ML20206D484

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Scana Corp 1986 Annual Rept
ML20206D484
Person / Time
Site: Summer South Carolina Electric & Gas Company icon.png
Issue date: 12/31/1986
From: Gressette L
SCANA CORP.
To:
Shared Package
ML20206D475 List:
References
NUDOCS 8704130352
Download: ML20206D484 (49)


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Collteitls

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FINANCIAL AND OPERATING HIGHLIGHTS 3

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LETTER TO STOCKHOLDERS 4

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1986-YEAR IN REVIEW SCAN A Corteration 6

Soutit Carolina Eledric & Cas Censpint; 8

l Soutit Carolina Pitvline Corteration l8

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MPX Systents,Inc.

20 l

South Carolina RealEstate Desclot> ment Contpunti,Inc.

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Primesouth,Inc.

24 I

Other Subsidiary Otvrations 24 g

DIRECTORS AND OFFICERS-SCANACORPORATION 26 OFFICERS OF PRINCIPALSUBSIDIARIES 27 j

FINANCIALS l

l Manaacment Rcn,rl 29

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Public haountants 29 t

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Consolidated VinancialStatentents 30 4

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I Notes to Consolidated Financial Statentents 30 Contmon Stak Information 43 Manaacment's Discussion and Analysis of Finamial Cendition and Results of Otvration 44 ScIcaed VinancialData 40 !

INVESTOR INFORMATION 48l Netutof AnnualMccLn,s Iv l's 7 Arm,.sver.1 f eu mu,n m AN \\ G r;u os si dltv n.il:n G'! gea %:e Guaiou en Wednedo Alvl)) IN m,M.ru c],araw.: li)1O a m at Nu r'ls J.'

fa, I aan.rh I 5 o R wJ Dur Fnm dl tv ma af :a I

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l Filialicialaird Operalitig Higftligfils

$, Increase EARNINGS PER COMMON SHARE 1986 1985 (Decrease) g l Millions of Dollars 32p except statistics and g

per shareamounts)

Financial

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TotalOperating Revenues

$ 1,102.0

$ l.ll0 3

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, TotalOperating Expenses S 903.3

$ 912.7 (10) g

- Earnings Available for Common Stock $ 122.2

$ 1136 76 Eamings Per Shareof Common Stock 3.03 2 82 74 I

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Dividends Declared Per Shareof Common Stock 2.24 2.16 37 l

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l BookValue PerShareof Common w si m si m s2 m s2 m s3 m sa m Stock (Yaar-End)

$ 20.77

$ 2001 38 Market Price Per Share of Common Stock (Year-Endl

$ 36.625

$ 27.875 31 4 DIVIDENDS DECLARED PER COMMON SHARE Common Stockholders' Equity g

(Year-End)

$ 836.9

$ 806 2 38 Common Stock Outstanding:

I I sn2 Average (Thousands) 40,296 40.296 l

Year-End (Thousands) 40,296 40.296 l

I 52 m Construction Expenditures

$ 144.2

$ 128 5 12 2 i

Gross Utihty Plant

$ 2,959.5

$ 2.8591 35 l

l s2 m Electric Operations ElectricOperating Revenues

$ 809.5

$ 7878 28 I

I 54 '8 Sales (Million KWH) 13,704 13.041 51

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Customers (Year End) 406,511 393.810 32 j

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' Generating Capabikty-1 I

I si m si m $2 m s2 m sa m $3 m Net MW (Year-End) 3,890 3.959 (17) i Temtorial Peak Demand-Net MW 2,853 2.703 55 Gas Operations l GasOperatingRevenues

$ 289.4

$ 3189 (9 3)

, Sales (ThousandTherms) 671,881 647.215 38 Customers lYear-End) 192,941 191.002 1.0 Transit Operations Transit Operating Revenues 3.1 37 (16 2)

Revenue Passengers Carried (Thousands) 8,699 9.032 (3 7) i I

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....A bg..J suc wsses for SCANA Corporation and its the Company s electnc system has grown

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This pnt year was filialwith many capscity Since the 19M order. demand on J

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  • s-rnon share were 53 03. an i wrease of 7 4 i gawatts will give the Company approxi-a

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subsidunes Financully camint,s per(om-to t he extent that indusion of the 400 me-a

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,./9 over 19XS The dividend,n common stock mattly the same reserve margin it had i=

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was incremed M L on lanuary 28 1937.to t af ter exduding the deductal capacity l in r

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an indicated annual rate el $2 32 The dm-19M The Company has hled an apphca-

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dend has tren inc reased 31 times in the tion to restore the cost of the VJO mega-1

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last 35 ears Supporting the exrellent 19% watts to the rate tuse After considenng the gE

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imphcations tnc rates

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phshments h.cang sery positive long range phshed without an increase in retail elec-f h

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The numtwr of elatnc customers South Carohna Pipehne Corporation

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-4 serval by South Carohna Elettnc & Gas had a very successf ul y ear w hile coping e

. 'j y;, j Company exceeds 4m500 an increase of w ith inc reasal com pet ition f rom cil in in-E g

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3 21 While this rate of growth may fall dustnal markets Despite oil pnces w hich

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,5 shchtly in the next few years we trheve went as low as $ 10 per turrel. pipehne was

