ML20112F783
| ML20112F783 | |
| Person / Time | |
|---|---|
| Site: | Summer  |
| Issue date: | 12/31/1984 |
| From: | Summer V, Warren J SOUTH CAROLINA ELECTRIC & GAS CO. |
| To: | |
| Shared Package | |
| ML20112F781 | List: |
| References | |
| NUDOCS 8503270559 | |
| Download: ML20112F783 (45) | |
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South Carolina Electric & Gas Company Annual Report 1984 8503270559 850321 PDR ADOCK 05000395 I PDR
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f & g- e. 4y L y. ff f*fMps .&. SCANA CORPORATION y y 'v.;... mQ.b -g R.f A4 i Q :;MV@
- e . y%sfv.Q, v A major corporate goal was accom-f . :74 plished on December 31,1984 with
_ the formation of SCANA Corpora-SCANA Corporation South Carolina Electric & Gas tion and its operating companies.
A holding company with ten direct - Company SCANAis a holding company with and two indirect subsidiaries. Generates and sells electricity, twelve wholly-owned subsidiaries, purchases and sells natural gas at retail one of which is South Carolina Elec-and provides public transit service in tric & Gas Cgmpany. The restruc-Columbia and Charleston.
tured sman.es renecme Men ent operating functions, opportunities, markets and financial South Carolina Generating needs of the activitiesin which each @J Company, Enc. is engaged. SCANA's name was de-Owns and operates Williams Station rived from the letters contained in and sells electricity to SCE&G. the name of the statein which it operates, South Carolina.
South Carolina Fuel Company,Inc.
Acquires, owns and provides for financing of SCE&G's nuclear and 4
fossil fuel requirements.
. South Carolina Electric & Gas Finance, N.V.
Obtains funds outside the U.S. for -
financing activities of SCE&G and its affiliates.
2arolina Exploration Corporation Engagedin certain exploration and South Carolina Pipeline Corporation development activities for natural gas. -
Engaged in the purchase, transmission -
and sale of natural gas on a wholesale South Carolina LNG Company, Inc. a basis and direct industrial fuel sales. Owns and operates LNG storage facilities. 4a.
Carolina LPG Corporation -
Engaged in the pipeline transportation of propane.
Canlina Propane Storage ..
Corporation Engaged in the storage of propane.
Carotane, Inc.
Engaged in the purchase, delivery and sale of propane gas at retail.
South Carolina Real Estate Development Company,Inc.
Primarily engaged in the holding and development of presently-held real estate. 1 MPX Systems, Inc.
Organized for the purpose of engaging in digital transmission service.
1
TABLE OF CONTENTS ANNUAL MEETING
- 0# The Company will hold its 1985 Financial And Operating Highlights 3 Annual Meeting cf Stockholders at Report To Shareholders 4 10 00 a.m. on Wednesday, April 24, 1985 at Seawell's at the Fair-1984 in Review grounds,1200 Rosewood Drive in Financial Results 6 Columbia, South Carolina. Proxies Electric Operations 10 willbe mailed to our Common Stockholders in March. Stockholders Gas Operations 15 who are unable to attend the An-Transit Operations 17 nual Meeting should return their CorporateActivities 17 proxy promptly by mail.
Financials Management Report 21 Report OfIndependent Certified Public Accountants 21 Consolidated Financial Statements 22 Common Stock Information 35 Management's Discussion And Analysis Of Financial Condition And Results Of Operation 36 Selected Firiancial Data 38 Supplementary Financial Statements Adjusted For Changing Prices (Unaudited) 40 Directors 42 Officers 43 Stockholders' Assistance Guide 44 2
l FINANCIAL AND OPERATING HIGHLIGHTS I
l % increase 1984 1983 (Decrease)
(Millions of Dollars exceptstatistics and pershare amounts)
Financial Total Operating Revenues $ 1,128.4 $ 974.7 15.8 Total Operating Expenses $ 929.1 $ 824.8 12.6 Earnings Available for Common Stock $ 121.8 $ 86.8 40.3 Earnings Per Share of Common Stock $ 3.05 $ 2.29 33.2 Dividends Declared Per Share of Common Stock $ 2.05 $ 2.00 2.5 Book Value Per Share of Common Stock (Year-End) $ 19.31 $ 18.33 5.3 Market Price Per Share of Common Stock (Year-End) $ 23.625 $ 17.75 33.1 Common Stockholders' Equity (Year-End) $ 778.3 $ 709.9 9.6 Common Stock Outstanding:
Average (Thousands) 39,900 37,844 5.4 Year-End (Thousands) 40,296 38,728 4.0 Construction Expenditures $ 283.5 $ 18I.7 56.0 Gross Utility Plant $ 2,764.8 $ 2,509.6 10.2 Electric Operations Electric Operating Revenues S 746.7 $ 634.1 17.8 Sales (Million KWH) 12,590 12,063 4.4 Customers (Year-End) 378,960 366,424 3.4 i Generating Capability - Net MW (Year-End) 3,959 3,359 17.9 Territorial Peak Demand - Net MW 2,596 2,700 (3.9) l Gas Operations l Gas Operating Revenues S 378.5 $ 337.3 12.2 737,059 Sales (Thousand Therms) 671,429 9.8 Customers (Year-End) 189,544 187,638 1.0 Transit Operations Transit Operating Revenues $ 3.2 5 3.3 (3.0)
Revenue Passengers Carried (Thousands) 9,658 9,744 [.9)
Earnings per Common Share Dividends Declared per Return on Year-End Common Equity IN3ml Common Share (percent; imini 3.50 3.00 16.0 15.7 3.00 2.50 15.0 i
2.05 2.50 2.00 14.0 1.82 1.74
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%6L 1980 1981 1982 1983 1984 N
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Virgil C. Summer John A Warren Fellow Shareholders: requirements. The market value of our Common Stock i This report marks the beginning of a new era in the increased significantly during the year, reflecting our evolution of your Company. The corporate reorganiza- improved financial fundamentals, declines in interest tion which you approved at the special meeting of rates and a more optimistic long-term outlook for the shareholders held in November 1984 was completed national economy.
on December 31,1984. The new corporate structure At its January 1985 meeting, SCANA's Board of should provide greater opportunities for the future. We Directors increased the dividend per common share are proud to issue the initial Annual Report of SCANA 5.4% to an indicated annual rate of $2.16. This marks Corporation. the 32nd of the last 33 years that our dividend rate has l Financially, the Company is stronger than it has been been raised.
for quite some time. Earnings per share for 1984 were We continue to be pleased with the operating re-
$3.05 as compared with S2.29 for the previous year. cord of the V C. Summer Nuclear Station. The plant Earnings per share for 1984 include 5.20 per share achieved a 70% capacity factor and an average availa-from nonrecurring income. This income resulted from bility of 76% both well above the industry average, the final settlement of issues raised in our 1982 retail before its first refueling which began in late September.
electric rate case. While Summer Station was being refueled, additional Three major rating agencies upgraded the Compa- spent fuel storage racks were installed. These racks will ny's securities dunng 1984 in recognition of our im- hold the spent fuel rods resulting from approximately proved financial strength and reduced construction 25 years of operation. Combined with improved stor-4
age technology, on-site facilities should accommodate We believe that the new corporate structure will all fuel used during the plant's operating lifetime. . establish the conditions for greater efficiency through a in its report issued in September, the Nuclear Regu- sharper focus on each subsidiary's distinct activities fatory Commission gave Summer Station high perform- and environment.
ance ratings for methods used to ensure plant safety. A new subsidiary, MPX Systems, Inc., is our long-That same month, it became the sixth nuclear plant in considered entry into the field of digital transmissions.
the nation to have its operator training programs We are building a fiber optics line along our existing accredited by che Institute of Nuclear Power right-of-way between Columbia and Charleston. This -
Operations. line will primarily serve our own communications in June, the A M. Williams Station returned to needs as well as offer a potential commercial opportu-service after 18 months of construction work to nity. We expect to have this line operational by the fall convert the 580 megawatt unit from oil to coal-fired of 1985.
operation. By converting the plant to coal, the Com- The Company continues to recognize and respond pany will utilize Williams Station as a base-load gener- to the social needs of our community. We are commit-ating plant, thereby improving the Company's overall ted to our current corporate social programs, such as generation and transmission efficiency. We estimate the Good Neighbor Fund, Weatherization Program, that the conversion will save our electric customers Third Party Notification and other activities adminis-millions of dollars through lower fuel costs during the tered by the Customer Assistance Department. We are remaining life of the plant. The transfer of Williams quite proud of our newly developed foundation, which Station to a separate generating subsidiary under will support various community service projects, ' social SCANA and the financing of the conversion costs by and economic development programs and educational the subsidiary should result in additional savings to our and scholarship projects. The advancement of minori -
Customers. .
ties both within the Company and community shall As part of the corporate restructuring, our natural continue to be one of our major commitments.
gas transmission and distribution operations have been We were saddened by the deaths in 1984 of two realigned under separate operating subsidiaries. All gas recently retired officers of our Company. C. Joseph
- i. distribution operations have been centralized under Fntz, executive vice president and honorary director, South Carolina Electric & Gas Company while all gas died on March 7. Grayson C. Meetze, executive vice transmission operations have been consolidated under president and also honorary director, died on Decem-a new subsidiary, South Carolina Pipeline Corporation. ber 6. These distinguished men gave a combined total i We now have an organizational structure for our gas of 89 years of service to SCE&G. In addition, they operations that is specialized along functional lines. devoted countless hours to the betterment of their This will allow us to maintain maximum flexibility at a community. They will be deeply missed.
time when the natural gas industry is undergoing Our employees have accepted the challenges of-
! dramatic changes. fered our Company during the past year with the We are very excited about our future. The heavy determination and initiative we have come to expect of construction program for electric generation has been them. Their involvement in the issues affecting their
(
- completed and we do not expect to bring another neighborhoods, towns, and cities continues to bring plant on line until the next decade. Obviously this will credit to our Company and themselves. It is obvious have a favorable impact on our financial situation. The that our employees' willingness to accept new direc-future for natural gas ooerations is also very bright. The tions and pursue personal satisfaction in doing a good supply of gas appears to be certain well into the job can only signal continued success for our Com-1990's. Continued favorable legislation should en- pany, appropriate returns for our investors and greater
- hance the market for gas and provide incentive for service for our customers.
further exploration and development of new supplies.
V C
VIRGIL C. SUMMER JOHN A. WARREN Chzirman of the Board and President and Chief Executive Officer Chief Operating Officer February 18,1985 5
1984 IN REVIEW FINANCIAL RESULTS volved or to its investors' require-ments. This new structure provides Corporate Restructuring The the financial and organizational Earnings and Dividends Earn-corporate restructuring of South flexibilit'y necessary to meet the ings available for common stock in Carolina Electric & Gas Company changing economic environment 1984 totaled $121.8 million, up (SCE&G) was completed on Decem- for electric and gas utilities, from $86.8 million in 1983. Earn-ber 31,1984 and included the for- . Dividends on Common Stock ings per share, based on an average mation of SCANA Corporation (the will be declared by SCANA Corpo- of 39.9 million shares outstanding, Company), a holding company with ration's Board of Directors and paid rose to $3.05, up from $2.29, based ten direct and two indirect subsidi- on the same quarterly schedule on 37.8 million average shares out-aries. This structure offers several previously followed by SCE&G. Div- standing,in 1983.
benefits to SCE&G's investors and idends on Preferred Stock will con- Improved earnings for 1984 re-stockholders. It allowed the Com- tinue to be paid by SCE&G at the suited primarily from higher sales of pany to separate its existing busi- rates and times specified in each electricity and natural gas, and from nesses into distinct but related com- series. Shares of Common Stock of rate increases. In addition, earnings panies, reflecting the varied SCE&G were automatically con- per share for 1984 included a non-operating requirements, risks, mar- verted to shares of Common Stock recurring gain of 20 cents resulting kets, financing needs and growth of SCANA Corporation in the re- from a revised retail electric rate opportunities of these activities. It structuring. Stockholders do not orderissued in March by The Public also enhances J1e Company's fi- need to send their SCE&G Common Service Commission of South Caro-nancial flexibility. Required financ- Stock certificates to the Company fina (PSC). This order resulted from ing can be done by either SCANA to have new SCANA Corporation SCE&G's appeal of a July 1983 or its subsidiaries, thereby enabling stock certificates issued. rate order (see " Rate Activity").
, each corporation to des gn securi- The 1984 earnings provided a ties tailored to the specific risks in- return on year-end common equity of 15.7%, up from 12.2% atyear-end 1983. Earnings coverage of Chart i 1984 IIeVenue ar fixed Charges rose to 3.74 times in 1984, up from 2.82 times in 1983 Where it Came From Where it Went and the highest level since 1968 i c ;~ = wanstr.x r m a [- m- - - -
m (see Chart 2).
i A 2o.it - The quality of eamings also u m . .. .. Improved in 1984. The portion of ,
mm . . . .. ~1 reported earnings made up of non-C ,e : as.m - j cash earnings known as allowance um_amow for funds used during construction
~ -
l g .. - : m . .. . eq (AFC) was substantially lower RJ" C Tm ~ d than in recentyears. A detailed
$!iaastWKEDigggg review of sales, revenues and expenses for 1984 is included in
" Management's Discussion and Analysis of Financial Condition and Results of Operation" beginning on page 36.
In January 1985, the Directors l Electric Gas A Fuel for electric generadon and '
Residential 26.34 6.44 net purchased and interchange of SCANA CorEoration raised the Commercial 17.st 5.18 power quarterly cash dividend on Com- 1 Industrial 17.06 15.28 8 Gas purchased for resale mon Stock to 54 cents per share sales for Resale 3.34 6.74 C Taxes from 51 % cents per share. The new Total 6 33 4 other operating and mainte- dividend is payable April I,1985 to nance expenses stockholders of record on March F Depredationandamortization i 1,1985. This increased the Com-G interest expense and other pany's indicated annual dividend Income, net H Dividends for investors, and rate to $2.16 from the previous retained earnings annual rate of $2.05.
6
The entire amcunt of dividends remanded the case to the PSC and, on these and other rate matters, paid on Common Stock during in March 1984, the PSC issued a please refer to " Notes to Consoli-1984 is taxable as dividend income. new orderincreasing the originally dated Financial Statements" and Under the Economic Recovery Tax authorized return on common eq- " Management's Discussion and Act of 1981, stockholders who par- uity from 13.2% to 14%. The Analysis of Financial Condition and ticipated in the Company's Divi- higher return on common equity Results of Operation" beginning on dend Reinvestment and Stock Pur- increased the approved annual rev- pages 28 and 36, respectively.
chase Plan during 1984 may elect enue in that case by $9.2 million to to defer the payment of federalin- $43.3 million, or about one-half of chart 2 come taxes on up to $750 (individ- the original request. SCE&G had ual returns) or S 1,500 (joint returns) been collecting from customers, Earnings Coverage of Fixed of reinvested dividends. Company subject to refund, the entire harges-SEC
,, Method dividends reinvested during 1985 amount requested in the original
- ~
are not eligible for deferral. proceeding but had only been re-3 74 cording as income the increase au-
,' thorized by the PSC in its July 1983 3*
order. As a result, SCE&G recorded Rate Activity SCE&G filed an approximately S15 million (20 cents electric rate increase request with per share)in nonrecurring electric the Federal Energy Regulatory 32o revenues in March 1984 and re-Commission (FERC)in April 1983 funded approximately $74 million to and with The Public Service Com- 2 82 its retail electric customers in 2.so mission of South Carolina (PSC)in April 1984.
September 1983 to reflect the inclu- The PSC conducts semiannual sion of the V. C. Summer Nuclear fuel hearings to review SCE&G's 2.34 Station in rate base and in cost of 2.4o fuel purchasing practices and the '
service. The final rates approved in cost of fuel used in electric genera-these two proceedings were placed tion. During 1984 the PSC reduced In effect on March 5,1984. **
l in March 1984 the PSC ap-the fuel component of electric base $
, rates by.4 cents (four-tenths of one Eq l
proved a $132.6 million, or 23.3%, cent) per kilowatt hour. This reduc- b nao nai ne2 nsa ns4 annualincrease in retail electric tion reflects the lower fuel cost due rates that included a 14.25% return to generating electricity with nu-on common equity. SCE&G had re- clear fuel and the return to service quested a $192.6 million increase in in 1984 of the A M. Williams Sta-l revenues and a return on common tion after its conversion from oil to equity of 16%. coal-fired operation.
