ML20087M850
| ML20087M850 | |
| Person / Time | |
|---|---|
| Site: | Summer  |
| Issue date: | 12/31/1983 |
| From: | Stedman R, Timmerman W SOUTH CAROLINA ELECTRIC & GAS CO. |
| To: | |
| Shared Package | |
| ML20087M848 | List: |
| References | |
| NUDOCS 8404020060 | |
| Download: ML20087M850 (43) | |
Text
{{#Wiki_filter:4 , , , , , _
- ' . N 'h N N N N V K %%%'h'WhhM- h T' ..m .a ,p p s,
- - ;' * =, , . ,
Q .. .) , :. %- .
\ ' '- p . .
, .,;fy$ Q.
..A
~
Q .. '*
^
. ~A _
.' ?.' .s . ' L
. M .'
. . . .. g.... .
. c '%ilt } . .. . , _
n kr' p . . . . . w} '
?. . ;- . . .
; ^ xg Q j', % 4. . . .
~
Q, S .
&&. &.. ;pggusasAnnuqReptR}
':. _ . ; ;. '. f;
- * ._}p .,
._ _ . [ a\, *__.s
-l . ' . ' ' 'l
,p. -,
^^
j ' .' / '. '. q
"] ; l .n , ?; - . 'c - ,.
- (4,#
,.3 .f ; .-
; ,...'.... s. *1
.>x
%9,, y . - < .c.sg
- i $ '"'4., t o'
, .N, %. ' ,
g
.. n - ' .Y 4 g- '- .'
. ,( ."/
ff , x: ; - iv . , , g ,_ c t : ,
.y .. ._
3. f .;.y j
,.--. ?'. f .g . .' '
f y, , y, p?[ . . .,)
. 1 .
wg .; .,.... 3 31 n. y2
!!! Ill , . gg.
4 < s c'
.e .. . e
.g
' ' '~
g,'.f I, gf gge [, -# ;. .
~
9 w. e x.y :
.~-.- . ~- - -
. S
. h.6 J b _ ' . . : . . . - ' .
.. ~.'
.Y
~ '
.$k TW h.; . . *t ,, . j
- e' . ..*
~ '. .;* j ' ~
..fy'? . ( ] ,
' y f .'.-
. . l .. . .
,c ; ,'; .
V n
. . w..
;.g 4. x.~
y
~
/ .
7 . y [.+. . [j~
. .. .. : . g. .
. s,. . e: - . .
, y ;,,,, ,_ . . .
' ' +.
s4 as R.i ,, s % --. J 7 #1 ' -
' .a' .
.~ . ..x.
F I/g ' 2
-- nw 3 - '.
.,.. S .
e g, ; . c.- e-. ..-. ._. p . ; ..
- ~
, ,. ., , . . - . ,** )' f '. n .4 .- , .,..
, c._.
'I
.e.
O
- p. . ~p .k $? S _ : l
'L (l
g _- l . , .
. . .*~ - ' ' '
?. # . .g# - -
, . u.- .:s .a s wN; : .: .. : - . w~. - -
[
, k%
' . 8 ..
,gjk,Nl.%"Y. ;. ...'- ..-{3
^
~
L : g i - ' . $ *y . , . ,
.L
.g qm W i M;; 43 w;
.gm m: p . n . . .
N -.k ' ~. ,c.. ,
- 1. .y z < g W.
- 4. .. .W 4 - , A : :; ' .
. ,.' ~ . .
my we[. .g/;.f:f
.. ..: z, .
,'.1.lY?.4
- (_l h'. . '. [.
.s .
~ .
s
- ,' ' "..,,.'-i... 7 1# ' . * . ' - . _' .' . - . *
- g, . 1.,,.'*.,,. .-.,..;.. ' -
_' ; * . , y k,} . +g
.e ' ' -
a . (' ' '
.'. ( ;. ..*
- j *' ' '"e- . ., g 29 : $~ r ..'_ . . , ..
3 9,&k% ' ';3 ' '. '* . ,& C5. '. '.. Y c'L.
...,.. b 5'-' _. .. ... . d
' .' e%.%'f/
.. ': y.
~ .
'.;_ '.l 1; ' $ ; \ f..' . ,Y . . ...;-.^I. '
f
'. .C: " e v
g
- y&g _g;.f,f '..' l .l . :.
- + , ,
m . . .y.
- 3 . _ .: ..
~
y'*'
..: ...;., : .v.
1 < m:;; 9. - . : 7;n a ~.u v s f -:. 6: _ . . . n .
. - . r ,:
'. ~. .
es # % _l
' # : Q. . 5:# ' y
~fs - ,
- ~ ^
.. . . . e
About The Company Table Of Contents page South Carolina Electric & Financial And Operating Highlights 1 Gas Comgny is an investor. " Report To Shareholders 2 bener tfon, r ns n i ss on istribution of electricity and in 1983 In Review the purchase, transmission and distribution of natural gas. The Financial Results 4 C,ompany also provides bus ser. Electric Operations 6 vice in tlie metropolitan areas of Gas Operations 12 Columbia and Charleston. The Company has approxi- Trans.t i Operations 14 mately 366,400 retail electric cus- Corporate Activities 15 tomers in its service area, which encompasses about half of South Financials Carolina. The Company also Management Report 17 sells electricity to f,ive coopera- Report OfIndependent Certified tives, three mumapalities and Public Accountants 17 one public power body which, m. turn, resell the electricity to their Consolidated Financial Statements 18 customers. Common Stock Information Natural gas is sold directly to 31 some 187,600 retail customers Management's Discussion And Analysis Of cust m rs y pu$cl na'tural Financial Condition And Results Of Operation 32 gas from the Company's eleven Selected Financial Data 34 wholesale customers. The Com- . . pany's natural gas service area Supplementary Finanaal Statements Adjusted For covers more than 80% of South Changing Prices (Unaudited) 36 Carolina. The Company als Directors 38 sells propane gas to approx? i-mately 4,200 retail customers. Officers 39 Stockholder's Assistance Guide 40 AnnualMeeting The Company will hold its1984 AnnualMeetin Stockholders at 10:00m.on a.g of Wednesday, April 25,1984 at Seawell's at the Fairgrounds, ABOUT THE COVER: V C. 1200 Rosewood Drive in Co- Summer Nuclear Station, located lumbia, South Carolina. Prox- nearJenkinsville, South Carolina, les will be mailed to our com- commenced commercialoperation mon stockholders in March. January 1,1984. Summer Station, a Stockholders who are unable 900,060 kilowatt electric enerating to attend the Annual Meet- facility, isjointly owned SCE&G ing should return their proxy and the South Carolina P lic Ser-promptly by mail. vice Authority.
1 Financial And Operating Highlights l > 7c Increase . 1983 1982 (Decrease) l \ (Millions of Dollars except , statistics and per share amounts) l l Financial l Earnings Per Share of Common Stock $ 2.29 $ 2.08 10.1 : J Dividends Declared Per Share of Common Stock $ 2.00 $ 1.92 4.2 i Total Operating Revenues S 974.7 $ 843.1 15.6 l Total Operating Expenses 5 824.8 $ 703.4 17.3 Earnings Available for Coramon Stock $ 86.8 $ 71.4 21.6 : Common Stock Outstanding: 1 Average (Thousands) 37,844 34,387 10.1 Year-End (Thousands) 38,728 36,526 6.0 Construction Expenditures $ 181.7 $ 200.1 (9.2) Gross Utility Plant $ 2,509.6 $ 2,411.5 4.1 Common Stockholders' Equity 5 709.9 $ 659.1 7.7 Book Value Per Share of Common Stock (Year-End) $ 18.33 $ 18.05 1.6 Electric Operations Electric Operating Revenues $ 634.1 $ 574.1 10.5 Sales (Million KWH) 12,063 11,490 5.0 Customers (Year-End) 366,424 356,709 2.7 Net MW (Year-End) 3,359 3,359 - Generating Territorial Peak Capability Deman d-NetliW _ 2,700 2,463 9.6
- Gas Operations Gas Operating Revenues $ 337.3 $ 266.4 26.6 Sales (Thousand Therms) 671,429 590,257 13.8 Customers (Year-End) 187,638 186,320 .7 Transit Operations
, Transit Operating Revenues $ 3.3 $ 2.6 26.9 l Revenue Passengers Carried (Thousands) 9,744 10,720 (9.1) l Note: Includes transactions of Carolina Energies, Inc. since April 1,1982. l Dividende Declami Earnhqtsper Common Shnre : Retum on Year-EnA (* . per Common Share I Common Equity (**=e> omecc) ; W W. 134 , c
-s.
}
.w. ;
M. y M a,te . bj m ass . te.
}
g { 1.M 1M
- m p ,
, s n
t.'1
,b, .
?
I
Fellow Shareholders: We are pleased to present this report of operations of South 3, . . .. A y s? f.3.t. AE f4 . ,. r t, .
^4 q - w.;;' W.c?
- mL - c 7.. % , t."
"...;:' '. ;s n Carolina Electnc & Gas Com- S.M X M '
.Y-9.0: : " ~? ' 5 ' J - Uo L. ' (S% W N%"N ' "~
any and the achievements of 983 that establish a strong foun- $ 1 i + 1
", : ' O .' '
dation for its future progress. The Company's financial condi- [1 J. v/E F ~?(~46*i- -. -' +f; .' -
^
7
- 4..g
>. , r .< s- %ys E h
- el'.'i'L 74 i l
~
tion registered improvements C w.;
.'j[h7f , ( a.
J <
- i during 1983. Earnmgs per com-d.@'3 r ]rg A 3: ,.,j l
mon share increased 10% to N m. , x..
. W, ,.M.., ' ~r "- . .. e
$2.29. At its January 1984 regular ..A L Y : 4 y j. N{i i '.- $} N./ ,, ' C ->
meeting, the Board of Directors #.? S 2.f # ' 4'? 4 : 4 .. , ijdk:q# gc' . [;d 7W0 C raised the dividend per common fv 4 & .4: g% v /.' 1'1g- [J % + .:Ef.
"'.J ~.
1.e # share to an indicated annual .. .- rate of $2.05, marking the 31st vear of the last 32 that our divi-f.
- 'e . T.)h.4 : ..
Ev45
/ ' ~
- TV
'- f J L., A 't .:
' end rate has been increased.
d [i.4 # i *C ' i k ,h~ - i . 4 f .c h
*. jl ,f Our newest electric generat-ing facility, the V. C. Summer w
i
+* ' 2 J i
'? -Q ; ' ,4 -J Nuclear $tation, reached 100% .? E O~ .~. . , S. s W "$ :s.
- 1. ' .
reactor power on June 10,1983 4 4 .
&s .] .- ,L oc< L $
and was placed in commercial @ q j )g .]V pW e
'1.p c - 947,' - - . . ..
operation January 1,1984. This .L 9 ?Q;-: . lg[" "
%ll plant is consistently meeting or a : N " -J.
J WN. f .1/..I l.
#jD. ~ ? ? "J*[F- ' I ..A
~
surpassing industrv and regula- ! S e tory standards, setting the f. R6 3 #$.pff .'.T' (f.Oc
- 1 Jg " , '. . p./
benchmark for its future Q Q' 4 $ .:0 A W Q. q .f operation. We were pleased to see the b
=.R .ggp '. ;Q,.
y;.~ - o* W. J.J. ' f Q .,. wg.7 3 '
. y.
, g c .. , '
p.g3 'dj 49lg (' g . c. n'- J. J M p " Company's successful efforts to-ward greater efficiency recog-nized m two significant ways in G* '* #" ( l4
+ ,~
1983. The nationally known nrv c smnm ans tan a tvarren firm of Cresap, McCormick and of thermal efficiency of the top lower-priced alternatives to netu-Paget, Inc. cited efficiency and 100 investor-owned utilities. ral gas in industrial markets and economy as strengths of 5CE&G The Company continued its recovered some of the market in its report issued at the comple- efforts in 1983 to hold the line previously lost. During 1984 we tion of an eight-month manage- on personnel and administra- will seek to continue to improve ment audit mandated by the tive costs through continuation our gas operations by further de-South Carolina Public S'ervice of a hiring freeze, implementa- veloping our customer base Commission. In the generally tion of an early retirement in- through an extensive marketing laudatory report, the auditors centive program resulting in es- program cited as benefits to our customers timated annual savings of about in another major efficiency effective top management deci- $5 million, overtirne restrictions move, construction remains on sions, staff reductions, innova- and the addition of 150,000 schedule as we convert our 580 tive approaches to securing nu- man-hours per vear at no extra
~
megawatt Williams Station from clear fuel, sound strategic and cost through use of a uniform 40- an oil-fired to a coal-fired plant. operational planning and im- hour work week. This project will be completed by plementation of management We have completed the move the summer of 1984 and is ex-systems and procedures. A into our new corporate head- pected to save our customers mil-n' umber of recommendations for quarters and expect higher levels lions of dollars in fuel costs over improvement have been imple- of employee productivity to result the life of the plant. mented or are already under re- from the consolidation of offices Hearings were held by the view by your management. previously housed at thirteen dif- South Carolina Public Service Fu'rther, our 1982 system ferent locations. Commission in January 1984 on heat rate was recognized by Elec- The consolidation of our gas the Company's request for an tric Light & Power magazine, operations continued during electric rate increase to cover the which ranked SCE&G third in the year. The Company aggres- operating and capital costs asso-the nation in its 1983 survey sively sought to compete with ciated with Summer Station's 2
l commercial operation. A deci- changes in regulation are of We welcome two new direc-sion is expected in March. A pre- concern because they limit the tors elected at the annual meet-vious electric rate order from the Company's opportunity to react ing of stockholders in April 1983. PSC was appealed by the Com- in a hmely manner to adverse Dr. Henry Ponder, president of pany in 1983. In February 1984 economic conditions beyond its Benedict College, and W. Hayne the South Carolina Circuit Court control. Hipp, president and chief execu-remanded that order to the PSC As part of our strategic plan- tive officer of The Liberty Corpo-for further consideration. ning process, we have put m ration, fill vacancies created by During 1983 the South Caro- place an issues management the retirement of Directors Fran-lina Legislature substantially program to increase the public's cis M. Hipp and Oscar S. Woo-changed the statutes which gov- understanding of the Company, ten. The Board regrets the death ern the regulation of public utili- its operations and its mission. in August of Director Emeritus ties. The new statute eliminated We have developed a compre- W. J. Ready. the practice of placing rates in hensive marketmg plan and A renewed sense of confi-effect under bond pending a de- have placed renewed emphasis dence is evident throughout our cision of the Commission. Fur- on human resources in the service area. Unemployment has thermore, a utility must now establishing addi- fallen sharply and prospects for w-it at least twelve months after Company,lity tionalqua training and eval- continued mdustrial develop-its last application before making- uation programs. We are com- ment look bright. We have the a new filing for a rate increase. mitted to fulfilling our social facilities in place and the com-In addition, the PSC must now responsibilities by remaining mitment of our employees to render a decision within six sensitive to the needs of the el- meet the opportumties of what months and five days of the derly, handicapped and other we anticipate willbe an exciting Company's application. These customers with special needs. and rewarding future. Sincerely,
- 1) -
C
?(~
Qw VIRGIL C. SUMMER JOHN A. WARREN Chairman of the Boardand President and Chief Executice Officer Chief Operating Officer February 15,1984 3
Financial Results . Earnings and Dividends Earnin s available for common stock in 1983 In Review Regulation and Rate l 1983 totaled $86.8 million, or $2.f9 per share based on an average of In June 1983 the South Activity , 37.8 million shares outstanding, as compared to $71.4 million, or Carolina General Assembly en- !
$2.08 per share based on an average of 34.4 million shares outstand- acted legislation that signifi-ing for 1982. cantly changed utility regulation The Company reduced its previously r ported 1982 earnings in the state.The practice of plac- i from $2.32 to 52.08 per share due to the Jul 1983 rate order of The ing utility rate increases in ef-Public Service Commission of South Caroli a (PSC). In that order, fect, subject to refund, prior to ,
the PSC approved only 39.6% of a requested $86.2 million retail issuance of a final order by the electric rate increase which the Company had placed in effect, PSC was ended. However, a util-subject to refund, in August 1982. The Company appealed that ity is not prohibited from put-deasion to the South Carolina Circuit Court, which on February 6, ting a re uested rate increase in 1984 directed the PSC to reconsider, amon_g other things, the rate of effect, s ect to refund, durin return on common equity granted to the Company. Earnings an appeal f a PSC rate order. g reported for 1983 reflect only the revenues generated by rates as The maximum length of time in approved by the PSC (see Note 2B to the Consolidated ~ Financial which the PSC is required to is-Statements). sue a final order on an electric The improvement in 1933 earnings was due to higher electric utility rateincrease application and natural gas sales caused by a recovering economy in the service was shortened from thirteen area, and weather which was more extreme than in 1982. Further, months to six months and five retail electric rates which were increased in the fall of 1982 were in days. With the elimination of the effect for the entire year of 1983. The Company's 1983 earnings ability toput rates in effect, sub-provided a return on year-end common equity of 12.2%, up from ject to refund, one month after 10.8% as restated at year-end 1982. A detailed review of sales, filing, regulatory lag which will revenues and expenses for 1983 is included in " Management's be expenenced by the Company Discussion and Analysis of Financial Condition and Results of in placing rates in effect was m-Operation" beginning on page 32. creased by five months.
" The new law requires utih,-
ties to give at least 30 days notice SCE&Gjf98J3gDollar to the PSC before filing a rate increase application. A utility's
, whee a comenem . iwhomawon; request for higher electric rates
. .s cannot be filed within twelve months ofits most recent filing
.as - e
= is.as date for increased electric rates.
h sm m. A similar twelve month waiting
/ : eEM period between filing dates ex-4 ists for natural gas and transit
- d. rate increase applications. An-( & other feature of the new law au-X thorizes procedures previously s
' followed by the PSC for the re-covery of electric fuel costs, in-
. cluding semi-annual fuel
. hearings.
- smenn.em.. :A. Ne w e=== smere8* *d ad Tlie Company's rate-making nesmines. . ... . . m ses aos - **=a8 =8 **'*"'"""'"
philosophy is to request rates
-.e es nessederman cemenmem ...y c. sass . isas. which cover the reasonable costs,
. mousew . ,.. . c. ins ; . .issa,; c == .
including the cost of capital, of
$.* ""* y[ 'Y fE aperenne and ensineenance p,roviding safe and reliable ser-econses vice to its customers. The follow-All ? Ita. - ,
.p o aissonendamorensoa . ing table summarizes the rate ac-
- a mm m.,= dom-moornm an -
H DMdonds for investors, and retained tivity of the Company for 1983. eenungs 4
Company Request Commission Decision Chart ? Annual Return on Annual Return on Sourres of Cash Requirrments Type of Date Amount Common Effective Amount Common for Constructios Service Filed (mdhons) Equity Date (mdhons) Equity _ beanesesne Retail Electric 7/1/82 $86.2 16.754 Wl/83 $341 13 24 t!) too Retail Natural Gas 6/13/83 $11.4 16.00% 9/2W83 $75 14.25 % ' ts4 Wholesale Electric 4/29/83 $15.9 16.75 % Pending Retail Electnc 9 6/83 $169.9(2) 16.00 % Pending tae [esN %pb) h EI
'yb (1) Appealed to the South Carolina Circuit Court and remanded to the PSC. _11e (2) If the effect of approximately $52 million disallowed m a previous rate proceeding iso as ( . . vg e.
currently in litigation is excluded, the amount of the rate increase requested r
.t I would be approximately $118 million. , soy]Q~. l x, kf '
For further inforrr.ation, see Note 2 to the Consolidated Financial Statements
' ~~
Construction and Financing Prograin As shown in the following table, cash expenditures for construction in 1983 amounted to Q % fj: 4 f
.p?$ J 4 p
$133.5 million, down 137c from 1982 and the lowest annual expend-iture level since 1980 (see Chart 2). The reduction was due mamly to (5 H h.
the windup of construction at the V. C. Summer Nuclear Station. 11 1 f, Cash Requirements b * (Millions of Dollars)
% Increase 1983 1982 (Decrease)
Construction Expanditures (Excl. AFC): Electric $116.8 $140.9 (17) _ - Prem EstomelSewees Gas 14.3 10.7 34 man From einemes sowee. Transit and Other 2.4 2.5 (4) Chart 3 Total Construction Expenditures 133.5 154.1 (13) Maturing Securities and Sinking Funds 32.2 100.6 (68) Common Equity as % of Acquisition of Carolina Energies, Inc. - 69.3 (100) Total Capitalization Total Cash Requirements $165.7 $324.0 (49) so The decline in total cash requirements and an increase in internally generated funds resulted in a significant decrease in the Company,s external financing requirements during 1983 (see Chart " 2). As a result, the Company was not required to sell any long-term I# ,& debt, preferred or common stock through a public offering during the year. The Company's external financing requirements were met * " ; p d through the issuance of approximately 2.2 manon shares of common ar , stock to articipants in the Company s divblend reinvestment plan m -u :O and emp oyee stock purchase plans. Short term capital needs were . satisfied hrough the sale of commercial paper. * ; h3 The Company anticipates that the majority of its total cash requirements dunng 1984 will be met through the sale of pellu-
- t. 1'd tion control bonds. Common stock issued through the Company's I y dividend reinvestment plan and employee e.mk purchase plans j; i 1- gA w
and internally generated funds will provide tne balance. The Com-pany anticipates that short-term cantal needs will be satisfied g ; ~rq through bank lines or the sale of commercial paper by the Company y j fj and its fuel subsidiary. i h At year-end 1920 the Company had increased the equity compo- i i i i i nent of its total capital structure to 42%, up from 397c in 1962 (see Chart 3). Fixed charges coverage, another important measure of a company's financial condition, improved to 2.82 times in 1983, up from 2.34 times in 1982 (see Chart 4). The Company's long-term objective is to achieve and maintain a fixed charges coverage ratio of at least 3.5 times.
v 4- m.: Cnan 4 ,-. 4
. .., .g, y, a-% a . ;,
& a %, ,2D,,
I ~' ' '
'.y"..' *l '..