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that contmuni customer growth will occur able to acqmre supphes on the spot market

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lapansion of costing industnes and move-and sell them at pnces w hich 6 ept most in-

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ment of new industry to South Caro'.a dustnal customers using natural gas pipe-8

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contmuts to improve our industnal base.

h oe s demonst rat ed abihty to operate el-3 h

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resultmg in increased epportunities for res-fatisely in highly competitive mark ets will

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dents in our ser.Ke area be a signifKant asset should natural gas TheV C Summer NudearStation mark ets expenence furtha deregulation John A Warren operated at a capaaty factor of 92 4 L dur-Our diversificatien efforts continue z

Curnun ar) ing the year. the htth best rat"in the nation Dunne December 19% MPX Systems. Inc,

a

{i Ch1 EwcrOl% r The plant wr,tinues to receive favorable our i ber optic subsidiary. reached prohta-J evaluations f rom sanous regulatory txxhes bihty We currently base $27 5 milhon in-y in March 1937. the pbnt w di begm a vested in this tahnology. of w hich $15 md-p!annui outage to retud for another 14 hon is in f her eptic cable installations and i

month penalof prafuction

$12 5 milhon is in the common stock of d

4 South Carohna Elatnc & Gas Com-SouthemNet. Inc. a reglenal. facihties-5 l

pany lowern! its rt t.ul ch (inc rates ap-based telecommumcations company E

prwmately 3 tet!ative February 1.1987 L6cd en the over Ihe-counter market quo-y to pa.s en to it s customers t he cost s.r. ings tation for Sout hemNet common stcx k, the 3

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w ha h w di result f rom rniucalinwme tax Company's investment has a salue of $20 4

rates rnentb legislatnf by the U S Ccn-milhon We trhese that these insestments m

[I grew It ha Getn thnv Scars sint e the 1.ist will continue to ha e profitable growth in i

ret.ul ela tnc rate mcrea~e Dunng this pe-t he coming years 3

E nod ehtnc rates attually hme been re-our subsidunes. South Carohna J

di t ed tour tunes to retin t lower wst s of Real Estate Deselopment Company inc j

i tuelin addtion toihe latest 3 ; ruf uttion and pnmesouth. Inc ia newly created con.

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@ ein trK ' ate int reases are wnten platui e ruction companyI rnently lomal ferces ij i

proently to w n the bul for deselerment and con-In lum the pubhc Se e Cemmis struttiun of a f acihty m Charkston for the

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% n femesoj ffc m retad ebtric rate base Siuth Carohna Researc h Authoi:ty The the wst ef 400 meguatt, ot renerat mg Authenty has wntrattohuth a consor-f 1

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l tium of business groups and research insti-would be eksted each year A complete de-tutions at the leading edge in the heki of scnption of these proposals will be con-I computerintegratalmanuf xtunng This tained in the proxy statement. w hith will be faality estimated to cost $12 million.will segurately mailed to stockholders of record I

be usal by the Authonty for testing of man-March 5.1987 y

ufa(turing to hniques for ekttronic and Three dirators will retire as of the small metal r arts for the tJ S Navy When Annual Meetmg of Stockholders in Apnl completal i:. iuly 1988. this f acihty w ill lohn H Lumpkin has been a director for 21 bnng the latt st in manut xtunng ta hnol-years.Wilham R Brucefor9yearsandl E ogy to South Caroluu Sc hathte. fr for 2l years They served with As can ne seen from the examples distmction dunng the years of constnxtion atxwe the ob ectn e for our diversification of theV C Summer NuclearStation.the program is toucate stod holder value ditficult penodsof rateincreasesand more tbrough Ihe utikzatson of SCANA's capital recently.the restruttunngof the Company I

into SCANA Their counsel will tyr missed l

! and human resources While we have made l

promising starts in several areas. it will be law rence M Gressette. Ir. President of

,1 several years before these elforts fully SCANA and Thomas C Nithols Ir. Presi-mature dent of South Carchna Ekttnc 6 Qs Com-A maior element of our continuing pmy. have been nominatal to se.t as cost containment st rategy is the Bonus in-diretters centive program implemented in the pist Our plans for the next few imts are l

year for all permanent employees it was st raightforward We will continue to em-designal to fot us the ettorts of all employ-phasize customer satistaction tbrough rate I ees toward a common goal of controlkng stabihty. cost containment, and system re-costs. and induded spatic obiettnes for habihty in our regulated businesses We LawrenceM Gressette,fr.

significant reductions in budgeted operat-w ill operate our nuclear plant at the high-pngnt ing expenses control of overt me and est possible capaaty fattor but always with achievement of other quantihaloperating the highest degree of safety and rehabihty goals Remarkable nsults were a(hieved Our da ersitication ef forts will intensify. as whith benefittal customers and stod hold-we buiki on the promising start we have ers as well as employees This plan has maJe Finally. we w ill continue our cem-l been continued for 1987 mitment to be a strong corporate citizen.