In January 1984, SCE&G and in October 1984 an applica-its wholesale electric customers set- tion was filed with the PSC request-tied on an $11.4 million annualin- ing tariff changes in natural gas crease in rates, or 72% of SCE&G's operations. These changes were re-l April 1983 request. The increase lated to a realignment of the natu-was based on the rate level author- ral gas operations from three corpo-l j ized by the PSC for SCE&G's Large rate entities to two corporate General Service retail customers. entities, SCE&G and South Carolina The increase was approved by the Pipeline Corporation. On January FERC in May 1984 and placed in 17,1985 the PSC issued an order l effect in two phases,with Phase I approving the requested changes effective from June 29,1983 effective for bills rendered on and through March 4,1984. after that date. The adjustments will i On July 13,1983 the PSC is- result in an approximate S1.7 mil-
! sued a retail electric rate order lion annual rate reduction to be which SCE&G subsequently ap- allocated among most of SCE&G's pealed to the South Carolina Circuit residential natural gas customers.
I Court. In February 1984, the Court For more detailed information 7
chart 3 Cash Requirements Sources of Cash Requirements (Millions of Dollars) for Construction 1984 1983 % increase pneans et ooms)
- Construction Expenditures 300 (Exduding AFC):
269 Electric $245.1 5116.8 110 T#
Gas 20.3 14.3 42 250 Transit and Other 3.9 2.4 63 Total Construction Expenditures 269.3 133.5 102 200 Maturing Securities and Sinking Funds 116.8 32.2 263 154 Total Cash Requirements $386.1 $ 165.7 133
'*3 iso -
-e 133 Approximately 79% of the Company's cash requirements for con-yq struction in 1984 were provided from internal sources, down from
,oo approximately 91% in 1983 (see Chart 3). The remaining funds were provided from external financing, the Company's dividend reinvestment plan and employee stock purchase plans, and from short-term commercial 3,
- paper sold on an interim basis.
The following security transactions occurred during 1984:
- SCE&G raised approximately $35.9 million on December 19 through the 5
198o 1981 1982 I?83 1984 EME From External sources 9 .~ .
Y ' '
M Fromlnterna sources sold to the public at an initial interest rate of 7%% per annum. The interest rate on the bonds will be adjusted annually, at which time the holders may require the bonds to be purchased at par. The bonds are secured by an irrevocable letter of credit issued by a bank and are subject to redemption prior to final maturity on October I,2014. On Construction and Financin9 December 31,1984 South Carolina Generating Company, Inc.
Program As shown in the fol-~ (GENCO), a newly formed subsidiary, assumed ownership of Williams lowing table, cash expenditures for Station where the financed facilities are located. At that time, GENCO construction in 1984 amounted to assumed, as the primary obligor, SCE&G's obligations under the financ-
$269.3 million, a 102% increase ing arrangement. However, SCE&G remains secondarily obligated.
over 1983 (see Chart 3). Included in
- GENCO raised $81.5 million on December 31 through a bank loan the 1984 totalis approximately repayable in two years and secured by a first mortgage lien on Williams
$128.2 million which represents the Station. The interest rate on the loan varies with market conditions.
cost of converting the A. M. Wil- SCE&G arranged the bank loan, but GENCO assumed SCE&G's obliga-llams Station from oil to coal-fired tions under the credit agreement upon transfer of the Wil:iams Station operation. Adding cash require- to GENCO.
ments for maturing securities and SCANA Corporation has guaranteed GENCO's obligations in each of sinking funds of approximately these transactions. Proceeds from these two transactions were used to
$116.8 million brought the Compa- defray the costs of certain pollution control facilities and other facilities ny's total cash requirements for related to the conversion of the A. M. Williams Station from oil to coal-1984 to $386.1 million. fired operation.
- $57 million was raised by SCE&G on December 19 through the sale of tax-exempt annual tender Pollution Control Facilities Revenue Bonds.
These bonds were issued by Fairfield County, S.C. and sold to a bank.
The bonds are secured by the pledge of a like amount of SCE&G's First Mortgage Bonds and will bear interest at a percentage of the prime rate for the initial interest rate period. Thereafter, the interest rate on the bonds will be adjusted annually, at which time the holders may require the bonds to be purchased at par. If the bonds are tendered by the bank, they will be re-offered to the public. These bonds are subject to redemption prior to final maturity on September 1,2014. Proceeds from 8
j this sale were used to defray the ing Mortgage Bonds from A2 to AI, shares of Common Stock and/or costs of certain pollution control on unsecured Pollution Control make optional cash payments of up facilities at the V. C. Summer Nu- Revenue Bonds from A3 to A2, on to $3,000 per quarter.
clear Station. Preferred Stock from a2 to al and Commencing with the divi-
- $28 million was raised through on commercial paper from Prime-2 dend paid January 1,1985, the the sale of 1.6 million shares of to Prime-I (their highest rating). In Plan's requirements for Common new Common Stock through the May, Standard & Poor's Corpora- Stock have been satisfie'd through Company's dividend reinvest- tion raised its ratings on SCE&G's the purchase of previouslyissued ment plan and employee stock First and Refunding Mortgage and outstanding shares on the
! purchase plans. Bonds from A- to A+, on Pollu- open market rather than through
- The Companyissues short-term tion Control Revenue Bonds from the issuance of new Common debt on an interim basis to ob- BBB + to A, and on Preferred Stock Stock. As a result of this change, tain funds for its construction from A- to A in September, Fitch dividends reinvested after October program and other corporate investor's Service, Inc. raised its 1,1984 will not qualify for the purposes. During 1984, short- ratings on SCE&G's First and federal income tax deferral benefits term capital needs were financed Refunding Mortgage Bonds from A provided under the Economic Re-through the issuance of commer- to AA and on Preferred Stock from covery Tax Act of 1981. This cial paper at interest rates rang- BBB to A change in the Plan was made after ing from i 1.125% to 11.50%. '
careful evaluation of the impact on
- In March, a $15 million, two-year ' '# ..7' AQ the Company's capital structure of secured bank note was paid in ages x reduced financing requirements.
full;in July, $25 million of 9%%
Series First and Refunding Mort-j[1 At year-end 1984, approxi-mately 34% of the Company's com-gage Bonds were paid at matu- P mon stockholders and 14% of the rity;and in January 1985, u ,
outstanding common shares were SCE&G's Board of Directors au- m participating in the Plan.
l thorized the redemption at par on March 1,1985 of $66.25 mil- + chart 4 r
lion of the Company's 16% Series Capital structure First and Refunding Mortgage 5 " "4 Bonds due June 1,2011 (see Note 3 of the Notes to Consoli- [., '
100 % #i Ei V V tH dated Financial Statements). H As of December 31,1984 the p* j Company's capital structure con- g sisted of 48% long-term debt,10% ,
d '
preferred stock and 42% common equity (see Chart 4). These ratios 0
are consistent with the Com.oany's cv m neawet.on aune new a financial objectives. g altesn d ' 'Tn ' '* #
- The Company anticipates that 2 ")l*5 'E named in honor of the late Grayson C. Meetze, all ofits cash requirements during execuuve wce president of SCE8G.
1985 will be provided by internally generated funds. Short-term capital needs will be satisfied through Dividend Reinvestment and bank lines or the sale of commercial Stock Purchase Plan Common 20 paper. stockholders of SCANA Corpora-During 1984 three major rat- tion are provided an opportunity to ing agencies upgraded the Compa- acquire additional shares of Com-ny's securities in recognition of its mon Stock in a convenient and eco- 1 1 3 8 improved financial strength and re- nomical manner through participa. EME Common Equity INER Preferred Stock duced construction and financing tion in the Dividend Reinvestment um unemm ebt melexct.centporuoni requirements. In March, Moody's and Stock Purchase Plan. Partici-investors Service, Inc. raised its rat- pants in the Plan may reinvest cash ings on SCE&G's First and Refund- dividends on all or a portion of their 9
. _ _ __ _ _ _ _ ~. . _ _ _ _.
?
i i ELECTRIC
- OPERATIONS
- chart s
.. ; 9 ., ; . . ;'
. . <'~ ; .g . 7,7 The transfer of Williams Station Industrial Electric Sales to a separate generating subsidiary pmonsor e l Sales and Customers Sales of under SCANA and the financing of electricity in 1984 totaled 12.6 bil- the conversion cost by the subsidi-4.4 lion kilowatt-hours (KWH), up 4.4% ary should result in additional sav-over 1983. The higher sales re- ings to SCE&G's electric customers.
u sulted from improved economic g--
4.3 conditions and customer growth.
Sales to residentialand commercial customers increased 3.5% and -
4.a 6.2%, respectively, while sales to industrial customers were up 4.4%
(see Chart 5). Wholesale and other 4.1 energy sales increased 2.8%.
At year-end 1984, the Com- =
pany was serving 378,960 electric 4.o customers, an increase of 12,536, or 3.4%, from year-end 1983 (see Chart 6). This represents the largest 3.9 annual customerincreasein the The conversion of waams stacon from cehfired u
Company's history and is mainly ',9 Q ,f y ty g,as y, laeoyng,rg e, t ,t i,
attributable to the continued eco- sawngs over the hfe of the plant.
1980 1981 1982 1983 1984 nomiC expansion in tne Company s .. ,. . s a : . ,
. , :.., . z._,' .
'^'" ' ' ~
, electric service area during 1984.
Current projections indicate that Nuclear Operations The V. C.
the Company's total electric cus-Summer Nuclear Station was dedi-tomer base will grow at an average cated on May 25,1984 in ceremo-annual rate of 2.4% through 1989.
nies at the plant near Jenkinsville, Total sales of electricity are proj-S.C. Donald P. Hodel, then Secretary chart 6 eCted to increase 3.4% annually of the U.S. Department of Energy Total Number of Electric Customers during the same period.
. and principal speaker at the cere-
, gnousus; Average annual use of electnc-monies, praised SCE&G for an out-sty by SCE&G's residential cus-standingjob of bringing Summer 380 379 - tomers increased only slightly, from 12,009 KWH in 1983 to 12,061 Station on line at a time when many nuclear plants have faltered.
KWH in 1984' 366 The 900 MW plant is ajoint 37o
- y. , 4 , p .q.y g, 7'. ,
project between SCE&G, operator and two-thirds owner, and the
' ~
Coal Conversion The AM. Wil- South Carolina Public Service Au-3'O liams Station, the Company's elec- thority, owner of the remaining tric generating plant located near one-third.
35' Charleston, S. C., resumed opera- Summer Station began com-aso 3, tions in 1984 following an 18- mercial operation in January 1984.
- month, S128.2 million conversion Construction of the facilityspanned from oil-fired to coal-fired more than 10 years at a cost of 340 l c operation. over SI.3 billion. Though the cost The conversie t. A 30 was higher than original estimates, megawatt (MW' p: ?r ?cted it was 24% below the average cost 3
! to result in subst., .oal we .gs in per KW of 13 nuclear stations com-
~-
fuel costs over the remaining Me of pleted between 1981-1984. In an the plant. A major factor contribut- era of escalating costs and nuclear 1980 1981 1982 1983 1984 ing to the savings is a fuel contract plant cancellations, SCE&G's com-under which the supplier owns the pletion of the project at a reasonable coal stockpile at the station and the cost was a significant achievement.
fuelis paid for as it is burned. SumTer Station was shut 10
l l
l l
, / Peak Demand Territorialpeak demand is the maximum require-l
, ment for electricity placed on the
, _. Company's electric generating sys-tem by its customers (excluding other utilities) during any one-hour period. The 1984 peak of 2,596 MW occurred on June 20 and was
~O .
3.9% below the previous record peak of 2,700 MW set in August i 1983 (see Chart 7). The decline was i
. 8, due largely to the absence of any y _
\ sustained period of hot weather g during the summer. SCE&G has his-a .~ .
torically been a summer-peaking ;
.g 3 kg, company and the peak demand for
- e.-.R.fl,
._. g. electricity is sensitive to the pres-ence of sustained periods of hot Technicians supennse activity in the containment building dunng refueling of VC. Surntner Station late
, in 1984. From the beginning of cornrnercial operations until this first refueling the plant achieveJ a Weatner' i
70% capacity factor. An all-time record peak Was down from September 28 to December 20 for the first refueling since the set January 21,1985 when record-plant began producing electricity in November 1982. breaking cold weather pushed cus-tomer demand to 2,703 MW.
During refueling, approximately one-third of the 157 fuel assemblies were replaced with new fuel. The remaining fuel will be used for an The Company bases its plans additional one to two years. The fuel that is not reused is considered for construction of new electric
" spent" and is stored under water in the plant's spent fuel pool. Water generating facilities on the proj-provides an effective radiation shield.
While the plant was out of service, numerous maintenance and chart 7 testing procedures were performed along with some plant modifications. Electric Territorial Peak Demand Summer Station is currently on an annual refueling schedule. How- '""9"*'*3 ever, when the plant is refueled in 1985, it will be loaded for an 18-month fuel cycle. 2.sm From the beginning of commercial operation in January 1984 through September 1984 when the plant was shut down for refueling, Summer Station operated with a 70% capacity factor. The capacity factor 24m 2.ss7 is the ratio of the amount of electricity actually produced by the plant 2.489 ,,,g compared to the maximum it could produce. The national average for __
nuclear plants is about 60%. 2,4m j The Nuclear Regulatory Commission (NRC) gave SCE&G high ratings in its annual assessment of operating performance at the station. Major . -
strengths were identified in the areas of radiological controls, mainte. 2,2 m nance, security and emergency preparedness. According to the NRC, the g nuclear organization is well managed and technically competent. No I: -
major weaknesses were found in any of the nine areas reviewed at 2.om g' Sumrrrr Station.
Additionally, the operator training programs at Summer Station have '
become the sixth in the nation to be accredited by the Institute of Nuclear i.8m Power Operations (INPO). INPO is an industry group that evaluates plant .I g?
operations and sets standards of excellence for programs and personnel. [.]
l Accreditation by INPO denotes quality programs. isso i98: 1982 1983 1984 l SCE&G's goal is to accredit all training programs at Summer Station.
l The health physics and chemistry programs are currently in the approval process.
I 1I L. .- - _-
ected growth in the annual territo- power 21% and hydroelectric spent fuel. The racks, installed in a rlal peak demand. We presently ex- sources 7% (see Chart 8). The con- 40-foot deep pool,willincrease the pect this demand to grow at an - version of Williams Station virtually on-site storage capacity to about a average annual rate of 2.8% eliminated the Company's depend- 25 year quantity of spent fuel.
through 1989. The Company cur- ence on No. 6 fuel oil for electric Combined with improved storage rently anticipates that no additional generation. technology, the spent fuel pool base-load generating capacity will could accommodate all spent fuel be needed until the early 1990's. produced by the plant overits op-Generating Efficierscy SCE&G
" "9 ** #" "'"*
nate dependence on the Federal had the nation's fifth most efficient g vernment to provide temporary G2nerating Resources The thermal electric generating system ""
P P Company's peak generating capa- in 1983 according to the most re- #[av"a"i i '
bility was 3,959 MW at year-end cent annual survey conducted by 1984. Five coal-fired plants repre- Electric Light & Power magazine.
sent 57% of that capability,19% is The survey compared operating in six hydroelectric plants,15% is in performance data for the nation's Environmental Protection a nuclear unit and 2% is in an oil- 100 largest investor-owned electric Public awareness and concern fired unit. The remaining 7% is utilities. Each company was ranked about acid rain continues to in-made up of 16 internal combustion according to its generating system crease. As a result, there is pressure peaking turbines and one com- heat rate, a standard measure of in Congress to enact legislation bined cycle generator, all of which the efficiency achieved in convert- aimed at reducing industrial emis-
! burn either No. 2 fuel oil or ing one form of energy (such as sions thought to be a contributing natural gas. coal, oil or natural gas) into anoiner factor in acidic precipitation.
in 1984, coal-fired generation form of energy-electricity. The Com- Bills now pending vary in their provided 72% of the Company's pany has ranked in the survey's top methods for reducing emissions and i total electric generation, nuclear ten in seven of the last eight years. in the impact they would have on This record of efficiency has helped SCE&G and its customers.
save SCE&G's customers millions of Acid rain is a complex phenom-dollars on their electric bills. enon. It is produced by the reaction chart 8 of natural and man-made pollutants Sources of Electric Generation with atmospheric moisture. The
" " "4 product of this reaction is carried Fuel Supply During 1984 the back to earth by rain and other too Company's coal-fired generating forms of precipitation. Emissions re-plants consumed a total of 3.8 mil-lion tons of coal, up 7.6% from
= _ = = . 1983. The weighted average cost so.___- of coal burned during the year was
$2.03 per million BTU, a slight de-crease from 1983. At year-end l 6o
- = = = -
1984, SCE&G had a 57-day supply of coalin inventory. The renegotia-tion of three coal contracts during 1984 resulted in annual savings in 40_ , fuel purchases of more than $20 million. The Company has in stor-age, or under contract, sufficient
- - = = -
- quantities of nuclear fuel and re-l lated services to operate the V. C.