Earnings Coverage of Tixed : Charges-SECMethod ; > * ';; ~ ':. '.] .'&,1
- 4. '.lf- 4
- ' Q:
~'
]..k, Q :.j, . A. _%
p **$ (b6seecometams) , ..,.--~ . ' .. . .. p.- f , / 4%- , ., . ,
,f .: ;' ~~[} ;AA' M' :.,8',
.;._ .,r _ .: _ j;f.... ~.
^ - ,
.: , .v, , .-
)s_ .[ s
" -Q: ^' -
ki[ -
. . _ , . . ,e ; -- .
x.go ,. , . ; i. l y f-; _7, _ g.
- e. s..
- 4. .
f 4
^
y-
~- .i ' .; , ,
s.se , i l ;- F [ , [* [ , ?.[. ? S.no 3 %. . . -
~_l,
' 3.24 y
^
w.,,,,.
. y a. ; ,[ ;'~ j [. y.+,' '
* ^- A a
- h , .' -- Gs, ; . , . *l:; Vt % . } .V :<
cff ,. , : ,l- ;. _[
. - s .. ' ,-j g
'h ( ... ',7 y . ' p 4 , '. '. . .$' , , . ** J ~
. , . -d*. , , . , ';.c.' _T e .
,t
_ ; y x y L :.; z
. ]) t ,6., .;::. ~ ,, % t.7 / S.l_'-( :. ' . s ,5',;
at 1 1 SCF&G's anumated Captasn Volt series of Interactris exhtlnts are an educatnonal hagh-adterttsements has teen urll recetted as an lught forhundreds of tour groups vissting tite effectits twhici,* in teaching chudren alvut Nuclear Trauning Center located near the electric safety V C Summer b,uclear Station Electric Operations Sales and Customers Sales of electricity in 1983 totaled 12.1 billion cnan 5 kilowatt-hours (KWH), up 5% over 1982. The higher sales were due Average Annuat use primarily to improved economic conditions and the hottest, driest per ge,ig,nti,f Electric Custonner summer since 1954. Sales of electricity and number of customers by ' o*====>. class are shown in the following table: 13,ose Number <,f Customers I 18 888 Sales of Electnatv (Millions of KWH) (Year-End)
'l increase gg, .
Customer Class 1983 1982 4 Increase 1983 1982 (Darease) . Residential 3,787 3,620 4.6 319,808 311,919 2.5 ,,, Commercial 2,949 2,855 3.3 43,703 41,885 4.3 ' , hJ Industrial 4,151 3,898 6.5 809 811 (.2) 11,e27 Sales for Resale 818 771 6.1 11 13 (15 4) 13: Other 358 346 35 2,093 2,081 .6 1 g 'p Total IT,E3 IT I90 5.0 TM TH T9i,709 2. '7 0-g ]3 N
~
At year-end 1983 the Company was serving 366,424 electnc p- 0 customers, a 2.7% increase over 1982. Current projections indicate e 6 that the Company's total electric customer base will grow at an ' average annual rate of 1.7% through 1988. Total sales of electricity are F (i projected to increase 2.9% annually during the same period. Ave'r- k N age annual use of electncity by the Company's residential customers b rose from 11,712 KWH in 1982 to 12,009 KWII in 1983 (see Chart 5). 1 teso i .ise . ises. 6
u-Nuclear Operations On Janu- the three months of outage for made by management and oper- r ary 1,1984 the V.C. Summer Nu- the steam generator modifica- ations personnel at Summer Sta-clear Station began commercial tions and inspection. The unit tion have been recognized operation, culmmating more achieved each plateau in the throughout the nuclear industry. than ten years of construction, power escalation and start-up licensing activities and testing. program in a shorter time period ;t-- f '. ,7
~n Summer Station was built in than the average of the nine
, j A. ; -
conjunction with the South Car- most recent nuclear units of olina Public Service Authority, similar design. A 1983 capacity f...;. A. . - which is responsible for one-~ factor of 54.9% and a unit avada- : .. M t i : ' third of the plant's construction tiility of 71.2% reflected above- p . p if . and operating costs and receives average performance for a new 17 y .= ;? . y .,f. ;f one-third of the plant's 900 mega- unit. '7 gpg- p 4 watt (MW) outnut. The total com- Graduates of the SCE&G Nu- -fr e 5 fegm y ' . 4 pleted cost of 'Iummer Station, clear Operator Training Program t - Q ? + <y < - - meluding allowance for funds have achieved an operator hcen-construction, is ap- smg success rate in excess of .;,. y:w.e y j .%+Q, . @ a s.~ used dunng$1.3 billion, or about proximatelv 905 During 1983 the Compa- M? ^M* '" M. s., e ,it i S1,426 per kilowatt. The Compa- ny's nuclear operations experi-ny's share of that cost is approxi- enced a personnel turnover rate - " ' + ' *f . v mately $851 million. of less than SE This rate com- This stacker and reclaimer is mrt of the coal in November 1982 the Com- pares very favorably to the gen-pany received a full-power oper- eral industry rate for nuclear units. handling " *' '#'"'" f' " # *#' '""" ~ f,*dfperat n [uirment installed in the conty atmg license for Summer Station The Company recently en-from the Nuclear Regulatory hanced its nuclear operator Coal Conversion The Compan Commission (NRC).The license training program with the addi- is converting the ten year-old, y restricted initial operations to tion of a simulator which dupli- 580 MW Williams Station from 50% of total power until correc- cates the control room and sys- oil to coal-fired operation. The tion of a potential vibration tem response at Summer conversion began in November problem in the plant's three Station. It will be used in the 1982 and should be completed by steam generators that could have training of operators and other June 1984. Although Williams caused interior tubes to wear technical support personnel. Station is the Company's newest prematurelv. In the spring of During 1983, both the NRC and most efficient fossil-fueled 1983, the pfant was shut down and the PSC-selected manage- steam plant, it has opecated in-for two months while the gener- ment audit team reviewed the frequently in recent years due to - ators were modified by their sup- Company's nuclear operations. the high cost of residual (No. 6) plier to correct this design prob- Each audit cited the Company for fuel oil. Contractors are convert-lem. The plant achieved 100% of above-average performance in ing the plant under a $118 mil-reactor power on June 10,1983. specific areas, and contained lion fixed-sum, turn-key con - It operated at or near that level very few recommendations for tract. Payment for the untilit was taken out of service improvement. The achievements conversion is not due until De-on November 23. At that time, . cember 31,1984 or final accept-plant personnel verified that the - : 1 '"*% ance of the plant from the con-(f tractors, whichever comes later. suppher's modification had been successful, and that no unusual 1 9 The Company expects the wear had occurred on the tubes
~
c~
' s' conversion to save its electric inside the steam generators. The -
1 s customers millions of dollars in
-~
.17 unit resumed normal operations . - - -
, fuel costs over the remaining life on December 14. A two-week 4 #m N .
of the plant. The plant can be outage is scheduled in the spring %.. ,, . y' ..) J' % switched from coal back to oil of 1984 for maintenance and i /8.L ~ > ' 4 operation within a short period NRC surveillance tests. The first 7l N ,, .. . ia . . *. of time should conditions war-
;g.
refueling outage is scheduled in -
-: rant such a change. After its O
the fall of 1984. _ er - conversion, the Company will The performance of Srmmer - 44 ' [2 utilize Williams Station as a base-Station during 1983 was well load generating plant, thereby above the industry average in j,, ',"f'"$c','."" ., Q[ypj";i'""'dMcd ,, improvmg the Company's over- , every category, notwithstandm, g in 1983 and allows comprehenstry handwn all generating and transmission the initial power limitation and em rience for plant operarors efficiency. 7
)
5 4 4 i j Peak Dernand Territorial peak demand is the maximum requirement cn,n 6 for electricity placed on the Company's electric generating system by Electric TerritorialPeak Demand e its customers (exchidmg other utilities) dun,ng any one-hour peno(f. %4 e The 1983 peak occurred on August 22 during a period of sustained _ hot weather throughout the Cc,m , customer demand reached antime all record pany'speak service of 2,700area. MW, Onupthat day, 3,ree -
~
9.6% over the 1982 summer peak. During the previous fi'.e years, the f 3 territorial peak demand had grown at an average annual rate of
"]" ,
'#: '8" 2.1% (see thart 6). _"
4 3 $ The Company bases its plans for the construction of new n,es: L i i f{
" ]
electric generating facilities on the projected growth in the annual ! G - u " territorial peak demand. We currently expect this demand to grow at W- 2 a 2.5% average annual rate through 1993. The Company presently anticipates that no additional base-load generating capaaty will be pIf - needed until the early 1990's. ,,q r - Cencrating Resources When the V. C. Summer Nuclear Station be- ; a gan commercial operation on January 1,1984, the Company's peak generating capability rose by 18% to 3,959 megawatts. Four coal-fired $j lants represent 42% of that capability,17% is in two oil-fired units, , E - [9% in six hydroelectric units, and 15% in one nuclear unit. The
" d =
remaining 7% is made up of sixteen internal combustion turbmes q ; 4 5 and one combined cycle generator which burn either No. 2 fuel oil ' or natural gas. When conversion of Williams Station from oil to coal- G q fired operation is completed in mid-1984, oil-fired units will repre- i isei _iesa issa sent valy 2% of the Company's generating capability. { In 1983, coal-fired generation provided 71% of the Company's y total generation, nuclear power 22% and hydroelectric sources 7% (see Chart 7). chan 7 3
' 1
*~ ; Soura s ofE'ectric Generation
~
r q v: , , . b wg - M j y, ,, MC i
! i. :
_ 1eTe , , . g g( l ines - yW ,
;gg on -
7
LM M
* ' L1! ~'
^'
Biologists and health phyncists carefully
' Q Hyhoeleceria .
. monitor all aspects of the environment to ,
+i % .
g m go, assure that operattons at Summer Station meet 1 or exceed federal, state and local regulations. 8
-r
_ E I m_ t
% . - c- ~
ffficienct/ South Carolina Elec- 1' N p Mh4 29Cbeh h%;ww. Ma.4 g, tric & Gis Company had the na-tion s third most ef ficient fossil-g LCC ;7N , ym 5
- fired electric generating system 3-w
, p;mqj p~ . ; e
- q' ~ .ggyg, ~ ~ '
m 1982, according to the most recent annual survey conducted ' 5 by De:tric Light & Pdwer maga-
' ~
zine. The Company has ranked - in the survey's top ten in six of -.
- y- ... the previous seven years. The -%
< ' ^~%$, survey compares th~e heat rates of -
the nation's 100 largest electric 1 v utilities. Heat rate is a standard measure of the efficiency achieved m convertin one form McMeekm S*2 tion contributed reativ to the Co ny's being ranked third in the nation in the the nal effaciency of its elec ric generatmg fac ities during 1932. Og energy, sucy as coa , oi} or ; natural as, mto another form of - Figure 1 ener v - electricity. a e 1983 Cresap, McCormick TotalfossilProduction Expenses rewoo.r m a. w .m - and Paget, Inc. management t
. - audit report referred to the Com- ,
pany as a " national leader in ower plant production per- ; ormance" and stated that the A
~ operating performance of the f
' , Company s generating plants i continues to be supenor." The report also commended the i a
Company for having " fossil J r 5 b - - -,, plant and transmission operat-mg and maintenance expenses
, O. well below the average of other =4~
southeastern electric utilities" x 7- .,.- , .,. , , ., , (see Figures 1 and 2).
~; 1s'rs E 11s're3 < L is'r t / > the' 11e'7s; ' 1s'so ~
1s'st -- is'e2 :
- y. s. 3a 7 c gs '.
~
s m neshnesAmorese iEn:3sceso ; Ais ~ - . .
~
. w ooootea m -
&~ ~
.;f
~-
Electic Exchange Utmos - I g 5 .- ( -
,qv v -
O -.- Figure 2 , 4 .. . . . , J. 49. <
'4.* c+>^
... i Transmission Operation & Maintenance.-Erpenses .. . .. L. ;.x ;<
<c,,, ,,,, m g - . ~ .
. . j# ....,.g.
j.j u w y,, ,
.A
- . .h, - i ~t * -
" i
~xv~ c .
r- < r Ye L. g e..-.;... ; g; [_. _g
- i v.Pf ; ,v, L,;4 _
,e
, .s -
+ a- ,
, , ; .:m.+ . - . -
em, , , 4,. ,;; y , Vg - ;o T y $ .. d.'.' l
~
Owen Electric Steel Company. an electric A
' ~
f- and natural gas customer of the'Compan.v. o,gg . -- manufactures reinforcing steel as well a> un- " qw gles and smooih round steel oxk. -; _ ,~.-s ,
).
v
. i i
i i
-s J1975 I g 1978 i ,J1977-.4 ~ f.1978 c.. (1979, i1980 ' . 1981 1982
< ~ . ,
. b-mT f -
i: 9 FT"'~4 Arorage of 7 i-./.;~.1..v tMes u as selected .
- - ' - by the rnanagernent audit ferrrt P
3 1 m e 2m
=
Fuel Supply During 1983 the has been struggling to propose a energy audits, of which 561 were ] scientifically, economically and Company's coal-fired generating conducted in 1983. Another plants consumed a total of 3.5 politically defensible solution to 3,892 residential customers re- 3 million tons of coal, a 12.6% de- the issue. The issue is divisive in quested do-it-vourself audit kits e crease from 1982. The weighted various regions of the country, this vear. In 1984 the Companv ~
'?
average cost of coal burned dur- among different industries, and will implement the Commercial 3 ing the year was $2.06 per mil- in the scientific community. and Apartment Conservation ] lion BTO, a 5.6% increase over SCE&G, through industry Service program. This program a 1982. At year-end 1983, the Com- groups, has supported legisla- will offer energy audits to apart- Y pany had a 73-day supply of coal tion which calls for increased re- ments and small commercial % m inventory. The'Compa'ny has search on the causes and impact customers. E in storage, or under contract, of acid rain. The Company will ~ The Company offers two r sufficient quantities of nuclear continue to stress that legisla- conservation rates to its residen- e fuel and related services to oper- tion should be based on scien- tial electric customers. The Resi-ate the V. C. Summer Nuclear tific findings and on an appro- dential Energy Conservation i-Station through 1989. priate evaluation of costs and rate provides'a discount to cus 3 Passage of the Nuclear Waste benefits. Anv legislation requir- tomers whose homes meet strin-Policy Act m January 1983 estab-
~
ing substantial reductions in gent construction and insula- 9 lishell guidelines and proce- sulphur-dioxide emissions from tion requirements. A Residential = dures for pemaanent away-from- electric generating plants could Time-of-Use rate is available to - reactor storage of high-level nu- result in significant rate in- customers in the metropolitan - clear waste. The Act also encour- creases to our electric customers. areas of Columbia and Charles-aged utilities to provide, to the The Company has made and ton. This rate promotes energy j maximum extent possible, for will continue to make substan- use management by offering a ; their own on-site storage of tial investments in pollution discount to customers who ; 4 spent nuckar fuel. The Com- control equipment. The Com- switch their use of electricity pany responded by committing pany expects to spend approxi- trom maximum demand periods 4 to expand its storage capability mately 544 million on pollution to off-peak periods during the for spent nuclear fuel at Summer control facilities in 1984 and an d ay. Station. High density racks additional S49 million through ~ The goal of the Company's l which can store the spent fuel 1988. load management and conser- e resulting from 25 years of plant vation initiatives is to ensure !! operatior will be installed in Conservation and Load that an adequate supplv of elec- j the existint, spent fuel storage Management Programs that pro- tricity is always avai!able to its q pool. mote energy conservation and customers at the lowest reason- a load manag'ement are a key ele- able cost The efficient utilization Envir, nmental Protection The ment in the Company's long- of existing generating capacity is most significant environmental rai.ge strategy for meeting the in the best mterest of both our issue facing electric utilities today future electricity needs of its cus- customers and stockholders. j is " acid rain." Acid rain is pro- tomers. These programs are j duced by the teaction of natural geared toward mcreasing the use ; 2 and man-made pollutants with of electricity at off-peak periods - L atmospheric moisture. Rain car-ries the product of this reaction while peak load, minimizink the growth thus elaving the in 3 back to earth. Emissions result- 2 need for costly new ' generating
~
A- == - ing from the combustion of coal capacity. " 3 have been identified as a poten- During 1983 the Company's ^ 2 hj 8 tialcause of acid rain. Although Residential Conservation Ser- # "
" 4 the impact of acid rain has been vices program continued to pro- 1 debated by environmentalists vide energy conservation assist- s and scientists for many years, it ance and a'dvice to residential ~
has been only within t'he last customers through home energy several years that legislation on audits. For a nominal fee, Com- .,
~
i the national level has been pro- pany personnel visit customers' 5 posed to address this problem. honies and suggest specific en-Various bills deahng with ergy-related improvements _ . acid rain have been introduced which will reduce their energy j,"l$/[l,${[,$/[,','jl,ld/Od' , I recently m, both houses of Lon- bills. Since 1981 the Companv peany ,,,,77.1 scri.,y er u,y,c,s gm . gress. The Federal government has completed 3,372 residenfial H their ndis m perer j 10 4
Electric And Gas Operations Areas __sm e.3m,
; m e s+t qq; % " .-;
.. o l h:Xl 0 $ 0p% m". iul'l:Q s
h j m g nadamen% wMe, :v'g og l3 s 1 '
~ -Q jg m, a g %
e, .s2 y_sehenim :ce id con % r #m,g @& :W,., 4s n u m Qa gr 3 w 1 3 b; [jip] w g:- p%w /p ,
??u ~ W.a 2: g
)) -
Amen": - tz + w
~v
- y 3 m% d.-
-- t' .A Electric Operations Steam Generation t (S ag ,
gfR . Q ' j'}[;l Q E Hydro Generation s . Hagoodu 4 y - g, Internal Combustion Generation M . Place
'l Nuclear Generation k N E- "
M E 4*"2MQj g; k
- c. 9 .
s 4.* . 4Tirzah Propane
'g;QNh[i' . $orage Caverns
~3 W;%;@ m :*;w *_ .. x ., ,; w , x n y~
%w..;
. if%ww. % O Gas Operations ;
mw. .
%mM@~~ :gl x . .
A -Gas Transmission Lines
- ,Y : "' uw
_ g .n <'
+
/',". sw A
~
+ .,Af s#'(?_' '
/{M .. ;
2h n M ' m' . ,~Q" i M @;11 . 52 ' ' My \ e &' 0;h!, " 'N. . . . ['O - dE
,3 - ,
ep4: w -
's >;_ z - zg-,
'yf u ' e - g ar +
;[':l% q^F , $ % ' ~ ' 'W 2 m:: '
.,,,'zy Q m; y
% : ,4_' @;&nd" F
n. f '.M .
~ s, a. gr. .