There are two pron >sals in SCANA s utihang eur resources to contin"e the 1987 proxy statement w hk h are intended progress of South Carohna and to meet to strengthen the Compmy's abihty ta pn>

the human nenis of the residents ef our tat the sta khohlers' interest in the es ent area of a hostile takanerattempt one pronw.d i

is a Lur pnce ~ amendment w hith would prohibit aueptance of a two tier takeover off er unk ss approval by 8m,of the corn-Q g h _,,

l mon shares outstanding This is designal

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to ensure that the Compiny s stot kholders l

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wou!d all raene the same pnce m the

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event of a talcover The second prepwal would c reate a classifielikurd of Dirators l

l w ho individually wouki be ekstal for tbree n.%, pg year terms In etfat.one thmlof thelkurd f

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SCANA Corporation 1986-THE YEAR IN REVIEW RETURN ON YEAR ENDCOMMON EOUlTY Earnings and DMdends Consolidated Diversification The Company extended net income for SCANA Corporation it he the scope of its operations with the crea-E

" Comp 1ny") totalal $122 2 million in 19% tion of SCANA Software Sers ices. Inc in i e%

up from $1136 million in 1985 Eamings lune 1986 and Primescuth. Inc. in lanuary g

g per shareof common stock in 1986 were 1987 Activitiesof eachof theCompany's

$103 compared to $282 in 1985 The im-subsidianes are highhghted later in this re-

,m provement was due to a combination of port SCANA now has 1 I direct and 2 indi-l factors including higher sales of clatriaty.

rect wholly-owned subsidiaries that are en-l l

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lower total operating expenses and re-gaged in a vanety of t raditioaal utthty as g

duced interest and preferred dividend well as non-utihty businesses S

charges Two of SCANA's major corporate 1

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SCANA s 1986 earnings provided a goals are the diversihcation of nsk and the l

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return on year-end common equity of development of unregulated lines of busi-14 61compued to 141% at year-end 1985 ness w ith the puential for higher retums l

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l afs At year-end 19% SCANA s capital struc-than are possible in its regulated utikty 60%

80% 10 0 % 12 0 % 14 0N 16 0 % tureconsistedof 4TLlong-termdebt.8%

businesses ln evaluating new ventures.the preferred stock and 4% common equity Company will continue to focus on actrvi-There were approximately 40 3 million ties that utthze existing management ex-CAPITALSTRUCTURE shares of common stook outstanding at pertise SCANA will make capital commit-j ibethons of dollarsi year-end 19% unchanged since yea -end ments only to new enterprises that the 1984 and no ollenngs of common s otk Company beheves have the potential to are planned m the near future make a meaningtul centnbution to cam-l l

3'1 Dunng the year. SCANA's coremon ings within a few jears of start-up g

stotk traded at prias ranging from a lav of SCANA's present non-util.ty subsi-

$27-13 to a high of $42-7 8 The stook dianes are not expated to have a signifi-l l

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closed the year at a pnce of S36-5 8 up cant impact on the Company's knancial from $27-7 8 at year-end 1985 Bookvalue picture for seseral years For the immediate l

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si e per shareof common stock was $2077 at future. t he electnc and natural gas utthty 4

g year-end 19% up from $2001 at yearend businesses will continue to dominate 1

1985 The market-tcFbook ratio at year-end SCANA's overall performance, with capital I

I si a 1986 was 176 b investment camings and cash flow pnmar-l I

in January 1987.SCANA's Board of ily dnven by the requirements and per -

l l si 7 Directors raised the quarterly cash divi-formance of South Carchna Electric & Gas l

1 dend on common stotk to 58 cents per Comp 1ny I SCE6G). its pnncipal subsidi-4

$.5 st o si s s2o share from 56 cents per share The increase ary In its utihty operations. SCANA's pri-i uma Commor. Equity mums Long-TermDebt. Net Apnl 1.1987, raised the indicated annual quahty of service to customers at the low-I m PreferredStock (excl current portion) dividend rate to $2 32 per share, up from est possible cost At the same time. SCANA S2 24 The Company has increased the dai-will k)ok to other business activities to op-dend rateon its common stock in 34 of the timize the investment of its shareholders last 35 years for a detailed discussion of 1986 j

operating results and finanaal condition.

refer to ' Management s Discussion and 1

Analysis of Financial Condition and Re-sults of Operation" beginning on pige 44 l

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South Carolina Electric & Gas Company

^

f.g4m\\'tii. M, N.p y g.p p q y.l M ;.,c ' "N. (Q gg.e.aQ.L SCANA's principal subsidiary.

Rwognmng the necessity of being a

SCE6G generates and sells electncity.

a market-driven organization. SCE6G teor-

. p,ywy

'.. s; l 6. j'.{ - T ejN rs buys and sells natural gas at retail and op-ganizcd its marketing department dunng

. g ;.. 4 N

, ; \\ y%jiQ erates pubhc transit systems in the metro-1986 to include detaiksi market research lt} !..., '7

?,.

.M pohtan Columbia and Charleston areas and sales traming functions Formal sa!cs f

,.- K _,.

..,t;p.gf SCE6G serves over 406 500 electric cus-teams were also estabhshed in each of the A

!( y jy tomers in the central and southem por-distnct offices to help satisfy customer

,K p

, f' [. - - 1.i woi.