Summer Nuclear Station through 1989.
An important modification per- sctso partiopates in a cooperanve praect with M Coal R218 Hydro and formed during the refueling outage ine sourn caroi,na w,ionte ano ua,,ne nesources se EEus on Natural Gas at the Summer Station was the in- DePd m g,jtmenno o e,ep o ,gt, ing,rgs for EERI Nuclear
- Nuclear 1%. O,i 2%. stallation of new storage racks for summer stanon. enoto courtesy or scwun 12
=-
?
sulting from the combustion of coa! y y,. Q g g;a}tj.4.y lation in Congress may affect the in electric generating plants may be future of this program, the Com- 1 a major contributor to the problem. Conservation and Load pany expects to implement the _
SCE&G believes that legislation Management During 1984 the CACS program during 1985. -
should first be aimed at reducing Company's Residential Conserva- SCE&G offers two residential emissions in regions found to be tion Services program continued to conservation rates that are de-contributing most to acid rain for. provide energy conservation assist- signed to promote energy manage- i mation. Through industry groups, ance and advice to residential cus- ment and conservation. The Resi- i SCE&G has supported legislation tomers through home energy au- dential Energy Conservation rate which calls for continued research dits. For a nominal fee, SCE&G provides a discount to customers :
to determine the actual causes of personnel visit customers' homes whose homes meet stnngent con- -
acid rain and how emissions in one and suggest specific energy-related struction and insulation require- .
geographic region affect the envi- improvements which will reduce ments. The Company has been suc- -
ronment there and in other regions. their energy usage and, in turn, cessful in promoting more energy Some currently proposed legislation their energy bills. Since 1981 the efficient construction practices _
would require installation of expen- Company has completed over through contact with builders and .
sive equipment which ultimately 3,600 residential energy audits, in- developers in its service area. A Res- -
may not significantly decrease acid ciuding 296 during 1984. Another idential Time-Of-Use rate is avail- s rain. 1,575 customers requested do-it- able to customers in the Columbia The Company continues to yourself audit kits in 1984. SCE&G and Charleston metropolitan areas -
commit resources to the protection is continuing development of the who switch their use of electricity of the environment. Expenditures Commercial and Apartment Con- from maximum demand periods to for pollution control facilities in servation Service (CACS) program, off-peak hours. _
1984 were 536 million and are which would offer energy audits to expected to total $65 million for apartments and small commercial .
the period 1985-89. customers. Although pending legis-o ut* ,
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Electnc pcmer generation and transmission operations are controlled from the SCE&G system dispatcher s offere located in the Company s headquarters in Columbia i3
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GAS OPERATIONS
. . .c' - y, . a s.a.'" ,
.t.c. s manylarge industrial customers are l '
. .; .[. . , . .m.c . .p ('.h>[,(.;% , , " g being rebuilt. This will ]
Sales and Customers Total lM:.s.gy .f:y'#4 y accurate measurement of gas used
@ .? .
l sales of natural gas in 1984 were V 6: 7.U .,, by these customers.
up 9.8% over 1983. This increase . .- Improvements also have been k , . . ,;; +k 'A s
came almost exclusively from two c ;j made at the Company's liquefied I sectors-sales for resale and in-dustrial customers. Sales to resale %%
- W " i .-. , Qg?
c .;.
4 1 Y (-[7 / + Q@..j natural gas (LNG) plant near Charleston. Newly installed system customers increased 15.4% while ,
~ j p (: . f E n.% 5 redundancy can avoid a plant shut-
~
industrial sales were up 13% (see p ,3o N: .' 1 .;.fj down or curtailment of operations Chart 9). Two factors were primarily responsible for these increases. }r s
M ' &(t ; .
. gg%. from single malfunctions. New fire
. ; :7 1 ;;. suppression equipment at the facil-Continued economic expansion N<
.ud(e C.J..;. c.x i ityis the most sophisticated avail-
=f]d!
during 1984 created added de-
~
.W !.4 able today. This system uses chemi-mand for products manufacturec' by 4 M. P 91. . F cals providing a high degree of large gas purchasers. Also, the Tc ; ..
Company utilized specialincentive f~ y < ?"jlJ J $c K > crotection workers. with a low risk to pricing to recapture and serve in- p% ' ! ; .; Q^ d Y Q J. in early 1985, a new computer dustrial gas customers with alter- .%/' . E' . i ?. .y g will be installed to handle gas dis-
" ' J.
& Hh.Mpyi4 nate fuel capabilities. Sales to resi-dential customers were up 1.9% '
gMh,%j patching for the entire sys computer will handle a variety of while commercial sales declined .
- f[4 J [% Mll'b t.Q. y % 1
& @Nl.@.y economic analyses, including the
.6%.
. ~i '
curtailment of gas to interruptible The Company continues to consuucuan or a s2-mne natural gas customers and the most economic add new natural gas customers to "'""Mt$r7n"g va c tnNe*aN to'fn$"nne use of supplementary gas supplies.
Its system. At year-end 1984, the wil 'mprove gas supply rehabdity to our The natural gas purchase contracts
'"*""'"9""""**'P'""' of one of the Company's two inter-Company was serving 189,544 cus- tate tomers compared to 187,638 cus- ,,.,.z n. 7,.w , .g. ., ,._
tomers at year-end 1983. The Com- '" ~ '- " " ' ' ' " '
chart 9 pany indirectly supplied natural gas operating Efficiency During to more than 85,000 other residen- industrial Gas Sales
- t9g4 a number of measures were (manans orenerms tlal, commercial and industrial cus- taken in gas operations to improve tomers during the year through its system efficiency and overall relia- 37o resale customers. The average an- bility. In the Columbia area,145 nual use of natural gas by the Com- miles of mains and service connec-pany's residential customers re- tions, many of them over 70 years aso mained stable during 1904. The old, were replaced. Completion of 9:1 average annual residential rate rose this project is expected to take jf~'
from 65 cents per therm at year- about three more years and will 33o end 1983 to 69 cents per therm at involve replacing a total of 600 year-end 1984, primarily as a result miles of gas lines. 3,,
of moderate increasesin the pnce To increase service reliability to 3,o of natural gas from suppliers. This the Charleston area, the Company was the lowest annual percentage built a 52-mile pipeline from increase in the average residential Orangeburg to Ladson. This parallel 290 rate since 1976. transmission line will allow in- 279 2so Over the five-year period, 1985-1989, customer growth is creased flow of natural gas to Charleston while providing the f
/ $'
3j i projected to average about I% an-nually, while total sales of natural safety of a dualline system to this heavily populated area.
270 h' .
gas are expected to increase at an New meters have been in- E97o 198: 19e2 sts average annual rate of I.4%. stalled throughout the system to
- Includes sales of Carolina Energies,Inc.
improve the tracking of gas flow beginning April 1,19s2
+ and reduce unaccounted for gas.
Additionally, meter stations for
, 15 1
l l
state pipeline suppliers, Southern Natural Gas Company, will be I consolidated in early 1985. This ac- Gas Supply South Carolina Pipeline Corporation presently purchases tion will provide the opportunity to natural gas under contracts with Southern Natural Gas Company (South-
' make modifications to improve the ern) and Transcontinental Gas Pipeline Corporation (Transco). The volume quality of deliverability of natural of gas which the Company is entitled to receive under these contracts is gas on the transmission system. shown in the following table:
Supplier Maximum Daily Contract Demand (MCF)
Gas Operations Restructured Southern 210,900 Prior to December 31,1984, the Transco 29,300 effective date of the corporate reor- Total 240,200 ganization, the Company's natural These quantities are subject to curtailment plans approved by the i ed tween arol a Pi e ne Federal Energy Regulatory Commission. However, during each of the last Company,Inc. and South Carolina several years full contract gas volumes were available. The Company Electric & Gas Company while the expects to have ample supplies of natural gas for the foreseeable future.
natural gas distribution operations To meet the requirements of high priority natural gas customers were divided between SCE&G and during periods of maximum demand, South Carolina Pipeline Corporation Carolina Natural Gas Corporation. supplements its supplies of natural gas from a liquefied natural gas (LNG)
As a part of the corporate reorgani. plant and from propane storage facilities. The LNG storage tanks are
' Tation, the Company's natural gas capable of storing up to one million MCF of liquefied natural gas. The operations were substantially reor. tanks are filled by liquefying natural gas from incoming pipeline supplies ganized. All natural gas transmis. during off-peak periods. The plant can regasify up to 60,000 MCF per day sion functions were consolidated to meet peak demand during the winter heating season. Propane storage under South Carolina Pipeline Cor. facilities can supply an additional 70,000 MCF per day.
poration (Pipeline) while all natural gas distribution operations were consolidated under SCE&G. Since Propane Operations Three subsidiaries of SCANA Corporation are both Carolina Exploration Corpora- involved in propane operations. Carotane, Inc. sells and distributes pro-tion and South Carolina LNG Com- pane to residential, commercial and small industrial customers in areas pany,Inc. function as components of where natural gas service is not available. At year-end 1984, Carotane
" $ "$$ PP wa$ $erving ximately 4,500 customers compared to 4,200 customers al ese o a ya
! were made direct subsidiaries of Carolina LPG Corporation and Carolina Propane Storage Corporation h s reali9nment was desi9ned pa pa n s s es omansca %@
ventures operate an 80-million gallon underground propane storage to follow functionallines and t facility and a 62-mile propane pipeline. The storage facility leases space in enhance both managerial and oper- an underground cavern to industrial companies, utilities and others for the ating efficiencies while maintaining storage of propane until needed as an alternate fuel when natural gas I maximum flexibility in the face of supplies are curtailed. The propane rapidly changing natural gas indus- pipeline connects the Dixie Pipeline -
try. The Company believes that the System, which traverses central integration of the two natural gas South Carolina, to a terminal facility distribution systems into a single near the underground propane corporate entity will make possible storage facility. The demand for more uniform, consistent and de-propane storage services has de-pendable service to the large num- clined over the last several winter ber of customers served from the seasons due to ample supplies of distribution system. The consolida- natural gas.
tion of the natural gas transmission operations should enhance the Company's ability to take advan- carotane. inc.. a sCANA subs # diary. sells and tage of the changing nature of the g"g5fd E "$"N'b'"'d"# c'#' ee natural gas industry. naturas gas is not avaiiaoie.
16
CORPORATE ACTIVITIES vice to residential and commercial users of natural gas. The reorgani-
- Outlook - The Natural Gas Policy zation of our natural gas transmis- Employees Atyear-end 1984 Act of 1978 has been significantly sion and distribution operations will the Company had 3,759 full-time altering the structure of the entire provide the flexibility and respon- employees, an increase of 2.9%
natural gas industry. The major siveness necessary to take advan- over 1983. With the exception of change is the deregulation of cer- tage of the opportunities and to important staffing positions, new tain natural gas prices at the well- meet the challenges in the natural hires have been kept to a minimum head which took place on January gas industry in the future. andjustified replacements filled pri-1,1985. As a result of this deregu- marily through transfers within the lation and the changes in the price TRANSIT OPERATIONS Company.
of natural gas that have occurred Approximately 1,200 employ-under Federal regulation, new sup- ees were represented by three ply sources of natural gas are evolv- SCE&G provides public bus sc:vice unions at year-end 1984. During ing. This has resulted in the devel- in the metropolitan areas of Colum- the year, the Company successfully opment of a new spot market for bia and Charleston, S.C. on the ba- negotiated issues under continuing natural gas in the producing areas sis of current franchise agreements labor contracts with each union.
of the country. The Company has with each city. The Company's Several affirmative action pro-been successfulin making natural Transit Department operates 123 grams advance the Company's goal gas purchases in the spot market coaches on a total route system of providing equal employment op-and arranging for transportation of covering 295 miles. During 1984 portunity. Operated in conjunction that lower cost gas to South Caro- the bus fleet traveled more than 3.6 with the Columbia Urban League, fina. We expect to continue to de- million miles and carried approxi- the Community Training Assistance velop skills and experience in this mately 9.7 million revenue Program provides qualified appli-new area as deregulation passengers. cants with the opportunity to ac-continues. The Company's transit opera- quirejob skills through on-the-job The natural gas industry must tions have been unprofitable since training as temporary employees.
respond continually to changes in 1948. Steps continued in 1984 to This program received the Edison the supply and price of alternative reverse this trend. Routes were re- Electric Institute's 1984 Outstand-energy sources. In South Carolina, vised to eliminate overlapping and ing Achievement Award for affirma-natural gas companies face intense increase efficiency. Charter service tive action programs.
competition with alternate indus- revenues increased as a result of an The Training and Indoctrina-trial fuels, particularly high sulfur, aggressive marketing program initi- tion Program provides a pool of No. 6 fuel oil. For some industrial ated in 1983. As a result of ajoint qualified minority and female em-customers, coal continues to repre- effort with the City of Charleston, ployees who are placed in regular sent a significant alternative to nat- the Company received a S1.9 mil- job slots as they become available.
ural gas as a source of energy. The lion grant in January 1985 from the Also, the Company sponsored a Temporary Gas Cost Rider ap- Urban Mass Transportation Admin- Communication and Career En-proved by the PSCin April 1983 istration. Its purpose is to help re- hancement Seminar in 1984 de-has allowed the Company, under coup a portion of operating losses signed to improve employees' com-certain conditions, to compete ef- incurred in Charleston. munication skills and provide fectively with these lower priced Efforts to reduce operating methods of career planning. One alternatives. In January 1985, the losses and improve service will con- result of this seminar was the or-PSC approved the Company's re- tinue in 1985 through the charter ganization of an SCE&G chapter of quest to make the Gas Cost Rider a service marketing program, route the American Association of Blacks permanent part of the gas tariff. revisions, purchase of lower cost, in Energy.
The viability of the natt.ral gas refurbished coaches instead of ex-business in South Carolina is de- pensive new coaches, and im-pendent upon the Company being proved communications with mu-able to compete in the market for nicipalities, regulatory agencies and the supply of natural gas and in the customers.
market for industrial fuel sales. We intend to compete in both of these markets and at the same time main-tain high quality, dependable ser-17
- . gg; g ; ; y , . 37._.. ,
cal needs, programs for low-income ,l :. i pg Q:..>3 " . .,' l.3 . i .,
people, economic development Customer Assistance Contri- projects to bringjobs into South Strategic Planning SCE8G's butions from over 1,600 employees Carolina and education and schol- strategic planning efforts continued to the SCE&G Employee Good arship programs. This foundation in 1984 with implementation of Neighbor Fund helped more than will be funded primarily through current strategies and development 350 needy families in 1984. The revenues from advertisers who pay of new ones.
fund, created by employees in 1982 to have retail coupons included in Among the results of the 1983 to provide food, shelter, clothing SCE&G customer bills. None of the strategic planning efforts were the and funds for medical care to the costs of the program will be accreditation of Summer Station needy, is administered by a board of charged to customers. training programs, implementation directors elected by member em- of the Company's first comprehen-WWL i i t? ".-# a.
ployees and is operated by the Cus- ?N sive marketing plan, increased at-tomer Assistance Department. tention to productivity and more The Customer Assistance De- Energy Info Center The En- than 250 employee recommenda-partment also helps needy cus- ergy Info Center, SCE&G's unique tions for improvements through the tomers locate assistance from fed- energy showcase, opened on June Employee idea Program.
eral, state and local agencies. 16,1984 at Dutch Square Mallin Through the department's efforts in Columbia. More than 108,000 visi-1984, over 15,000 low-income, el_ tors had toured the center by year-derly and handicapped customers end 1984.
received approximately 51.2 million The center, designed to edu-in financial and other assistance. cate consumers on the price /value ,
Customer assistance represen_ relationship of natural gas and elec-tatives made 4,100 home visits in tricity, features colorful displays, 1984 and coordinated weatheriza- computerized exhibits and modern tion efforts for elderly and needy ppli nces. It is financed in part by households. The department also n tronal manufacturers and the Co-administered the White Cross pro- lumbia Homebuilders' Association.
gram which identifies customers on Plans are in place to develop a simi-I r educational center in Charleston V'5' " '
life-support systems to ensure that $',"[,",,*y,",','798 'fyEUg*y 4,s[p service to these customers is not during 1985. info center in interrupted without prior notice.