. 4 g
,_-1-9
% m ,* D s
w" g 2 E Uquegedi 6a a c. ~-
.~
'gk ;d?
w h_ ~ . ;. Plant
-b' %%ys o%
y @??f?Yy'*.'Ywru&n '
~ = ?. s ; O-h f(O !.. BGeuf0f1## Q;;. -T@Q ,,,2 W ->~ yx) '"[
y9 ~v/gy
. . y, ~ . . , , . ,
i -. 4
- Ab ym n:u a"t y% y 7:
^ l =v
.j 11
_m
=
e Gas Operations E w
=c m
Sales and Customers The Companv's gas operations made signifi- cme cant progress during 1983. Sales of natural gas by customer class are Average Annual useper - shown m the followmg table: g _ResidentialNatural Gas customer: Sales of Natural Gas (Thousands of Therms) 8") ' m 1982 9 increase
- s
[- Customer Class 1983 1982(1) 9 Increase Pro-Forma (2) (Decrease) , Residential 103,497 95,993 78 100.588 2.9 7 w Commercial 101,932 94,146 83 98,056 40 700 , ses :ssa ' " . Industrial 311,423 280,259 11.1 310,737 .2 _, Total Retail 516,852 470,398 9.9 ;09,381 Is - sto l " Sales for Resale 154,577 119,859 29.0 183.535 (15 8) m I 2 A Total Sales 671,429 590,257 13 8 692.916 RI) - g} - hN ] (1)lncludes sales by Carolina Energies, Inc. from Apnl 1,1982 (acquisition date). fO N (2) Includes sales by Carolina Energies, Inc. from January 1.1982 for comparative - b purposes only. Improved business conditions, innovative marketing and pric-km P N [j g ing strategies and the first full year of operations on the Company's : . u g combined gas system contributed to a 13.8% increase in unit sales. By 9 ' f b comparison, gas sales in 1982 were depressed by weak economic 2 d y conditions and the loss of some industrial customers to lower- f ' pried, alternate fuels. h.
. h-As a result of the Company's acquisition of Carolina Energies, e -
Y ? Inc. (CEI) in April 1982, total gas sales for 1982 include only nine E U E months of operations by CEl. For comparative purposes, the preced- - " #" 2 "*c @ '" t ' f ing table shows actual gas sales in 1983 and 1962, as well as pro- - g forma 1982 gas sales which include CEI's first quarter sales. Total sales + = s in 1983 dechned 3.17c from the pro-forma 1982 sales, due to a slower Operatin Efficiency I'he acqui- T$ recovery of industrial customers who purchase gas from CEI's whole- sition of harolina Energies, Inc. sale (sales for resale) customers. n April 1982 nearly doubled the ? The Company added 1,318 new gas customers during the year, Company's natural gas service 2 bringing the total number of customers on the Company's cam- area. The Company s natural gas k bined system at year-end 1983 to 187,638. The Company indirectly service area now encompasses 'ti supplie'd naturaf gas to more than 85,000 other residential, commer- more than 804 of South Caro- ) cial and industrial customers through its resale customers. The lina. The Company's natural as CE average annual use of natural gas by the Company's residential service area is operationally fi-customers increased for the first time since 19/8, from 570 therms in vided into two sections - the Y 1982 to 610 therms in 1983 (see Chart 8). Over the five-year period 1984-88, customer growth is projected to average 1.97c annually, South system represents the area $ h historically served by SCE&G while total sales of natural gas are expected to grow at an average and the North system represents N annual rate of 2.79c. the area served by Carohna $ Sigmficant potential exists for expansion in the residential, Energies, Inc. Th'e combined F commercial and certain industrial markets in the Company's natural systems have a balanced load 5 gas service area. During 1983 the Company began an aggressive p'rofile. The North system's cus- J marketing program designed to attract customers to the Company's tomer base is heavily weighted F-natural gas system. This program includes visits to homes, bill inserts and media advertising designed to inform potential cus-toward wholesale afid industrial customers, while the South sys-n E tomers of the availability of natural gas at competitive prices. The tem's customer base is primarily i sales efforts are being concentrated toward potential customers on residential. 9 existing distribution mains. The goal of the new program is to since the acquisition, a G increase significantly the number of new customers on the Compa- number of measures have been V ny's combined natural gas system. As a part of this marketing ef fort, implemented to improve overall i contract modifications have been made to incorporate competitive fuel clauses in negotiated industrial sales contracts. This action system reliability and operatmg e'fficiencv. Transmission pipe-h i-permits the Cornnany to reduce its profit margin on sales to certain line opeiations, gas purchasing mdustrial customers and ".iereby remain competitive with the price of alternate fuels. and dispatching have been cen- N tralized and the two major gas 2 transmission lines have been f 1 I
? P interconnected. Other measures, such as reduced use of compres- o c .- m # -mm: sors, installation af central odorization, and the use of propane gas 1.wb' ';. . W V '>) 1 4 - M2*%l1 L t as a motor fuel fo. service and construction vehicles resulted in **
. '.pg'9&~'9
/.f Y : 1 f .?
substantial cost reductions without any decrease in the cuality of
^
4- . service. The PSC-mandated managem'ent audit identifie .he' man-agement and ope-ating practices currently being applied to corpo-f7 j'...
>*,/ .
'h.,- f. .
- rate gas activities as one of the Company's most significant strengths. -
~
] ;i &,
- Supply The Company purchases natural gas under contracts with . 1:;( ge ' F,. Southern Natural Gas Company (Southern) and Transcontinental 9'.- ^
%'N g
Gas CompanyPipeline a ' A .f..C is entiCo$ed to receive under these contracts is shown inoration (Tran'sco). The M k.' ~.i
- Mvolume ;' of gas wh the following table: .
Tk.
-+ w q' ~. .
<M
.5 '
- Maimum Daily -
< :T '
= . -
Supplier Company System Contract Demand (MCF) Natural regulatin s Southern South 165,439 one being b it near Salfey.tations South Carolina such as this Southern North 45,461 improve the efficiency of the Company's gas
- 29,300 transmission system.
Transco North 240,200 [ Total Company's suppliers and the de- [ control provisions of the NGPA caused significant price in- ,i
- These quantities are subj.ect to curtailment plans a the Federal Energy Regulatory Commission. creases during the last several However,pproved dunng each years. Asby a result, some indus-E of the last two years full contract gas volumes were available when tries switched to lower-priced,
- needed. The Company expects to have ample supplies of natural gas high-sulphur residual fuel oil, 3 foi the future. oroducing intense competition To meet the requirements of high priority natural gas customers # between natural gas suppliers - T andits residual fuel oil dealers. i dun,ng supphespenods of naturalofgas maximum demand, from a liquefied the gas natural Company (LNU plant supp)lements and
, During 1983 natural gas price in-t from propane storage facilities as shown below: creases moderated as a result of
= Maximum Daily this marketyressure. The ap-k Type Company System Capability (MCF) proval of a Temporary Gas Cost ' 1 LNG South 60,000 Kider by the PSC in April 1983 Propane South 55,000 enabled the Company to meet [ Prepane North 15,000 the competitive fuel p' rice of high-5 Total 130.000 sulphur residual fuel oil. The . r Company has recovered some of r the mdustrial gas load which had [ The LNG storage tanks are capable of storing up to one million MCF of liquefied natural gas. The tanks are filled by liquefying been at reduced lost during 1982, although profit margins. The
- natural gas from incoming pipeline supply during off-peak periods. price of natural gas continues to e The plant can then regasify up to 60,000 MCF per day to meet peak be competitive with other alter- ..
r demand during the coldes't periods of the winter hea' ting season. nate industrial fuels, No.2 fuel - 1 Propane stora e facilities located throughout the Company's service oil and propane. In residential
- area can supp an additional 70,000 MCF per day. The Company heating markets, natural gas re-5 also has 1.2 m ion MCF of natural gas in undergr'o und storage fields. mains an attractive alternative to P electricity and No.2 fuel oil.
r Pricing The supply and price of natural gas through_ out the country Various bills have been in-e have chan ed dramatically since the passage of the Natural Gas troduced in Congress to restruc- < w Policy Act NGPA) in 1978. The NGPA provided incentives te pro- ture the regulatory framework ducers for nding and developing new gas reserves by deregulating under which pipelines purchase
- the wellhead price of natural gas discovered after February 197. Au natural gas from producers.
f price controls on such natural gas will be eliminated on January 1, Some of those proposals would
- 1985. All price controls on gas discovered before that date will also alter the current wellhead K remain. Under this phased deregulation, price increases were ex- pricing of natural gas and the e pected to occur in an orderly and gradual fashion until parity was scheduled deregulation of prices.
p- achieved with alternate energy sources. However, certam provisions The cost of natural gas pur-F in the contracts governing the purchase of natural gas by the chased by the Compar.y makes t I 13 . s
- ..se _
Y up about 82 cents of every dollar meet the future energy needs of pane distribution business generated by the sale of natural its natural gas customers. serves residential, commercial gas. For this reason, the Com- and small industrial customers pany is vitally interested in this Propane Operations The Com- who are located bevond the isstie and continues to support pany is engaged in the retail dis- Company's naturaf gas service legislation that will ensure the tribution of propane, and is a mains. At year-end 1983, the continued availability of ade- participant in joint ventures Company ivas serving apprmi-quate natural gas supplies at the which own and operate under- matelv 4:200 customers, com lowest reasonable cost to ground propane storage tatilities parecf to some 4,100 customers at consumers. and a propane pipeline. vear-end 1982.
~
The natural gas industry is The Company's retail pro- Through subsidiaries, the undergoing a ditTicult period of . y, '
. Company owns a 509 interest gM transition, from years of rigid in three [oint ventures with sub-regulation to significantiv dere-1 sidiaries of Transco. Two of these gulated markets. Deregu'lation ,
*- / P. joint ventures own and operate an 80-million gallon under-efforts have improved the avail- ?
. / a 's.
ability of natural gas, ensuring -
#A.
that it will continue to play a key -^ ..
? ] ground and a 62-mile propane propcne storage pipeline. facility role in the nation's energy mix. f ex 3. , The facility leases space in the In the Company's service area, ' W4 . _ar r underground cavern to indus-competition will remain intense . en f.4 -4'- trial companies, utilities and oth-for sales to industrial customers, -
ers for the storage of propane particu!arly those who can use W until needed as an alternate fuel high-sulphur residual fuel oil as " M1 4 when gas supplies are curtailed. an alternate fuel. Nevertheless, natural gas will continue to be k.;. ;I t The the I b,ixie Pipeline System tra-ropane p
~
an efficient and economical en- @ versing central South Carolina ergy source in the years ahead. "" to a terminal facility near the~ The availability of competitively underground propane storage priced natural gas within the facility. The demand for propane Company's service area is one of storage services has dechned the area's attractions for new n[',j",l,ld $'"fduIvSrNin$ts over the last several winter sea-and expandmg mdustry. geet operating x hquurpropane ruel which sons due to ample supplies of SCE&G is well positioned to provides signrhcant sarmgs over gasohne. natural gas. Transit Operations The Company provides pub- tion. A marketing program for g3 a.. ,,_.u .. n lic bus service in the metropoli- charter service was initiated dur- 4 '- JZ - tan areas of Columbia and ing the year which resulted in - ". T N 3.. < Charleston, South Carolina on an incre'ase in the number of . .., G - 5." e*Y the basis of current franchise charters. Changes to a number fr G .. W. /;' ;p*C . Up.g; agreements with each city. The of routes will expand service into cfj.T M s; L : ; q .3 ;.s Company's Transit Department operates 112 coaches on a total new areas and remove overlap-ping and low-ridership routes, D<o' ;~ Cdif ' gre f.i , W' u.4 l: .. route system .vhich covers 295 resulting in a net reduction in miles. During 1983 the Compa- operating costs. Further studies .s f,/ W r:y's combined bus fleet traveled are being made to revise addi- M, more than 3.7 million miles and tional reutes for more econo i- ... .6 carried approximately 9.7 million cal operation and better cus- 4 . r i revenue passengers. tomer service. 8 pi(: , f . ,fg,Q" The Company's transit oper- The Company also is con- C- MM*m ations have been unprofitable sidering requesting a fare in- ny,.3,y ,ga,3,s o,,,ppu,g ,y ,,.gy smce 1948. Several changes were crease to reduct losses and to returNshed coach, one of 712 in the Comnanui implemented during 1983 in an bring fares more in line with transit sustem Transit scrna o pronded effort to help reverse this trend, those of neighboring transit '" Columha and charleston. and more are under considera- systems. 14
~ . _ . _ _
Corporate Activitles Ernployces At year-end 1983 the money, food and clothing to the ness in ensuring safe and habit-Company had 3,652 full-time em- fund, from which distributions able homes dunng inclement ployees, a 1.3% decrease from are made to needy citizens in weather. 1982. The reduction was due pri- the Company's service area. The marily to a hiring freeze and an fund is administered by a board IndustrialDevelopinent South early retirement mcentive pro- of directors eleced by the em- Carolina's business climate con-gram which was offered to cer- ployee members, and is operated tinues to rate among the na-tain qualified employees be- by the Customer Assistance De- tion's most attractive to industr tween December 1982 and partment. By year-end 1983, The expansion and diversifica y. February 1983. This voluntary more than 1,600 employees were tion of South Carolina's indus-program was designed to hefp annually pledging to the fund. trial base continued during reduce payroll costs and give Since the fund's inception, more 1983. Almost $1.3 billion in capi-younger employees an opportu- than 400 families have received talinvestments was announced nity for advancement. Of the approximately $75,000 in direct during the year for new and ex-239 eli6 ible employees,182 partic- financialassistance, panded industrial facilities in ipated in the program. The Com- In the fall of 1983, a $25,000 the state. About 71% of this in-pany estimates tliat it will reduce pilot weatherization project was vestment will occur in the Com-payrollcosts by about $5 million implemented in the Charleston pany's electric and natural gas annually for several years as a area to aid some 150 needy fami- service area, creating about 5,355 result of this program. lies. At no cost to the families, new jobs. Except for cntical staffing the Company installed weather South Carolina's strong needs, new hires have been ke stripping, caulkin business orientation is evi- ! at a minimum and justified re ptant, door sweeps,g, switch foam plate seal- denced by the fact that 63% of placements have been filled pri- insulators, water heater wrap- the $12.9 billion invested in in-marily through transfers within pers and vinylliners for win- dustrial facilities in the state dur-the Company. dows. Senior citizens were hired ing the past 10 years has been Approximately 1,200 employ- by the Company as temporary the result of expansions of exist-ees were represented by three employees to perform the work. ing plants. The Company will unions at year-end 1983. During The Customer Assistance De- continue to work closely with the year, the Company negoti- partment helped customers business and governmental ated a new three-year labor con- identify poss'ble i energy savings leaders to ensure that South Car-tract with each of these unions. in other areas and counseled olina maintains its competitive them on energy conservation. posture in the industrial devel-CustornerAssistance The Com- The project w'ifl be monitored for opment arena. c pany's Customer Assistance De- a year to determine its effective-i partment was established in 1979 - og m - . . a -
"4 l
to identify needy customers and ~ L, - 4
- g l
refer them to ap'propriate federal, state and local agencies which J.' '
- i. -
7& d can provide assistance in paying > - a energ's y bills. Through the depart- f .. ment efforts, more than 45,D00 l N?- ' ..
-r .
low income, elderly and handi- I. I; capped customers had received g
' y! J l
l- [f l
$5.7 million in energy esist '
l ance funds from these agencies ' year-end 1983. SCE&G em- '- yees within the department b " ave made more than 11,000 per- * [k *1 I ablfshed wo ki re a o shi s with more than public an [ [ l g [f/ 5 -- g { community human service - 4- - agencies.
- In 1982 SCE&G employees 4 o
6 3
~
g M
^ '
formed the Employee Good 5 i+ 4: Neighbor Fund. Participants The com make voluntary contributions of customm u$'s homes pilot untherization required tomostproject or no-cost in charleston assisted 150 ciderly and needy consmution measures. 15
Afanagement Audit Report improvement were in the areas Corporate Offices The Com-During 1983 the Company of organization and manage- pany has completed the move of participated in a management ment systems, and cost contain- its corporate headquarters to audit which had been ordered by ment and reduction. Sugges- ' eased space in the Palmetto The Public Service Commission tions were made to Center in Columbia. of South Carolina (PSC). The complement existing ef- The Palmetto Center con-PSC selected Cresap, McCormick forts, and support the goal of sists of a hotel managed by the and Paget, Inc., a nationally rec- bringing the Company s level of Marriott Corporation, a 2f-story ognized management consrlt- sophistication in organizational office building and a conven-ing firm, to conduct the audit. Its matters and administrative sys- ~ tion center with meeting rooms 445-page report was based on an tems more closely into balance and other facilities. SCE&G is the eight-month study which in- with the evident technical exper- major tenant of the office build-cluded interviews with mere tise of SCE&G." Many of the rec- ing. By moving to the Palmetto than 290 employees from all lev- ommendations in the report Center, the Company has con-els within the Company. have already been implemented. solidated its operations which The report's major finding Others are under review to deter- were previously widely scattered was that the Company is well- mine the potential costs and in thirteen locations. managed and operates effi- bencfits to the Company and its The office building incorpo-ciently. The major stren,gths customers. rates interior designs that will identified in the report mclude: A summary of the report is increase employee productivity
- unusually effective top available from Betty C. Bissell, and reduce future office rear-management direction, Corporate Secretary (055), P. O. rangement and expansion steadfastness of purpose, Box 764, Columbia, SC 29218 costs, and commitment to needed -
~ '
change" during the past *
~
few years;
-technical and operational . ~. m
@;.43(gf[.
~
efficiency in power plant
.. 4 . 1 . . j. . *G . . ..%. *
~
production performance ,...g . and transmission and dis- ,g tribution of electncity; -
'. ,,; J ~ ~gy
-technical proficienci in '
1 WH & ~ a. C CL . start-up, testing ancf intro- - f,' - QCg M . - .-g
. y4 I ductory performance of the ? %' "';.% .g : ~s:#"N i 7 m,:.+ ,c-V. C. S'ummer Nuclear -
3 . O Ci'- < #, .f. Station; i < T.1 s.. dE % g'#'
. Mf $ . r;. A3 -
f ' N
.c. , . . , . ..
-merker withtoCarolina gies, nc. "likely favorably Ener- 7 / i r.s %f @ :
affect costs for gas
- 7. V i.* 1 . f . % -
< " d.4 customers"; :.' :.? h ~ Y ? ". #
.Y
.m M R 1 '. ' J
. .Q %
-introduction of "concep ..z ' i--
z E' j';QAMic w4 i Qf.My"1@DM OM,5 '.~ i* tually sound strategic and ? oper'ational planning processes , 1%(WwT. < < 9is" 7b. [.i I' (C.
~ p t; .F n -(.yj.;. j3f'; p:~.Q$jp
. 'p-
- y .%< n y -g
-utilization of " creative fi-The consolidation of our corporate offices in the Palmetto Center should mcrease productivity nancinS arranSements";and of employees prmously located m more than a dozen buildmgs in Columha
-the adoption of ,, innova-tive approaches to nuclear fuel procurement" Significantly, the report also found that " public and offi-cial perceptions of the manage-ment or dCE&G appear in many respects to be outdated" and do "not appear to reflect awareness of majorimprovements now m place or currently under way."
The consulting firm's niost in portant recommendations for 16
~ . .
*L ' '
1 Management Report
=
' The Management of South Carolina Electric &
-FinancialsK The Board of Directors, through an Audit. [
l Gas Company is responsible for the preparation ' Committee composed of nonemployee directors, -
- and integnty of the financial data included in the provides oversight for the preparati'on of these ' '+
accompanymg Consolidated Financial State-
- financial statements. The Audit Committee meets ments. These statements have been prepared in _. periodically with internal and independent audi-conformity withrenerally accepted acccunting . tors and representatives of management to review principles as applicable to a regulated utility. In their activities and responsibilities. The internal situations that prevent exact accounting measure . and independent auditors have full and free ac-ments, management has used informed judg-- cess to the Committee to discuss internal account-ing control, auditing and financial reporting ments and estimates in establishing accountmg -
and reportmg practices for such items. Financial matters. . ' information presented elsewhere in this Annual - The Company engaged Deloitte Haskins & - Report is consistent with these financial Sells as independent auditors to report as to the
' statements. .
~
fair presentation of management's Consolidated *
, The Company maintains and relies upon a L Financial Statements and their report ap Iow. Their examination was conducted m, pears be-system of internal accounting controls which is . accord-designed to provide reasonable assurance that all . . ance with generally accepted auditing standards transactions are properly recorded in the books . and was based upon their performing procedures and records and that assets are protected from . . 1 which include maintaining an understanding of unauthorized use. The degree of internal account-- the Company's system of internal accounting in 'controlis based upon the determination of the- controls and such tests and other auditing proce-um balance between the cost incurred and .. dures as they believed to be necessary, benefits to be derived. The system of internal ,
l accounting controls is supported by written poli . [3 j l ciesLand guidelinehnd is complemented by the 12 , _ selection, training and development of profes- f@ f 6_ -- . :l , , _ sional financial managers and by a staff of inter- ' nal auditors who conduct comprehensive internal .W. B. Timmerman - R. W. Stedman gudits. Vice President & . Vice President & Group Executive-Finance Controller y Report OfIndependent Certified Public Accountants s
~
> d .