12.000 square mik s with a tctal population sumer-oriented programs hke" Good 4

tions of the state. c.n area of more than needs and provide support for new con-yI y. s,

' 7P h'd;.'..f

.4,$;

Y, ypQ-

~

approaching 2 milhon SCE6G also sen,es CentsT approximately 192 600 natural gas cas-Good Cents is a nationally syndi-

. y.. '. N -"

tomersocrosstwo-third >of thestate At cated program that encourages energy effi-

- 4,. J.: y ' ~..

t- " :y f.

year +nd 19m. SCE6G had 3.912 full-time ciency in the construction and selection of f{

J.sl" employees up 3%over 1935 heating and cochng equipment in new

e., {;. t eS;t. G; j? ; '

$ p

.u;.O ; 1 t.

As a result of increasai emphasis homes According to market surveys,86%

i en cost centrol. SCE6G reduced budgetal of SCE6G's residential customers consider

.~

, o;..

s s.

operating and maintenance expenses in energy efficiency very important in the pur-

?

19% by approx!mately 311 Al >o in 19m chase of a new Fome Good Cents homes

'i

((

['

SCE6G offered an early retirement pro-automaticalbi quah fy for SCE6G's special

..[

gram that is expectui ta result in savings of electnc conservation rate and Good Cents

?,

ari estimated $5 mdhon over the next five homeowners can save up tc SQL in T.C. Nichols, Jr.

pgg years monthly heating and cochng bdis over c1 SCE6G s Energy info Centers were consentionally built homes if successful honoral with a national consenation conservation programs such as Good W;.

award in November The U S Department Cents can help SCE6C postpone the need 1

of Enerry rnognized the centers for their Ior costly new generating plants p.

role in providing the pubhc with as+tance.

An important advancement in cus-E' education and information relating to en-tomer relations occurred in November.

erg'icenservation Approximately 29 N00 when more than two > ears of market re-

~I people usited the two centers in 1986 search culminated m the unveihng of a new ak bdl Consumer panels played a big part in Responding to a Changing Environrient determmmg the new format. which gives s

Theelettnc utihty marketplaceis underg -

customers detailed information about how i' ;

[

ing major thanges brought on by emergmg their bdl is calculated and the date and i

competition from other supphers and al-timeincir meter is read Consumeraccept- +'

tematis e energy sources in addition to ance was excellent prouding rehable servite at a reasonable l

pnce SCE6G raogmzes that the key to re-Construction Expenditures SCE6G s J'

m.uning cempetit.ve in this enuronment is cash expenditures for construction

{

developmg a t etter understanding of w hat amounted to $13 3 6 milhon in tom com-

[;

t he custcmer wants and p Nt ionirig itself pared to $117 3 mdhon in 1985 Expende 4

to meet t his challenge in innovatis e ways tures for elainc facihties were SM 3 mil-1.~

A cultural c hange is taki ig place in.

hon w hde Sl6 7 mdhon was expended on y&

ternally Instead of newing SCELG simply gasIacihties An additional $15 M mdhon as a tradtional clutnc and gas utihty em was spent for nuclear fuel Expenditures to F

plowes are leaming to man et comfort and bund and upgrade ether facihties ac-i convenience through the safe of e!ettncity wunted for the remaming $12 8 mdhon ij l

and natural gas Lveryone is temg a4ed to SCE6G s construction cash expenditures M

I t c a sh person To enhance indu tnal re.

in 1%7 are pnaa ted ta tatal $169 I nul-g L

lationx fcr examp!e dunne 19 mall hon ini ludmg approximately $25 5 mdhon 49 E

Sd6G ethccrs made personal usits on a ter nudcar f uel tQ mant bly t usis to large manufAtunng and

[

sen k e( usti >mers Thi, prNram wdi t e ex-i

[

unJn! m Iw7 Alsoin le7 a'lemplop ecs w dl be aded to introduce hnr f nends e

I and nor,hters to m ud sera es sG6G 2

et! cts to ito u'temers suth as sn unty

.. 9 hdring and t' qual [ uyment t.dhn;

. hn

[,

I e

8 q

U

r 4

ogr-Y, x,,

l EARNINGS COVERAGE OF FIXED CHARGES-Security Transactions For the second On February 18.1987.SCESG sold SEC METHOD consecutive year, intemal generation of

$100 million principal amount of First and j

itimes covered beforeincome taxesi cash and short-term borrowings were suffi-Refunding Mortgage Bonds. 8-3/4% Series l

g cient to provide for substantially all of due 2017. Proceeds from this sale were SCEfXys t986 capital requirements To fur-used to reduce SCESG's short-term in-I2

  • t her reduce interest and preferred dividend debtedness The remainderof SCEGG's g

charges SCESG continued its program of 1987 cash requirements is expected to be j 2 e2 retinng high-cost debt and preferred stock provided by intemally generated funds and

~

issues prior to matunty short term borrowings. If market condi-The following capital transactions tions permit. SCESG may issue additional 1 74 occurred during 1986 long-term debt dunng the year to retire 1

