes in Premium on common s:otk: Thousands Number Stoc k Purchase Savings Program ofDollars ; 3,017 2.50, ofShares for Employees 4.765 Employee Stak Ownership Plan 2,337 2.542 1,M7 Issued:
$25,000 250,000 - '
Dividend Reinvestment and Sta k $1no par value : Purchase Plan 12,054 7,495 6,N9 50 par value - - Public sale 27.375 20,500 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 Capital stock expense, net (487) (112) (338) Total - 215,520 - - - - - - - $22,402-
- - - - - - - - - - - - - - - ~ = --
. Changes in Retained camings: Net income 96,121 75,883 63,7m 393 Cash dividends: Preferred stak (at stated rates) (16,371) (14.245) (12,949) 3 y"' Common stock (at an annual per share rate of $1.92, $1.82 and Issued:
$1.74 for 1982,1981 and $100 par value -
1980, respectively) (66,245) (51.104) (41,019) 50 par value - - i Balance at End of Year $693,702 $572,203 $ 512.420 Redcemed:
$100 par value (23,320) (2,382) ,,
_50 par value (22,000) (1,100) Jg 7 [ 6. PREFERRED STOCK = = I"*'
- - _ = - ys,32g == $(3,4 ___p2[ .
(SUBJECT TO PURCHASE OR SINKING FUNDS): i980 1. T. ;, ". The call premium ofthe respective series ofpreferred stock Number Thousands hpq i in no case exceeds the amount of the annual dividend. _ _ _ _ _ _ _ _ _ _ of Shares of Dollars g ISued: Retirements under sinking fund requirements are at $20,000
. RN .
$100 par value 200.000 4.g p P -
50 par value , At any time when dividends have not been paid in Redeemed: .O ,% full or declared and set ap2rt for payment on all series of $100 par value 5 P "*'"* (7,400) U") (740) (" y %* preferred stock, the Company may not redeem any shares ----
" $i8,285 N ofpreferred stock (unless all shares of preferred stock then = - - -
E59"" - -
=
outstanding are redeemed) or purchase or otherwise 8 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 redeemedkr purchase or otherwise 29 . 2
-0 EHEM e .g:
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continuad) ;?(a m mu_
".V..(..y)
- 7. INCOME TAX EXPENSE: Provision for deferred taxes, net results from timing ?/
The Company's income taxes differ from amounts com. differences in recognition of the following items: %.; puted by applying the Federal income statutory rate of 19g 3933 193g 6 ;;, } 460/o to Drc-tax income as follows. gj g g . 1982 1981 19so
.Mclerated depreciation and g[a amomianon $ 37,941 $ a0,065 $ 8,518 v. G (T/v>uund ofDv//ars) Interest on nucle,a fuel 3 562 4.312 3,000 dj f ;
N_n_imprne _ _ _ _ _ _ $. 96,121_$ 75.883 563.Im Deferred fuel revenue (6,532) 3,580 815 .pd~ Add (dedua) components ofincome tax expense: Other. net (950) (260) (3,059) ' * ' '
'(
Total prmision for deferred 1;xome tax expense charged to income taxes. net $ 34,021 $ 17,697 $ 9,274 '1'# - operating expenses (mtome taxes W7 .pn and aedits and mvestment tax uedits, ,iet) 51,635 54,377 42,137 g. . In ome ax uedited to other 8. SHORT-TERM BORROWINGS: M - ' imome - (16,792) (12 681) The Company maintains compensating balances of up . ;(,N., < intome tax npense charged to , other inwme, net 1,321 902 102 to 10% for cenain ofits bank lines and pays fees in lieu i . ,/ - Toul inwme ux exper,< 52,956 38.4s7 29,556 of balances in connection with its other lines of credit. W" Total pre-tax inwmc _ ' ~ ~
$149,077 $114,3'0_ $93,256
~~ ~
The lines supponed by compensating balances may be ? 'C o inwmc uxes on above at siaGry reduced or withdran at the banks' options, with all fij.j ~ Feda t inwme ux rate $ 68,575 $ 52,6i0 $42,898 compensating balances available for use as general oper-Intreases(deneses) aunbutable to: IW %. 4 . v: y." Allow 2nte for funds used ating funds. Bank loans are for 270 days or less. Details of , during wnstruaion lines ofcredit and short-term borrowings at December 31, is (nduding nudear fuel) (17,374) (15.024) (12,712) 1982,1981 and 1980 a"d for the } ears ther' ended are Depreuanon differen,es 1,924 1,858 1.333 M . g- > - Amonizatioc. of investn.nt as[ollOWs: h[ ' tax urdits (1,706) ( * ,374 ) (1,167) Decembe 31, Q
,gl3 State income taxes (less Federal inwme tax cffett) 5,057 3NO 2,171 !982 1981 1980 .,.,
p?.i - - Taxes, pensions and other nems gjjggjjg di* capitalized on books (2,437) (2,403) (2,175) Unes ofnedit i end of year $130,7 $134.2 $89.0 <g-{ . Other diffemxes, net it,083) (220) ( 95) Borrowings agamst credit hne : 4. Inwmc ta expense $ 52,956 5 38,487 $ 29,556 at 3 id of year - -
$ 6.0 ' r;- C
~ ~
$ 4.8 Inwme tax expense is wmposed of[ Avenge bank balances during the year $ 3.4 $ 3.1 if Provision (uedit) for curren uxes:
Short-term borrowings (induding mmmenul paper)during the year: Q(%'S D..?. .: Federal 5 1,866 $ (427) $ 4,520 State 1,655 2.089 2,575 Nfaximum outstandmg $ 64.8 $ 74.0
$ 32,7
$74.5 g Avenge um nding $ 36.2 $41.6 ,.