South Carolina Electric & Gas Company: have been restated to reflect the effect of the order. We have examined the Consolidated Balance .' Accordingly, our present opinion on the 1982 & Sheets and ConsoEdated Statements of Capitaliza . ' Consolidated Financial Statements, as expressed tion of South Carolina Electric & Gas Compa y. heiQ. is different from that expressed in our .
.and consolidated subsidiaries (" Companies as of Previous icpo,rt.
December 31,1983 and 1982 and the related on ' - In our opmion, such Consolidated Financial : l solidated Statements of Income and Retained . Statements present fairly the consolidated finan-Earnm and of Sources of Funds for Gross Prop-- ; cia sition of the Companics at December 31, - 1 f erty ditions for each cf the three years in the :1 and 1%2 and the results of their operations - p'enod ended December 31,1983. Our examina- and the changes in their financial position for ' tion's were made in accordance with generally . each of the three years in the period ended Decem o in- . ber 31,1983, in conformity with generally accepted t accepted auditing standards and, cluded such tests of the accounting records an accordingly,'d. ; accounting principles applied on a consistent ;
'such other auditing procedures as we considered ; -basis.' '
necessary in the circumstances.~ -
. In'our f .:
' ion on the INConsolidated Financial State-rt dated iments was qualified as being subject to the effects,~
~
k-M February 7,1983, our opin-?$M_ = . r.sw.3, _ m #
'of final determination of a reauest for DELOITTE HASKINS & SELLS "ifelectr any,ic rate increases filed with The'Public ServiceColumbia, - South Carolina i i.
Commission of South Carolina ("PSC"). As ex- February 6,198f m plamed in Note 2B of Notes to the Consolidated Financial Statements, the PSC has issued an order
-and the 1%2 Consolidated Financial Statements
? ...
^ *
~
~
LW' q g _
Consolidated Balance Sheets Darmber3f, ' 2 1983 11982-
- ASSETSL ,
~
JThousands of Dollars); (UtilitkPlant (N' o tes 1[b and 4). '
~ < f Electric; L$1,291;347 '
7 f $1,237,972,
,~ 221,616-
- Gasi _ -
~
210,3981
' 2 Transit 3 ~- "4,808 f 4,618;
~
TCommon '
- zw >
- 14,5981 19,344 .
, ; Total 2 . . _
- 1,532,369.
- 1,472,3321 FLess accumulatdd depreciation and ' amortization : 2498,282i 459,417L 4 Total " .. _
11,034,087M x1,012,915) Construction workin progress 5 ~ 880,203 -831,123: SNuclear fuel . . . ., . 158,868: ~ 168,1334
%cquisition adjustmentEgas (Note:11) :-38,141 139,891-aUtility Plant, Net s 12,011,299- 11,952,062J t k '
- g. 'h :
,, ~
Oth'er Property and Investme,nts:: wJ" .3 , .
! N.pnutility property (substantially at cost)? ..
r 111,478 . 111,264 - Irivestments in unconsolidated subsidiariss'and : '
- ~
1 joint ventur.es (Note'1)? -
' 421,685 . 23,227 J J Other investments and special funds -
117 :1084 JToth! Othbr Pioperty snd Investments -
"36,2801 34,599:
~ -
y _ , JCurrent' ssetsi -
. T .
~
KCashitsmpopary cash' investments and special'ddpos.its (Nbte 8)! - ;74,836i 4.18,5531 l LReceivablesf 7 , r ~ ~
- > 86,727 t 275,306
~
' ~
I
?Inventoriesi(atl average cost){ - '. .
(
~
KFuel . s. - ' 152,6811 - E73,602:. m ., ..
. ' ' l
. iMateiialslhnd supplies: - ~
; >e ,
- i. . !8,6703 (7,6264 l
' Prepayments : 7,123- L 6,8461 l -
^ "
OTotal Current' Assets: -
"230,037* i181,933-l ,
- ', y -
m-(Ddierrdd DSbits: <'
.w ~
.. ..u
?Unaniortiie~d' debt sipense? '
-76,067-o 16,651t
" zAccumulated deferred income taxes (Notes l'and 2) :
L 39,071: L8,063[ l
' ~
*Other 135,380; '
?19,4474 RTotal Deferred ~ Debits > , -
V < . J80,S187 y34,1614 yq f';' ' _. f ,. _. l
- Total': - x - 2
' $2,358,134 = $2,202,755i
- s. .
%h ;
,' ,Q W -
^'
~
. G i . .. . . , . . . _. .. G':
5ee Nbtei to Consolidated Financial Statements. . 18
WJmeri3& M m - E ' 'M c 1 - , 219834 M W 1982 M
.CAPITAI.IZAT,IONW W Rn @ '
.*%g ' U*n w" _. ., %g% an JThbusaMs mp bf DollaTMA&: v a- <
MP /yg y , wp! _ . ..-~e
.s.
n: -n Stahaldiers'cIn,ve w , .. e
*v ..
D LM x
.+uCo. mmon...
n n stment
-~ . (Note SjM, M S,
, .-m nr, , '. m,
%,y, mw:
s un. u.w >. .-+ m . e..~
. v&; r
.m .= w~ . > >
/.
iN ,,w f_ W
~ ~
UNCom~ mon stock l(Autli6rized'50,000,000 shares) s ay dy -W" ,R . 1e sgue g@)R Outstsud M 4198_2M36l526l499'sharesMsOTT" Wing,1983M38,727,652 J ! ($4174,274f sha'resM@M... 164,369
- N3, Mehium dn c6mmon'stockR,' s -, 4 s n.. f W t 4, a 374,178,i 6
J$y;344;5711,
,4;882;
(
' we +%n ^ % f5,122S MOche~rn~ aid-m. -capitals E JCapita stobk'sipense?(n w,M 1 ~ r 3 ;WA debit) hf N 2jh y - F(6;647)L t , f(6,'662){
- WRetained harnings1 Note'2B)? W ' . W YNP W162,981N ;151,9753
>; 1 Total Common Equity ? ' / a WS N A'R l ' / f J709,908 N t659,1351 7 Preferred Stock (Not S6bject to Purchase or Sinking Funds)E - ~
& 126;262 " m ^ 126'; 262i WJTotal Stockholders'InvestmsnB J '~"& 4 L -
' - t736,170; - F685,3971 Preferred StocklSubject to' Purchase or Sinking Funds)'(N6teli)f . 5160,6040 4 63,619i jLong-Term Debt _(Notes 3 and 4)P @ff g 7 C . ;g 9 _ %;, 9 J @7 WPrincipalamounts; m 's % A% WMW W .MOM e ?y .M'1790,182 A z855;897) 21cis unainostised discodnN !
4966r ' D1,053?
. . ~ .n .-
.B 2Long-Term'DebtTNsti m a' -, .~ M %v X
~
, M 789,215 3 ai Mv.-854^,844 J A & STota1 Capitalization % <
? - 1
< ss w <^ 4 1,685,990: 1 91;703,8603 2 LIAB,ILITIES~i w . * ' ; %p%n , v @ s w ME h6 P NJ, x . pg.a uaup f &s E-W'
,- c.
,ww s , ,. . n. ., ;- -
nt Li tX- as 'ce- -N : '/
#n-438F A g ?M21,9662 gsu JC,urren.silities:v 6, ISh6rthernibbrr6 wing c%s(Note '
J ~8)W 4 i WO ^ D M16,8737, j? ( $ $5
' eM6unts pay.ab, m.n lei f Wh.nCddest a C M portiois
, ' %-6f W long-teknidebb X66,7685NF- -
. n a85,8,0121 d8%' b .
w&,M RCous~tomerdeposi . .ts& V A r5 .14 '? %8,294s my 17,255 .
$wT.ad.s"ac,ciu'ed%, y fez n Mlnterest=accruedmngp;
~ .. .
M W M-.,sg MC ~- "mn;P J . Q ~T, . . gn-Apgg 18 X m22,205L , xe m , g20,483; ,.TN6,6331 e g dDividends'declaredNXM W w @t LW ' CN?g gM23,695[y vs;21y164+i W21;8632 MTax'collectioris'psyab.leMT "W M Other2 M * " #M% M
;- -M'i .
9 e W Nl- ; gl,285E
~ j? :
s1,8274
*x <; 11915s 11,755i
& MSTotal Current Liabilities " E<'W"i '
'/^ * %198,839
- W156;4364 DeferredCreditsk QMTf;jn R@M,..R c.c ; A109,7 g , 92% L
@IAccim)ulated
. Anihulateidefshed income"thes' asferred1Fm investment l?? 7. tax"crddits'(Note;1)D
' 'S E119,307A M
WOtherlNotef2)F " aft V%(N6ts: 9tn)TD #N - N M.245,3495 108,6493 9 1183,422i 1 % 3 49,245) 4 MnTotalDeferred~Crsdit's% W1 P J # E cM:C f473,3057 ' ' M342;45._9_3 Cmmenienwats ind Contingencies ^(Notes 2 add 9)u : N' Wh * ' ' c--m -
- w- MM .__
pii&Q Jbtal E % *
- i " r #Mi M - M % d$2,358,134i %$2,202,755*
.,j-up~ s - <w. _.
w- e #.
. p y A .
4, 799c ,,' u m - m oru gg' w a 4. ,
-[
,._ _ *"ji. '
me n , a. n ; , s n
,1 -
-:Q 9 m.ay a .e . -
1,.
,o;:- e
.'g s_q ,,
m,wn.y
- p , v, o :4 n ~ M 'm &C ,uw j :m <k@x}f es. %cn%y
-f %nk
^ ^ ' g
!:RP, /p.6 u n
- w. -
~ : ~ z. s x?
*y" ?t ?: m. ,u 1 +w W .~Wwen 4 *1 :-w
, +
s
% %rM % - 17W f , M:w v x g - . + UM@., . 4 #l,1
' - 3 A
$lSa No.k h fL $ $ $y MOJM^EORM# . &$h0h . b ! "@. 5?g@$ $&X' , $ ~ ~
'W ?a _%Wh
- .te.s to. Co..nsolida.ted Fit.tancia.l. State. mentsh!M :
1
&. m &< t a %f;. :~
19
- i. . .
Consolidated Statements OfIncome And Retained Earnings 1 For the Years Ended December 31, 1983 1982 1981 (Tiwusands of Dollars
- except per share amounts)
Operating Revenues (Notes 1 and 2): ! Electric. $634,127 $574,113 $555,716 Gas 337,282 266,389 188,167 . Transit 3,242 2,603 2,429 I Total Operating Revenues 974,651 843,105 746,312 Operating Expenses: Fuel used in electric generation 260,381 214,617 234,243
. Power purchased, net 10,143 32,501 16,271 Gas purchased for resale 277,091 220,502 154,502 Other operation 88,939 76,615 68,353 Maintenance .
36,292 38,724 33,895 i Depreciation and amortization (Note 1) 45,000 43,406 39,691-Taxes-other than income 36,537 33,453 34,672 Taxes-income (Notes 1 and 7) 70,395 43,580 54,377 Total Operating Expenses 824,778' 703,398 636,004 Operating Income 149,873 139,707 110,308 Other Income (Note 1):
. Allowance for equity funds used during construction 10,244 6,618 4,530 Inco_me tax- credit (Note 7) - -
16,792 Other income (loss), net of income taxes 1,327 (1,388) (227) Total Other Income . 11,571 5,230 21,095 Income Before Interest Charges 161,444 144,937 131,403 Interest Charges (Credits): Interest on long-term debt . 87,281 89,949 84,232
. Amortization of debt premium, discount and expense, net 744 671- 573 Other interest expense .
7,478 6,020 7,604 Allowance for borrowed funds used during
. construction (Note 1) ' (37,997) (39,519) (36,889)
Total Interest Charges,-Net 57,506 57,121 55,520 Net Income (Note 2B) 103,938 87,816 75,883 ~
-Retained Earnings at Beginning of Year . 151,975 146,775 136,241-Cash Dividends Declared:
Preferred stock (17,186) (16,371) .(14,245)
< Comnion stock' (75,746) (66,245) (51,104)
Retained Earnings at End of Year $162,981 $151,975 $146,775 Earnings Available for Common Stock (Net income less ( preferred stock dividends declared);
$86,752 $71,445. _$61,638 i Weighted Average Number of Common Shares Outstanding (Thousands) 37,844 34,387 28,139 Earnings Per Share ~of Common Stock $ 2.29 $ 2.08 $2.19 See Notes to Consolidated Financial Statements.
20
Consolidated Statements Of Sources Of Funds For Gross Property Additions \ For'the Years Ended December 31, 1983 1982 1981 SOURCES OF FUNDS: (Thousands of Dollars) Internally Generated: (Net income; , ,. .
$103,938 $ 87,816 $ 75,883 l Charges. (credits) to income not requiring (providing) funds:
- Depreciation and amortization .45,000 43,4 % .39,691
" Deferred income' taxes, net 30,919 -25,966 : -17,697L l
' _ Deferred' investment tax credit, net' 9,515 114,573 17,380 l 1 Allowance for funds used during construction > (48,241); '(46,137) l (41,419). l
! Generation' expense during construction 69,868 - '3,311 -
l
~ i Other, net 3,873 1,973 1,215 l (Funds Internally Generated - 214,872- 130,908 110,447-Deduct dividends declared 92,932 82,616.- 65,349 Internally Gen ~erated Funds, net L 121,940 . 48,292 c45,098 ~ (
l
;n External Financing:
- Co'mmon stock and prdierre'd' stock issued. 39,512 90,512- 48,983' LMortgage borids and notes sold, net - -- 100,000 84,388:
HIncrease in fuel financings, net - 14,331 15,748' 1 Common stock issusd for acquisition of- ! , ' Carolina Energies, Inc.'. L ~ - 42,774. Reduction oflong-term debt l (29,158)- . '(96,059) -- -(45,386).
- Retirement of preferred stocki .
(3,015) (2,598) ' (3,432)
^
iIncrease (decrease) in short-term borrowings .(21,808). -(1,282) . . (18,032)~ l
. Funds from External Financin'g7 . (14,469) 147,678: 82,269
. . a -
l
,. m
- O erSburbs(dsesh '
1
/ Acquisition of Carolina Energies,'Inc.( -
(61,227)- - L(Increase) decrease in working capital,- l t 1 excluding short-term borrowings and L4 current portion of long-term debt : _ ._ , '(21,144) . (15,849) : 13,084-i Other changes in noncurrent balance sheet items, net > 47,172L :35,116 ' 2,231 nOther Sources (Uses). :26,028 ~ ^ (41,960) ' 15,315 f
- Funds for PropNrty AdNtions ' ._ . .
133,499 ~ 154,010 -142,682 JAllowance for Funds Used During Construction - 48,241 : 46,137 . - 41,419 Gross Property Additions $181,740 $200,147
~
l 2
. $184,101E SesNotss to Cdnsolidated Financial Statements.
21 l J
Consolidated Statements f Capitalizati n
- Decemlvr 3L - -
s 01983; ~ , t1982;- Common Equity (Note 5);
.. ... P: . ,, GThousands of Dollars);
Common Stock ~ $4.50 par value; authorized 50,000,000 shares, issual.
. , fand outstanding; 1983 - 38,727,652 shares, 1982 :-36,526,499 sharesi ~
< $174;2743
~
1S164,369f 1 Premium on common stocki i ~~ - r374,178 i ' 7 344,5717 +
;Other paid-in' capital 1.
1 W.' ,
~
15,122? -: 4,882? , - iCapital stock expense (debit)) '
. ; J(6,647) 7 )(6,662)l -
- Retained earningsi(Note 2B): . . . "162,981 - '151,975 i Total Common Equity! s '
- 4709,908 142 % i ' 659,135 4 39 % i
~. i '2 . ;~ ^
r Preferred Stock (Not Subject to Purchase or Sinking Funds)(Cumulative)( * , CShares' Outstanding ( . iRedemption Pricei >
% _. .. ...,s . 7 ! Eventualp:we '
w L Series i1983' 119827 iCurrent } fThroughl ? Minimum 4 ,s5 s
/ ' '
'$iOOParc 18.40% ; 1200,000 4 4200,000f - 4106.50f ill-30-861 '101.001 " ' ; 20,000 c 120,0001 - -
' 52.50 i N -:
i$50 Parl ? 5% ' ~ 125,2342 i125,234 ? i 52.50/ , L 6,2627 1 6,2621
~
Total Preferred Stock (Not Subject to Purchase ~or Sinking Funds) V26,262 ' 12% : > 26,262N1%; gw ,
., ~c : . _ . .s - . ... . . .. ..
A?. . -
- Preferred Stock ~(Subject to Purdase or Sinking Funds) (Cumulative) (Note'6)
- ' _m _
s_ er t $100 Par Value-- Authorized 1,550,000 shares n mJ' S - f~
,. _ E ",:
^
m Shares Outstandingi R$lemptiodPrice J'
,4 ,-
.~< .'_ ~ ~ . , .
f UEventuali ~ 1 M . , '
. . Series ~ 1983'. -
419822, / Current 1 iTh, rough) ; Minimum 4 ? . i7.70W J123,000) 7126;000 ; (103.85f t 6-30-87f 310100) ' i12,300 : . d2,6003 ' - z 8.12% ; (176,0007 1180,4001 jl04.061 i6-30-86i . S 1 02.03#. (17,6003. . < 18,040. m" ' :10-3/4 % i J161,000 ~ 1174,000 : ;110.75 W i10-01-85 7100.00f / 16,100M / ' e17,400 : ,
- 111.08 % - ?200,000. 7200,000H s11L08E p10-01-853 j l00.00f b20,000t O 20,000?
(13.88 6 J 250,00017 250,0001 ;113.88 3 j7-01-87f (100 00 [ - .25,000f . 125,000 ?
.- .v .
L $50 Par Value -$uthbrized,1983 - 1,I66' 886 , ~ shires; a ~ ' 7 f',~
~
N' ~W 31982-1,779,586 sharesi - s '., ,J v^ ' W i i $ShsesOutstahdinh ~ 1 Ilie'demption Priede "~^ 'I~M j 4 [
* ' ~
4 .
. $ : ; W "
m ; Eventual? '
'.+
^ ^ .
- 4Ssriesi 51983^ 11982 TCurrent? $Th$ughN* Minimum .p 1 -
g3 w .. , s , s# ~ 4 ( 4.50%j - <36,800; $38,400 n 4 51.00- 'i-l , ? 51.00 ; D < 1,840i / 1,920 L f. i
, c4.60%: 3 18,834; 20,334 6 s50.50' n-y ' 250.50; X9425 i.1,017s *
@ W;4.60% (B);
- [4.60% (A)1
[g50,052! 115,600 l119,0002 3)52,052U 50.507 7-s@51.00M - 350.50$ g d-
?51.00 s , l 2,502 $
s5,7801 a: ? -' M5,950t t 2,602{ ' lf 5.125%6 ; 84,000f,1 ? 85,000 L L 51.00[<g 9- i " ' 951.00 [ ? a4,200j i c 4,250 (:* * '
/ ,
16%i 7121,600l ;124,800? _ /50.50C M y: 7 50.50 1 M6,080 / ,
, 6 ? 6,240) '
* - (15,000C
~
V8.720 28%('$300,000n ; 300,000 f: x 56.00H 1-31-84 5 650.00 ' /
~ 1400,000e r 400,000 c f 54.36? cl11-01-84s 7 50.003 M' J 20,000 415,000 , 7 20,000Mi ,
.'% ,- J.40% 4 [265,200J (272,000W52.35;; jl0-01-851, ;51.1757 ;' 113,260:13,600s > ?
+
- m. . m,y . v ~ m ; ,c: m - ~ . ,
N C Ji N E
~ ~
~' '
"IS25IPar ValdeChuthorized 2,000,000 sliare8 b: 4
' 106tstanding / ' '
%9 ' :--F ' #f f--.V Y-0 ^E c.-
- r. N < _
- Total Preferred Stock'(Gubject to Purchase or Sinking Funds)) - M v 1160,604 M9%T d63,619110%i e
~
Y'
- wn s n" ~ ,
& l
~
3( ,s
~ '
y *< + _ 4 g:
'.w,s N
* ^Ni > - *
%.1
^
-; s . , , s
+
y , W , ,3
-. .s 4 < ,
' ' '~
l+ ,.~..C 3 x s _. .,, 22
P_4 d' MlfwEsk.N Af (( Q ld h fp (6 A f gh -4 [ - Y9hh1 * + 19824- J#' IAng-TgDel d Q gyy@ f? M %* h f d w w s @,ase so ym@ pi f h j @ w Q A g y %g y@ myl
@w@&u@5NS&w ser esw Q wag m'm'$?n MhYY *'* W a ,20WS$r waa M 6 -- A ??i &asJ2,%.gM& .