3 l

I l

In February.SCESG redeemed.at highercost secunties g

g g

gi par.$141I milhonof the$50 mil-Regulation and Rate Activity SCESG lion pnncipal amount outstanding g

did not request a general rate increase in of its 1215% Series First and Re-ts retail or w holesale electric or natural gas fu iingMortgageBondsduelune l

lunsdictions during 1986. In accordance with state regulatory requirements. SCESG s 20 2s 30 3s 40 (s

j e

in Apnl. South Carolina Electric &

filed dunng 1986 for adjustments in the j

i Gas Finance. N V redeemed the en-fuel cost component of its retail electric l

tire $60 million pnncipal amount rates These adiustments resulted in a low-j TOTAL ELECTRICSALES outstanding of its 15-U2% Guaran-enneof thefuelcomponentin retailelec-lbillionsof KWHI teed Notes due 1989 at a price of nicr tes thefourthsuchreductionsince 10l% of parvalue. These Notes theV C Summer Nuclear Station began were secured by the pledge of commercial operation in 1984 SCESG's l

l l

1 I"6 SCE&G's First and Refunding Mort-last general retail electric rate increase was gage Bonds Thiswholly-owned granW i j

l i24 subsidiary of SCANAwas dissolved lnIan ary 87 Public Service Commission of South Carolina (PSC)di-j nl SC SG raised $l I milhon rected SCESG to reduce its retail electric l

l I

i i

P through the saleof tax-exempt an-j rates by approximately 3% to reflect a re-j nual tender Pollution Control Reve-duction in the corporate federal income tax I

I I

I I

Ii3 0 nue Bonds issued by Fairfield rate that takes effect on luly 1.1987 undar County. South Carolina Proceeds pr visionsof theTax Reform Actof 1986 of this sale were used to finance I

The Es order requires SCESG to pass

~

j l

l l

l 13.7 constnxtionof additionalpollu-the resulting tax savings on to its retail 1

I i

i I

tion control facihties at the V C.

20 40 60 80 10 0 12.0 14 0 electric customers. The lower rates, which Summer NuclearStation; became elfective in February 1987, w ill re-In July. SCESG redeemed two out.

sult in a reduction in SCESG's retail elec-summe nesidential amme industnai j

ammis commeraal name whoiesaie a other standing series of cumulative pre-tric revenues of approximately $25 million ferred stock Theissues retired were annually. However, the combined effects of the entire $13 5 million par value of reduced taxes and lowered rates will not the 10-3 4 L Series at a redemption have a significant impact on net income.

price of 104 84 4 andthe entire $20 Based on the recent growth in de-mi!Iion par value of the i 108 L Se-niand on its electric system. SCESG filed ries at a redemption pnce of 108 ^

an apphcation with the PSC on lanuary 30.

1987 requesting, among other things. that Shert-term capital needs dunng 400 megawans of electnc gensating ca-19here satisfied through the saleof pacity deducted from rate base in a March commercial paper At year-end IO86 2.1984 PSC rate order be restored to rate SCESG had $78 2 million in commercial base effective July 1.1987 SCESG did not l

paper obhgations outstandmg bouth Car-request a change in its retail electric rates.

olina Fuel Compmy a wholly-owned sub-currently in effect. Although the changes. if udef SCANA that finances SCE&G's in_

~

pprosed by the PSC would result in a sentanes of nuclear and fossil fuel. had I weamd retum on equity. SCEGG be-

$70 I milhon in commercial paper obhga-lieses this action to be in the best mterests tions cutstanding at year-end 1986

Iits ratepayers and SCANA s l

SCEGG's eammgs ccserage of fixed stockho ers I

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ELECTRIC TERRITORIAL PEAK DEMAND ELECTRIC OPERATIONS Generation and Capacity SCE6G pur-(megawatts) chases all of the electriaty generated at Record Peak Demand SCEGG's his-A M Williams Station. a 560 MW unit near I

torical peak demand record was broken Charleston owned by South Carolina Gen-2) fourtimesduring 1986 Peakdemandisthe erating Company. Inc (GENCO). a wholly-g maximum requirement for electricity owned subsidiary of SCANA placed on the system by customers during The average 1985 fossil heat rateof I

l anyone-hourperiod Recordpeakswere 9,918 BTU.KWH placed SCE6G's generat-

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established lanuary 27 and again January ing system (includes GENCO's Williams

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2.596l 28 as arctic air rushed into South Carolina.

Stationi in seventh place in the latest rank-g The record fell again July 8 in the midst of ings of the country's 10n largest investor-one of the state's worst heat waves in owned utilities by Elcart Ught & Pour mag-l l

l F03 nearly a century Temperatures climbed azine SCESG's continuing record of gener-p above the 100-degree mark for 15 straight ating efficiency is especWly noteworthy be-days. and the all-time record demand of causeof thelarge percentageof relatively

2. sa l

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l 2.853 MW was set July 9.

small plants on its system The forced out-2.000 2.200 2.400

2. coo 2.800 3.

Salesand Customers Systemwide ge r te was also sigmficantly better than electricity sales totaled i 3 7 billion kilo _

the nationalaverage.

watt-hours ( KWH ) in 1986, an increase of gnMon b&pm M TOTAL NUMBER OF ELECTRIC CUSTOMERS (thousands; year-end) 51% over 1985. lanuary's extremely cold 1986. including GENCO.was 15.3 billion 65 extended KWH an increaseof approximately 31%

g heat wave contributed to this growth. Resi-over 1985 Coal-fired plants accounted for 7

dential and commercial sales rose 108%

63%, nuclear 31 %. hydroelectr;c 5 L and oil and natur s

and 7 OL. respectively while industrial sales were up 7M holesale and other en-366 ergy sales decreased 2.9% due to the loss of tem bumed a total of 3 7 million tons cf coal in 1986, a' 7 8% decrease f1om 1985 g

a large cooperative customer early in the The weighted average cost of thecoal 7'

For the third yearin a row.SCE6G bumed in 1986 was $184 per million BTU, experienced a record increase in the num_

compared to $1.95 per million BTU in 1985.