___F_ o_ reign _ 3_80_ O '. Weighted daily average interest rates:
._ _] ul w em tues, riet 3,901_ _1g2 . LO95 Bank loans 11,88 % 15.44 % 13.29 % .$eh ; :,A Deferred tax: s, net: Commercial paper 12.% % 16.78 % 13.49 %
Federal 29,316 15.324 8,497 Notes payable outstanding at . f 4,705 2,373 end of year:
^
State 777 Total deferred taxes. net 34,021 17,69' 9.274 Bank loans Weighted average interest rate
$ .6 12.13 %
$ 8.2 18.22 %
- 1. [3 j,;
Imestment tax uedits: Commercial paper 5 21.8 $ 22.5 $32.2 g,@p'3, 0~ ^ ' = Amount deferred 16,740 20,502 14,354 Weighted average interest rate 9.02 % 13.09 % 18.98 % Amortization of amounts deferred (uedit) (1,706) (1,374) (1,167) Other S "2 $ 1 $ .9 W.eig
. hted average interest rate 9.5% 9.35 % 11.11 %
Totalinvestment tax credits 15,034 19,128 13,18s
===_k'* "**# '** '*P'2#==
. - 8 f ,9 { $ 38 p ] {,556 30 .
1
- 9. COMMITMENTS AND CONTINGENCIES: ments at December 31,1982 with resFc to non-capitalized A. Construction financing leases is less than five percent of the total capi-talization of the Company.
The Con pany and the South Carolina Public Service Authority (a public corporation of the State of South D. Lease Commitment Carolina) are joint owners (two-thirds and one-third, During January 1982, the Company entered into an agree-respectively) of the 900 megawatt V.C. Summer Nudear ment to lease a building currently being constructed u Station (Summer Station). The parties share in financing, do vntown Columbia for use as its corporate headquaners. costs of construction, costs of operation, and in energy , The Company has also entered mto a financm, g agreement output on this basis. The total cost of construction of the under which the owner could require the Company Sumn.er Station was approximately $1,203.5 million at , December 31,1982 and the Company's share was approx-e!ther to purchase the building, at cost, not to exceed
$50 milhon, or lease it, if certain condinons are not met.
imately $800.3 million which is included in construction work in progress. ' In addition to routine commitmtms 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 ,93, Station from oil-fired to coal-fired operation and the 7,,,_ acquisition of nuclear fuel. portation Electric Gas Total On November ! 2,1982, the Nuclear Regulatory Com. (coach) . mission issued a full power operating licei se for the (thousands o/Drdan) 9penting revenm s 59m4 s266.389 s 2.603 s 8s9.c36 Summer Station, which restricted generating capacity to 50% until certain modifications are made to the , Ogatj"fe*'*""5 i ,d p ion Wesu,nghouse steam generators. The Summer Station and amortization 4i2.2s2 250.284 s.sii 668.w7 reached 50% of generating capacity in December 1982. Depreciation "d *"""i"" " 36,i46 w9 zit 43. m Modifications to the steam generators are scheduled to 7:i,453 T t I pendng expene 448.398 257.333 5.722 _ begin in March 1983 and will take approximately three i47,ss3 9pendnginconie_@>=C s i4i_m __s m6 sang months to complete. The Company presently expects to Add-0:her income, net 5,230 place Summer Sta tion in commercial operation in October 5W2 1983, subject to utisfactory completion and testing of Dn:erest charges , 1*L"""* ===== ===== ====s_=96, u i the modifications and the completion of power ascension W..