In September 1984 approxi-mately 200 SCE&G employees and other volunteers donated a Satur-day to weatherize 300 homes of elderly and needy customers.
SCE&G supplied the materials and plans to expand this program in
~
1985.
u . y i: .: y c- % %.,r v' Ccmmunity Assistance SCE&G formed The Summer Foun-dation in 1984 to fund community service programs in South Carolina.
The private, non-profit foundation is named in honor of Chairman of (p the Board and Chief Executive Offi- '
cer Virgil C. Summer. * +
Through this foundation the ,
Company will support community projects in our service area, possible M re than i W w rs have t ured the Energy info Center since it opened June 16 They corne to IOok for InfOrrnation on speofK Appliances to obtain conservation assistance and to browse projects couid be funding for medt- through the colorfui displays 18
Marketing was placed at the m sygpu- ,
foreftont of SCE&G's corporate M l W W e % p*
strategy in 1984 with implementa- "N W' tion of the Company's first formal marketing plan. Results are already .
becoming visible in some areas.
Transit losses have decreased fol-lowing implementation of market- 'g ing strategies to increase charter "
service and revise routes. Industrial sales goals for natural gas and elec-N tricity have been exceeded.
W y. M ?Tr^ . i. "1,"j > a.h Industrial Development An-nounced capital investment in new and expanded industries in South
/
Carolina reached S1.9 billion dunng 1984, the state's third best year on record. The Company's electric and ..
natural gas service areas continued to attract a healthy portion of this f Draftsmen in the Transmission and Distnbution Engineenng Department are using a new computer-industrial growth. Some 51.5 billion d'd d
'"9 'Y* #"" ""* 'Y'" " "#dP' d"V Y " ' "' l b' *"C h V'"' 'd of the state's announced capital ex-penditures will occur in the areas p 'ge y q;,1 %,, 4 .jg .'_ .7.- g served by the Company, bringing with it approximately 8,500 new Electronic Meter Reading job opportunities. SCE&G's Customer Operations De- y Since 1982 some 54.3 billion, partment implemented a computer- g g/g or 77%, of the state's total an- ized meter reading system com- s nounced industrial growth has oc- pany-wide during the fall of 1984.
curred in the Company's service Meter readers use the new hand-areas. In light of the fact that only held computers with mini data cas-about 65% of the state's popula- settes to store electric and natural tion resides within this territory, this gas meter readings. The information f record speaks highly of our service is then transmitted from the local [,
area's ability to attract and sustain office into an IBM Series I computer 7$
industrial growth. The Company in Columbia. That system transmits I
jp continues to aggressively prcmote the data to the Company's main y its service areas to manufacturing computer system for billing. p -
firms and other economic activities. The new system improves me- I ter readers' productivity and accu- g racy and, unlike the previously used cards, can be operated without loss .o<
L W
of efficiency in high humidity, unex- , 4j pected downpours and heat. T n ,w [~'3 Mb'
?
sCE AG implemented computenzed meter reading during the fall of 1984 Meter reader 5 Pnter the data from PIPCtric and gas mPter5 into the hand hPld (Omputers and thdInformdtlOn 15 thPf' trdn5mitted to COlumbid fOr blHing (
19 l
-_ ._. _ ~ . _
Improved Communications System Through a new subsidiary,
. MPX Systems, Inc., the Company is moving ahead with plans to enhance ,
i its internal telecommunications system. Engineering studies have been '
completed and construction is scheduled to begin by March 1985 on a i
- digital transmission link between Columbia and Charleston. This state-of-the-art communication system will use specially designed fiber optic cable to transmit data between the two largest cities in the Company's service area. Although this system will initially be used to meet the Company's internal communications needs, potential does exist for the sale of incre-mental capacity to outside interests. The Company is presently exploring
! this possibility. This new system should be in operation by the fall of 1985.
l I
i 0
4 l
I
,M
() '-
si l l
New racks for spent nudear fuel have been installed in the 40-foot deep fuel storage pool at Summer stauon. increasing storage capacity to about 2s years of spent fuet l
20
FINANCIALS MANAGEMENT REPORT The Management of SCANA Corporation (the auditors who conduct comprehensive internal audits.
Company) is responsible for the preparation and integ- The Board of Directors, through an Audit Commit-rity of the financial data included in the accompanying tee composed of nonemployee directors, provides Consolidated Financial Statements. These statements oversight for the preparation of these financial have been prepared in conformity with generally ac- statements. The Audit Committee meets periodically cepted accounting principles as applicable. In situations with internal and independent auditors and represen-that prevent exact accounting measurements, manage- tatives of management to review their activities and ment has used informedjudgments and estimates in responsibilities. The internal and independent auditors establishing accounting and reporting practices for have full and free access to the Committee to discuss such items. Financial information presented elsewhere internal accounting control, auditing and financial in this Annual Report is consistent with these financial reporting matters.
statements. The independent certified public accounting firm The Company maintains and relies upon a system of Deloitte Haskins & Sells is engaged to examine, in of internal accounting controls which is designed to accordance with generally accepted auditing stand-provide reasonable assurance that all transactions are ards, and to report as to the fair presentation of properly recorded in the books and records and that management's Consolidated Financial Statements assets are protected from unauthorized use. The de- and their opinion appears below.
gree of internal accounting control is based upon the determination of the optimum balance between the lA A-cost incurred and the benefits to be derived. The /"u,- _
system of internal accounting controls is supported by written policies and guidelines and is complemented W. B. TIMMERMAN R. W. STEDMAN by the selection, training and development of profes- Vice President & Treasurer Vice President &
sional financial managers and by a staff of internal Controller OPINION OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS l SCANA CORPORATION:
We have examined the Consolidated Balance in our opinion, such Consolidated Financial State-Sheets and Consolidated Statements of Capitalization ments present fairly the consolidated financial position of SCANA Corporation (formerly South Carolina Elec- of the Companies at December 31,1984 and 1983 and tric & Gas Company) and consolidated subsidiaries the results of their operations and the changes in their I (" Companies") as of December 31,1984 and 1983 and financial position for each of the three years in the the related Consolidated Statements of Income and period ended December 31,1984, in conformity with Retained Earnings and of Sources of Funds for Gross generally accepted accounting principles applied on a Property Additions for each of the three years in the consistent basis.
period ended December 31,1984. Our examinations were made in accordance with generally accepted
- g
( auditing standards and, accordingly, included such u A M ,#,gM 4 [ t M0-tests of the accounting records and such other auditing procedures as we considered necessary in the DELOITTE HASKINS & SELLS circumstances. Columbia, South Carolina February 18,1985 21
1 l
1 l
CONSOLIDATED BALANCE SHEETS j 1
December 31, 1984 1983 ASSETS (Thousands of Dollars) i Utility Plant (Notes I,2,3 and 4):
Electric $2,355,914 S1,291,347 Gas 237,737 221,616 Transit 5,056 4,808 Common 16,273 14,598 Total 2,614,980 1,532,369 Less accumulated depreciation and amortization 566,814 498,282 Total 2,048,166 1,034,087 Construction work in progress 32,949 880,203 Nuclear fuel, net of accumulated amortization 79,739 58,868 Acquisition adjustment - gas (Note 1) '37,141 '38,141 Utility Plant, Net 2,197,995 2,011,299 Other Property and investments:
Nonutility property (substantially at cost) _
15,465 14,478.
Investments in unconsolidated subsidiaries and joint ventures (Note 1) 13,988 21,685 Other investments and special funds 101 117 Total Other Property and Investments - 29,554- 36,280 Current Assets:
Cash, temporary cash investments and special deposits (Note 8) 53,148. 74,836 Receivables 103,032 86,727 Inventories (at average cost):
Fuel (Note 3) 39,442 52,68i Materials and supplies 10,588 8,670 .
Prepayments 10,173 7,123 i Other 42 -
Total Current Assets 216,425 230,037 Deferred Debits:
Unamortized debt expense 5,975 6,067 Accumulated deferred income taxes (Notes 1 and 7) 2,091 39,071 Other (Note I) 47,654 35,380 l
Total Deferred Debits 55,720 80,518 l
Total $2,499,694 $2,358,134 See Notes to Consolidated Financial Statements.
22
Decemoersi, 1984 1983 CAPITALIZATION (See Consolidated Statements of Capitalization) / Thousands o/ Dollars /
Stockholders' investment:
Common Equity $ 778,251 $ 709,908 Preferred Stock (Not Subject to Purchase or Sinking Funds) 26,262 26,262 Total Stockholders' Investment 804,513 736,170 Preferred Stock (Subject to Purchase or Sinking Funds) (Note 6) 156,789 160,604 Long-Term Debt, Net (Notes 3 and 4) 893,950 789,216-Total Capitalization -1,855,252 1,685,990'-
LIABILITIES l
Current Liabilities: ~l Short-term borrowings (Note 8) .
-473 158; l Current portion of long-term debt, net (Note 3) 29,055 54,124 -l Accounts payable 60,599 '66,768 Customer deposits 10,283 '8,294 Taxes accrued 29,389' 22,205' interest accrued 19,622 20,483 Dividends declared 24,832' = 23,695 Other 4,013 -3,112-Total Current Liabilities 178,266 198,839 Deferred Credits:
Accumulated deferred investment tax credits (Note 1) 128,538 119,307 Accumulated deferred income taxes (Note 1) 301,170 245,349 Other (Note 2) 36,468 108,649 Total Deferred Credits 466,176 473,305 Commitments and Contingencies (Note 9) - -
Total $2,499,694 $2,358,134 See Notes to Consolidated Financial Statements.
23
1 l
l l
l CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS For the Years Ended December 31, 1984 1983 1982 (Thousands of Dollars exceptpershare amounts)
Operating Revenues (Notes I and 2):
Electnc $ 746,745 $634,127 $574,113 Gas 378,491 337,282 266,389 Transit 3,178 3,242 2,603 Total Operating Revenues 1,128,414 974,651 843,105 Operating Expenses:
Fuel used in electric generation 223,768 260,381 214,617 Power purchased, net 2,721 10,143 32,501 Gas purchased for resale 289,212 277,091 220,502 Other operation 132,108 88,939 76,615 Maintenance 52,619 36,292 38,724 Depreciation and amortization (Note 1) 74,914 45,000 43,406 Taxes - other than income 45,008 ' 36,537 33,453 Taxes -income (Notes 1 and 7) 108,768 70,395 43,580 Total Operating Expenses 929,118 824,778 -703,398 Operating income 199,296 149,873 139,707 Other income (Note 1):
Allowance for equity funds used during construction 2,885 10,244 6,618 Other income (loss), net of income taxes 14,762 1,327 (1,388)
Total Other income 17,647 11,571 5,230 income Before interest Charges and Preferred Stock Dividends 216,943 161,444 144,937 Interest Charges (Credits):
Interest on long-term debt, net 85,679 88,025 90,620 Other interest expense 3,865 7,478 6,020 Allowance for borrowed funds used
__ dunng construction (Note 1) (11,296) (3 /,997) (39,519)
Total Interest Charges, Net 78,248 57,506 57,121 Preferred Stock Cash Dividends of Subsidiary (At stated rates) 16,877 17,186 16,371 Netiricome 121,818 86,752 71,445 Retained Earnings at Beginning of Year 162,981 15l,975 I46,775 Common Stock Cash Dividends Declared (Note 5) (81,811) (75,746) (66,245)
~ -
Retairied Eknings at End of Year $ 202,988 $162,981 $ 151,975 Earnings Available for Common Stock $121,818 $86,752 $71,445 Weighted Average Number of Common Shares Outstanding (Thousands) 39,900 37,844 34,387 Earnings Per Share of Common Stock $3,05 $2.29 __,__ $2.08_
See IVotes to Consolidated Financial Statements.
24
4 j CONSOLIDATED STATEMENTS OF SOURCES OF FUNDS
- FOR GROSS PROPERTY ADDITIONS 1
For the Years Ended December 31, 1984 I983 1982 1 SOURCES OF FUNDS: l (Thousands of Dollars]
Internally Generated:
Net income $121,818 5 86,752- S 71,445 Charges (credits) to income not requiring (providing) funds:
Depreciation and amortization (Note 1) 93,943 45,000 43,406 Deferred income taxes, net 92,801 30,919 25,966 Deferred investment tax credit, net 9,231 9,515 14,573 Allowance for funds used during construction and deferred carrying costs (25,245) (48,241) (46,137)
Generation expense during construction - 69,868 3,311 Other, net 2,853 3,873 1,973 Funds provided from operations 295,401 197.686 114,537 Deduct cash dividends declared on common stock 81,811 75,746 66,245 Internally Generated Funds, Net 213,590 121,940 48,292 External Financing:
Common stock and preferred stock issued -27,954 39,512 133,286 Mortgage bonds and notes sold, net 81,500 - 100,000 Pollution control bonds sold, net 92,850 - -
Increase in fuel financings, net 18,041 - 14,331 Reduction of long-term debt (112,961) -(29,158) (96,059)
Retirement of preferred stock (3,815) (3,015) (2,598) '
increase (decrease) in short-term borrowings 315 (21,808) (1,282)
Funds from External Financing 103,884 (l4,469) i47,678 Other Sources (Uses):
Arquisition of Carolina Energies, Inc. (Note 1) - - (61,227)
(locrease) decrease in working capital, excluding short-term borrowings and current portion of long-term debt 17,793 (21,144) (15,849)
Other changes in noncurrent balance sheet items, net (65,929) 47,172 35,116 Other Sources (Uses) (48,136) 26,028 (41,960)
Funds for Property Additions 269,338 133,499 154,010 Allowance for Funds Used During Construction 14,181 48,241 46,137 GROSS PROPERTY ADDITIONS $283,519 $ 181,740 $200,147 See Notes to Consolidated Financial Statements.
2s j
CONSOLIDATED STATEMENTS OF CAPITALIZATION I
December 31, I984 1983 Common Equity: (Thousands of Dollars)
Common Stock, no par value, authorized 75,000,000 shares, issued and outstanding; 1984 - 40,296,147 shares, 1983 - 38,727,652 shares (Note 5) 5575,263 5546,927 Retained earnings 202,988 162,981 Total Common Equity 778,251 42 % 709,908 42%
Preferred Stock lNot Subject to Purchase or Sinking Funds)(Cumulative):
Shares Outstanding Redemption Price Eventual Series 1984 1983 Current Through Minimum 5100 Par 8.40 % 200,000 200,000 106.50 11-3086 101.00 20,000 20,000 550 Par 5% 125,234 125,234 52.50 - 52.50 6,262 6,262 Total Preferred Stock lNot Subject to Purchase or Sinking Funds) 26,262 1% 26,262 2%
Preferred Stock (Subject to Purchase or Sinking Funds)(Cumulative)(Note 6):
$100 Par Value - Authorized 1,550,000 shares Shares Outstanding Redemption Price Eventual Series 1984 1983 Current Through Minimum 7.70 % 120,000 123,000 103.85 6-3087 101.00 - 12,000 -12,300 8.12% 171,600 176,000 104.06 6-3066 102.03 17,160 17,600 10-3/4 % 148,000 161,000 110.75 1041-85 100.00 14,800 16,100 11.08 % 200,000 200,000 1 I l.08 9-3065 100.00 20,000 20,000 13.88 % 250,000 250,000 113.88 6-3067 100.00 25,000 25,000 550 Par Value - Authorized, 1984 - 1,754,186 shares; 1983 - I,766,886 shares Shares Outstanding Redemption Price Eventual Senes 1984 1983 Current Through Minimum 4.50 % 35,200 36.800 51.00 - 51.00 1,760 1,840 4.60 % 17,334 18,834 50 50 -
50.50 867 942 4.60% (A) 48,052 50,052 51.00 -
51.00 2,402 2,502 4.60% (B) 112,200 115,600 50.50 -
50.50 5,610 5,780 5.125% 83,000 84,000 5I.00 -
51.00 4,150 4,200 6% 118,400 121,600 50.50 - 50.50 5,920 6.080 8% 300,000 300,000 52.00 l3085 50.00 15,000 15,000 8 72 % 384,000 400.000 53.00 12-31-88 50.00 19,200 20,000 9.40% 258,400 265,200 52.35 9-30-85 51.175 12,920 13,260
$25 Par Value - Authorized 2,000,000 shares
__Outstarong - - - - - - -
Total Preferred Stock (Subject to Purchase or Sinking Funds) 156,789 9% 160,604 9%
26
i* y a ~ yf {.g
,g.. + ,
1
- H: l1 O y -( ,..y' Ag;j(* #9 $4(A s
l .v- ter f/ 1984 1983 Long-Term Debt (Notes 3 and 4J (thousands of Dollars /
< m noa t lec toc & Gas Company m : Refunding Mortgage Bonds senes _ Year of Matunty 938% 1984 -
25.000 3-i 1% 1985 3,125 3.125 i438% 1986 15,000 15,000 15-S 8% i987 25,000 25.000 5 - I '% 1987 6,400 6,700 4 /m% 1988 10,000 10,000 10 , 2% 1990 9,600 10,200 5% 1990 10,000 10,000 5% 1991 8,000 8,000 -
- 4-// t 1995 16,000 16,000 5 45 1996 15,000 15,000 6% i997 15,000 I5,000 6-!. % 1998 20,000 20,000 8% 1999 35,000 35,000-9-11 6 I999 15,000 . 15,000 8% 2001 35,000 - ' 35,000. .