N1/ an3.8%$ [bNhh$h4 83MNh-dp 19 hk Mdf;c jn%25,=MS+5I] Rm a;o ggjgf whhhd ww a?MWaw1985N ' ew m b 7 ,275 g l 25m 3 e MM?W31!2%@D*W%M@MM1986MN6lW9FF JR%%14-3/8% N M1987Mggy
*415,0009 15,000 ;7
< 25 # 0 g f g
; A*EW WMK Wi! 215-5/8%h MO SM5-1/2%O&p gg g (25,000ggpm 493 n6,700 t
- 1
,1 p 6,850g c j:.
% .Z19885%$' ME% / M:5dy
%@f@%@MM$Pi47/8%V%ikd dNN10-1/2%OMTWOM1990NMMYi MU M M Sh gi ~ 610 "M1987%
p10,000;gp110,200
- 410,My g 4p g10,000gy C " , nJ jl0,800 ggj M M EW%@B95%WWWM&
%M s5%RNN $NhM%A1991 11990[MV Md i 000g $m y8,000hyg d$$$@MI5.45%7OM$$#M7/8%NM MMN l996 0 - 6@lC" Mjyg M' W _ vy mg16,0Q #PM1995bMM@il L15,000 ,@gq,1o,00015,000g gg g g
cO15,000 (g MMNW6%dMSFW g g g M % 6 1/2 N b N ' O M@M@h1998 1997k C M g/M@W 'e+ 2nMff(;
- d &#M r 15,000 qF ?20,000pgdF1 i ?
' ? 20,000hw . ,
WMQW8%4 WN%$1999WR ptQQF ;35,000e g g j35,0WR(g
%%#E9-is%
N49mFan: mwd W1999Aj@$E 'M ,; m5,0m; A - 3 2 35,00015m% Wm Aggg;MWWWPKW M W a: 2 2001 @Cw/Mq$ ' .~ cM35,0002002 $30,000 o # A tM-730,000A f m$$a$M9.v8%e NMMM w@2.6@OF2M;4 # ' Mk 9% o0 es.40% w myzWED ym 4 50,000f 9 6a=,=a me$50,00H d5 R 50m: (' -
%fNTd8.3/8%M@NQ
% $ s.905 # W jd u 2008G 530,000is mi de30,000J ~ ,
%%ed20-1/8CT@ih@bM2007sg ' + v @f a@fmm >M30,000& A j y3 om & x M 2009 u
Mu my, m9-7/8%w_vw:.m,m
.R.%pss ~
3 e2009ww A@$it
%s d N " w*id;il u aa;.se no^m M~ 35,000@mC =v @~50,000 3SM 4'i~
,000 e -
NMMN12.15%Q@SMSJM2010WWWfs meg"ncha =0,000K g> j5 g. m"g~ ;50,00Q; 5%dyh16%Ml]Mdf]w]Q2011yMQfM%qgg@m$w$66,250p MmwMmww w wpqwswwm w f,gg70,00
~ _ q*
Panutiim Cohtr61 theinties sevenue BondaM MW FMMMC d4v2% h;bearinginterest at 70-75% of applicableprimerate,due1987pf,
~
;- g N ~W-1 "
g#A 25.95% 5% ConeohdatedSeries, Mort due2003%S ; MAGM21WM5WMg h p p g W1,046 ,500 p y WM p _ ,J,050, WW 11, 7 W5Wgy @gs,124 g 5!Nucleas Bank due 1984t3 l Note;asecured, gage" Fuel LiebdityTdue 1985M@@W@W bFMM Gold . " M@Bonds,
@$P 1W 000pggp D due 1999 MMi*T (non-callab 415000Q[
yg.gh 17,360 gy [ South Cascuna Compty,InC10-1/2% Series First_ Mortgage BondsTdue UM 1990Lgg26,670(M s M m SouthCasolina FuelCompany,'Inc.OdeMM%% WWM ' $$N%ma 58,0132 , g ' w68,364' m~ ME 7
~
h fuelunbany c$; Fossa feetbetey <.2<<AWu
- m wwm W W nnweb awm=c% 9 c W % w w awl GM w %m m. wM22<089-4 +' w-e028,3974 s '.,
/ mwawe.eA wa -
s ;:wW - w - - < - South Carcima ElectrichCas FindeelNK154/2% GsaranGed Notesdue 19894 QQ 60,000gggg@ 460,000 ; g ; Q Q hMy
'aretMort Camlina A10%-Series B,:due1985FMEnergses,inc@@$m%#.nonds ;$WMM gg a % yg@ @ mew Q % % @d 1
W6%SeriesMdue.1988%@%@@maar%@$w%d IhTere 1kas9%fdueJ9853 9MMg%@MMk:M@@@C 3P@$@M MW% W M N3,450NA g4,302y 4r454 b [g MIM%;due WSinkingFund NotesG 1983M@MMM6#E;p@h@@l1@ WWM & ~ iC:n c40g;g 9 W wpm tre-@ii QSte%fdue
" w ose 1988
. 5ws%3 MM9Q4MQ 8MWNdMNPM4 s hHMV due 29 (mdred 1983)M,minaAyp@eu@ss Au%nm v 28s we w 4
obbgadansepMMWM WM@W % A 5,027. m Ny a 6,678 y ~ 1best gSQMAWWW M$cuse&aportionofIods-eermdebtw@@Mi@ew%iWWMM Ties =. r ewC M M M4 MW W @a we @v o s4,124 Ad844,Mf M872,770i +, d ~ $966; y WMUnnsmorexed discount; M92;WM H - W W 1,053 e - 311sInt ImapTeam Debt (Notes 3'and 4)M G@ WWW MnWWN JMW 789,216W47% NM 854,844; 550 % [11stal ( - " ^ % SHER # MMMn WMMMHMM# TEM t $1,685,9903 1100% N $1,703,860 N100%
._. -2 3gNiQh a:
~
k>* AMMAQ %w #%wwm& (WRgN00QfjfI% % m yn %d pf2Ml&];[%$Y :lR%Y 9;QhQ M. +% W$R
%n&,& s %e~:
%@%m a
Qlw ,,' 2l W.jgf g ,&wp'%WW ,e Qe}>.Q m
. . .&LQ w , ; ,A,
.y ikl .l } l f; &Q
.r
Notes To Consolidated Financial Statements
- 1.
SUMMARY
OF SIGNIFICANT E. Depreciation ACCOUNTING POLICIES: The Company provides for depreciation for A. System of Accounts financial reportmj; purposes on a straight-line The accounting records of the Company are basis over the estimated useful lives of utility plant. maintained in accordance with the uniform sys. Annual rates averaged 3.15%,3.16% and 3.12% for tem of accounts as prescribed by the Federal Nn- 1983,1982 and 1981, respectively. ergy Regulatory Commission (FERC) and as adopted by The Public Service Commission of F. Income Taxes South Carolina (PSC). Deferred income taxes, arising principally fr m the use of accelerated amortization and de-B. Princi Ples of Consolidation preciation, are charged to income currently with The accounts of the Company's wholly-owned- corresponding credits to accumulated deferred in- - subsidiaries, Carolina Snergies, Inc., South Caro- come taxes. Deferred income taxes are credited to Inc., South Carolina LNG lina Fuel Company, South Carolma Electric & Gas ncome in appropriate amounts when subsequent Company, Inc. and income tax liabihties are greater as a result of this Finance N.V., are consolidated in the accompany- practice. ing Consolidated Financial Statements. Invest- The tax effect of litigated electric revenues ments in the C,ompany's real estate subsidiary, ($29.6 million and $8.1 million for 1983 and 1982, , Energy Subsidiary, Inc., and certain investments respectively) collected by the Company has been of Carolina Energies, Inc. m joint ventures (see accounted for as a credit to the provision for de-Note 11) are reported using the equity method of ferred income taxes under " Taxes-income" and accounting. Sigmficant intercompany transac- included in " Deferred Debits-Accumulated de-tions have~been ehnunated. ferred income taxes" (see Note 2B). Pursuant to an agreement with FERC effective C. Utility Plant January 1,1982, the tax deductions related to inter-Utility plant is stated substantially at original est expense arising principJ1y from investments
. cost. The costs of additions, renewals and better- in construction work in progress, which previ-ments to utility plant, including direct labor, mate- ously resulted in an income tax-credit under
' rial and indirect charges for engineering, s,upervi- "Otfier Income", are accounted for in " Taxes -
sion, and an allowance for funds used durmg income" under " Operating Expenses". construction, are added to utility plant accounts. . Investment tax credits on eligible property are: The original cost of utility property retired or other- being amortized over the usefullives of the respec-wise disposed of is removed from utility plant - tive assets. accounts and charged, with the cost of removal, less salvage, to accumulated depreciation. The costs ' G. Pension Plan of repairs, replacements and renewals of items of The Comp' any has a pension plan covering all : _ property determmed to be 1,ess than a umt of employees. The Company's policy is to fund pen - property are c,harged to maintenance expense. In sion costs accrued. Total pension expense, includ-
- - accordance with FERC Electric Plant Instructions,
. ing amortization of unfur.ded prior service cost:
- the fair value of test p,ower generated by the V. C. in the year 2000, and over was a twenty-year approximately period 510.3 endmg$7.8 million, million and -
Summer delivered Nuclear to.the CompStation (Summe,r y's electnc Station) for dis-system
$6.7 million for 1983,1982 and 1981, respectively.-
tribution and sale has. en credited to construc- The actuarial present value of accumulated tion workin progress, plan benefits and plan net assets as of the most
. . recent benefit information date are as followsi D.LAllowance for Funds Used During Construction l
January 1, l 7 Allowance for funds used during construc.
- tion (AFC la noncash item, reflects the period -1983 '1982'.
cost of cap) ital devoted to plant under construc- ' - (wsns of couarst
? tion'. This accounting practice results in the inclu- , Actuarial present value of I sion, as a component of construction cost (con- accumulated plan benef;ts: .
E 'struction workin progress),'of amounts of AFC Vested stil.a ss.4 -
- which will ultimately be included in rate base in Nonvested 6.3 ~ 7.6
, establishing rates for utility charges. The Company Total s118.1 576.m
, :has calculated AFC using a 6.5% rate (except for Net assets available for benefits $ 79.2 $60.5
=
nuclear fuel which is capitalized at the actual inter-est amount), which is less than the maximum _ allowable rate as calculated under FERC Order No.
'561.-
=
24 A.
m L
- l. y l M~The assumed rate of return kas5d in determin- '
B. On July 13,1983, the PSC issued an order - I ilng the actuadal possent value of accumulated plan 2 ; granting the Company approximately $34.1 mil .
' hamaans was 7% ser 1983 ahd 1902. The increase in : Hon annually, or 39.6% of the approximately $86.2 ;
expense for 1983 L.:;4 primarily from million electric rate increase pefifion filed on July ~. ; . In plan *-- an6ovisions and E R1,1982 (as revised on January 24,1983) South Caro 1 .The inactuartelm'ethods.Thiincreasein the) {Com
~
y' appealed the decision to the i . valueof accumulated bene- : lina t Court which remanded the Order to the- f
- Sis from amendenentstothe n and PSC for further consideration because~certain mat-J changesin actuarialassuetions.1 M ters were not based upon substantial evidence in -
_ ,- .- W i- W : the record! At the present time, the Company :
'HaRevenneBoeognitionk .
(
. M cannot predict what the final outcome of thisi W
- matter will be and continues to bill its customers at '
mCustnmers'seeters'are read and bills are renA deced on ~a monthly cycle basis. Base rate revenue > the litigated$52 rates. The difference in testinyearrevenues reve- (ap ? +
- Isseconded during the when Proximately million annually Itheamamsare verd. Ravenue table W nues) bdwa the litigated and PSC approved
' costs (to the extent ennarende throuah adju$ gas :stmentV rates has been and will contin clauses) is' accrued and recorded in he month from electric revenues an6 together with interest ~
hich the "' during sevenue w'is beed! gas - -x is -used . rather
- than Men recorded the? as i(ata hability the statutory and included rate of in 12%
"C.'..mia per annum
' Die coBects projei%fuelcostsin Credits-Other". 'At December 31,1983, the total; retnaelecede ' rates, as established by the PSCf amount of liti ted electric ~ revenues subject to l refund,-inclu interest,.was approxu' n,ately 7 . . ,
during semiennual recoveriesor
- hearinp=.
" Any resultma
- 3-- areincludelwhenn over , ~ 1$76.5 milhon.. accom ying Consolidated Fi- .
~
fuel casts for consideratie during the k nancial Statements refl .the effect of the PSC , l
- nextPSC . At December 31,"ES3;the Com 1
- Order, and
'ously reported operating results -
earnings have been restated as follows: had 7undercolketed mIEinn which areincluded fuel costsum'ut"De-eproxi ~ x ._ , ' ;and J s Year Ended December 31,1982 - Debits - Other". "
. As 1 ,
' Adjustment ' ' Adjusted
-I.iDebt Ptemmines, Discount and Expense _ % .. .
; wm ,,,gog,,mp p ,,murds)
IAElgieren debt pternium," discount cnd ex.y Totalelectne operating. ,
"'"" ~
15(159) 5574 1 pense ase being asnortised over the terms of the :' 28Pecd debtissues. m Dyed _ J 58900= 147.6 f(7.9); r 139.7c: N, ' - ~ Netinccme - ' 87.8 ' l;.. ... 5 '. u Earnmgs available forr i e 96.1 j l(8.3)
,(8.3).-
j; - 2. RATE MATTERS:s s. sgu . . . . common stock 7 i 79.7 . . 71.4 P A.On ber 6,K1 %3f the Company filed a" Eammgs per shm - . . l ~ of conunon stockj s2.32. - ~.(.24) ; 2.08 .
- peudonwth PSC for anincreasein retail Retained earnmas - 160.3 - -(8.3) 152.0
.gartricIntes to include revenues to N costs :
W with the two-thirds owner . - : C. On' April 29,1983, the Company filed an .
~
shipintmentin Sumnwr which began . apphcation with the FERC for an increase of 52.8%: en==== areal operation on Jan 1; 1984.*. Based ' (a roximately $15.9 million annually) in whole- ~ l
- , the m uested electric revenues based on a projected test year
;en atestyearenden incumee m. May 31,1raldrif approved ien by the JunePSC,[would 30,1984l An intenm rate increase ofE produce an annualincrease in revenues of ap . . M 29. yymdmately $9 million annually) was ; ' b f puedmetely $118 miBlon (19.3%) over rates cur-F ~ placed to effect, sublect to refund, on June 29,'
- - sently being buisd cuasamars. The $118 millen 1983;On Jan 25,1984, a negotiated settle-1 Increase in nevenues,is net of estimated fuel savb
- ment, agreed to the Company and its wholesale .
of - u --
, ($31.5 ndnian and is m - . L customers, was with the FERC for approval.-
to 1, ,--- $52 miBion of test ar &The terms of the Settlement Agreement provide _sevenuescurrently customers is4 gor,camong other things, a two-phase rate increase.
- s$octto afund and der. (seewkh B below ? H==da=pmsently <unThe
= have con- - ' first p'hase of the rate increase is effective June -
. 29,1983, and will remain in effect until the PSC :
and, under state la)w, the PER must render + iissues an order on the Company s a decision within str anonths and five days fmm L L1983 petition for increased retail electric rates (see - nitiedeseef 1%nding a finaldecision the- . JA above). The phase one rate, based on the test ~ PSC,thesecan noassurance that a : year,:will produce approximately $5.8 million ari- ~
'- sequestedincesse wiB 9 b granted; ~Mpf ' '
' nually in additional electric revenues. The Settle '
1 25
1 Notes To Consolidated Financial Statements (continued) l l 1 ment Agreement also required a refund of approx- The annual amounts of long-term maturities, l imately $1.5 million (out of approximately $4.4 including sinking fund requirements and million of wholesale electric revenues collected amounts due under nuclear fuel and fossil fuel subject to refund through December 31,1983) agreements (see Note 4), for the calendar years which was made to wholesale customers in Janu- 1984 through 1988 are summarized as follows: ay 1984. The phase two rate will be effective upon the issuance of an order by the PSC on the Compa. Year Amount Year Amount ny's September 6,1983 rate increase petition and mwusands of Dollars) will be equivalent to the Company's Large General 1984 554,124 1987 $85,623 Service Retail Rate. If the Company's proposed 1985 52,013 1988 20,988 1986 36,275 Large General Service Retail Rate were approved b the PSC in iis entirety, such phase two rate would .y produce a total of approximately $15.4 million an-nually in additional wholesale electric revenues or 4. FUEL FINANCINGS: cpproximately $9.6million above the phase one The Company has assigned to South Carolina rate. There can be no assurance that the terms of Fuel Company, Inc. all of its rights and interests the Settlement Agreement will be approved by the in its various contracts relating to the acquisition FERC. and ownership of nuclear fuel and fossil fuel. That D. On September 28,1983, the PSC issued an subsidiary finances these investments through the order granting the Company approximately $7.5 issuance of short-term commercial paper su orted million, or 65.6% of the requested $11.4 million by an irrevocable letter of credit (nuclear fu natural gas rate increase filed on June 13,1983. which expires in 1987 and an irrevocable ban i The order provides a 6.1% increase in firm retail . line of credit (fossil fuel) which expires in 1985. l natural gas revenues based on a test year ended Due to these arrangements which support the ' March 31,1983. The new rates were placed in; commercial paper borrowings, the amounts out-effect on September 28,1983. - standing have been included in long-term debt. The agreements, as amended, provide for maxi-mum amounts ($70 million related to nudear fuel 3;'LONG-TERM DEBT:- and $30 million related to fossil fuel) that may be outstanding at any time.
~
The Company's bank note ($15 million due March 9,1984) is secured by a like principal . At December 31,1983, the amount outstand-rmount of First and Refunding Mortgage Bonds, ing for nuclear fuel was approximetely $58.0 mil-14-1/2% Series. Interest on the Note is pegged to lion at a weighted average mterest rate of 9.99% various rates as defined in the agreement at the and the amount outstanding for fossil fuel was option of the Company with the interest rate at approximately $22.1 million at a weighted average i 10.87% on December 31,1983. . interest rate of 9.64%. l
. The 15-1/2% Guaranteed Notes of South Caro- l lina Electric & Gas Finance N.V. due 1989 are I secured as to payment of principal and interest by - 5. STOCKHOLDERS' INVESTMENT (Excludmg i First and Refunding Mortgage Bonds. Preferred Stock Subject to Purchase or Sinking l Substantially all utility plant and fossil fuel Fundsk inventories are pledged as collateral in connec- Increases in " Premium on common stock" for tion with the various issues of long-term debt. 1983 ( pproximately $29.6 million),1982 (approxi- i
.~Approximately $8.6 million of the currentportion matel $77.5 million) and 1981 (approximately l oflong-term debt for 1984 may be satisfied by. $33.6 illion represent the premium on issuance ; ' deposit and cancellation of bonds issued upon the of additional) shares of common stock as folI basis of property additions or bond retirement ,,,, ,,g, ,,g, credits.- In accordance with ~ provisions of the Nuclear comme sexk-public sale - - 2,500,000 2,000,000 Waste Disposal Act of 1982, public utility compa. Comme stxk4anAna Energies, i" ~
'4 -
- nies owning nudear power generating facilities st $a saqs Prgram have entered into contracts with the Department forgmpioy,,, . 439,734 398,169 312,660
- of Energy (DOE) for permanent disposal of spent Dividend Reinvestment and stock nuclearTuel. Pursuant to a FERC accounting direc- Purchase Plan 1,590,592 1,126,350 845,898 tive, fees charged by the DOE for permanent dis- Employee stock Ownership Pla, 120,827 193,516 270,249 psal of spent nuclear fuel associated with genera- Totai shares issued 2,201,153 6,836,435 3,428,807 tion prior to April 7,1983 shall be recorded in other long-term debt to the extent such fees are not ,
I recovered in rates and included in utility plant. 26
ll l { i
\
l OJThe Restated' Articles ofInco ration of the cordance with an offer made to all holders of ; l Company and theindentures und ying certain . preferred stock. The Company may not redeem bond issues contain provisions that hmit the pay : 1 any shares of preferred stock (unless all shares of 4 ment of cash' dividends on common stock. Ap- - preferred stock then'outstandmg are redeemed) or ? proximately $97.6 million of retained earning,s- ' ~ purchase or otherwise acquire for value any shares 1 were not restricted as to payment of cash dirl ' of preferred stock except out of moneys set _ asi_de as
'dends on commonistock atbecember.31; 1983. purchase funds or ~sinkin'
, OThe increase (decrease in " Stockholders' In-1 : series of preferred stock,g funds for one or more vestment" (Excluding Prefe)rred Stock Subject 2 default toi under the provisions of the purchase fund:
Purchase or Sinking Funds)is suramarized as x ' 3 or sinking fund for any series of preferred stock.f follows:;
~
. ; . ; The aggregate annual amounts of purchase 0
. . 1,ss J19824 1981 ' fund or sinking fund requirements for preferred L miousands of odlars) - f stock for the calendar years 1984 through 1988 are? *
'asance at segiining of Year f $685,397 j $572,203 ; ? $512,420 ; summarized as follows:. _
Cha 4 Year; ' Amount ' Year' ( Amount? e Stock Purchase- vin I rogram' " 2,204' i forEmployees i1,792 71 ,407 ~ --
' ('7:ousands of Dollars) : .