"6/
to 100% ofgenerating capacity. capital expenditures: Identi6able (Includes B. Westinghouse Fuel Settlement '", t ,I"y,'",orcamlina 3 s 186,871 s 71,947 s 44 s 258.862 h
= = = =
During 1982, the IRS determined that the cash proceeds Udlizedd~Cidm~paddrC= - 2.s u U'- - received as a result of the settlement in 1980 of the Toni s 26i,374 $E :s .. uranium supply law-suit with Westinghouse Electric - ,_ ; Corporation, should be treated as income for income Identifiable assets- /: ; tax purposes. The determined tax liability was paid in DQj,';,982: ,,t si,763.203 si70,631 s i,458 si.935,292 December 1982 from funds held on deposit. tnventories 71,947 7,847 176 79,970 / !I' Total si,835, iso si78,478 s i,634 2.0 5.262 ; ; C. Leases 4". Assets utilized for overall Company operations 179,i6s ;J". Minimum lease commitments as of December 31,1982 Toul aswts
= = = = = = = = = = = = = = = = = = = = = - = =
s2.iu.427 'M
%.x,9 under all non-cancellable non-capitalized leases are not material. The present value of minimum lease commit- ihg w y ,.
E
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued) 1"S t w 11. ACQUISITION OF CAROLINA ENERGIFS,INC. I""" In APril1982.awhollv-ownedsubsidiarv. oftheC amPany ponanon - u ntn< um a oa< h > ioul acquired all the stock of Carolina E.iergies, Inc. (CEI). Um,,..e s n,aro The stockholders of CEI received approximately $26.6 ( inn nne reu nun s sss in sin im s .. co s a n ;i: million in cash and 2,618 A00 shares of the Company's ' Munne nnene c ommon stock wit h a marker value of approximately S42.8 nau.ime .ieprn anon ana amonv non + 1, 2s r os4 som son ;1, million. U. I is a holding company engaged through its - n< prn unon and six wholly-owned subsidiaries in the purchase, transmis-amony nmn ,. s so s so , :"" '""" sion and distribution of natrral gas at wholesale and i oon.p< onne npensn o~ iss i s ; ,-- s.2 ; " "'" retail. retail distribution of propane ano other re'ated < ponne mo.nr aom s ins.soi s i soo s4 : s4, , . ' ' " " auivities induding oil and gas exploration through mu ( nbo mmnu . nn 21 nos joint ventures. in inmni u..acn s t s :"
'Ihe acquisition has been accounted for under the so n-me s s '* '
purchase method of accounting and the accompanying ( Pd Consolidated Statemem:, of Income include the results "P " e "ru n"i, " "" ' u<no sr,- so s i4s sn s:s of GI.s operations from date of a(quisition. I nhn a n,r mn u ( . .mpam opconon. i" The acquisition adjustment (approximately $39.9 h a .a s isoni million L included in Gas Utility Plant at December 31, wons - m ." 1982. is expeued to be amonized over a fony-year on ons" ' "
. eriod using the straight-line method.
t ohn pLm no % +_,.o > - s._ .
> t ,. >s 3 _ _ .,. 4 - .
u n~nn m ~ss s n,: ic on i s . Had the acquisioon of.UI been consummated as of u.a s ; w :n . s:ns ,so sim , so- ,nr the beginning ofeat h of the years shown below, pro-forma w unt an,r. acon ( on.p.u a on on, 1si no operating results. ududing amonization of the acquisi-tion adjustment. would have been as follows: i~.a m,o, si oss -. i i , k cq .n n i u e N oc _ 1982 losi
" :Th~a an I, ~t Ddars Iuns. < witto ,ivre amounto
[ k irT al h il' ( )}.rral;ng rn eflun $9lK),9?M jf 6,b()]
} ki rca (,, oa, h a lot .a ( 1p unne mi ome 149.0'3 11 C2 vs, i b..v , ( h her mi, >n a net ".016 21.226
( ){ ir r a ' ;l . L t\tnun % # d) *t ' i>4, 3 ,,' } (),i l '4f S ' 'WC ' crirmrntt ugn 1%.089 19)JPm No miome 9',292 82 4:6 Y 4"" E I""I' 16.3'l 14.24s ama m ~ , e r o n
- ..m.- , ., mo o"""" c w"*
h 'r o 'nunon 4 s k $ 80.921 s M.bl Depn, , < ,n a na
.c n. , n / t n a si 41- .' i l s* # __
g ngh,ca ncoer numh r of 5 .% ".