/-I- 2002 30,000 -30,000 9-Im , 2006 :50,000' 50,000 8 40a 2006 50,000- 50,000 8 - 3, " 2007 30,000 130,000 '
8 9C 2008 : 30,000- ; 30,000 <
l0- 8% 2009 35,000 1 35,000 ;
9-I'8+- 2009 50,000 = ( 50,000 L 12 i SN 2010 :50,000 ' 50,000 L i6% 2011 66,250- 66,250'
< >rm F irst Mortgage t mds:
10% 1985 -; 540 6% 1988 , 843 i P. uutrun Control Facilettes Revenue Bonds:
4 t /% senes. beanng interest at 70-75% of applicable ptime rate,due 1987 3,093-- 4,124.:
5 9% senes, due 2003 7,440' '7,500 F.mf eld County, due 2014 t 57,000 --
( onsohdated Mortgage Gold Bonds 5% Senes, due 1999 (non-callable) 1,000 -1,045 Hank Note Secured, due 1984 - 15,000' Nu< lear f uel Disposal liability, due l985 (no interest) 694 694
( apitah/ed lease nbhgations - vehicles (at vanous rates and matunties) 3,534 5,027 l case Obhgation,5 3'4%. due 1997 270 285 s >ut" Carohna Generating Company, Inc. . .
fier k eley C ount y PollutlOn Control Facilities Revenue Bonds, due 20! 4 35,850 -
Onk Note. due 1986 lvanable rate 10.75% at December 31,1984) 81,500 -
1 up ( arnhna L NG Company. Inc .14112% Senes First Mortgage Bonds, due 1990 5,980 6,670 ~~
ot' ( arohna fuel Company, Inc
% ivar fuel habihty 74,226 58,013
' ,6so fuel habikt y 23,917 22,089 im ( arnhna Ilectoc & Gas finante N V. I5 I/2% Guaranteed Notes, due 1989 60,000 60,000 $
e ( ar. 'una Pipehne Corporation. 6 % Senes A First Mortgage Bonds, due l988 1,963 2,607
< " aios Propane storage Corporation
> au u afgage lionds 10% senes 8. Joe 1985 -
160 Im m l i ,an 9% due1985 4,144 4.434 v u' . rohna Real i state Development company int . Notes. due 1986 1991 ( vanous rates) 149 L .t.o 990,135 844.306 ir < arvot porin >n of long-term debt 29,055 54,i24 h % to be redeemed poor in .natunt y in 1985 (Note H 66,250 t m m >rtved disc < >unt 880 966 Total Long Term Debt 893.950 48 % hi9 / f 6 4/' l
+
l Total Capitalliation 51,855 252 100 % ;I E 'Nt I(c .
q
\ee Notes to LonsoliclateclIinanual 8tatements l l/
I
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
- 1.
SUMMARY
OF SIGNIFICANT ACCOUNTING system of accounts prescribed by the Federal Energy Regula-POLICIES: tory Commission (FERC) and as adopted by The Public A. Reorganization and Principles of Consolidation Service Commission of South Carolina (PSC).
SCANA Corporation (the Company), a South Carolina C. Utfifty Plant corporation, was organized in 1984 by South Carolina Utility plant is stated substantially at original cost. The Electnc & Gas Company (SCE&G) and acquired all of the costs of additions, renewals and betterments to utility plant, issued and outstanding common stock of SCE&G under a including direct labor, material and inc'irect charges for Plan of Exchange effective December 31,1984. Pursuant to engineering, supervision, and an allowance for funds used the Plan of Exchange, the corporate framework through during construction, are added to utility plant accounts. The which the operations of SCE&G and its affiliated companies original cost of utility property retired or otherwise disposed are conducted was restructured, with the Company becom- of is removed from utility plant accounts and charged, with ing the sole holder of the common stock of SCE&G and the the cost of removal, less salvage, to accumulated deprecia-holders of the common stock of SCE&G automatically be- tion. The costs of repairs, replacements and renewals of coming the holders of all the outstanding shares of Common items of property determined to be less than a unit of Stock of the Company on a share-for-share basis. The _
property are charged to maintenance expense. In accord-corporate restructuring involved the transfer of assets and ance with FERC Electric Plant Instructions, the fair value of businesses among various corporate entities which are direct test power generated in 1983 and 1982 by the V C.
or indirect subsidiaries of the Company. The exchange of Summer Nuclear Station (Summer Station) and delivered to SCE&G Common Stock for the Company's Common Stock the Company's elcctric system for distribution and sale was (the Exchange) did not itself involve any transfer of assets or credited to construction work in progress.
businesses from SCE&G. Following the Exchange, there was SCE&G. operator of Summer Station, and the South no alteration of the proportionate ownership interest of the Carolina Public Service Authority (a public corporation of the holders of SCE&G Common Stock in the assets and busi- State of South Carolina) arejoint owners (two-thirds and nesses owned and operated by SCEdG and its subsidiaries one-third, respectively) of the 900 megawatt (MW) Summer prior to the Exchange. The Preferred Stock of SCE&G contin- Station. The parties share in the costs of operation and ues to be held by nonaffiliated parties. The Consolidated nuclear fuel, and in energy output on this basis.
In April 1982, Carolina Energies, Inc. (CEl) was acquired Financial Statements for the Company are substantially the .
same as the Consolidated Financial Statements of SCE&G for approximately $26.6 million in cash and 2,618,400 shares immediately prior to the Exchange except for the presenta- of common stock with a market value of approximately .
tion of Preferred Stock cash dividends. $42.8 million. CEl, through its subsidiaries, was involved The Company is a public utility holding company within principally in the purchase, transmission and distribution of the meaning of the Public Utihty Holding Company Act of _ natural gas. The acquisition was accounted for under the -
1935, but is exempt from registration under such Act. purchase method of accounting and the accompanying The accounts of the Company and its wholly-owned Consolidated Statements of Income and Retained Earnings subsidiaries, SCE&G, South Carolina Generating Company, include the results of the acquired operations from date of inc., South Carolina Fuel Company, Inc., South Carolina acquisition. The cost of the acquisition (net assets acquired Electric & Gas Finance, N.V. South Carolina Pipeline Corpo- less working capital provided) was $61.2 million which ration. Carchna LPG Corporation, Carolina Propane Storage represents the excess of Gas Utility Plant ($67.4 million, Corporation, Carotane, Inc., South Carolina Real Estate De. including acquisition adjustment of $39.9 million) and other velopment Company, Inc., MPX Systems, Inc.; and Carolina assets ( $ 16.1 million) over long-term debt ( 510.5 million) and Exploration Corporation and South Carolina LNG Company, other liabilities ( $ 11.8 million). The acquisition adjustment Inc. which are wholly-owned subsidiaries of South Carolina included in Utility Plant is being amortized over a forty-year Pipeline Corporation are consolidated in the accompanying period using the straight-line method.
Consohdated Financial Statements. Certain investments in D. Allowance for Funds Used During Construction real e. ate and propane storage and transmissionjoint and Deferred Carrying Costs ventures are reported using the equity method of account- Allowance for funds used during construction (AFC), a ing Significant intercompany transactions have been noncash item, reflects the period cost of capital devoted to ehminated in consohdation. lant under construction. This accounting practice results in Poor to the reorganization, the accounts of South Caro- the inclusion, as a component of construction cost (construc-kna Real Estate Development Company, Inc., formerly En- tion work in progress), of amounts of AFC which will ergy Subsidiary, Inc., were reported using the equity method ultimately be included in rate base in estabhshing rates for of accounting. The effect of its consolidation for any period utikty charges. AFC is calculated using a 6 5% rate (except presented is not material and pnor year financial statements for nuclear fuel which is capitalized at the actual interest have not been reclassified. amount), which is less than the maximum allowable rate as B. Systern of Accounts calculated under FERC OrJer No. 561.
fhe accounting records of the Company's regulated Carrying costs associated with approximately 5114.8 subsidianes are maintained in accordance with the uniform milkon ( $111.7 milhon at December 31,1984) of net produc-28
tion investment relating to 400 MW of electric generating January I, capacity eliminated from rate base are being deferred for g984 1983 recovery over some future period pursuant to a March 2, -
1984 PSC rate order (see Note 2A). Total carrying costs, a Actuarias present value of noncash item included in "Other income", for 1984 were accumulated pian benefits:
approximately $11.1 million. vested s122.9 si 1.8 .
~ Nonvested $.0 6.3 E. Depreciation and Annortization Provisions for depreciation are recorded using the Totar s127.9 si ta.:
straight-line method for financial reporting purposes and are Net assets avaHable for benefits s 94.1 s 79.2 based on the estimated service lives of the various classes of property. The composite weighted-average depreciation rates were 3.41%,3.15% and 3.16% for 1984,1983 and _ The assumed rate of return used in determining the 1982, respectively. . actuarial present value of accumulated plan benefits was 7%
Provisions for amortization of nuclear fuelinclude esti. _ . for 1984 and 1983. yt mates for disposal costs. Such provisions, which are included The Company's expenditures to continue health care '
in " Fuel used in electric generation", are recorded using the - and life insurance benefits for retired employees are not ~
unit-of-production method. Prior to commercial operation of . significant.
the Summer Station, amortization of nuclear fuel was g, m charged to construction work in progress.
Cm' mm a M Mim ed m F. Nuclear Deconensissioning monthly cycle basis. Base rate revenue is recorded during The Company is providing for the estimated cost of ' the accounting penod when the meters are read. llevenue decommissioning its nuclear unit by charges to income of . attributable to gas costs (to the extent collectible through approximately $827 thousand annually, net of taxes. Such adjustment clauses) is accrued and recorded in the month amounts are collected through electric rates as approved by iduring which the gas is used rather than when the revenue I the PSC. is billed.
ProjecteN costs ars coNected in rMaN elecdc base C. Incon e Tazes The Company and its subsidiaries file consolidated Fed-eral and State income tax returns. Income taxes are allocated'- Any differences between actual and projected fuel costs are I defed W MdudM when estimathg bel cosa durhg the to all subsidiaries based on their contributions to the consoil- next PSC hearhg to considemhMher an W is dated taxable income, necusary M tM bel component h fMaN elecdc base m The Company provides deferred income taxes for sub- . At Decemkr 31,198% the Company Nd underconectM l '
stantially all timing differences, principally accelerated depre- fuel costs of approximately 59.9 million which are included clation, except as allowed by the PSC on certain basis in DeferrM Debih Other.
differences arising prior to 1981. Deferred income taxes are charged to income currently with corresponding credits to - =8* 08 hat Pessutusu,00sessant and Elsponse accumulated deferred income taxes. Deferred income taxes . . l.ong-term debt premium, discount and expense are are credited to income in appropriate amounts when subse. being amortized over the terms of the respective debt issues.
quent income tax liabilities are greater as a result of this 2. RATE MTTERS:
practice. A. 8y an order dated March 2,1984, the PSC declared investment tax credits on eligible property are deferred and amortized over the usefullives of the respective assets.
W d Me L 1984 #
accounting and ratemaking purposes) and granted a 23.3% -
H. Pension Plan and Post Retiresnent BeneRes increase in retail electric rates, amounting to approximately.
The Company has a noncontributory defined benefit $ 132.6 million annually, or 68.9% of the increase requested plan covering all employees of its subsidiaries. The Compa. In an application filed on September 6,1983. The new rates ny's policy is to fund pension costs accrued. Total pension were placed in effect on March 5,1984. The order also expense, including the amortization of unfunded prior ser. eliminated from rate base, at average system cost, the net vice cost, for 1984,1983 and 1982 was approximately $12.9 production investment (approximately $ 114.8 million;
- million, $10.3 million and $7.8 million, respectively. Prior to $ l i 1.7 million at December 3 I,1984) associated with 400 -
1984, unfunded prior service cost was amortized over a MW of electric generating capacity. However, the order twenty year period. In 1984, the Company began amortiz. allowed carrying costs, computed on the basis of the ap-ing this cost over a ten year period. The effect of this change proved overall rate of return (1 f.74%), associated with the is not significant. The increases in pension expense for 1984 eliminated investment to be deferred and recovered over and 1983 resulted primanly from changes in plan some future period. The order also allowed the recovery, assumptions and provisions. Currently through rates, of all operating expenses, including The actuarial present value of accumulated plan bene. depreciation and property taxes, associated with the 400 fits and plan net assets as of the most recent benefit MW of electric generating capacity (see Note ID).
information date are as follows: B. By an order dated March 2,1984, the PSC increased the return on common equity onginally authorized in its July i'
29 J
I l
13,1983 retail electric rate order from 13.2% to I4.0% redempoon and to substitute other security arrangements, (approximately $9.2 million annually). In its original order, ' the bonds are classihed as long-term. The Berkeley and the PSC granted approximately $34.1 million annually, or ' Fairfield County Bonds are subject to optional or mandatory -
39.6% of the amount requested in an application filed on . redemption prior to final matunty.
July 1,1982. That order was appealed by SCE8G to the : . in 1984 SCE&G's management proposed using pro ~ ,
South Carolina Circuit Court ~ ' L . . x ; ceeds of released property on deposit with the Duseet of its in February 1984, the South Carolina Circuit Court ; l Indenture of Mortgage to sedeem at par the entire , L .
remanded the case to the PSC for further consideration and ' ; $66,250,000 prindpal amount outstan Nng of its First and as a result the PSC issued its March 2,1984 order. Accord- . _itefunding Mortgage Bonds 16% Series, due 201 I. In Janu- "
ingly, approximately $15 million (208 per share of which 1445 : ary 1905 The 80 sed of Obectors of SCEGG $onnety ap f .
and 44 per share relate to amounts billed in 1983 and 142 7 f prouest the redempsonof Wietone, Nodoes weit head #2 '
respectively) was recorded as nonrecurring electric revenues ; the 84% $ertes geneftelessen Anugty29 IWhseK , i in March 1984 and approximasely $74 mWon was vehined W Wieten$sp M 4,SW heltWWgWt N to retail electric customers in AprN 1984.' ,. $hj$shes ; f-M,M vrT C. By an order dated May 2f 1984, the FEAC appleted 2 a negotiated settlement agreement between $CEM andh? ' ben $ BetM9D80L .. 88Wh* h n wholesale electric customers. The tenns of Wie SeWement E jetehte MN f f' Agreement provide for approximately $11.4 MWenannuC in additional electric revenues. < ,_./M o' w
h- Q* W >#S j _W
% 3.f??n AW ~ #
D. On October 19,1984, an appgcaden WWSdn ,
a
- ,,?"
the PSC requesting tariff changesinnaturalgesMi ~ '*h[2 ' [(g@' ~4 '
These changes relate to a restyiment of 9tesMg5 i : 7 We operations as part of the corporage WBC*.,
4
( A January 17,1985, the P5Cissued an >
requested changes effective for tidis rendepeden '[ _
that date. The adjustments wig regia De atM million annual rate reduction. y a
-s y
f', a
- 3. LONS-TEfIRI DESF
~
~.,' -N The 15%% Guaranteed NotesofSoulhM-M~ g' 'j
& Gas Finance N.V due 1989, are esculedaste & l principal and interest by First and Astanegg 4 l Lli1 .