Employee Stock Ownefship Plan '544 871' 1,216; 1984 : $3,015' ' 1987- e $ 7,415; 3 Dividend Reinvestment ~ = '1985 ' : 3,815 f 11988 7 , i 14,415 5
'and Stock Purchase Plan" : 7,157 ' 5,068 i 3,806 t 1986 - 4,415
; Public sale 5 f -: a 11,250 < 9,0001' ,
pion of Camlina Enerpes, The~ increase' decrease)in."Prderred St$ckh Jne.; . . _ . p t-c 111,783 ' i
.Chg'" P""'""/" '**'" " ~ ~
x 2qSubject mg1s summarized as follows: ~ to Purcha(se or Sinking Fun ' l
' ljgg3U-i stock Pirchase-Savings Program ,.
forEmployees ' '
~
? 7,129 / 4,765, c3,017 - -
~s t
- 1,710 ' 2 2,3P 2,542 . Number 7 Thousands
[ Divi,4nd Employee S*ock Ownerslup Reinvestment and , , Plan ; ;d Shases M Dollars
> ' Stock Purchase Plan -- .
.-20,768 + 12,054 - 7,495' ' issued.
l Public sale " - m 'u 2 27,375 s - 20,500 i ($100 par value. m-1 [$ l--i AcquiatiM Carchrm Enerpes, ; 50 par value -1 - 1 i"
- Inc/c _ , _ __
- ~ 30,991. " = Redeemed:, . - .
Changesin Other paid in capital, $100 par value- . (20,400) . (2,040)3
- net;... f 1 ;_. . 240: ,
195- 378- , 50 par valm - '(19,500) ' 0 75)4
' (39,900) ~ $(3,015) )
ne [15[ " Total 4
; (487) '
/(112) _
Changesit. Aetained earnings:) ' e m
! Net'ncome s 5_ TL , - 103,938 ? t 87,816 -1 75,883 1 g' ' ^
Cash dividends: - .r . .. .. . . . .
~
i Preferred stc.ck (at stated rates) ~ 07,106) = (16,371) l . (14,245) ' ~ ~
~
J Number l flhousands
> Common stock (at an annual - of Shares ' iof DollarsJ l ; per share rate of $2.00, $1.92- '
' Issued ~
r ue- t 250,'000 i $25,000 9- res I (75,746)i (66,245) 451,104)- I.1
' Balance at End of Year i-
$736,1701 $685,3971 $572,203 ~ Redeemed: . . . .NN 1$100 par value < (17,480) ; (1,748)!
Notef 1982 Restated -.:. Sie Note'2B3
, y .p -
-50 par value ' (17,000) -- -(850)
N" >
~' -
Total 215,520 ? $22,402 ?
- 6. PREFERRED STOCK (Subject to Purchase ~ or ,
Sinking Funds):1 M ~ ~ .
~
a981r - 2 've series of D Number ' cThousands? p'referred dThe stockin call premium no case exc of the.~res s the amount ~ of! ~ of Shares ~ ! of Dollars 9 _ the ann' u al dividend, Retirements under sinking - : Issued: . . , fund requirements are at par values.
* $100 par value : --- < '$ --
. J At any time'when~ dividends have not been '50 par value -=
' paid in full or declared a' nd set apart for payment Redeemed: .
on all series of preferred stock? the Company may; c $100 par value, (23,320) .- (2,332); s not redeem'iny shares of preferred stock (unless < - 50 par value (22,000) - (1,100) : all shares of preferred stock then outstanding are . Total - (45,320) - $(3,432) . or purchase or otherwise acquire for
'value redeemed) any s hares lof preferred stock;except in ac-27
Notes To Consolidated Financial Statements (continued)
- 7. INCOME TAXES: Provision for deferred taxes, net results from TN Company's income taxes differ from timing differences in recognition of the following -
amounts computed by applying the Federal in- items: come statutory rate of 46% to pre-tax income as 1983 1982 1981 follows: (Thousands of Dollars) 1983 1982 1%1 Accelerated depreciation and amortization $ 51,482 ' $37,941 $10,065
. (Thousands of Dollars) memes , (8,4 -
Net income $103,938 $ 87,816 5 75,883 3,562 4,312 Interest on nuclear fuel 939 Add (deduct) components of Deferred fuel revenue 7,632 (6,532) 3,580
, ' * '
- SM' g Other, net 494 (950) (260)'
operating expenses (income Total prosision for taxes and credits and deferred income 54,377 taxes, net S 30,919 $25,966 $17,697 investment tax credits, net) 70,395 43,580 Income tax credited to other income ..
- - (16,792) The Company's Federalincome tax returns Income tax expense charged to have been examined by the Internal Revenue other income. net 3,298 1,3n 902 Service (IRS) through 1981 and have been closed Totalincome tax expense n,693 44.901 38,487 through 1978. Final reports have been received for Total pre-tax income $177,631 - $132,717 $114,370 1979-1981 and all issues resolved. Carolina Ener-Income taxes on adow at statutory gies, Inc. is currently under audit by the IRS for Federalincome tax rate $ 81,710 $ 61,050 $ 52,610 the tax years 1979-1981.
Increases (decreases) attributable to: Allowance for funds used
. during construction 8. SHORT-TERM BORROWINGS:
(excluding nuclear fuel) 09,140) (17,374) (15,024) Depreciation differences 1,568 1,924 1,858 The Company maintains compensatm.g bal- ! Amortization ofinetment ances of up to 10% for certain of its bank lines . tax credits n,973) (1,706) (1,374) and pays fees in lieu of balances in Connection
- Stateincome taxes (less Federal with its other lines of credit. The lines supported l income tax effect) 7,065 4,527 3,W by compensating balances may be reduced or
^ "f 'i"i$i i withdr, awn at the banks' options, with all com-ad nt 805 - -
Taxes, pensions and otheritems Pensatmg balances available for use as general capitalized on books - (2,437) (2,403) oPeratmg funds. Bank loans are for 270 days or ! Other differences, net 3,658 (1,083) (220) less. Details of lines of credit and short-term bor- ! income tax expense $ 73,693 $ 44,901 $ 38,487 rowings at December 31,1983,1982 and 1981 and f r the years then ended are as follows: income tax ex nse is composed o December 31, Provision (credit) for current taxes: Federal $ 21,825 $ 1,866 $ (427) 1983' 1982 1981 State 6,262 1,655 2,089 (Dollars in Millions) Fureign 5% 380 - Lines of credit at year-end $127.2 $130.7 $134.2 Total current taxes, net 28,683 3,901 1,662 Borrowings against creditline at Deferred taxes, net: year-end - - -
- Federal 28,948 ' 22,242 15,324 Average bank balances during state 1,971 3,724 2,373 the year $ 4.9 $ 3.4 ~ $. 4.8 I Total deferred taxes, net 30,919 25,966 17,697 Short-term borrowings (including
! commercial paper)during the year-Inves ent credih: Maximum outstanding $ 36.3 $ 64.8 $ 74.0 1 7 02
^*'E' "I*'"" "E $ 12A $ 36.2 $ 325 Amortization of amounts Weighted daily amage m. terest deferred (credit) (1,973) (1,706) (1,374) rates:
Ba h m - IN M.M ts 14,091 15,034 19,128 Commercialpaper 8.85 % 12.96 % 16.78 % Totalincome tax expense $ 73,693 $ 44,901 5 38,487 Notes payable outstanding at Note: 1982 Restated -See Note 2B. year-end:
- Bankloans - -
$ .6 Weighted averageinterest rate - .
- 12.13 %'
Commercial paper -
$ 21.8 $ 22.5 Weighted average interest rate - 9.02 % 13.09 %
Other $ .2 $ .2 $ .1 Weighted awrageinterest rate 9.50 % 9.50 % 9.35% 28
m , ,T i. A ,-
.w .
., n' g
, -r '
#" d'L '
g Y
'+
, - a.
~ , %j,Q r 9; COMMITMEN'IS AND CONTINGENCIES: t the Summer Station. The Company pays annual . /
*F
'ALCsestnsedan .. .' s c premiums and,-in addition, could be assessed a N In addition to mutine' commitments foi r- 0 i Premium not to exceed 7-1/2 times its annual '
matesials and supplies, the Company at Prenuum which, based on the current annual 7 g*~, 31/1983 had mapor construction commit-' i maum, could be approximately $4.4 milhon m ments of appandmately $149.4 million relating to ? . event of property damage loss to any nuclear - . . ,
. constnaction at Sumuner Station, the conversion of g generatmg facdities covered by such mutual -
ghe 20 megswatt WiHimms Stadon from oil-fired to i i Pohcies. - p_l coal-Gsed operation and the acquisition of nuclear- ~ ', -
; g,,g,e , ,
- =-
' g gg .
g 10 SEGMENT OF BUSINESS INIORMATION: ,
'E Service (a public wiyeietion of thel Segment information at December 31,1983, - -
State of South are joint owners (two.7 c 1982 and 1981 and for the years then ended is as L lhinis and one third, respectively) of the 900 mega- t i followS:
~ '
'g xwatt Sinnrner Station; The parties share i t fmanc- ~
m3
;ingAcosts of construction, costs of operation, and m c: rr it ne.:
- in SturEY cutPut on this basis. The total cost #' fa ? o .
' * *""d'"/8*"*").
oide Sununer Stdion was W - op.edes menu . s m,1271 ss37,2s2 ' s 3,242 s m ,6s1 mately $1.3.bnikst /M December 31,1983 and the , ' ' s' share was appicedmately$851 milhon - oP"dhe =e="< ad
... is anchaded in construction work in prog , r,,,emas e7,7m - m,m s,seo ; m,ns ,
; IWes;The Sis =nner Statiosi comunenced commercial .-
w
~
operationonJanuary 1; 1980 - h s7,m - 7,ses : mas es,oss N #"'8"s "r""" es,2m - m,417 s,14s s24,77s yl $ @ w$ w - o, des h- e s us.ese s n,ses sa, win ': m,sn klinimum isase commitments as of December r 31/1985 undet aB noncancellable noncapitahzed N h=" "a Li s,sn 87 8 " 4
; leasesme not material. The t value of mini ; #""" d"'8" ~
~h
^
mum leaseins==desments at _ _ _ hr31,11983T s - Netinamu a s 103,s . Percent P_W , , , , , , , ,.. . , , , , , , , _ , , , , , 3 ,,,,,,
' Utained for e,eums Company operaden. "
' 2,ma -
_ , . g , C.S EAgg fmpassmanen.sne 6 . ? Deal' !s:1st,74s l ))[]g jg()W master tenant of a builddr '
< tag'used - : ""- - under -
tusesofa notlease.If ' t ananc : Yi M, ,s. 7 -.si,m n71sn7s,7ss s 1, sis si,sw,sas forIlm hnot bythe owners r si,421 ' - 7,237 - s ass Tse,ses-to 1; 1984(unless mu exe m , z.used - tthe must make a offerf .' si,sra,m sus,se s1,722 ; 2,es,se. 3st,an the atits cost The~ cost of the -' s d'" =88"d 8" * '*8 C'"P8'r *Pwatim l ' '
* == m I & '$43ndBion.. ' 2 mini ==*= "
go ^ 1 L ,Y ' f r ' , , W hinehIndenmisemiosfAitHah-?
$( ef4 feout operating ac v
>. mason
- The Aargeora' dss thataB owners of mih ' ~ _
onenucher : > , etnoters aneyDe assessed up to $5 adDion pern - , w sesseerder eeth anclear accident occurn'na at any ( % ~ sesteerin time tielted States with a limit oftwon '"
' ~ (a renacective premium).iThe; exposurewouldbeapproxi x bmu m.i deco,,taminatio,,1
~
, adBion forlosses in . .
A
$ stems . , . . . ,
overexistingcoveragesonH ^ , if , e
" +
29 ;g- . , ' T
.- -....._-.-._,-_-..:.__-,--._.----._.-._ ... - - . _ .- - . - .L. - - - ,.
Notes To Consolidated Financial Statements (continued) I 1982(ali ~ 11. ACQUISITION OFCAROLINA ENERGIES,INC.: Electric ~ Gas Transit . Total . In April 1982, a wholly-owned subsidiary of (Thousands of Ddiars) the Company acquired all the stock of Carolina Operating n venues - 574,113 $266,389 15 2.603 $ 843,105 Energies, Inc. (CEI). The stockholders of CEI re-
~
P"M.epMtion exdu ceived 2,618,40 abproximatelv $26.6 million in cash an 1 and amortization ' 4M,197 250,284' 5,511 . 659,992 . with a market value of approximately $42.8 million. Dernciatim and - . CEI is a holding company engaged through its six unortization 36,146 7,049 . 211 43,406
' wholly-owned subsidianes in the purchase, trans-Total operating expenses 440,343 257,333 5,722 : 703,398 mission and distribution of natural gas at whole-Operatingincome(loss) - $ 133,770 $ 9,056 ' $(3.119) 139,707 - sale and retail, retail distribution of propane and Admincome, net 5,230 ther related activities including oil and gas explo-Less-Interestcharges - 57,121 ration through jomt ventures.
Net income $ 87,816 aquis on Was aCCoud b unM 6e purchase method of accounting and the accompa-c, pie,i,xpenaitu,,,. nying Consolidated Statements of Incorra and identifiabie(indudes Retained Earning 5 include the results of CEI's acquisition : operations from date of acquisition. of camiina t . The cost of the acquisition (net assets acquired
- Energies,Inc.) $ 186.871 . $ 71,947 $ 44 $ 258,862 less working capital provided) was $61.2 milhon Utilized for overan company operations . 2,512 which represents the excess of Gas Utility Plant Totali S 261.374
~
l($67.4 million, including acquisition adjustment of $39.9 million) and other assets ($16.1 million) Identiaabte assets at . over long-term debt ($10.5 million) and other liabil-Ery pNn't,k :$1,763,203 ? $170,631$ 1,458 $1,935,292 S m onb & agisMon a SWM
- Inventories 71,947 : 7,847 176 79,970 !nClu,ded in Ga,s Utility Plant at Decem er 31,1982, Totai - $1,83= 150 $178.478 $ 1,634 2,015,262
- M."#d"W
- the straight-line method.
YP Nd SM
; Ass-tsutilizedforowraHCompanyoperatons 187.493 Had the acquisition of CEI been consummated Totalassets $2,202.755 - as of the beginmng of each of the years shown (a) Restated , See Note 28. below, Pro-forma . operating results, excluding am-1981 ortization of the acquisition adjustment, would Electric Gas Transit Total have been as follows:
(Thousands of Dollars) 39g2g,y 39g3 Operating revenues $ 555,716 $188,167 $ 2,429 - $ 746,312 (Thousands of Dollars Operating ex , except per sharearncunts) 1 413,266. 177,9M 5,063 5 % ,313 E[n g e a n 33,889 - 5,593 209 39,691 # # * *' e Income before m. terest charges 148',213 139'0c3 Totaloperatingexpenses - 447.155 ~ 183,577 5,272 - 636,004 Net income S8,987 82,426 Operatingincome (loss) Y 108.561 $ - 4,590 ' $(2,843) 110,308 Preferred dividends 16,371 -14,245 Earnings available for common stock 72,616 68,181 Add-Oh 'm, M E 095 Less -Interestcharges 55,520 Weighted average number of Net income S ~ 75,883 comm n shares outstanding (000) 35,194 30,758 Earnings per share of common stock 52.06- $2.22 Capita! Expenditures:- Identifiable ~ . $ 173,833 $ '8,840 - '$ 145 $ 182,818 (a) Restated - see Note 28. LUtilized foroverallCompanyoperations6 1,283 Total! 5 184,101 Identi6able assets at
! December 31;1%1:-
< Utility plant, net - l $1,61o,249 . '$ 99,327 $ 1,598 $1,717,174 inventories ~ 83.955 ' 6,032- 147 90,134 L Total $1,700,204 ' $105,359 ~ ' $ 1,745 1,807,308 Assets utilized for owrall Company operations ' 151,464 Totalasse , $1,958,772 30
l ( I i 1982 12F QUARTERLY FINANCIAL DATA i . (UNAUDITED): First Second Third - Fourth Quarter Quarte- Quarter Quarter Annual
~
;The following data have not been audited, but - .
. in' the opinion of the Company, include all adjust- -Total operatink) . 52@,171 $197,256 $227,758. $217,920 -$84
-ments (consisting only of normal recurring ac. . revenues (o cruals) necessary for a fair presentation of such . .tt2n8,(000), mm - -28,832 - 42,152 : 31 027 139,707 amounts. Amounts for the third and fourth quar . Net income (000) 22,933 16,062 28,407 20,414 87,816 ters of 1982 have been restated to reflect the effect Eamings available '
for common of Note a 2B July)13,1983 J . PSC retail electric rate order stock
~
(see(000)' 19,425 11,898 24,mo 16.082 :71,445 Eammgs pershare
.1983 . ofcommon . _ . .
First 1 iSecond Third , ' Fourth : stock as n'poded .64 3 ..67 -. .44 2.08
- Quarter Quarter - Quarter ' Quarter 1 Annual en ( }) $257,520 ~$214,220 . $263,695 ~ $239,216 $974,651 -13. ACCOUNTING FOR' CHANGING PRICES operating , (UNAUDITED):
- income (ooo)- 39,012 35,s22. 45,3941 _ 29,945.. 149,873 In compliance with Financial Accounting Net income (000) 27,104 > ' 23,430. l35,134 : 18,270 1 103,938 Standards Board Statement No. 33, " Financial Re-Eamings available porting and Changing Prices", the Company has g(g'*n"gg*" : 22,794 . 19,123 3o,832. 14,003 86,752 Prepared certain supplementary financial state-
'Eamings per share . ment data m constant and current dollars (as
, of common . See pages 36 and 37 for constant and
' stock as - .
.Current defined) dollar supplementary financial statemen
> reported ~ ~ .62 - .s1 .81 .36 ~ 2.29 data.'
Common Stock Information
-1983 1982
~4thi :3rd 2ndL = 1st 4th 3rd- '2nd.
- 1st
- Qtr. Qtr. ' Qtr. - Qtr. Qtr. ~ Qtr. ~ Qtr. Qtr.
Price Range:(a) .
- .High . ' 20-1/2 ~ ' 19-1/2 ' 1/4 ' 20-7/8 19-1/8 18-1/8 17-5/8 164/8 l Low ' , ~ 17-1/2 f 17-7/8 .17-7/8 ' '17-1/2 16-5/8 15 15-1/2 14-1/2 Dividends Per Share
- '
1983~ _
~~ Amount : Date Declared Date Paid
-- First Quarterf 5.50 January 26,1983 April 1,1983 l Second Quarar - 5.50 May 25,1983 June 30,1983
- Third Quarter. C$.50 August 24,1983 October 1,1983 e Fourth Quarterf " $.50 November 22,1983 January 1,1984 11982-~ . . . . . .
; First Quarter ; $.48 ' January 27,1982 April 1,1982
' Second Quarter?
4S.48 .May 26,1982 - July 1,1982 Third Quarter : $.48 1 August 25,1982 October 1,1982 -
. Fourth Quarter 'S.48 ' November 24; 1982 January 1,1983 ~
December 31, 1983 1982 Number of common shares outstanding 38,727,652 36,526,499 L Number of common' stockholders of record - 64,211 63,715 IThe principal mark $t for SCE&G common stock is the New York Stock Exchange (stock symbol - SCG).
-(~) As reported on the New York Stock Exchange Composite Listing.