- I: a.a per nne mpt r,sc s ^. in; e < 29 4
' ,s + < ,mmon slu rcs .ut a.n dne u n i t 45.194 in 5s
[
,.,n - c oo < s - so s- s .. , ese i nnnespe a.m + ommenso,t s2.30 s: 22 ng s x~ b ', ' .\d i b: , r au .nu n<t i In In r rn ex cl ef jk . % . n , nu .
f uren s < ix' ,b
,,w,.yk 4 } '
( ap; .a r x p< n.h t mo M-b 5cill ;I ._ % $6* s b' ' ' 51I '
. *. ) y[ 9 ,
l i sh
- x 19'^'
( -
'Qig.'
(f I;/t .) f . . 6( r 1 ( . flij u!!i , f af h af R ho a 5 ; ; la e abh i < t- 3 .._,9.6, ' is - ~ . gg 3 e2 {r s ,ag p, s , e s - s , s ,
~
kn: nr r u w. u , L. s m 3s s 4. s > - r...e..i_' r
.\ss 1 s. !( 1,; an. :n*i .
' 1' I i i < _
42
r w
- 12. QUARTERLY FINANCIAL DATA 1+1 I""
- na ihua iounn (UNAUDITED): .
ouano o'u ."m er < >uan er
' o'uaner im.a Tne following data ha e not been audited. but in the gu gc ,,,
, opinion of the Company include all adjustments hon- rnenues moo i sr w so si2 s2r so srsnos s in u; i sisting only of normal recurring auruals) necessarv for a " P = "e
. s om ino,mc a m en 4% ss .us s 2n oss o n,os fair presentation of such amounts. Amounts for the set- % mm,mc , my m, ;n y n os; 3, ond. third and f,unh quaners of 1981 have been restated armne .mme 1 "" "" m'""
to reflect the effect of an clearic retail rate refund. sn = k u inm '_84 1 ,. 610 2 nis s. 42 s el n;s ( (see Note 2.) urmnp y, ,n, of t ommiin sh = k 6s 69 i 2s 2 19 - 1982 __ __ _ first second Thm! tounh Quaner Quaner Quaner quaner Toui
- 13. ACCOUNTING FOR CHANGING PRILES Toulm w ing (UNAUDITED)-*
resenues UNM)) $200l'1 $19'.256 $232.385 $229.224 $859.046 In comphan(e WMh Finantial Accounting Standards Board f Operating income Om 35.ux, 28.832 44.c4 38.5si i c.5s3 Statement No. H. " Financial rep > runs and ChanSi r5 p 96.121 Net income 6)oo) !1.933 16.062 30. 83 26.343 Earnings available Pnces,, the Company has prepared tenain supplementary for common [inan(jal statement data in tonstant and (urrent dollar 5
- stock g)00) 19.425 11.898 26.416 22.011 '9. ' 5n Earnings per share (as def ned). See pages g,6 and3 , for constant and current
=- of canmon snxk u 34 '4 60 2 42 dollar supplementan hnanual statement data. REPORT OFINDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS F 6 - South Carolina Eleurk & Ge Company: We have exammed the Consolidated Balame Sheets and Finanual statements. that matter he now been resoked and the % Conna.acd Statements of Capnabzanon of South Carohna 1981 ( vnsoiidated Finanual Statements base been restated Electrit & Gas Company and consolidated subsidianes Auordmgly, our present opinion on the 1981 Consolidated [ (" Companies") e of Dnember ;1.1982 and 1981 and the Finanual Statements. e exprewed herein is different f rom that 5 related (ensolidated Statements of Income. Retained Eamings expressed in our previous repon l- and Changes in Finanual Position for cat h of the three years in in our opimon. subjeu to the effeus. it ant. on the 19S2 the penod ended Detember 31.1o82 Our exanunanons were Consohdated hnantial Statements of final determination of the { made m auordance with generally auepted audmng standards matter ref erred to in the snond praeding paragraph. sut h
- and. auordingh. mtluded suth tests of the auounting records ( nosohdaied hnanual Sutemen's present taith the finanual E- and such other audinng pnxedures e we u>ns;dered nuessan posnion of the ( ompanies at Dnember ;1.1982 and 1981 and the resuhs of rheir operations and the (hanges m their tinanual h in the tin umstances.