. Bonds of SCESG. ,
L0 W The Berkeley County Pogution Congol AguenupSque g" - t q
( $35.850,000, due October I,2014) age
. irrevocable letter of CretSt Eggliring Irl 1991. WW interest at an initial interest raer of 7%% per annadh
~' ' '
September 30,1985. . , . . _ t
,s ep .. p -
The Fairfield County FoNution Conect Aswenue Gene igerD , Ameest -
dty? Anelf #" ' g
( $57 million, due 5, ... ,s I,20l4) are secured a Wie : g , ,
principal amount of First and IIshansAng Morgsp _ efy ,% , ggg ; ;
, 3(,q,g (,ggg SCE&G 15% Series, due 2014. The Gene tear WiggleRst a > gs - :
, .g igyk-; -^' ' 9 %~ pyg# W -? -
rate equal to 65% of a prime rate l6.99% at Ossember 31,; - ,
= iggpi) igge,1 :' -<
1984) but not to exceed 15% per annum throup August ,' ; - 1,, ,
V
~'
31,I985. .
Approximately 99.8 mWen of the cupent portien oflonge <
After the initial interest rate period, both the Berteley : term debt for 1985 may be radened by deposit and cantees-and Fairfield County Bonds will bear interest at a rate, which ~ tion of bonds issued upon the beels of property additions or -
will year beyieldset betweenof 80 evaluations and 120%
comparable of an inden tax-enempt abilgegons rate onDustee, one', , bond redrement cretals or ty depoelt of cash w0th or 65% of one-year yield evaluations of U. 5. Dessury Bonds . ,
at par, but not to exceed 15% per annum, which rate shall ' 4. PUEL N8 ~
be adjusted annually on each October I and September 1, Nuclear and fossil fuel investments are financed respectively, until such time as the interest rate becomes through the issuance of short term commercial paper. These fixed until maturity. These bonds also provide that the short term borrowings are supported by irrevocable bank -
holders may require the bonds to be purchased at par upon lines of credit which expire in 1987, Accordmgly, the :
each annual adjustment of the interest rate or at the time amounts outstanding have been included in long term debt. .
the interest rate is fixed. However, due to the irrevocable The bank lines provide for maximum amounts ( $ 75 million letter of credit for the Berkeley County Bonds and provisions related to nuclear fuel and $25 million related to fossil fuel) of both the Berkeley and Fairfield County Bond indentures, that may be outstanding at any time.
which permit the Company to purchase the bonds in lieu of At December 31,1984, the amount outstanding for 30 C_
nuclear fuel was approximately $74.2 million at a weighted annual dividend. Retirements under sinking fund require-average interest rate of 8.59% and the amount outstanding ments are at par values.
for fossil fuel was approximately $23.9 million at a weighted At any time when dividends have not been paid in full average interest rate of 8.73%. or declared and set apart for payment on all series of preferred stock, SCE&G may not redeem any shares of 5, COMMON STOCK: preferred stock (unless all shares of preferred stock then in connection with the reorganization (see Note I A), outstanding are redeemed) or purchase or otherwise acquire the Company was capitalized with no par common stock. for value any shares of preferred stock except in accordance Accordingly, financial information for all periods is presented with an offer made to all holders of preferred stock. SCE&G on this basis. may not redeem any shares of preferred stock (unless all The changes in " Common Stock" during 1984,1983 shares of preferred stock then outstanding are redeemed) or and 1982 are summarized as follows: purchase or otherwise acquire for value any shares of preferred stock except out of moneys set aside as purchase Number Thousands funCs Or slHKing funds for one or more series of preferred d shares d Donars -
stock, at any time When it is in default under the provisions Balance January I,1982 29,690,064 5399.166 of the purchas? fund or sinking fund for any series of
^dd'tional shares issued:
preferred stock, o Emp oy es 398.169 6.557 The aggregate annual amounts of purchase fund or Employee stock Ownership Plan 193,516 3.200 sinking fund requirements for preferred stock for the years Dividend Reinvestment and stock 1985 through 1989 are summarized as follows:
Purchase Plan 1.126.350 17.122 Pubhc sale 2,500,000 ' 38,625 Yew Amount Yew Amount Acquisition of Carchna Energies, Inc. 2,618,400 42,774 -
Other 1292) (Thousands ordo #ws/ q Balance December 31,1982 36,526,499 507,160 Additional shares issued: 1987 7,415 stock Purchase-savings Program for Employees 489,734 9.333 Employee stock Ownership Plan 120,827 2,254 Dividend Reinvestment and stock The changes in " Preferred Stock (Subject to Purchase or Purchase Man I,590,592 27,925 Sinking Funds)" during 1984i 1983 and 1982 are summa-Other 255 rized M f h Balance December 31,1983 38,727,652 544,927 Additional shares issued: Number Thousands stock Purchase-savings Program of shwes of Donars for Employees 211,915 J,829 Er, sloyee stock Ownership Plan 9,012 170 Balance January 1,1982 - 2,126,466 $141,217 Dividend Reinvestment and stock shues issued:
Purchase Plan 1,348,709 23,973 $100 par value 250,000 25,000 Other l1,141) 364 shares redeemed
$100 par value (17.480) (1,748)
Balance December 31,1984 40,296,147 $575,263 50 par value !! 7,000) (850)
Balance December 31,1982 - 2,341,986 163,619 The Restated Articles of Incorporation of the Company shares redeemed:
do not limit the dividends that may be payable on its
$100 par value 120.400) (2,040) 50 par value 0 9,5001 197N common stock. Holders of the Company's common stock will be entitled to dividends at such rate as may be deter. Salance December 31,1983 2,302,006 160,604 mined from time to time by the Board of Directors of the Company.
y,,'p, go,,,,, p,,,,,
so p., y,,,, ps,soo, g,,775, The Restated Articles of incorporation of SCE&G and the indentures underlying certain of its bond issues contain salance December 31,19s4 2,244,1s6 sl54,7s9 provisions that limit the payment of cash dividends cn common stock, Approximately $137.6 million of consoll.
dated retained earnings were not restricted as to payment of cash dividends on common stock at December 31,1984.
Cash dividends on common stock were declared at an annual rate per share of $2.05, $2.00 and $1.92 for 1984, 1983 and 1982, respectively, 6, PffEFERRED STOCK l$ubject to Purchase or sinking Funds)!
The call premium of the respective series of preferred stock of SCE&G in no case exceeds the amount of the 31
1
- 7. INCOME TAXES: Provision for deferred taxes, net results from timing Totalincome tax expense for 1984,1983 and 1982 is as differences in recognition of the following items:
follows:
1984 1983 1982 1984 1983 1982 /rhousands of portars/ I Acceterated depreciation and
% gg $54,495 5 51.482 $37,941 amortization Current income taxes: 37,684 Ut' gated revenues (29.6281 (8.055)
Federal $ 5.767 $2iB25 $ IB66 939 3.552 4,053 Intnest on nuclear M 732 state 6.262 1.655 7,632 Deferred fuei rewnue 249 (6.532)
Foreign 600 596- 380 Other. net (359) 494 (950)
Total current taxes, net 10.420 '28.683 3.901 Total provision for deferred Deferred taxes net: mcome taxes, net $92.801 - $ 30.919 $25,966 Federal 82,466 28.948 22.242 state 10,335 1,971 3.724 The Company's Federal income tax returns have been Total c'eferred taxes. net 92,801 30.919 25,966 examined by the Internal Revenue Service through 1981 and inwstment tax credits: have been closed through 1980, A final report has been U 15,404 H 488 I6.279 received for 198 I and all issues resolved, fj", o, 16 ) ( ) (1,706) gerreo grediti 8. SHORT TERM BOINIOWWINGS:
Certain subsidiaries of the Company maintain compen-Totalinwstment tax credsts 9,925 14.091 15.03 $
sating balances of up to 10% for certain of their bank lines Totalincome tax expense $113,146 $73.693 $44.901 and pay fees in lieu of balances in connection with their other lines of credit. The lines supported by compensating ' .
Total income taxes differ from amounts computed by balances may be reduced or withdrawn at the banks' applying the statutory Fede.alincome tax rate of 46% to . options, with all compensating balances avastable for use as -
pre-tax Income as follows: general operating funds. Bank loans are for 270 days or less.
Details of lines of credit and short-term borrowings at 1984 1983 1982 December 31,1984,1983 and 1982 and for the years then trhousands ofDouarsi ended are as follows:
Net income $121,818 $ 86.752 8 71.445 Totalincome tax expense: December 31 Charged to operating expenses 108,768 .70.395 43,580 - 3934 1983 1982 Charged to other income 4,378 3.298 f.321 Preferred stock olvidends 16,877 17,186 I6.371 (Dosars mons /
Unes of credit at yemend $81,3 . $ 127.2 . $130.7 Total pre-tax income $251.841 $177.631 $132,717_~ Borrow 6ngs against credit line at year +nd income taxes on above at statutory Average bank balances dunng the year S 5.0 $ ' 4.9 $ 3.4 Federalincome tax rate $115,847 5 8? 710 $ 61.050 short-term borrown gs (including increases (decreases) attnbutable to: commedal papu) dunng the year:
Mowance for funds used durbg Maximum outstanding $29.4 $ 36.3 $ 64 8 construction (excluding ru. lear Awrage outstanding $ 23 $ 12.4 $ 3A2 fuel) (17,374)
Carrying costs of 400 MW of electnc . (5,104) (19,840) *' ,' '*'9' generat.v; capacity (5,089) - -
8 Depreciation d.frererxes 5,454 I,568 1,924 I$33% 8 85%
C rc al paper Notes payable outstanding at e l6,173l 11.9 73) (1,706) ym+nd state income taxes (less Federal Bank income tax effecti 7,770 7.065 4.527 We h d average interest rate -
^*"'I'" I Commercial paper - - $ 2I.8 acquantion adjustment 460 809 -
- - 902%
Weighted average interest rate Taies, pensions and other items Other S .5 $ .2 $ .2 11.22 % 9.5s 6 950%
Oterh es net 19) 3 558 '3 Wetghted average interest rate Totalincome tan empense $113.146 $ 73.693 $ 44.901 32
- 9. COMMITMENTS AND CONTINGENCIES: 10. SEGMENT OF BUSINESS INFORMATION:
A. Leases Segment information at December 31,1984,1983 and The Company leases certain equipment, office furniture 1982 and for the years then ended is as follows:
and an office building used for its corporate headquarters us4 under long term operating leases with lease terms (exclud-ing various renewal options) expiring in 1996,1991 and Electric Gas Transit Total 2009, respectively. f w g o,,,,,,j in connection with the office building lease, the Com-pany may be required to purchase a 10% Note arnj Mort- operating revenues s 746,74s $37s.49: s 3,t7e s1,12a,4 4 gage on the building in the amount of $44 million in 1989.
Also, the Company must pay, as additional rent, any differ-ence between the 10% Note and Mortgage rate and a and amoressation 506.747 341,692 s,76s es4,204 current index rate (12% at December 31,1984). oepreosconane Future minimum rental payments as of December 31, amernessen 67,173 7,544 197 74,914' 1984 are as follows: 1heelspersang esponess s73,920 349,236 5.962 929,1 to Year Arnount Year Arnount Opera:Ingincomefless)s t72,s25 5 29,255 - sl2,7e4l - t99,296 frhousarxts ofDollars) Anen-Other inteme, not t 7.647 1985 s2.756 1988 s 4,425 Less -Interess chstges FeLa4e; 1986 5.439 1989 6.128 . -Possensessedienhasuddene f( e77!
1987 4.335 Later Years t 34.405 seat incesne ie s 121,ete Rent expense for 1984,1983 and 1982 is not material, capitalesponeeures. .* #'
O. NuclearInsurance uansed ser everen Cenpsyaparemens 3,4ee .
The Price-Anderson indemnification Act limits the liabil.
sty of a power company operating a nuclear reactor to $620 itsee 's age,ste-million for one nuclear accident. The Act provides that all owners of nuclear reactors may be assessed up to $5 million per reactor for each nuclear accident occuring at any reactor sceneensese senses as '
in the United States with a limit of two assessments per year o come ,3,,3,es:
(a retroactive premium). The Company's maximum exposure, uenny pient, nei si,99a,ae6 ~~stes,e77 ~ $1,eso sateates based on its two-thirds ownership of Summer Station, inveneerles es,227 7,7es act 4tatt would be approximately 56.7 million per year under this -tassi sa,esa,ess 's19s.see s 2, set aaaeJoe legislation.
The Company maintains policies providing property Aness uenses ser eneres canyary aparemens w Jee-and decontamination insurance coverage of $450 million for seems senses sa 499,694 losses in excess of $500 million over existing coverages on the Summer Station. The Company pays ennual premiums and, in addition, could be assessed a premium not to exceed 7 l/2 times its annual premium which, based on the current annual premium, could be approximately $4.7 million in the event of property damage loss to any nuclear generating facilities covered by such policies.
33
i 1983 1982 Electnc Gas Transit Total Electne Gas Transit Total (Thousands of Dollars) (Thousands of Dollars)
Operating revenues $ 634.I27 $337,282 $ 3,242 $ 974,651 Operating revenues 5 574,113 $266,389 5 2,603 $ 843,105 Operating expenses, . Operaung expenses, exctuding depreciation excluding depreciation and amorozanon 457.746 316,072 5,960 779,778 and amortization 404.197 250,284 5,51I -659,992 Depreciation and . .
Depreciauon and 2tl'
~
amortizanon 37,472 7,345 183 45,000 amorteatica 36,146 7,049 ' ~ 43,406, Total operaung expenses - 495,218 323,417 6,143 824,778 Total operaong enpenses 440,343 257,333 5,722 703398 Operating mcome (loss) $ 138,909 5 13.865 $(2,901) 149,873- Operaangincome(loss) ~ $ 133,770 $ - 9,056 , 5(3.119) 139,707 Add - Other income, net i I,571 Add - Other income, net . 5.230 --
Less -Interest charges 57,506 Less-Interestcharges , 57,121-
- Preferred stock cash dmdends - 17,186 -Preferred stock cain dMdends 16,37I .
Net income $ ' 86,752 Net income b $ ' L 71,445E
. Capital enpenditures, Identeable (Includes Capital expenditures: _
acommon of Cacens identifiable $ 164,955 $ 14,4l0 1 211 $ 179,576 Energies Inc.) ' ~ 5.' ISA871 $ 71.947 ' 5 44 1 25AA62 4 Utihzed for overall Company operations 2,164 Umilaed for overall Company operamons - - 2,582 :
Total '$ 181,740 Total ' l 261,374" Idmtifiable assets at identmable assets at - i December 31,1983. December 31,1982:
Utihty plant, net 1I,819,717 $175,788 $ I,519 $1.997,024 ' Unlity plant, net ; $1.763,203 $l70,631
- $ 1,458 51,935.292 -
Inventones 51,421 7,217 203 58,841 Inventones 71,947 7A47 = 176 - J 79.970 :
Total ll,871.138 $ 183,005 5 1,722 .2,055,865 Total SI A35, ISO $178,470 ' S 1,634 2,015w262 Assets utdized for overall Company operations 302,269 Assets unilaed for overaN Company operations 187,493 Total assets 52,358,134 Totalmsets - $2.202,755 f
34
i 1983
- 11. QUARTERLY FINANCIAL DATA (UNAUDITED):
The followinq data have not been audited, but in the First Second Third Fourth opinion of the Company, include all adjustments (consisting "3"" "'"" "'"" Qu'"" ^"""
only of normal recurring accruals) necessary for a fair presen- Totai opnating l tation of such amounts. mnues (oool s257.520 s2:4.220 s263.69s s239.216 s974.6s1 Operaong income local 39.o 2 35.s22 4s.394 29.94s i49.873 Net income looo) 22.794 19.123 30.832 14.003 86.7s2 First Second Third Fourth Earnings per share Quarter Quarter Quarter Quarter Annual of common stock as reported .62 .st 8I .36 2 29 TM W W revenues l000) 5290.888 5263.353 3294,348 3279.825 St,128.4f 4 Operating
. income 10001 56.638 45.56: 6o.393 36.7o4 i99.296 12. ACCOUNTING FOR CHANGING PRICES Ntt income looo) 34.512 23.715 46.334 17,257 121.818 l'
Earnings per share (UNAUDITED):
i o, common stocu in compliance with Financial Accounting Standards as reported .88(a) .59 f.15(bl .43 3.05 Board Statement No. 33, as amended, Financial Reporting and Changing Prices", the Company has prepared certain la; ine first quaner irxiudes an increase of 204 per snare due to nonrecumng eiectnc supplementary financial statement data (see pages 40 revenues (see Note 28), and a decreaw of f 74 per share due to a loss reserve and 4I).
contingency resating to a contested audit issue with the FERC.