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1986. 406.51 I electric customers were in 1987 re underlong-term contract.

SCE&G's peak generating capabil-E being served. up '3 2% from year-end 1985 l

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dential and commercial classes. Based or, Coal-fired generation accounted for 56% of the latest projections. SCEGG's customer that capacity. hydroelectric 20% nuclear growth is expected to average 2% annually 15% oil-fired 2?. and 7% was in 16 intemal through 1991. Total electric sa!es grcwth c mbustion peak r9turbinesandone during the same period should average c mbmed-cyclepla-twhichbumeither j

about 3 8% ar.nually.

No. 2 fuel oil or natural gas.

System Improvements SCESG spent

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approximately $15 million in 1986 as part F

h of an on-going life-extension program for C

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"'{M its generating facilities About $13 5 inkon

^W is budgeted in 1987 for additional improve-ments Keeping these older ptants in ser-

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postponing the need for costly new gener-p;f ating facilities j

Other system improvements fo-cused primarily on preventive maintenance T

of substation equipment Actionswere F

also taken to ensure quicker response to power outagec and to provide more effec-tive technical assistance to field personnel OPERATIONS E Steam Generaton E Hydro Generaton E IntemalCombuston Generation l

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  • Nuclear Operations V C Summer Nu-In August.theInstituteof Nuclear clear Station was ranked among the top power Operalions (INpC ) formally recog-five nuclear plants nationwide in a key area nized Summer Station as a branch of the l

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g oi operating performance in 1966 by Nu-National Academy d NuclearTraining drmcsWd magazine Theunit'scapacity IN PO has fully accredited the operator g

factor.theamount of electricitya plant sc-training programs at the plant, signifying i

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I tually produces compareti to the maximum they meet the industry safety group's it can produce. was 92 41. The aserage an-standard of excellence The first 19 gradu-nual capacity factor for U S nuclear plants ates of the accredited programs received g

is about 60) their certificates during the ceremonies 3

Oneof thereasonsforSummer The Federal Emergency Manage-l i

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Station's high capacity factor in 1986 was a ment Agency also gave final approval in n

longer fuel cycle. which chminated the 1986 to Summer Station's emergency alert need for a refuehng outage dun ng the year and notification system l

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Summer Station was converted from a 12-Environmental Concerns Acid rain p.

e, e,

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month refuehng cycle to an 18-month cycle c ntinued to be a controversial issue na-in 1985 The next refuehng outage is sched-mum coal sums Hydro uled for March 1987 and is expected to last tionally in 1986 Sixteen bills were mtro-duced in Congress. but no legislation was muum Nuclear amme Od&Natura Gas about two months.

enacted SCEGG has always been a propo-

' INCLUDES GENCO The Nuclear Regulatory Commis_

nent of a clean environment and continues sion I N RC) levied two fines of $50000 each to support objective legislation that would against SCE6G fer violations during 1980 conft nt the acid rain issue on a region-by-SCE6G'S SALES OF N ATURAL GAS BY of technical specifications at Summer Sta_

region basis The purchase of low-sulphur CUSTOMER CLASS FOR 1986 tion in both occurrences. SCE6G discov-n of total therm sales) c al enables SCE6G s fossil plants to ered and reported the viobtions to the m nt n relatively low su phurdoxide NRC Bothof theviolationsarethelowest les el for w hich a civil penalty is asscwed

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and the NRC determined that the esents M 81 Ilk a surrounding the fines were insignificant NATURALGAS OPERATIONS from a safety standpoint However exten-Sales and Customers Total retail natu-

"-*"g sive corrwtive actions were token to pre-ral ples were 274 6 milhon therms in e '-

vent their recurrence 1986, an increase of 3 0 L over 1985 Resi-dentral and commercial sales were up 5 4%

and I h. respectively.while industnal

  1. 7W~7 sales increased 2 5%

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SCEGG serses approximately gf "a-,,.,,,.m-192 800 natural gas customers in 72 citles

% (" 4 and towns along its 5 39* mile distnbution Q

y system SCE&G purchases all of its natural W

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gas f rom another SCANA subsidiary. South

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System Improvements Work contin-f M

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ued dunng the year on a $30 milhon proj-

?g M Seech ett to replace more than 600 mks of M'"

Y mains and seruce connections in the Co-M j

lumbia area T his replacement project is Q

expected to be completed in 1989 zM He in the Charlesten area dunng 1986 Another major project was com-4 SCE&G GAS hten A new hve-mile gas main serung lames Is-OPERATIONS land w ill impros e service to more than DNaturalGasServce Area }

WM 8 000 existing customers and allow SCE6G rt to grow along with the island s rapidly ex-ap panding residential mariet in Columbia.