posmon for cath of the three scars m the penod ended Dnem-As explained in Note 2 to the Consohdated hnanual { - Statements.1982 eleont revenues milude amounts whk h are her 41.1982. m tontomun w1th generalh aucpted auounting subjeu to refund pending the outo.me of a rate hearing before pnnuples applied on a ionsistent her. , the South Carolina Pubbi Servke Commiss.on b In our report dated Februan 8.1982. our opinion on the Inst Consohdated I manual statements we quahtied a bemg h D y {M subjeu to the effn ts. if anv. of tinal determinanon of a reques Di u in n iles & Si u s G/um/w Luta Oro/ma ., 2-? for electrh rate increa.scs filed ulth the South (:arohna Publii Rervke Commission As explained in Note 2 to the ( onsohdated Rhruan ' N s %. e
.P(-
e ,, , i
'e g
- 4. p.
m - r 13
SELECTEDFINANCIAL DATA SOUTH CAROIJNA ELECTRIC & GAS CO3tPAhY 1982 1981 1980 1979 1978 1977 I 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 (coacn) 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: Fuel used in electric generation 214,617 234,243 2N,948 185,624 184,047 155,132 45,440 Gas purchased fer resale 220,502 154,502 121,642 110,702 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 amonization 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 711,453 636,0N 537,898 461,741 411,350 353,620 140,566 Operating Income 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 - - - - - - 6,230 Equity 6,618 4,530 6,003 16,608 18,340 16,610 - Other (1,388) 16,565 12,F05 10,348 10,935 8,956 2,197 Total Other Income 5,230 21,0M 18,898 26,956 29,275 25,566 8,427 Income Before interest Charges 152,813 131,403 111,746 107,028 IN,026 97.338 48,244 Interest Charges (Credits): Interest 96,211 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 Stock 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 Weighted Average Number of Common 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 Declared Per Share of Common Stock $1.92 $1.82 $1.74 $1.68 $1.62 $1.56 $1.38 Percent of Operating Income (loss) Before IncomeTaxes: Electric 98 101 95 97 94 94 88 Gas 5 2 8 6 9 8 14 Transportation (coach) (3) (3) (3) (3) (3) (2) (2) Note: 1981 Restated; 1982 includes amounts subject to refund -see Note 2 of Notes to Consolidated Financial Statements. musname
1982 1981 1980 1979 1978 1977 1972 _ Balance Sheet Data (Thousands ofDollars Except Statisk 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 $ $45,941 $ 486,158 $ 449,397 $ 417,471 $ 266,813 $201,827 Preferred stock: Not subject to purchase er sinkirig 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 7 long-term debt (excludes current portion) 854,M4 764,971 731,007 672,958 641,457 585,307 313,441 Total Capitalization $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)(Thousands) 36,526 29,690 26,261 24,195 22,440 20,359 11,679 Book 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 9,845 Residential:
Average annual use per customer (KWH) 11,712 12,183 12,580 11,627 12,269 12,146 10,324 Awrage annual rate per KWH $.0656 $.0577 $.0499 $.0464 $.0437 $.0412 $.0221 Generating 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 i Sales (nousand Therms) 590,257 493,305 506,528 545,387 501,273 468,786 433,933 Residential: Average annual use per customer (therms) 570 66) 682 684 751 734 714 '. Average annual rate per therm $ 56 $.49 S.44 S.34 $.31 $.26 S.16 _ Transportation (coach): Number c,f Coaches 104 104 102 95 96 96 102 Revenue Passengers Carried (Thousands) 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 Notes to Consolidated Financial Statements.
.s 35 s
SUPPLEMENTARY FINANCIAL STATEMENTS ADJUSTED FOR CHANGING PRICES (UNAUDITED) Financial statements prepared in accordance with generally accepted he current cost amounts reflect changes in specific prices of the Company's __ accounting principles have traditionally provided a quantifiable basis for property, plant and equipment. Le data presented were developed in assessing financial results. Because these reports reflect dollars of varying accordance with the partial restatement provisions of Financial Accounting purchasing power, the traditional financial statements are not designed to Standards Board Statement No. 33, and are not intended to adjust actual fumish data nuessary to evaluate inflation's impact. De following constant reported eamings nor do they provide a basis for income tax reporting dollar and current cost supplementary financial statement data are presented or rate-making. . in an attempt to provide certain information regarding the estimated effect See the accompanying Notes to Supplementary Financial Statements ofinflation on the Company's operations. ne constant dollar presentation for additionalinformation. indicates the estimated effect of the general rate ofinflation on the Company.