(b) includes an increase of l 74 per share for the favorable resolution of the FERC audit assue discussed above.
COMMON STOCK INFORMATION 1984 1983 4th 3rd 2nd 1st 4th 3rd 2nd ist Otr. Otr. Otr. Otr. Otr. Otr. Otr. Otr.
Prke Range:(a)
High 23-5/8 22 1/4 19 19 20-1/2 19-l/2 21-1/4 20-7/8 Low 21-1/4 17-7/8 17 l/2 17-1/4 17-l/2 17-7/8 17-7/8 17-l/2 Dividends Per Share:
1984 Amount Date Declared Date Paid First Quarter 3.5125 January 25,1984 April 1,1984 Second Quarter 3.5125 May 23,1984 July 1,1984 Third Quarter s.5125 August 22,1984 October 1,1984 Fourth Quarter 3.5125 November 28,1984 January 1,1985 1983 First Quarter 5.50 January 26,1983 April 1,1983 Second Quarter 5.50 May 25,1983 June 30,1983 Third Quarter 5.50 August 24,1983 October I,1983 Fourth Quarter 5.50 November 22,1983 January 1,1984 December 31, 1984 1983 Number of common sharet nutstanding 40,296,147 38,727,652 Number of common stockhcMers of record 60,897 64,211 The pnncipal market for SCANA common stock is the New York Stock Exchange (stoc < symbol-SCG).
(al As reported on the New York Stock Exchange Composite Listing.
35
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION LIQUIDITY AND CAPITAL RESOURCES an overall decrease in electric unit sales of approximately The pnmary cash requirements for 1984 and as esti. 2.3% and the failure of the PSC to grant SCE&G adequate mated for 1985 are as follows: electric rate relief as requested in its petition for an electric rate increase filed July 1,1982. See Note 2 of Notes to 1984 198s Consolidated Financial Statements for information concern-frnousands oroonars/ ing these rate matters. The following table sets forth certain construction expenditures lExcluding information with respect to significant rate cases for 198I allowance for funds used during . through I984:
construction - AFC) s232.524 s i24,4I4 -
Nuclear fuel expenditures 36,814 6.493 REouEsTED APPROVED Maturing obingations and sinking and purchase fund requirements 116,776 wd oxe Amount %inneme um Amount % d Requen 22.967 senace reed (Milhansl Requeted pl_ Date (Means) Granted ifl Tota s386,114 sis 3,874 Mk 2/27si Whoicsale 5H!8I s74.2 s 4.2 16 8% - 4/iz82 18.2 % 4/29.B2 s s64 5 3.8
- 76.0%
90 0%
Retail 7/t<82 s862 15s% 8/ t 3312) 3 43.3 50.2%
Dunng 1984 approximately 55.3% of total cash require-. gesale *gg ,,sg9 '
ments were provided from internal sources as compared to
.g g s
g* g 73.6% in 1983. External funds for 1984 were provided from the sale of 592.9 million in tax-exempt annual tender pollu-g ,y, ,g ,, 3 g3 33 ,
Retait 6 fir 83 - si s.4 9.3% 972ssa s is 6s6%
tron control facihties revenue bonds, an $81.5 million term p; Bas,o on t,,,used in rae case.
loan, the sale of $28.0 million of the Company's common 12) see me 2 or mes to consondated nnancial steemern for addioonannramacon ,
' """3'" * # "'"*
stock through its dividend reinvestment plan and employee stock purchase plans, and short-term commercial paper sold Due to the high level of construction attivity in recent -
on an interim basis. years, primarily V. C. Summer Station (Summer Station), a The Company anticipates that 1985 cash requirements substantial portion of the Company's earnings has been will be met pnmarily through internally generated funds. The ~ attributable to AFC. AFC is a utility accounting practice 3 remainder will be provided through short-term borrowings whereby a portion of the cost of both equity and borrovved '
and the sale of commercial paper. Actual 1985 construction funds used to finance construction (which is shown on the and nuclear fuel expenditures may vary from the estimates balance sheet as construction work in progress) is capital-set forth above due to factors such as inflation and economic ized instead of being expensed in the period incurred. Both conditions, regulation and legislation, rates of load growth, the equity and the debt portions of AFC are noncash items and environmental protection standards, as well as the cost of nonoperating income which have the effect of increasing and availabihty of capital. reported net income by their full amounts. For the years The Company's ability to provide funds for its construc- 1983 and 1982, AFC contributed approximately 56% and tion program and meet its working capital requirements is 65%, respectively, of Earnings Available for Common Stock.
dependent upon rates which will provide an adequate level . However, with a reduction in construction expenditures and of earnings and upon conditions in the capital market. the placing of Summer Station in commercial operation and its subsequent inclusion in rate base, AFC has been reduced RESULTS OF OPERATIONS to i2% of such earnings in 1984.
Errnings in addition to AFC, the Company is recording carrying Eamings per share of common stock (based on the costs associated with the elimination of the net production i weighted average number of shares outstanding), the per- investment in 400 MW of electric generating capacity (see cent increase (decrease) from the previous year and the rate Note 2A of Notes to Consolidated Financial Statements).
of return earned on common equity for the years 1982 Total carrying costs, a noncash item included in "Otner through 1984 were as follows: Income, are being deferred for recovery over some future period and represent approximately 9% of Earnings Avail-1984 8983 1982 able for Common Stock in 1984.
ramings rer share . s3.os $2.29 52.08 Percent frxrease (Decrease)in Earnings Operating Revenues i
per snare 33.2 % 10.1 % is 01% Total operating revenues increased $153.8 million 1 Return rarned on common Equity (Year-end) 15.7 % 122% 108% (15.8%)in 1984 and 5131.5 million (15.6%)in 1983. The principal factors contnbuting to these a inual increases in The increases in earnings per share during 1984 and revenues from the preceding calendar year were as follows:
1983 were primarily attntutable to various rate increases placed in effect during 1984 and 1983 and to improved electnc and natural gas sales. In addition, earnings per share for 1984 include a nonrecurring gain of 20 cents resulting from a revised retail electric rate order issued in March by The Public Service Commission of South Carolina (PSC) The decline in earnings per share for 1982 resulted pnmanly from 3b
i
-19e4 .s983 _ The decrease in Fuelusedin electric generation expense -
j fu, mons otDouarsf . in 1984 was primarily the result of the decreased average Electnc: cost of fuel burned ( $ 1.74 per million 8TU in 1984 versus 3 Volume increases lI) $ 27.6 - . $27.5 : $2.08 in 1983), but was partially offset by increased genera- l
['[,"c']r ng fn(3) .
9 tion as a result of greater customer demand. The decrease in '
l the average cost of fuel burned is attributable to nudear fuel M _
- Net increase $112.6
- , $60.0 -
. Used to generate electridty at Summer Stacon. The increase . "
i casr . for 1983 was due pnmarily to increased generation as a ~
Volumeincreases(1) . $ 30.s , : $31.5 - 1 result of greater Customer demand and to the increased k Rate increases (2) : 10.7 - 139.4 ' awErage Cost d W Ourned.hW netW 3 j Net increase - $ 43.2 : - $70.9 ' varies with the avWl2Nity of lower-priced power ffom other$
$ (!) Annual increases in units sold muluplied by the weighted average rate the neds of the M to aupnent its generat- 1 i levels in effect during the previous year.
- Ing sources and the eMty to seN power to other utlNtles.
(2) Annual increases in revenues less the amounts shown for volume ~
Incremes M GmWWM.mperne se prhisey ,
j increases. The relative effects nf rate increases and aggustment clauses i - dat to kIcreRed(kalNW tlM#d 95 MINNIg sh Mr ;
f d o i
' resale and inikNtrid CUERINRers, the MCrWMed prite W nMM-) .
(3) Resulted from a revised retait electric rate order issued by the PsC in ; 7895 h 6 WId#the. N .##It M A March 1984 (see Note 28 or Notes to Coria*=d Finandal , tlERN31 @ W CNokle Erler$eS, Mc, skItB M I, I%
statements). ' ogneragieraWerrauf asehenrunnrepenses.Apr 1996 tpJ.M .
. creased primerNy because of ad$lenW cost SIsselsted taNe ;
, increases in electric operating revenues were primargy E the result of various rate increases placed irieNect during , ~ I 8m conWMeldcperadenW9mmeerh W 1983 and 1984 and the inclusion of a nonrecurring gain in e =for I W m a m mi M t a n W W M W l
!- WteneRBandWW@testaf6W/ blW:- -
1984 (see Note 28'of Notes to Cormnintered Financial cree n s M M a nd '
Statements). In addition, unit sales of electridty increased Dyl ad AkWB W phrt W M M approximately 4.4% in 1984 as a result of improved ecos egg,3 -
~~ SMRM[ * ~ <
g^+ .
nomic conditions and a 3.4% increase in the number of f
' & ,y
~
w customers. Unit sales of electridty in 1983 improved as s' , NW - "" '"
< e ,
C result of abnormally hot summer weather and improved _m WIWf5EtalSOnNr411Gf91$4NBIlWflRM20W3WWW Mm M business conditions. The increases in gas operating revenues iAsneasetti. .delWisq3gfl, M M alm 9nh h <d are primarily attributable to the recovery of the increased - ?1994and$8I 'MIMWWdpWeslettin$leN * <
cost of gas, which is passed along to customers through a $ agencetir f996illespelmel$tdisetendeleggetsin$100. _ '
purchased gas adjustment clause, and increased retall ges - temtierraultigsanilforgerinett.DIW4tegelseer / ' ' ' s rates placed in effect during 1982 and 1983. The' increase in - :ing IWmhlWierthen 16asamesAofDisema 4 unit sales of gas in 1984 was primarNy due to higher sales in ' 8'*""'d tiWII5ggledfementiesallstiedbeenceAgtted .
the industrial and sales for resale classes. These unit salesi e sutWettsamtanif getflRikMWapM , ; ",
increases,13.0% and 15.4%, respectively, were mainly thej ' ~ FinancialW1hedetmenthsischegensetir;iE ,
result of continued economic expansion by large gas pur . s WisaspnmartyduetolowerNigerestraten,,g ,
~ '
chasers and the utilization of special incentive pridng which bgAegiest <
~
allowed the Company to recapture industnal gas customers AthE esdmated eNectid innadon on the Company's" previously lost to lower priced alterna0ve fuels. '
- ope .ons'see pages 30.41s
.g m -
Operating Expenses j- , . .
Increases (decreases) in operating expenses, excluding ,
taxes, are presented in the following table:
Increase (Decrease) :
From Pnor Year (Mmons otDomars/ :
Cassification 19e4 - 1983:
Fuel used in electoc generation :$(34.6) $458 Power purchased. net l7.4) ' (22.4)
Gas purchased for resale 12.1 56 6 Other operation and maintenance s9.s 9.9 Depreciation and amortization , 29.9 1.6 Total $ s7.s $91.5 l
37 ,
j
SELECTED FINANCIAL DATA 1
for tne Year 5 Ended December 31, 1984 1983 1982 1981 1980 1979 1974 l Statement of Ineome Data (Thousands of Dollars except statistics and per share amounts)
Operating Revenues:
Electric 5 746,745 5634.127 5574,113 5555,716 5470,765 5401,28! 5227.803 Gas 378,491 337,282 266389 188,167 157,643 138386 48,750 Transit 3,178 3242 2,603 2,429 2338 2,146 2,024 Total Operating Revenues 1,128,414 974.651 843,i d 746,312 630,746 541,813 278,577 Operating Expenses:
Fuel used in electric generation 223,768 260381 214,617 234243 204,948 185,624 104,993 Gas purchased for resale 289,212 277,091 220,502 154,502 121,642 110,702 26,517 Other operation and maintenance 187,448 135374 I47,840 118,519 101,130 67,963 44,810 Depreciation and amortization 74,914 45,000 43,406 39,691 36,822 35,444 23,544 Taxes 153,776 106,932 77,033 89,049 73356 62,008 31,028 Total Operating Expenses 929,118 824,778 7033 98 636,004 537,898 461,741 230,892 Operating Income 199,296 149,873 139,707 110308 92.848 80,072 47,685 Other income:
Allowance for funds used during construction:
Borrowed and equity -
-_ - - - - 4,105 Equity 2,885 1024+ 6,618 4,530 6,003 16,608 -
Other 14,762 1327 (1388) 16.565 12,895 10348 2,097 Total Other income 17,647 11,571 5230 21,095 18.898 26,956 6,202 7ncome Before Interest Charges and Preferred Stock Dividends 216,943 161,444 144,937 131,403 111,746 107,028 53,887 Interest Charges (Credits):
Interest 89,544 95,503 96,640 92,409 75,772 64,263 29309 Allowance for borrowed funds used during construction l11,296) (37,997) (39,519) (36,889) (27,726) (12,916) -
Total Interest Charges, Net 78,248 57,506 57,121 55,520 48,046 51347 29309 Preferred 5tock Cash Dividends of 5ubsidiary 16,877 17,186 16371 14245 12,949 12315 7,I17 Net income 5 121,818 5 86,752 5 71,445 5 61,638 5 50,751 5 43,366 5 17,461 l Weighted Average Number of Common Shares Outstanding (Thousands) 39,900 37,844 34387 28,139 25,148 23,540 11,890
( 52.08 52.19 52.02 51.84 $1.47
- Earnings Per Share of Common Stock 53.05 52.29 Dividends Declared Per Share of Common Stock 52,05 $2.00 51.92 51.82 51.74 51.68 51.48
[
l Percent of Operating income (Loss) l Before income Taxes:
Electric 87 93 93 101 95 97 84 Gas 15 10 5 2 8 6 18 Transit (2) (3) (3) (3) (3) (3) (2) l 38
December 31, 1984 1983 1982 1981 1980 1979 1974 Balance Sheet Data (Thousands of Dollars except statistics andper share amounts)
Gross Utility Plant $2,764,809 $2,509,581 52,411,479 52,131,689 51,952309 51,804289 5966,492 Total Assets $2,499,694 52358,134 52202,755 51,958,772 $1,802392 51,650395 5901,527 Capitalization:
Common equity $ 778,251 5 709,908 5 659,135 5 545,941 5 486,158 5 449397 5230,572 Preferred stock:
Not subject to purchase or sinking funds 26,262 26262 26262 26262 26262 26262 '6262 Subject to purchase or sinking funds 156,789 160,604 163,619 14I217 144,649 -125364 94,939 Long term debt (excludes current portion) 893,950 789216 '854,844' 764,971 ~ 73I 007 672,958 403.494 Total Capitalization $1,855,252 $1,685,990 51,703,860 51.478391 $1,388,076 51274,981 5735267-Common Shares Outstanding (Year-End)(Thousands) .40,296 38,728 36,526 29,690 ;26261- 24,195 14,236 Book Value Per Share of Common Stock (Year-End) $19.31 51833 ' $18.05 $1839 - SI8.51 518.57 '51620 Other Statistics Electric. . .
Customers l Year-End) 378,960 366,424, 356,709 350,5 % ' 344,588 336,700 298,585 Sales (Million KWH) -12,590 12.063 11,490_ 11,763 II,809. 11,252 L10,093 -
Residential:
Average annualuse per . . .
customer (KWH) 12,061 12,009 .I1,712 I2,I83 ~ 'l2,500 11,627 10,745 Average annual rate per KWH .