31
Management's Discussion And Analysis O Financial Condition And Results O O eration LIQUIDITY AND CAPITAL RESOURCES The increase in earnings per share during The Company's ability to provide funds for its 1983 was primarily attributable to various rate in-construction program and meet its working capi- creases pfaced in effect during 1982 and improved t:1 requirements is dependent upon rates which electric sales (KWH) in 1983. The decline in such
.will provide a level of earnings sufficient to pay for earnings per share for 1982 resulted rimarily from .
that portion of the construction program to be an overall decrease in electric sales WH) of ap-financed from intemally generated funds and to proximately 2.3% and the failure of he Public-
- permit the issuance of additional securities on : Service Commission of South Carolina (PSC) to - reasonable terms. The Company's ability to obtain grant the Company adequate electric rate relief as -
funds through short and long-term borrowings requested in its petition for an electric rate in-and equity securities is subject to certain earrungs crease filed on July 1,1982 (see Note 2B of Notes to' . tests and to capital market conditions. Consolidated Financial Statements). The follow- - Construction expenditures for 1983 totaled ap- ing table sets forth certain information with re-proximately $182 million of which approximately spect to significant current and previous rate cases 5120 million was associated with the V. C. Summer for 1981 through 1983:
. Nuclear Station (Summer Station). Summer Sta- , _ ,.
ary1, $ WP'd * ^
.$dditionblw iIl he ompany sense
" 5 3"'"*
ra'w ow""none' nequestea"m "o",*'" m^"inions)"' con 5 d*JE7 rpplied approximately 532 milh,on to scheduled a smkmg and purchase funds and retirement of neta zmi sx2 2n m2 ssu um longterm debt. The Company's cash requirements
.for its 1984 construction program, excludmg Al-wy y gj Igg 'g Sj 8, gg~
wwenic mm sis.9 52.ss . ivnaing(2) lowance for Funds used Dunng Construction Retd %M s%9.9@ 30 M IVn&ngm -
' (AFC) but including nuclear fuel purchases, are ca projected to be approximately $266 million. In ad-dition to cash required for construction, approxi- -
Retaa g,,, j iQ g mately $49 million will be required during 1984 for @ W ,T'g' @ '6*,','";,,g no,,3,i3,,,,,,,,g, m ,i smkmg and purchase funds and to retire matur- infonnatim mncerning thm nte mquesh. . ing obligations. The Company anticipates that m H "* <* d arP=*"awly 552 =Hi= diano*d la a rah r*
- such cash requirements in 1984 will be met 9 '
Z"q"'s'ta"1N8,'M""eNiTd $'n"il"jsd M** sa 1through the sale of pollution control bonds, com- 2B d Notes M Consolidated Financial statements). mon stock issued through its dividend reinvest-ment plan and ' employee stock AFC has had a major effect on the Compan End internally generated funds. purchase results of operations in recent years.~ AFC .- is a = The Com ny . plans utility accounting practice whereby a ortion of = expects that short-term capital needs will met - the cost of both equity and borrowed funds used to - through bank borrowmgs and the sale of commer-finance construction (which is shown on the bal-cial 1- gper. e Company e.no
. dically.reviewsits ca ital ance sheet as construction work in progress)is r uirements, con itions m the finanaal mar ets . capitalized instead of being, expensed in the pe-;
l ;an its capitalization goals to determine the . . riod incurred.'Both the equity and the debt por-amounts, tunmg and types of external- . tions of AFC are noncash items of nonoperating '* fm' ancmgs' the
-income Company's which reported have net income thebyeffect their ofincreasm RESULTS OF OPERATIONS . of construction activit h level,ly Summer Sta y Earnings ( Ltion), yin recent years (3am unts pnman a substantial p~ortion of the Com Earnings per share of common stock (based' > earnings has been attributable toFor AFC.pany's
~
the ; ' on the wei
= standing),ghted average number of shares yearsout-the 1983,1982percent andmcrease 1981, AFC (decrease) contributed o from ap fi -
the previous year and the rate of return earned on i
- Earnings proximately 56%,65%
Available for Common and 67%, Stockrespectively, Since Sum-
. common equity for the years 1981 through 1983 - mer Station commenced commercial operation on i iwere as followsf . January 1,1984j AFC has been virtually eliminated K 1983 1982 1981- and de'preciation associated with the recovery of
. g.
the inwstment in the plant has begun. A majority:
- Earnings Per Sharei.;;.............. $2.29 ? $2.08 - $2.19 L - of the Company's current rate increase request :
-Percent hse (Decrease)in before the PSC is Intended to ' offset these effects 1
. Earnings pe r Share ; . .'. . . . . . . . . . 10.1% ? (5.0)% 8.4%
. on earnings (see Note 2A of Notes to Consoli -
' Y r.e ) ... 12.2% 10.8% 11.3% . dated Financial Statem
. relief is granted, the eh,en,ts).'
mmation of AFC Unless and the -adequat 32 [
i i 1 I l 'additiorul depmciation related to Summer Station i increase (Decrease) fr6m i
- would have a si6nificant negative impact on the ; Prior Year
^ - -
Company's earnmgs. x':, - uMmionsofDollars) ; l .
~
q _ _~ 3 :. Classification 1983 21982- ! Fuel usedin electric generationi ; $ 45.8 5 > $(19.6); - l 1 h k Mevenues+ d .- - Power purchased, net 4 # (22.4) < 1 16.2 ? ( M; bTotal operatm.g revenues increased $131.5 md.-:
; Gas purchased for resale ' 56.6 1
- 66.0 - I
~ lion 15.6% in 1963 and $%.8 million (13_.0% in ~ Other operation and '
l
' 1982(. The p)rincipal factors contributing to the)se
~
. maintenance' - 9.9 L413.1 ;
. annual increases in ' revenues from the preceding ? Depreciation and amortization ;1.6' ' L 3.7M
~
calendar: year were as follows:~ : Total- $91.5 . $ 79.4 - o 's % " Y 19ss- 1982 IThe increase'in Fuel used in electricgeneration , w m.. . (MillionsofDollars); ~ expense in 1983 was primarily~ the result of the t - siectric. f x ' ' increased average cost 'of fuel burned ($2.08 per ;~ *
; volume increases : . million BTU in 1983 versus $2.01 in 1982) and i
[(decreases)(1) ~ ~ $27.5 i$(11.0)- increased generation ~as a result of greater cus'- . , i U-Rate increases (2) < - 32.5 29.4- tomer demand. The decrease in such expense in
< Net increase - < $60.0 $ 18.4 1982 was primarily the result of decreased genera .
. c,,. m tion (9.1%) as a result of reduced customer de-L$s1.5 mand,~ the purchase of less costly off-peak power g
' 1Volkineincreises(1)(4)L "
- $ 46.8(3) _
and an 82% decrease m
" Rate increases (2)Y 39.4 ' 31.4 -
fuq oil.hqurchap, generation fromw No. 6* . i
~ Netincrease i '
$ 78.2 net expense varies z
~ $70.9 -
avadability of lower-pnced power from r utih-s othe. ith t (1) Year-to-year increases in : units" sold multiplied byi the[ ties, the needs of the Company to augment itst l
% weighted, average rate levels in effect during the previous t generating sources'and the abditp to sell power to!
l 1 r< . 2 - , - ((2) gear-toyear increases'in revenues less~ the expenseamounts are a shown result of other the inclusion utihties. of the' Increases cost of in Gas l 7for volume increases. The r _ elative effects of rate increases natural gas of Carolina Energies, Inc. since' April
~
ses7nd th e7eIvNat scNn l'n.1982 and the gascontinued upward trend in the . rate ir s Jktment clauses.-- s . E ce of natural from the Company's suppliers.. l l l 4(3) Reflects approximately $78.8 inillion of revenues of Caro. Other operation and maintenance expenses increase l l i lina EnergiescInc. (CEI) which was acquired by the Com.; ; as a result of higher wages and related employee l ' '
- _ pony and induded in its operations since April 1,1982.. . benefits and the higher costs of matenals. In l
. (4) Volume increases for 1982 include the effect of nine months ~ . creased Depreciation and amortization expenses are f ' f of CEI gas'saks while volume increases for 1983 include the' consistent with the increased amount of plant-in l effect of 12 months of CEI sales. service; With commercial operation of Summer Sta- '
e %InAreases ir[ electric operating revenues were tion on January 1,1984, operation,and mainte- c primarily the result of vanous rate increases placed . ortization, nance expenses, including depreciati,on and am-> l l 1981 and 1982 are expected to show sigmficant . ~ l m effect durinb were genera. Unit sales oflly increases; depressed however the Company antici c sts due toas a use 1 electricityin1 fuel the of nuclear fuel. pates lower - result of milder weather, weak economic condi-H
- tions and customer conservation; Unit sales ~of -
electricity in 1983 improved'as a result of abnor. . : Interest Expense . . mally hot weather and improved business condi- ~ .
. Interest expense, excluding allowance for bor -
I
,tions.iThe increases in gas operating revenues are , ~
rowed funds used during construction, decreased? l primanly. attributable to the recovery of the in; $1.1 million in 1983 and mcreased $4.2 million in > creased cost of gastwhich is passed ~along to gas <1982. The' decrease in interest expense for 1983 ?
-customers through a purchased gas adjustment - was primarily due to lower interest rates. The in- : ' clause, increased ~retad gas rates placed in effect crease in such expense for 1982 was the result of
- during 1982 and 1983 and the inclusion of natural i increased debt outstanding and a higher average '
ans sales of Carolina Eneigies,LIncisince April 1,2 ' rate'of interest on such debt.' 1982:s. -
- a-
; Inflation:
jM 3 sExpenses . in __f y),; Operating e For the estimated effects of inflation on the - b Increasesor(decreases)inoperatingex - Company's operations see pages'36-37. penses, excluding taxes, from the preceding'calen - , d~ ar year are presented in the following table:' i l
; vg . ; n +
33 j
Selected Financial Data l l For the Ycars Ended December 31, 1983-- 1982- 1981 1980 1979' 1978. 1973 : Statement of Income Data : (Thousands ofDollars except statistics and c share anwunts)
-- I Ogerating Revenues:
Electric. $634,1271 $574,113 : $555,716 . $470,765 $401,281 $382,370 $162,650
- .- Gas o ' 337,282- 266,389 ' 188,167J 1157,643 138,386 :101,804'-
39,693
' Transit ; . 3,242: . 2,603 - 2,429 , 2,338 2 2,146- ' 1,927 1,898
. Total Operating Revenues - 974,651: : M3,105 - 746,312 630,746 . 541,813 486,101 204,241 f
- Operating Expenses: -
Fuel used m electric generation . 260,3811 1214,617J 234,243' 204,948 . . '185,624l
- : 184,047 52,015 L Cas purchased for resale 1. 277,091 ~ J220,502 ; :.154,502 - 121,M2 ~ 110,702 173,455 21,748 ~-
Other operation and maintenance 135,374' 147,840- :118,519 - 101,130 4 67,963 : : 44,703 ~-
- Depreciation and amortization .
- 45,000 i ; 43,406: .39,691- 36,822_ 35,444 ~ 32,M3 :55,352 20,450
- Taxes ~ 106,932 J 77,033- :89,049 - 73,356 . 62,008 ' 65,853 -
24,047 OTotalOperating Expenses; : 824,778 703,398: 636,004 537,898 '461,741 411,350 162,963
~ Operating Ineome . ~149,8731 139,707 110,308 92,848 - 60,072 .74,751. 41,273 OthefIncome: . . - . .
Allowance for funds used during
~ construction:
. Borrowed and equity ' '
x : 1 . 6,320 Equity :10,244 . 6,618 . 4,530 ~ 6,003 16,608- 18,340 -
'Other - :1,327 - ~(1,388) 16,565 12,895 -10,348 . 10,935 2,938 :
Total Other income. 11,571? / 5,230 ~ : 21.095' 18,898- 26,956- 29,275 9,258-Income Before Interest Charges E 161,444 ' 144,937 131,403 111,746- 107,028 104,026' ' 50,536~
' Interest Charges (Credits): .
-Interest .
- .- 95,503: .-.96,640 - 92,409 . 175,772: '64,263 -M,527 '23,820'
- Allowance for borrowed funds used .
- during construction :(37,997) (39,519) (36,889) ~ (27,726) )(12,916) -(10,M8) -
zTotalInterest Charges, Net = '57,506 .57,121- -55,520' '48,N6s ^ 51,347 243,679 23,820 ' Net Income .., 103,938:: ~ 87,816' 175,883 63,700 J 55,681 ^ 60,347 26,716:
- Dividends on Preferred Stock - ?17,186 516,371- 14,245 = 12,949- 112,315 10,600 6,259 -
Earnings Available for Common Stock $ 86,752' $ 71,445 $ 61,638 . $ 50,751 ' S 43,366 -.$ 49,747 $ 20,457. Weighted Average Number of Common Shares Outstanding (Thousands)" .37,844: , 34,387 28,139 : 25,148 + 23,540 ' 22,029 11,714
; Earnings Per Share of Common Stock ~ : $2.29 . $2.08 $2.19 - $2.02 < .$1.M 4 $2.26' $1.75 -
Dividends Declared Per Share of ~
- Common Stock $2.00 : $1.92 . $1.82
$1.74 $1.68 ' $1.62 $1.43 "
Percent of OperatingIncome (Loss) ' ' ' Before Income Taxes: . . Electric - ~ 93 98 1011 .95 s 97 94~ 87. Gas :10 5 8 16. -9 2- 15 Transit : .(3)- 1(3)- (3): '(3)- -(3)' (3) ~(2) 34
December 31,: V- -1983 ;1982- 71981' 1980~ 1979 1978 1973
- Balance Sheet Datai i :(Thousands of Dollars except statistics and per share arnountsL y . . . ..L ~, . : .
~
G= :: Utility Plsnt ! $2,509,581 $2,411,479 i $2,131,689: .$1,952,309 ' $1,804,289 $1,661,880 $870,731
- Total Assets, 4 ' $2,358,134 $2,202,755 $1,958,7721 $1,802,392 . $1,650,395 ~ $1,522,707 $767,446
- Capitalization:- .. _ ,. . ..
bCommon equity' W t $ : 709,908f.L $ 5 659,135 - $ L 545,941c $ 486,158- $ ? 449,397 $ i417,471 $206,882
; Preferred stock: s.-
t ~^ -il Not subject to purchase"- 1 . or sinking funds ~ i 26,262 ' a 26,262 - -26,262- . ' 26,262 ~ 26,262 - - 26,262 6,262 Subject to purchase orl . .. -- i.. - 1 Msinking fundsj m :160,604 ;163,619 :141,217- ..144,649 :126,364i 128,019 - 81,354 n N Long-term debt t . - . 1 - .- .
* .(exdudes cunent portion)1 789,216- 854,844' i764,971- ' 731,007 672,958" 641,457. - 357,972 Total Capitalization ' $1,685,990 o $1,703,860 $1,478,3911 $1,388,076 $1,274,981: $1,213,209 $652,470 CommonSharesOutstandmg - , . . . .. .
- - (Year-End)(Thousands) : 38,728?. l 36,526 '- 29,690 - " 26,261 J 24,195 22,440 11,746 i 'Book Value Pe'r Share of ' F
< Common Stock (Year-End) s 1 $18.33 ' $18.05 - ' $18.39 - - $18.51 $18.571 . $18.60 $17.61
- Other Statistics - -
Electric:1 ?1' 350,596 344,588 336,700 328,797 290,180 "g i Customers (Year-End)J ' J 366,424 " s 356,709? J Sales (Million KWH)) 112,063 ; 111,490- :11,763; 11,809-. 11,252 ' 11,621 -10,492 t
- Residential:- . .
a Average a'nnual uss i; Jcustomer(KWH) per: 2 12,009- 111)712 ~12,183 c '12,580 L 11,627 12,269 11,291 c Average annual rate- ,
; perKWH u. . 5.0642? .-$.06372 J $.0577 . $.0499' $.0464 :$.0437 .$.0229 "- - . _JGenerating J Net MW (Year-End)
Capability ~'3,359' E - 3,359.. 3,^.59 3,359 - 3,359 3,364 2,918
- Territorial Peak Demand-t ,' . ,
Net MW ; '
< 2,700 ; '
;2,463- 1 2,557, a2,489 <
. 2,299 - '2,271 1,762
- Gas: ' .
.u . - ~ . .
166,470 1M,277 162,412 154,348
~
Customers (Year-End);. . - 187,638 ' c 186,320 :169,294 = l l l Sales (Thousand Therms): - 671,429 E J 590,257. - J493,305 ; 506,528- 545,387 . 501,273 455,087 lResidentiali - { Average annual use perf {eustomer(therms), = i610: 570 ~665 -682 684 751 741
. J Average annual rate ' ~
s
- per therm : ,
, $.65 : $.56 i
$.49 $.44 - $.34 - $.31 $.17
- Transit:1:1. 1 .c .
e Number of Coaches s ; ll112 ~
'~
- =104 : 104: :102L % .96 96
;; Revenue Passengers '
. ' Carried (Thousands)M :9,744- ~ 10,720 10,820. 10,357 .9,548 8,658 -8,978
-_y t '% 9 3
'is "
^
- , ~c;L ~
l (e l33 9 '
~r s 1 * "'
%, i
d n.)
s
.X* _
35
Su plementary Financial Statements A justed For Changing Prices (Unaudited)
- f Financial statements prepared in accordance with gener . presentatidn indicates the estimated effect of the general rate
' ally accepted accounting principles have traditionally pro- of inflation on the Company. The current cost amounts vided a quantifiable basis for assessing financial results. reflect changes in spec;fic prices of the Company's property, Because these reports reflect dollars of varying purchasing plant and equipment. The data presented were developed in powei, the traditional financial statements are not designed - accordance with the partial restatement provisions of Finan-furnish data necessary to evaluate inflation's impact. The ; cial Accounting Standards Board Statement No. 33, and are following constant dollar and current cost supplementary ' not intended to adjust actual reported earnings nor do the financial statement data are presented in an attempt to . provide a basis forincome tax reporting or rate-makmg.-. y -
provide certain information regarding the estimated effect of > . 2 See the accompanying Notes to Supplementary Financial
. inflation on the Company's operations. The constant dollar
= ., .
Statements for additional information. FiveJiearkomparison o ' Selected Supplementary Financial Data Adjustedfor Effects of hanging Pnces (Average 1983 Dollars) 1 Years Ended December 31, l 1982(b) . l .1%1 1983- I 1980~ l J1979
. fThousands Except Per Sha., Amounts and Consumer Price Index) -
Net income _ . (exduding net inflation adjustments, other than depreciation):
~
- 1. As Reported 1. $103,938 ' $ 87,816 $ 75,883 - $ 63,700 $ 55,681;
, , [ Constant Dollars ' 43,166 ; 30,515 26,632 26,864 -~ .31,342 Current Cost ( 35,248 21,992 16,311 15,722 .16,486 Income per share of common stock-(after dividend requirements on preferred stock and ;
exclading net inflation adjestments other than depreciation):. . . .
$ ' 2.02,
- As Reported . ' ' -
$ 2.29. $ 2.08. $ . 2.19 $', 1.84 J Constant Dollars -
'.69 .39 .42 .45 .61
' Current Cost" .48 .15 .% ' .002 (.01)
Generalinformation
. Operating revenues:) -
As Reported ~ $974,651 $843,105 $746,312 $630,746 $541,813 ~
.' Constant Do:lars m . . _ - ., _ 974,651 870,227 - 817,309. ' 762,588 743,5001 '
Unrealized gain resulting from ' decrease in purchasing T
- power of net monetary liabilities L - 73,8111 77,465 105,077 149,329 165,343 Net assets at year-end at net recoverable cost (a) 723,799 708,142 . 613,988 . 591,651 612,857 Increase in general price level over specific prices . 32,538
~
- 86,596 11'7,083 (15,093)' . (98,343)-
Cash dividends declared per share of common stock:
- As Reported _ .