SUMMARY
STATEMENT OFINCOME ADJUSTED FOR CNANGING PRICES Forthe Ye.rrEndeJDecember31,1982 % Historical Cmt Constant Dollar Current As in Average In Average Reported 1982 Dollars 1982 Dollars (Thous.mdi ofDolbrs) = Optrating Revenues $859.036 l 5859,036 $ 859,036
- Expenses:
Fuel used in clatric generation 214,617 214,617 214,617 Gas purchased for resale 220,502 220,502 220,502 Depreciation and amortization (a) 43,406 101.902 110,127 Other operation and maintenance 181,293 181,293 181,293 Income taxes 51,635 51,635 51,635 Interest charges 56,692 56,692 56.692 t Other income, net (a) j (5,230) (5.474) (5,442) Total expenses, net 762,915 821,167 829,424 l _ Net income l $ 96,121 $ 37,869(b) $ 29,612
===t 4-Inflation adjustments: !
Reduction of plant to lower recoverable value $(31,923) $(109,154) Unrealized gain resulting from decrease in purchasing power of net monetary liabilities 75,051 75,051 Increase in current cost of propc ly, plant and equipment (c) $ 87,636 Effect ofincrease in general price level 171,533 - - - - - + Increase in general prices over spaific prices 83,897 ;
!nflation adjustments, net l 43,128 l 49,7N =7
=y-_=_-------=-=a--- y_
- Net income after inflation adjustments- . _ - _ - - 1 $ 79,406
-__- - G -
g__ i
$ 80,997=_d' _,
(a) As permitted in Financial Accounting Standards Board Statement No. 33. items in the summary statement ofincome, other than depreciation expense, were not adjusted. (b) including the reduction to net recoverable cost, net income on a constant dollar basis would have been $5,946 for 1982. (c) At Dac'mber 31,1982, the current cost of net utility plant was $3,957,225 while net historical cost or net cost recoverable through depreciation was $1,952,062. i 9 s
- ~
T= 36 _s . .
FIVE YEAR COMPARISON OF SELECTED SUPPLEMENTARY FINANCIAL DATA ADJUSTED FOR EFFECTS OF CHANQiNG PRICES (AVERAGE 1962 DOLLARS) c Years Ended December 31, 1982(b) l 1981(b) I 1980 l 1979 l 1978 (Thousands Ewept Per Share A mounts and Consumer Pnce inJex) Net income (excluding net inflation adjustments, other than depreciation):
$ %,121 $ 75,883 $ 63,700 $ 55,681 As Reponed Constant Dollars 37,869 25,802 26.027 30,365 29,612 15,803 15,232 15,972 Current Cost Income per share ofcommon stock (after dividend requirements on preferred stcxk and excluding net inflation adjustments other than depreciation):
As Reported $ 2.32 $ 2.19 $ 2.02 $ 1.84 ~ Constant Dollars .63 .41 .44 .59 U Current Cost .39 .06 .002 (.01) .
- g. ___
GeneralInformation Operating revenues:
$859,036 $746,312 $630,746 $541,813 $486,101 As Reported Constant Dollars 859,036 791,837 738.821 720.328 719.142 Unrealized gain resulting from decrease in purchasing power of net monetary liabilities 75,051 101,802 144,675 160,190 - .
Net assets at year-end at net recoverable cost (a) 686,072 5cA1,852 573,211 593,757 i increase in general price level over specific prices 83,897 113,434 (14.623) (95,278) I Cash dividends declared per share of common stock:
! - 9 As Reponed 1.92 1.82 1.74 1.68 1.62 Constant Dollars 1.92 1.93 2A1 2.26 2.40 hlarket price per share of common stock at year-end:
As Reponed 18.00 15.00 14.25 14.75 17.00 Constant Dollars 17.80 l 15.41 15.95 i 18.56 24.21
) g_ _
Average Consumer Price Index (CPI-U)(c) 289.1 l 272.4 246.8 j 217.4 g 195.4 _-t a (a) Excluding preferred stock (subject to purchase or sinking funds). (b) 1981 Restated; 1982 includes amounts subject to refund -see Note 2 of Notes to Consolidated Financial Statements. (c)1967 = 100. NOTES TO SUPPLEMENTARYFINANCIAL STATEMENTS
~~ .
- 1. Plant and equipment he data adjusted for general inflation were 4. Reductions of plant to lower recoverable value he rate regulatory determined by convening 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 purchasing power using and equipment. Herefore, the value of the plant and equipment deter-the Consumer Price Index for All Urban Consumers (cpl.U). His 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 cest. Le current cost data reflect the cost of currently replacing existing 5. Unrealized gain resulting from decrease in purchasing power of net plant assets. %ese costs were determined through use of the Handy monetary liabilities The 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 cfinflation methods tailored specifically to the type asset being restated. Even so, because these items will purchase less at a future date. Altematively, by replacement of some existing plant and equipment will take place over a incurring monetary liabilities, primarily long-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 he 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, This 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 changmg value of the dollar.
between gross plant and accumulated depreciation by functional groups 6. Increase in general price level over specific prices This results from the on a historical cost basis at December 31,1982 and 1981, to the respective value ofthe 9 articular plant and equipment held by the Company increasing balances of the restated depreciable plant. at a lesser rate than the rate of general inflation as measured by the CPI-U. ;
- 3. Depreciation expense 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 lxx>ked depreciation nominal dollar *. Regulation allows the recovery of fuel and purchased gas to the restated depreciable plant. costs through the operation of adjustment clauses or adjustments in basic rate schedules r, actual costs.