Y the Lucius Road prop <me air peakshaving plant was rebuilt and its capacity mere than doubkd to assure creater amounts of i

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TRANSITOPERATIONS INDUSTRIAL DEVELOPMENT SCESG buses traveled approxi-SCESG was again a leaderin in-matdy 36 million miles and carried more. dustrial recruitment as a variety of new in-than 8.6 million revenue passengers in Co-dustries moved into South Carolina in -

lumbia and Charleston during 1986. At 1986 Announced capital investment for gear-end 1986. SCEGG was operating i 17 new and expanded industrial facilities to-coaches on a combined route system total-taled approximately $ 1.3 billion during the ing 295 miles.

year. Of that amount. about 8% will occur in December, a new 56.000-square-within SCEGG's electric and natural gas foot facility for Transit Operations and service areas, resulting in approximately Fleet Maintenance opened in Charleston.

7.700 new jobs.

In July, a reduced fare program required by in lanuary 1986.MackTrucks.Inc.

the Urban Mass Transportation Administra-announced it would relocate an assembly tion (UMTA) for the elderly and handi-plant to Winnsboro. South Carolina. The capped that began in Charleston was ex-Mack facility, a Pirelli fiber optic cable panded to include the Columbia area as plant in Lexington, and the growth and ex-well-pansion of research parks in Columbia and Efforts continued during 1986to Charleston are indicators of a new level of cut losses in transit operations. SCEE-G up-opportunity for the state's workforce.

graded its fleet by buying and refurbishing 19coacheswhich replacedolderones Nu-CUSTOMER / COMMUNITY merous route revisions were made for SERVICE PROGRAMS more economical operation. SCE6G also acquired two over-the-road coaches for its Emphasis on community service charter services Continued expansion in programs was a key strategy again in 1986.

this area could lead to increased transit TheCustomer Assistance Department revenuesin years tocome.

helped near'y 22.000 needy customers se-SCEGG received $39 million in cure $ 163 million in financial aid from the UMTA funds in 1986 as partial reimburse-appropriate local. state and federal agen-ment for operating losses incurred in the cies to help pay heatingand cooling f

Columbia area during 1981-83.With sup-expenses port from the involved municipalities.

More than 14.000 SCEGG cus-SCEGG will apply for an additional $3.3 tomers contributed $148524 to help el-million in UMTA funds for the Columbia derly pers >ns and low-income families i

area in early 1987. SCEGG accepted a $1.2 meet emergency heating needs through j

million UMTA grant for the Charleston the Project SHARE program. Project i

area SHARE is a voluntary donation program in SCESC continues toworkvigor-whkh customers make a one-time contri-i ously for the estabhshment of Regional bution or authorize a pledged amount to Transportation Authorities These publicly beadded totheir monthly bills.

supported systems could reduce SCEGG's Also,a program to provide free fire-role in providing public transportation wood for the needy was expanded to in-clude the Charleston area Similar pro-gramswerealreadyin placein the Columbia and AikervNorth Augusta areas.

These programs loin SCESG with local govemment and community action organi-zations to provide the free fuel o

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South Carolina Pipeline Corporation ems y.r.

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South Carohna Pipeline Corpora-Total sales of natural gas in 1986 tion (SCPC) is an intrastate natural gas were 66 8 milhon MCF. a 3 41 increase over 3

pipehne with I.657 miles of kne serving re-1985 Industnal sales decreased by 7.1%

sale and industrial customers m all but two w hile sales to resale customers increased of the state's 46 counties SCPCs largest 86% in addition. the transportation of nat-customer is SCE6G Other resalecus-ural gas for resale customers and end-tomers include municipahties and county users totaled approximately 3 5 million gas authonties, as well as other gas MCF. more than double the 1985 level At l

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utthtles year-end 19% SCPC was serving approxi-

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SCPC has two subsidiaries South mately 160 natural gas customers Carohna LNG Company. Inc. hquefies and Gas Supply SCPC buys its natural gas stores up to one billion cubic feet of natu-under long-term contracts with Southem ral gas during pencds of low usage. Dunne Natural Gas CompanyISouthem)and peak demand penods. up to 60 000 MCF Transcontinental Gas Pipehne Corporation f

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per day can be regasified to supplement (Transco) Interconnections with these sup-i pipehnesupphes Carohna Exploration phers provide a reliable supply and allow Corperation is involved in loint-venture flexibihty in purchasing SCPC scontract l

projects in the development and produc-demand is 210.900 MCF per day with I

tion of oil and gas resences Southem and 2000 MCF per da) with Sale Over the past Transco O year. sand Customers 1

natural gas cempanies faced intense The total volume of natural gas

% uoq competition forindustnalcustomers from purchased in 1986 fer resale was approxi-t supphers of other fuels particularly No 6 mately 66 5 milhon MCFcompared with j

Madarwd fuel oil. w hich was selling at its lowest price about 64 3 million MCF in 1985 The in-P" N "I in years Mostindustrialcustomersare creased purchases were the result of equipped to use several types of fuel, al-greater customer demand and some non-low mg them to switch to the most eco-traditional sales to regional natural gas au-DEUVERIES OF NATURALGAS nomical energy source available SCPC has thonties Thecost per MCFof naturalgas BY SCPC DURING 1960 n of total MCFI remained competitive by increasing pur-purchased for resale was approximately i

chases of less expensive spot-mark et gas

$3 24 in 19% compared with about $3 84 and reducmg its proht margin Because of in 1085 This dechne can be attnbuted to changes in federal regulations, large cus-lower pipehne pnces. a consequence of in-tomers also have the option of making pur-creased competition in the market place, chases directly from producers at the well-and SCPC s abihty to male substantial head and haung the gas transported in spot-market purchases at pnces well below.