2.00 .1.92- 1.82 1.74 1.68
. Constant Dollars . 2.00 1.98 1.99 2.11 2.31 Market price per share of common stock at year-end:
- As Reported: . 17.75 18.00 15.00 14.25 :14.75 Constant Dollars ~: 17.45 18.37 15.91 16.46 19.16
' Average Consumer Price Index (CPI-U) (c) ~ 298.4 - - 289.1 L 272.4 246.8? - 217.4 l
( ) Excluding preferred s'tock (subject to purchase or sinking funds). (b) . Restated-See Note 2B of the Notes to Consolidated Financial Statements. (c);1%7 = 100,' a - u- . ,
.g.- _ +
k , b
Sununary Statement ofIncome Aajusted for Changing Prices for the Year Ended Ducmlvr 31 1983 llistorical Cost Constant Dollar Current Cost As Reported Avenge 1983 Dollars Average 1983 Dorars (Thousands of[Mlars) Operating Revenues 5074,651 5974,651 $974,651 Expenses: Fuel used M electric generation 260,381 260,3' 1 260,381 Gas purchased for resale 277,091 277,091 277,091 Depreciation and amortization (a) 45,000 106,001 113,854 Other ewrotion and maintenance 171,911 17 ,911 l'1,911 income taxes 70,395 7ti,395 70,395 interest charges 57,506 57,J06 57,506 Other income, net (a) (11,571) (11,800) (11,735)
~ Total expenses, net 870,713 931,485 939,403 Net income $103,938 43,166(b) 35,248 inflation adjustments:
Reduction of plant to lower recoverable salue ci7,818) (23,069) Unrealized gain resulting from decrease in purchasing power of net monetary liabilities 73,811 73,811 increase in current cost of property, plant and eouipment(c) 97,018 Effect of increase in general price level 129,556 increase in general price level over specific prices 32,538 Inflation adjustments, net 15,993 77,480 Net income aiter inflation adjustments _ _ _
$ 59,159 $112?28 (a) As permitted in Financial Accounting Standards Board Sta 'ement No. 33, items in the summary statement of income,other than depreciation expense, were not adjusted.
(b) including the reduction to net recoverable cost, net income on a con stant dollar basis would have been $(14,652) for 1983. (c) At December 31, 1983, the current cost of net utility plant was $4,M6,595 while net historical cost or net cost recoverable through depreciation was $2,011,299. Notes to Supplementary Financial Statements
- 1. PLANT AND EQUIPMENT The data cdjusted for general recovery of the historical costs of plant and equipment. Thtre-inflation were determined by converting historical costs of fore, the value of the plant and equipment determined under utility plant and certain nonutility property into dollars of the constant dollar and current cost methods must be reduced the same general purchasing power using the Consumer Price to the lower recoverable amount, which is historical cost.
Index for All Urban Consumers (CPI-U). This method shows 5. UNREALIZED GAIN RESULTING FROM DECREASEIN the effect of generalinflation on the Company (constantdollars). PURCIIASING POWER OF NET MONETARY LIABILI-
. DThe current cost data reflect the cost of currently replac- by holding monetary assets such as .
ing existing plant assets. These costs were determined TIES cash and The Company, loses purchasing power during receivables, periods through use of the Handy Whitman Index of Public Utility of inflation because these items will purchase less at a future Construction Costs and other valuation methods tailored date. Alternatively, by incurring monetary liabilities, primar-specifically to the type asset being restated. Even so, replace- ily long-term debt, the Company benefits because the pay : ment of some existing plant and equipment will take place ment in the future will be made with dollars having less
;over a period of time and may not result in replacement purchasing power. Because the Company has significant ;
which would' duplicate existing facilities. amounts of long-term debt outstanding, this results in a net 2i ACCUMULATED DEPRECIATION The related accumu- monetary gain. This gain does not represent an exchange of lated depreciation for calculating current cost of net property, cash at present or in the future, but represents the effect of the plant and equipment was developed by applying the same changing value of the dollar. percentage relationship that existed between gross plant and 6. INCREASE IN GENERAL PRICE LEVEL OVER SPECIFIC accumulated depreciation by functional groups on a historical PRICES This results from the value of the particular plant and cost basis at December 31,1983 and 1982, to the respective equipment held by the e npany increasing at a lesser balances of the restated depreciable plant. rate than the rate of generalinflation as measured the CPI-U. 3J DEPRECIATION EXPENSE Depreciation expense for 7.OT11ER Fuelinventories, the cost of fuct u. in electric both the constant dollar and current cost methods was deter- generation and gas purchased for resale have not been re-mined by applying the same rates and methodology used in stated from their historical cost in nominal dollars. Regulation computing historically booked depreciation to the restated allows the recovery of fuel and purchased gas costs through depreciable plant, the operation of adjustment clauses or adjustments in basic
- 4. REDUCTIONS OF PLANTTO LCWER RECOVERABLE rate schedules to actual costs.
VALUE The regulatory process limits the Company to the
Directors V. C. Summer
- J. K. Addy*Addv Dodge, Inc.
President, Chairman of the Board and Lexington, Sou~th Carolina Chief Executive Officer Columbia, South Carolina W. B. Bookhart, Jr. Partner, W. B. Bookhart Farms W. H. T1ylor Elloree, South Carolina Chairman of the Board and
. President i" Y Y ai man and Chief Executive Officer B tesb rg, uth o$r"a ' " '
The xibela Bruce Group, Inc. Columbia SouthCarohna E. C. Wall, Jr. K. W. French ' han ustries Retired Plant Manager Conway, South Carolina E.1. d:i?ont de Nemours & Co. Savannah River Plant J. A. Warren
- Aiken, South Carolina President and n r$ dis Farms Im a, u C ro$na Denmark, South Carolina A. M. Williams Chairman Emeritus B. A,. Hagood Columbia, South Carolina President, Wm. M. Bird and Co., Inc.
Charleston, South Carolina DIRECTORS EMERITI J. E Hassell, Jr. D. H. Banks Chairman of the Board and President W. B. Bookhart Pre-Stress Concrete Company, Inc. E M. Hipp Charleston, South Carolina W. J. Keenan, Jr.
. Edward Kronsberg W. H. Hipp E R. McMeekin President and Chief Executive Officer A. C. Mustard The Liberty Corporation John C. B. Smith Greenville, South Carolina HONORARY DIRECTOR Avram Kronsberg President, Edward 's, Inc. C. J. Fritz Charleston, South Carolina J. H. Lumpkin
- Member of the Executive Committee Of Counsel to the firm of McNair.
Glenn, Konduros, Corley, Porter & Dibble Singletary, CoFumbia, South Carolina F. C. McMaster* President and Manager Winnsboro Petroleum Company Winnsboro, South Carolina E. W. Pike, Jr.' President Colonial Development Company Beaufort, South Carolina Henry Ponder President, Benedict College Columbia, South Carolina J. B. Rhodes President, Rhodes Oil Company, Inc. Walterboro, South Carolina J. E. Schachte, Jr.' President, Schachte Agency,Inc. Charleston, South Carohna 38
ofpeers , V. C. Summer G. C. Croft, Jr. S. W. Holmes Chairman of the Board and Transmission and Group Manager Chief Executive Officer Distribution Engineering Stockholder Relations (63)' [46]** (58) [34] and Assistant Secretary J. A. Warren O. W. Dixon, Jr. President and Nuclear Operations T. R. Lide Chief Operating Officer (53) [13] Assistant Treasurer (58) 126] (63) [37] Hu im EXECUTIVE VICE PRESIDENTS Prop,erty fanagement and OFFICERS OF Facihties Plannmg CAROLINA ENERGIES, INC. L. M. Gressette, J r. Le al, Finance, Governmental and (61) [14] Max Earwood Re ulatory Affairs - President and J. Kinloch General Manager (51 [1] Transit Operations (47) [21] (51) [26] G. C. Meetze . Staff Officer to the President Patricia T. Marcotsis W. N. Ackerman (64). [45] Governmental and Executive Vice President R ulato Affairs erati T. C N,ichols, Jr. ( I} Op)erations[31] (Sa S. C. McMeekin, Jr. T. H. Hearn er O erations- Vice Pre den SENIOR VICE PRESIDENTS {u o E. H. Crews, Jr. (41) [12] (57) [2a
- 61) h E. C. Roberts Legal Counsel R. M. Kightlinger Vice President Engineering C. L. Rye (46) [16]
Customer Operations - (52) [10]
'54) [31] R. W. Stedman Controller D. C. McNamara VICE PRESIDENT AND Vice President (42) [11] District O erations GROUP EXECUTIVES T. M. Groetzinger Computer Semces ho y~e (46) kl$
'f i
N 5 B. J. MacInnis Assistant Vice President (56) [31] A A I 0 ' "$ Cathy B. Novinger (3k) [20] Admmistration E. F. Frick (34) [13] S. B. Harrington, Jr. B. M. Smith, Jr. Auditin$ (58) [25 ] Controller R. D. , Hazel (51) [20] Marketing and Customer Operations-Districts Plannmg (52) [25] (47) 127] *(age as of December 31,1983) B. T. Horton, Jr. **(years of service as of December 31,19831 W. B. Timmerman Finance Finance (37) [5] (40) [5] J. W. Wedding OTHER OFFICERS Corporate Planning and Betty C. Bissell Management Services Secretary (58) [14] (51) 126] VICE PRESIDENTS H. H. Gaddis G. J. Bullwinkel, Jr. Treasurer ~* Customer Operations. (58) . [31] i tro Charleston J. G. Black, II
) [2] Assistant Treasurer V. R. Coward, Jr.- (45) [20]
porat ommunications Harriett M. Gardner Assistant Secretary (49) [27] 39
Stockholder's Assistance Guide What is the Company's mailing address? Curnulative Preferred Stock Transfer Agents (write to only one) South Carolina Electric & Gas Company South Carolina The Chase Manhattan Post Office Box 764 National Bank Bank,N.A. Columbia, SC 29218 Corporate Trust Stock Transfer Dept. Department (A-104) P. O. Box 469 Where is SCE&G's stock listed? 101 Greystone Washington Bridge Boulevard Station SCE&G's common stock and 57c Cumulative Columbia, SC 29226 New York, NY 10033 Preferred Stock are listed and traded on the New York Stock Exchange. The trading sym- Does SCE&G have a Dividend Reinvestment Plan? bol for the stock is SCG. The Company offers a plan and maintains its I've moved. Whom should I notify? records. For further information or for an-swers to questions about your reinvestment Notify the appropriate record-keeping agent account, write to SCE&G Stockholder Rela-for each type of secunty owned and hst each tions Department (054) at the Company's account for which the change is applicable. mailing address. Corntnon Stock . Record-Keeping and Paying Agent: Who is the trustee and interest paying agent for the SCE&G Stockholder Relations Depart. First and Refunding Mortgage Bonds? ment (054) at the Company's maihng address Records are kept and interest is paid by Man-Curnulative Preferred Stock ufacturers Hanover Trust Company, Bond Record-Kecping andPaying Agent: Trustee, P. O. Box 24935, Church Street Sta-South Carolina National Bank tion, New York, NY 10249. 01 re stone oulk' r
" (^ )
How can I receive information about the investors' Columbia, SC 29226 association? i Write to: Association of SCE&G Investors How should I report a lost or stolen dividend clo Mr. Paul Quattlebaum, Jr. check? 63 East Bay Street Charleston, SC 29401 Write to the appropriate paying agent listed Where can I obtain additional information about How should I report a lost or stolen stock SCE&G? certificate? Interim reports providing updated financial Write immediately to the a licable transfer inf rm tion and,th stockholders wi eacCom anymailing. news are sent to agent listed below. Specify e exact name of dividend The tlie owner as it appears on the certificate, the Statistical Sugement certificate number, the date it was issued and rt an,d the 3 Formto thereport 10-K 1983 to Annual the Re- [ecurities and Exchange Commission are the number of shares. The transfer agent will avail ble without char e from H. John Winn, ask you to complete certain forms and to pay III, Investor Relations epartment (057) at the the cost of an indemnity bond. To avoid loss Company s mailing address. or theft, keep stock certificates in a safe place, such as a bank safe deposit box. Where is the Company's corporate headquarters? Cominon Stock Transfer Agents (write to only one): South Carolina Manufacturers Our corporate offices are located in the Pal-National Bank Hanover Trust Co. metto Center office building at 1426 Main Cogorate Trust Stock Transfer Street in Columbia, South Carolina. vepartment(A-104) Department 101 Greystone Post Office Box 24935 This report is issued solely for the purpose of Boulevard Church Street Station providmg Columbia, SC 29226 New York, NY10249 in connecti,information. on with any saleIt or is purchase not intended of, orfor use any o,ff,er or solicitation of offers to buy or sell, any secunties. 40
* ~# '
' y ., M , s.
,,.# M '. * ,
. ' .. .. . y_ _ .* ., - .'
w.~
~
". . g *\
~
' ~ .- ' I.
- g.., et . *
- g. ,4
. 9
~
** r+ _.
* ' ?. ~
4
- Y % *
,. , .e . .. .... . .
v.. .w .
.' llO Q; < '?. . .
. E, ' ' _ . .
l'
, I '\.. .
. '.} h* l*Q, ] - .
', '._ j
'Q', f' x :, ' - ' 'R._f . .
~
.?. . _ L . f f",* ;
-. h.
' ~ '
. , . . -[ . g .
. e
(_ 7. i - y- - -
-g.-- -
r.- y
- y(.
- g. ' /._.
e.e f , . s_ - a , , s -
,. -"- , ~ . -
q.. .I
. i , .
.. ' ' .*g*. ' . I 1 . i O:
'(
.- y .
7 ' . . . .
- . e .
s . . _ ,_ r
' ~ ,' . ,
. . D f.' rg c :j- f, '"'. . ' ;
^
, - f - %M " . .Qf .o.. ',$. %&.4% < ,; c .:. Y f j-f f.s . + &..,. } . ~ - Q: . . '. ~ r :, .M .N' _':l.' .* s'.~
- p. , %
- 8. i
. F ..) f **T ,y4 : --'z % ' i; ,,.A . .1/h.' '- q '- '/**- '*c . *f.4., .;'s .fy p ,! '
- W4 , As . .pj
~-
f.e ~ ; , :: e
^
4 ,_' . r. ~ h*WY_Y. 3.',..',l 'Y
. t'h *-- .?Y WN % '-- ;)J' %N..W[
.'. ... . NM. ' :.d '; b ; ,U ?,. '- ?l _..' *,l '-;?k[' - r.<,'. _ f . /.. . f su T
e .
.+ . . y .*
[ '. x - +y $_. ,. j':y. 'g %Q_;f._p.t{.Q&, f , , . ;. f Q(Y . ' '. ' ..:Q...
- i. . s.
- k. . ' s g.
- J s
. s - Q; . ;>
~, a .: -; g :. ..
.x *V ;;
r'+ ; 9 :y... .m' ', v:.n' ' g% :,,m: . ..
,y m
- (: ? yn . b. . . '; . V . .* w. : *~. .,:.. * .- : . _ . . + ,, : ~.x. y ; :?.,.. ..;, ~ .g
- , y ; 3 v
..' *... 4: n. ~- , y A . e _; ~ .- _ ; y, z , .. :: .
' , . , '(
-* g z ..
f g [., .*y7h,M 'g-a #'
$ , >. . C I', .a.-* yI'. .;$ ,.,[-, z. ., '
g.(-'$:;'[,[ k k ,i N .; , vq;ca ,I ._ .$.. :
, '.f(',,. .} ,,;1 . ,'.a-
- - ~~e n O
3 .
. } - _ k.vy[.,f4 .$ j
. y ';
s1 ' , . ,
.4 ' , '@ /
h'yy.f, 1 m- I.,% 9 ;.. d - + : b' _ , ,' . ' ; W. '. : ._y;
" . '\ . Q', , f J '. d: if. kQ h. ).[ . . '..'.['. ' , , ' f;, Y .;. .,;, yl_' ' i.i , .. . y
, . E' t :- Q: % K ' . . '; . .f r ' - 4 y. . z p .. s ; *? J *o- --
' - U. * .
.'J: h.y.l., # kgt... i. . Y:k\ h& .fu ;,';;e.& ?;l$..s P 7y* a1
. l.
.: . , . , ~ . . . , F
. D z.4" -; ,','. '. >?}.:.'?.. sb."'
- 3 ~; . -
U ...l?)f j. :
- 4. ,
Y ? l '.. _.g? . ?.J Yt. / R,Y% c..? W e a$ ,mm ;f)%_;*' y. M . T - S : . . .[: . =,l [ * -. $l '
- w . .. '+^. s. , .:, .i .. b' ,..,',;4' ' . E.Y'f.. . w: Df, ;,. p . .,' .' .: ,. b. -? m .
*l . , - -
;5. .{ -
,,r.. . . . v .. . -
kg,., .R.,/ '.h.g3)' ,,*;i 9 9f c,x~ - :. . , y - p .. Q v:. Q -
'^Q t- . y-~,
a: , .*R'.,. V., :v:'y'. L.
.- -; A .
m.m,,.'
,_ . . ' ' .., R,. . ; 4* .. _ -
N
; f .\..'4':.
n ; . ' ., *.. . , p';' - ;. c'W ; y ,__ r e t .. - .. p 1; . .
- - b, j ',
- zf '* ' J ,.7 $
g ,J,
'.**/ ' = - 'J ~
N.,
'. , ] . . . ;; . * ;*. p ' . I- . 'q- ' !l d . ,
*-- .',W..^G+ .
/ - '
. f . . n y . . . .
l* : '?. .
. b l ., .. L.'.s . . , , ,W.,', ,s ::
^
?.s.\ .,..c.T h 'm.i. .p.
i r ,Qf.D- -gw', -: ~. '.-. j. _ f-4s*~ ' \., :...
..L
. [ .4l. ,. c . ;
a p '...-<[_; c Qu.g.y)p; u d,. ; ). L.Mi L' .' 7, . -( 3 i. 4 9 5 T g.
-.-m
- g. .' L,%v )\
Y* .. ~ "g' ' V* 4. .
.: J ' . . .i. - L M.
' -.9
-*L g .-
e .. . '%. : :( _. .. ,' ~.
- :, t-p%q
- 3. . ' . . .;
n : : ~, y ' *. .m F .. _w.,. s .. .
. . ,- ; y - e: .c.
;-% Q . :' ~ ; p: . . ' . . W : ' . . ' ). . s. .. :-'*.'ty
.b : f. Ay' \t ..:
-; .. * ' ' ' .A A;
h.- i. ; - 3, " ;. . bb' - : *:
... . / ,. .. ..:- . .., n'. . c Y. .L.. r..' C.
'T 8 y' > :'a 5,8,$ %4
- .,..y:s Y <# r .3.-
* . 's J. .~e 2 . n: .l 8 y; y .r. y ' z . .
; ._--3_ 3. .'g: ,
lh. :3 : ~ . g y ' :
.Y *
;. !- f; kN : .
\ e *:. N. -
? b)...~.:,. _ ..YO? ' *- uk;... .. % ' llv .. Y' u .- . .
m, 2 ? ; )q:;F . _ - 3 'y%; .e - -W ..e.{
, . y y'. .(?.',: . . ,- . .r .~ --
- y. L*.
- y.c
.; ;. - - p j. :,.; . .
- ;. .4 4%. c ,:
, ',0 l6 .,;y l
),} :l' f ," q . ; f l. IjL5. 2Q'$... y hk '
^
y > # p;jf? g
'[ A,:y.';, 'g(f [ f Q { j~f:j. *.( .hh;{ g *m .ydl4j[ 3.c,lf. [O.: ~ ~ '.
- l/ *
. ,5 q . . *' Qg j'NM i v m. .W. .'3".y .~ Q[.j .s. - [;. [=.~ ' i.. s. -e -~ q-:.-_. l, . . v vtp
. . f'.{ 'g :,;a
. . .&g < b... v .';%.n >.m ': . . -
y..o 3. . .: ...-(+ ~,. ., g..... p; r e a. ~ L'* -r q m - . +.:p 8. 7 % . . % Qf.:n: t.. c.9.c.v . !. : Lh.-
- .: e.-~..
~ ': .' .' *...'n%r :. -:.::%.
,2 9 t - >
' b )g
- yy g ,c ;;; . :.. .' '
u 1' ; -v 6 . e.. % W :' G % '
.._ t l ' ' .:;.%.f n.;
q {.j!hf?ffh N'$.A Qf. ... 1
.s' , ,
- f. h. :.: . &.q;}F - :..t2-'ff ..'_
[l.?hh]l.,b os:f ..,& ., f..&, Y; .' J k Y hf. . .
. r .
+
- 2
. /- -. h , M , y fe .
t . <. . ,
.-. 4'
.. . ,. . 4 . %..,.-
# .. .e
.c- .,-
j.
+. .
- o. e
..,. e .
. , g
, 3 y . . -
f
- 4 .
. ., i, ' - .
. . . t.; ' . , .
., 3 q;(
t -
., g g
,.e .. g* h,[
,1.3 . o ,, -
s y4 _' 4 ga Q.[ h* ,
%, ..m , . ' -
, (. # #
3 g.
- n, '
m
.- s s
~E f
a a /
' y.; :. ,.. ; [ , = . + . .. L'.,7
; .g: . .[ .: .
_ .}}