37
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-' . : 3 .
, 1-_ _
DIRECTORS AND OFFICERS DIRECTORS J.% iddy J. F. IlassellJr. J. B. Rhodes J. A. Warren
- Pt . dent, Addy Dodge,Inc. Chairman of the Board and President President, Rhodes Oil Company. Inc. Piesident and Chief Operating Offker I.exington, South Carolina Pre-Stress Concrete Company, Inc. Waherboro. South Carolina of the Cornpany Charleston, South Ca:ahna Columbia, South Carolina W. B. BookhartJr. J. E. SchachteJr.'
Partner, W. B. Bookhart Farms F. M. Ilipp* President,S(hachte Agency,Inc. Anhur M. Williams Ellorce, South Carolina Chairman of the Board Real Estate and Insuran(e Chairman Emeritus The Ubeny Corporation Char!cston, South Carolina South Carolina W. R. Bruce' Greenville, South Carolina Electric & Gas Company Chairman and Chief Executive Officer Virgil C, Summer
- Columbia, South Carolina The Seibels Bruce Group, Inc. Asram Kronsberg Chairman of the Board and Cclumbia, South Carolma Prmident, Eds .rdi, Inc. Chief Executive Offker Oct S. Wooten Charleston, South Carolina of the Company Executive Vite Presiderc-Finan(c K. W. French Columbia, South Carolina of the Company Retired Plant Manager J. II. Lumpkin Columbia, South Carolina E.1. duPont de Nemours & Co. Of Counsel to the firm of Boyd, W,11. Taylor Savannah River Plant Knomiton, Tate & Finlay Chairman of the Board and President DIRECTORS EMERIll Aiken, South Carohna Columbia, South Carolina Twin City Motor Company. Inc.
Batesburg, South Carolina D.11. Banks J. B. Guess ill F. C. McMaster. W. B. Bookhan Owner, Edisto Farms President and Manager W.J. KeenanJr E. C. WallJr. Denmark, South Carolina Winnsboro Petroleum Company President Edward Kronsberg Winnsboro, South Carolina Canal Industries E R. McMeekin B. A.Ifagood Cons ay. 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 Colonial Development Company Beaufort, South Carohna
*Atember ofthe Erecutive Commatee 38
a OfflCERS V. C. Summer VICEPRESIDENT AND D. E. IlayJL 0111ER 01fICERS Chairman of the Board and GROUP EXECU11VES Customer Operations.
. Bryant Chief Executive Offuer 11. G. BoylstonJr. Northern Division ,
(62)* [45]t Rate Regulation and Purchasing (58) [32} ^ (61) (37] (58) [37) J. A. Warren J.W. Iluggins gggg p President and T. M. Groetzinger Propeny Management Tr Chief Operating Offker and Faulines Planning Accounting and Computer Services (57) [30l (57) [25] (33) ggoj (@) [13} R. W. Stedman Parn. cia T. Marcorsis EXECUTIVE VICE PRESIDENTS B. M. SmithJr. g g- Gosernmental and Regulatt y Affa,rs i C J Fritz ( [)]24) (35) III Cathy B.Nosinger ASSISTANT OFilCERS rat ain us O r ons Betty C. Bissell O a f (57) I35I A55**"' S*'Y (63) '44] (50) [25) E. C. Roberts J. W. Wedding
'*" Ger.cral Counsel Corporare Planning and J. G. Black 11 9 *"g;gj Management Services (45) IIll Assistant Treasurer (57) [13] (44) [19]
W. B. Timmerman SENIOR VICE PRESIDENTS fi"* '
- 11. W. Weldon liarriest M. Gardner Automotive and Transir Operations (36) [4] Assistant Secretary E. II. CrewsJr.