S.0757 5.0642- .5.0637) $.0577? $.0499 5.0464 SIO304 -
Generating Capability- Net MW (Year-End) 3.959 3359 3,359 lJZ3359 3359' 3359 : 2,883 Territorial Peak Demand - Net MW 2,5% 2,700 2.463 2.557 2,489: 2299 1,819 Gas:
Customers (Year-End) 189,544 187,638 186320 169,294 166,470. 1642 77 158253 Sales (Thousand Therms) 737,059 1 --67I,429 590257 493305 .506,528 '545387. ~ 490,672 Residential: *7 Average annual use per customer (therms) 618 610 570 665 682 684 634 Average annual rate per therm S.69 5.65 ~ $% !5.49 $.44 ' 534 $22 Transit:
Number of Coaches 123 112 104 104- 102 % 100-Revenue Passengers 9,658 9,744 10,720 10,820 10357 9,548 9310 Carried (Thousands) 39
SUPPLEMENTARY FINANCIAL STATEMENTS Adjusted for Changing Prices (Unaudited) \
Financial statements prepared in accordance with gen- reflect changes in specific prices of the Company's property, erally accepted accounting principles have traditionally pro- plant and equipment. The data presented were developed in !
vided a quantifiable basis for assessing financial results. accordance with the partial restatement provisions of Finan- l Because these reports reflect dollars of varying purchasing cial Accounting Standards Board Statement No. 33, as i power, the traditional financial statements are not designed amended, and are not intended to adjust actual reported to furnish data necessary to evaluate inflation's impact. The earnings nor do they provide a basis for income tax report-following current cost and other supplementary financial ing or rate-making.
statement data are presented in an attempt to provide See the accompanying Notes to Supplementary Finan-certain information regarding the estirr,ated effect of infla- cial Statements for additional information.
tion on the Company's operations.- ine current cost amounts Five Year Comparison of Selected Supplementary Financial Data Adjusted for Effects of Changing Prices (Average 1984 Dollars)
Years Ended December 31, 1984 .I 1983 l 1982: -l 1981 I 1980 (Thousands Except Per Share Amounts and Consumer Price Index)
Net income (excluding net inflation adjustments, !,
other than depreciation): . M As Reported $ 121,818 $ 86,752 L $ 71,445 $ 61,638 - $ 50,751 Current Cost 34,573 10,831 5,312 737 68-Income per share of common stock (after dividend requirements on preferred stock and excluding net inflation adjustments other than depreciation): . .
As Reported $ 3.05 $ 2.29 $ 2.08 $ 2.19 $ 2.02.
Current Cost .87 .50 .15 .03 .003-Generalinformation Operating revenues: .
As Reported $1,128,414 - $ 974,651 5843,105 $746,312 $630,746 Constant Dollars 1,128,414 1,016,132 907,264 852,094 795,044 Unrealized gain resulting from decrease in purchasing power of net monetary liabihties 50,292 76,952 80,762 109,549 155,684 Net assets at year-end at net recoverable cost (a) 793,292 754,604 738,281 640,120 616,832 increase (Decrease) in general price level (Ner specific prices (10,104) 33,923 90.282 122,066 (15.735)
Cash dividends declared per share of common stock:
As Reported 2.05 2.00 1.92 1.82 1.74 Constant Dollars 2.05 2.09 2.06 2.07 2.20 Market price per share of common stock at year-end:
As Reported 23.625 17.75 18 00 15.00 14.25 Constant Dollars 23.625 18.19 19.15 16.59 17 16 Average Consumer Price index (CPI-U) ib) 311.1 l 298.4 289.1 272.4 l 246.8 (a) Excluding preferred stock (subject to purchase or sinking funds).
(b) 1967 = 100.
40
1 Summary Statement of income Adjusted for Changing Prices For the Year Ended December 31, !984 Historical Cost Current Cost As Average Reported 1984 Dollars (Thousands of Dollars)
Operating Revenues $ 1,128,414 $ 1,128,414 Expenses-Fuel used in electnc generation 223,768 223,768 Gas purchased for resale 289.212 289,212 Depreciation and amortization (a) 74,914 162,499 Other operation and maintenance 232,456 232,456 income taxes 108,768 108,768 Interest charges 78,248 78,248 Other income, net (aj [I7,647) (17,987)
Total expenses, net 989,719 1,076,964 Preferred Stock Cash Dividends of Subsidiary (at stated rates) 16,877 16,877 Net income $ 121,818 34,573 Inflation adjustments:
Reduction of plant to lower recoverable value 27,723 Unrealized gain resulting from decrease in j purchasing power of net monetary liabilities 50,292
> Increase in current cost of property, plant and equipr1ent (b) 171,521 Effect of increase in general pnce level 161,417 Decrease in general pnce level over sp=cific prices (10,104)
Inflation adjustments, net 67,911
(
I Net income after inflation adjustments $ 102,484 (a) As permitted in Financial Accounting Standards Board Statement No. 33, as amended, items in the summary statement of income, other than depreciation expense, were not adjusted.
(b) At December 31,1984, the current cost of net utility plant was $4,238,061 while net historical cost or net cost recoverable through j
depreciation was $2,197,995.
l Notes to Supplementary Financial Statements
- 1. PLANT AND EQUIPMENT The current cost data reflect the is historical cost.
cost of currently replacing existing plant assets. These costs were 5. UNREALIZED GAIN RESULTING FROM DECREASE IN determined through use of the Handy Whitman Index of Public PURCHA5tNG POWER OF NET MONETARY LIABILITIES Utility Construction Costs and other valuation methods tailored The Company, by holding monetary assets such as cash and specifically to the type asset being restated Even so, replacement receivables, loses purchasing power during periods of inflation of some existing plant and equipment will take place over a period because these items will purchase less at a future date. Alterna-of time and may not result in replacement which would duplicate tively, by incurring monetary liabilities, primarily long-term debt, the existing facilities. Company benefits because the payment iri the future will be made
- 2. ACCUMULATED DEPRECIATION The related accumulated with dollars having less purchasing power. Because the Company depreciation for calculating current cost of net property, plant and has significant amounts of long-term debt cutstanding, this results equipment was developed by applying the same percentage rela- in a net monetary gain. This gain does not represent an exchange l tionship that existed between gross plant and accumulated depre- of cash at present or in the future, but represents the effect of the l Cration by functional grcups on a historical cost basis at December changing value of the dollar.
l 31,1984 and 1983, to the respective balances of the restated 6. INCREASE (DECREASEJ IN GENERAL PRICE LEVEL depreciable plant. OVER SPECIFIC PRICES This results from the value of the
- 3. DEPRECIATION EXPENSE Depreciation expense for the particular plant and equipment held by the Company increasing at
, current cost method was determined by applying the same rates a lesser (greater) rate than the rate of general irVlation as measured
( and methodology used in computing histoncally booked deprecia- by the cpl-U.
tion to the restated depreciable plant. 7. OTHER Fuel inventories, the cost of fuel used in electric l 4. REDUCTIONS OF PLANT TO LOWER RECOVERABLE generation and gas purchased for resale have not been restated
, VALUE The regulatory process limits the Company to the recovery from their histoncal cost in nominal dollars. Regulation allows the of the histoncal costs of plant and equipment. Therefore, the value recovery of fuel and purchased gas costs through the operation of of the plant and equipment determined under the current cost adjustments in basic rate schedules or adjustment clauses to actual method must be reduced to the lower recoverable amount, which costs.
I 41
1 DIRECTORS SCANA CORPORATION J.K. Addy* Avram Kronsberg W.H. Taylor
- j President, Addy Dodge, Inc. President, Edward's, Inc. Chairman of the Board and President I Lexington, South Carolina Charleston, South Carolina Twin City Motor Company, Inc. !
Batesburg, South Carolina W.B. Bookhart, Jr. J. H. Lumpkin Pdriner, W.B. Bookhart Farms Of Counsel to the firm of McNair, E.C. Wall, Jr.
Elloree, South Carolina Glenn, Konduros, Corley, President Singletary, Porter & Dibble CanalIndustries W.R. Bruce Columbia, South Carolina Conway, South Carolina Chairman and Chief Executive Officer The Seibels Bruce Group,Inc. EC. McMaster* J.A. Warren
- Columbia, South Carchna President and Manager President and Winnsboro Petroleum Company Chief Operating Officer K.W. French Winnsboro, South Carolina Columbia, South Carolina Retired Plant Manager EJ. duPont de Nemours & Co. E.W. Pike, Jr.* A.M. Williams Savannah River Plant President Retired Chairman of the Board Aiken, South Carolina Colonial Development Company South Carolina Electric & Gas Company Beaufort, South Carolina Columbia, South Carolina J.B. Guess, til Owner, Edisto Farms Henry Ponder DIRECTORS EMERITI Danmark, South Carolina President, Fisk University D.H. Banks Nashville. Tennessee W.B. Bookhart ,
B.A. Hagood EM. Hipp l President, Wm. M. Bird and Co., Inc. J.B. Rhodes Edward Kronsberg Charleston, South Carolina President, Rhodes Oil Company, Inc. ER. McMeekin Walterboro, South Carolina A.C. Mustard J.F. Hassell, Jr. John C.B. Smith Chairman of the Board and J.E. Schachte, Jr.*
Chief Executive Officer Real Estate and Insurance Broker Pre-Stress Concrete Company, Inc. Charleston, South Carolina Charleston, South Carolina V.C. Summer
- W.H. Hipp Chairman of the Board and President and Chief Executive Officer Chief Executive Officer The Liberty Corporation Columbia, South Carolina C' onville, South Carolina
- Member of the Executive Committee SOUTH CAROLINA ELECTRIC & GAS COMPANY (PRINCIPAL SUBSIDIARY) l I
W.B. Bookhart, Jr. Avram Kronsberg V.C. Summer j W.R. Bruce J.A. Warren '
K.W. French T.C. Nichols, Jr. A.M. Williams Executive Vice President i
LM. Gressette, Jr. South Carolina Electric Executive Vice President & Gas Company South Carolina Electric
& Gas Company J.E. Schachte, Jr.
1 42
CFFICERS SCANA CORPORATION V.C. Summer T.C. Nichols, Jr. Cathy B. Novinger Betty C. Bissell Chairman of the Board and Executive Vice President Vice President Secretary Chief Executive Officer E.H. Crews, Jr. W.B. Timmerman E.C. Roberts J.A. Warren Vice President Vice President & Treasurer Assistant Secretary President and Chief Operating Officer Max Earwood R.W. Stedman S.W. Holmes Vice President Vice President & Controller Assistant Secretary LM. Gressette, Jr.
Executive Vice President Harriett M. Gardner Assistant Secretary SOUTH CAROLINA ELECTRIC & GAS COMPANY (PRINCIPAL SUBSIDIARY)
V.C. Summer VICE PRESIDENT AND Patricia T. Marcotsis C.B. McFadden Chairman of the Board and GROUP EXECUTIVES Governmental and Personnel and Corporate Chief Executive Officer T.M. Groetzinger Regulatory Affairs Services (64)* [47]" Special Assignment (37) [9] (39) [15]
(57) [32] [
J.A. Warren S.C. McMeekin, Jr. OTHER OFFICERS President and B.M. Smith, Jr. Customer Operations- Betty C. Bissell Chief Operating Officer Corporate Development Northern Division Secretary ,
(59) [27] (53) [26] (42) [13] (52) [27] l EXECUTIVE VICE VICE PRESIDENTS E.C. Roberts B.T. Horton, Jr. j PRESIDENTS G.J. Bullwinkel, Jr. Legal Counsel & Assistant Treasurer LM. Gressette, Jr. Customer Operations- Stretary (41) [6]
Legal. Finance, Governmental Southern Division (47) [l7]
and Regulatory Affairs J.G. Black, II (36) [13]
(52) [2] R.W. Stedman Assistant Treasurer V.R. Coward, Jr. Controller-Accounting & (46) [21]
T.C. Nichols, Jr. Special Training Assignment Computer Services Operations (46) [19] (43) [12] Harriett M. Gardner l (56) [32] Assistant Secretary G.C. Croft, Jr. J.W. Wedding (50) [28]
l SENIOR VICE Transmission & Distribution Utility Property and Facilities PRESIDENTS Engineering (59) [15] T.H. Hearn j
E.H. Crews, Jr. (59) [35] Assistant Treasurer
( Power Operations J.H. Young, Jr. (58) [26]
- (62) [38] Max Earwood Power Supply Gas Distribution (47) [22] 5.W. Holmes l
Cathy B. Novinger Assistant Secretary (52) . [27] and Group Manager, Administration ASSISTANT (35) [14} O.W. Dixon, Jr- VICE PRESIDENTS Stockholder Relations Nuclear Operations E.F. Frick, Jr. I I C.L Rye (54) [14] Auditing Operations Support T.R. Ude ano Transportation R.D. Hazel (59) [26] Assistant Treasurer (55) [32] Corporate Communications I I l S.B. Harrington C p te anning W.B. Timmerman 5 Finance J. Kinloch (38) [6] Transit & Fleet Maintenance W.E. Moore .
[48) [22] Production Engineering * (age as of December 31,1984)
(52) [25] * * [ years of service as of December 3 8,1984]
43
i 1
i STOCKHOLDERS' ASSISTANCE GUIDE What is the Company's mailing address? an indemnity bond. To avoid loss or theft, keep stock certificates in a safe place, such as a bank safe deposit ,
SCANA Corporation box. i Post Office Box 764 I Columbia, SC 29218 Cornmon Stock TransferAgents (wnte to only one):
South Carolina Manufacturers Where is the Company's corporate headquarters? National Bank Hanover Trust Co.
Corporate Trust Stock Transfer Our corporate offices are located in the Palmetto Center Department (A-IO4) Department office building at 1426 Main Street in Columbia, South 101 Greystone Post Office Box 24935 Carolina. Boulevard Church Street Station Columbia, SC 29226 New York, NY 10249 On what stock exchange is SCANA Corporation's stock 11sted and what is its stock ticker syn?bol? Cumulatiw PreferredStock TransferAgents (wnte to only one):
Effective December 31,1984 the Cc,mpany's Common South Carolina The Chase Manhattan Stock listing on the New York Stock Exchange was National Bank Bank, NA changed from South Carolina Electric & Gas Company Corporate Trust Stock Transfer Dept, to SCANA Corporation. The stock ticker symbol re. Department (A-104) PO. Box 469 mained SCG. The newspaper listing for the stock is 101 Greystone Washington Bridge SCANA. Boulevard Station Columbia, SC 29226 New York, NY 10033 Ar2 any of SCE&G's Preferred Stocks listed?
How should I report a lost or stolen dividend check 7 The 5% series cumulative Preferred 5:ock is listed and traded on the New York Stock Exchange. The ticker Write to the appropriate paying agent.
symbol is SAC Pr and the newspaper listing is SCrE pf.
Who is the trustee and interest paying agent for SCE&G's How often are dividends paid on the Common and First and Refunding Mortgage Bonds?
Preferred Stock?
Records are kept and interest is paid by Manufacturers Dividends on the Common Stock are declared by SCANA's Hanover Trust Company, Bond Trustee RO. Box 24935, board of directors and are generally payable on the 1st Church 5treet 5tation, New York, NY 10249.
day of January, April, July and October to stockholders of record on the 10th day of the month preceding the Does SCANA have a Dividend Reinvestment Plan?
payable date. Dividends on the Preferred Stocks are declared by SCE&G's board of directors and paid quarterly Yes, the Company does offer such a plan. For furt*
on the same dates as the Common Stock dividends.
nformation or for answers to questions about ydr reinvestment account, write the Stockholder Relation I've moved. Whom should I notify? Department (054) at the Company's mailing address.
Notify the appropriate record-keeping agent for each How can I receive information about the investors' type of security owned and list each account for which association 7 the change is applicable.
adon d SN inwon CommonStock c/o Mr. Paul Quattlebaum, Jr.
Record-Keeping andPayingAgent: 63 East Bay Street The Stockholder Relations Department (054) at Charleston,5C 29401 the Company's mailing address. , g Cumulative PreferredStock-SCE&G Corporation and its subs ldlarles? ,
Record-Keeping andPaying Agent: . .
i South Carolina National Bank intenm reports providing updated financial information Corporate Trust Department (A-104) and Company news are sent to stockholders with eacn 101 Greystone Boulevard dividend m iling The Statistica! Supplement to the An-Columbia,5C 29226 nual Report ar'd the Form 10-K report to the Securities and Exchange Commission are available without cnarge How should I report a lost or stolen stock certificate? frcm H. John Winn, Ill, Investor Relations Department (057) at the Company's mailing address.
Write immediately to the applicable transfer agent listed below. 5pecify the exact name of the owner as it appears This report is issued so!ely for the purpose of providing on the certificate, the certificate number, the date it was information. It is not intended for use in connection with any issued and the number of shares. The transfer agent will 5 le or Purchase of, or any offer or solicitation of offers to ask you to complete certain forms and to pay the cost of buy or sell, any securities.
44
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