Engineering and Construction (61) [36] , (48) [26] (60) [36] Power Supply $, g, ggog,,, _ VICE PRESIDENTS G II.Fischer (45) [0] Group Manager and Assistant Secretary legal and Governmental Affairs G.J. BuuwinkelJo (50) [22] Customer Operanons. ASSISTANT VICE PRESIDENTS (59) [23) Southern Dmsion T. R. Ude M. C.Johnwn (34) IIII ' Assistant Treasurer Special Assignments (57) N V. R. CowardJo [24] (63) [43) Corporate Communications T. C. NicholsJr. (44) IIII g , Power Operations (46) [26) (54) [30] G. C. C. roftJo Tranmission and Distribution Engincenng B. T. llottonJo Finance CAROLINA ENERGIES,INC. - tor erOperations (57) I331 4 (53) l30] Max Earwtxxl President a General Manager a ations S.C. McMeekinJr. Assistant to the President ( (52) [12} 7 (40) [11] EXECUTIVE VICE PRESIDENT W.N. Ackerman ,._ (55) [331 VICE PRESIDENT AND TREASURER
*fage as ofDecember 31.198:) T. fl. llearn Y t[ years ofservice as ofDecember31.1962] (56) [24) %
w 39 ..
CORPORATESTOCKINFORMATION 9?mmon Stockfa) _ __ ._ ___ _ _ _982 1 ______ _ _ _ ___ _ _ _981_ 1 4th 3rd 2nd 1st 4th 3rd 2nd 1st Qtr. Qtr. Qtr. Qtr. Qtr. Qtr. Qtr. Qtr. Price 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 _ Iow 16-5/8 15 15-1/2 14-1/2 13-3/4 13-3/4 12-1/2 13-1/8 Divid:nds 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 Decemher 3_1. 1982 .__ .- 1981 Number of common shares outstanding 36,526,499 29,690,064 Number of common 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 - . _ - . 7.7b% 8.12 % - - . -_ 8.4d% -- li.0SoA 13.88oA 4.55% 5% d.72oA 930oA Wluation Price-Year-End 1982 __ - _ $62.557_ _ . $66.285 $68.571 - -
$98.00
- _ . $113_ 50 S18.367 $20.00
_. _ - -. $38.50-- _$38.367 SUPPLEMENTALINVESTORINFORMATION Annual Meeting and Solicitation of Pnnies h>rm 10-K Dnidend Reimesiment and Stock Purchaw Plan - - The annual meenng of snx kholders mill be heki at A iopt of the Company's 1982 h>rm 10-K repon as For information contatt: Scamell's at the fangrounds.1200 Rosemood Drise, filed miih the set unties and Ex(hange Commission South Carolina Eintri & Gas Company Columbia, South Carolma on Wednesday, Apnl 27, is asailable to stakholders upon request. Post Offi e Ekn 'M 1983. Proxies mill be requested for suth meeting and Columbia. South Carohna 29218 mill be sent to stot kholders in Marc h 1983 Statistical Supplement Attention: Saxkholder Relaiions Depanment it %) llus repon is i sued solely for the purpo c of pro. A tory of the Statistkal Supplement to this repon is - : vidmg information. li is not inter.jed for use in ton- asadable upon request nettion mith any sale or purthase of.or any offer or Please tall or address your request for any of the solkitaiion of offers to buy or sell. any su unties. abmc repons or mformation tonter ng finanu,al and operating data to 11 John Wenn 111. manager - -- Imestor Relanons. (80 3) ?48-32 40. E
.A 40 - -
SE
r CORPORAR INFORMATION Cumulative Preferred Stock: Trusice and Paying Agent Mailing Address The Chase Manhattan Bank, N. A. First and Refunding Mortgage Bonds: P O. Box 764 New York. New York Manufacturers llanover Trust Company Columbia. South Carolina 29218 ' New York, New York Corporate lleadquarters he South Carohna National Bank Columbia, South Carolina DividendReinvestment Agent 328 Main Street South Carolim Electric & Gas Company Columbia, South Carolina Registrars Stockholder Relations 9 03)748-3000 Con. mon Srock: Manufacturers llanover Trust Company The Company's common stock and 5 % cumulative Independent Certified Public Accounrants New York. New York preferred stock are listed on the New York S xk Deloitte 11a> Lins & Sells Exchange (NYSE), Company Stotk Symbol- SCG. Columbia. Seuth Carolina The Citizens and Southern Transfer Agents National Bank of South Carolina Common Stock: Cc,lumbia. Souti. Carolina Manufacturers llanover Trust Company New York. New York Cumulaive Preferred Stock: he Chase Manhattan Bank. N. A. He South Carolina National Bank New York, New York Columbia, South Carolina he Citizens and Southem South Carohna Electric & Gas Company National Bank of South Carolina Columbia, South Carolina Stockholder Relations (Record Keeping and Dwidend Paying only) r - 1
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