these instances SCPC contracts with the hrm contract rates These lower gas costs customer to prov:de transportation were passed along to customers sen kes SCPCs supphers have not eksted to operate under t he provisions of the Fed-eral Energy Regulatory Commission Order 416. issued in luS5 w hich would require

_ 7 *%Tirrah Propane nondischminatory transportation of natu-ge 4torage Caverns ral gn However SCPC has been able to p

purchase and transport spot-mark et gas

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N Gas Pohcy Act of 1978 System improvements Several steps i

N were taken in 1986 ta improve the overall

[h ethcienciof SCPCs transmission system Certain bat kup equipment was added at

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h the LNG plant to ensure its safety and reli-

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abthty dunng renods of regasthcation

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ing an industry leader in the relatively new a fiber optic hne stretching from Washing-field of fiber optics This technology uses ton D C In February 1987 a 184 mile fiber thin glass fibers about the diameter of a optic hnk between Atlanta and Birming-human hair to transmit laser generated ham was placed in commercial service.

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Soutit Carolilta Real Estate DevelopIIIestl CoIItpaliy, Istc.

South Carohna Real l' state Desel.

SCRED is currently involved in 15 opment Cornp;ny. Inc (SCRI.D)is attisely additional pronxts - seven independ-engaged in the acquisition and develop-ently and eignt as a joint-venture partner rnent of strategically kxated prop rties Work has been completed on the Many of SLRI.D s prog <ts can proside hrst phase ul a business pak near Charles-j benchoal results for the of her SCANA ton A neightorhood shopping center. a j

compinies residential subdr.ision and a 58 ac re com-t in Du e mber 19Xfi the S C Pe-nieraal site are under deselopment in the I

search Authonty sektted SCRED to de-Columbia area in the planning stages are a I

velop a $12 nulhon lauhty as put of the rnixed use desekspment and resort-style l

U S Navy s Rapid Acquisition of Manufac-residential area at LJ e Murray near Co-i turn! Parts IRAMP) program Pnmesouth, lumbia and a residential sutxiivision near Inc. another SCANA subsiduty. w ill con-l.exington South Carohna st ruct the faulity Other loint-venture proietts in-j

'lhe RAMP program will ins ohe a clude two residential do elepments near l

consort um of lead:ng busmess groups Columbia and an of fice and industnal pirk and researt b lat eratunes ex pkinng the use near Charleston Additional (ommeraal of t omputers and robotics to manulat ture loint ventures are being planned sophistKatal replatement p uts for the U S Iktt on a tirnely basis el minating the need for large pirts insentones The seke

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tion ( l South Carolina as the site for this i

fedt rally fundni researt h presx t is u >nsid-I ered a wup f or the state and i ould pl.a e

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4pf leader hip in this new manufat tunng in h-y ooiog,unsem ~.eapp m ht _ d I w. wedding n onoma dneierment will proude new Pre dat F >bs protn t pre.cnt p,bs and in.J e possi-t de t he att ra< t e in of important new intf us -

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newe't subsidia'y pornesouth inc. began consist of an offite buikfing and two high-l op rations lanuary 1. lim 7 tu hooh w manuf.xt unng and test (enters SCEf,G phasnf out its construction Completion of the preittt is scheduled for l

department and transferred its 300 con-lulyluM l

stnxtion employees to pnmesouth a full.

Pnmesauth will continue to pursue sen, a e organiation prosidmg deugn coor-a vanety of commeraal and industnal prop j

dmat son. construttion and wnst nn tiun ttts and hnut its construction attivities to

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management scraes the Southeast Pnmescuth will also seek l

Ground w as brtlen in i ebruary industrial maintenant e contr.kts in areas 19X7 for l'ntnesouth s first mapr prent, a of its expertise such as huler and con-110 Sno square fa,t f.n thty at Charle ton denser repurs l

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Carolina propune l

scNa Sortware st n a es Inc Sierage Cer;vrafien w fut h t vcan operations lune I lum n en-Carolina Propine Storace Corpora-l Cagn i in t he d s elopment and m.nletind t on ow ns a 5m. p unt +enture interest to-

< 11(ornpuh r i entt toIinh +rmat9 m % stems g.;ther vat h Trans o I nergy Compiny in an tn hns ih n pninanly f,'r utihty related in-XO mdirn gallon underground propine I

(hhtfl.il t lH l'ts Inilla!IV rnal('r systems stc q.ig,'r asem near Wrk, N >uth Caruhna I

I t 'in g m. id t '!nl in( lut lt ' i Distr!I tutii in l he (aa rn lemes stcrue sphe ti > induv l

l Censtrus tion Int, amation System a f leet ines. utihte and propine tupphers A I

M.untenani e Wtem and a Nu(lear i du p unt sentun' agreement with another suh-I (afi7n and f raming & tt m S dtw.ne udiari c if I rans( o w ill allow for t he expin.

I harila are 6 :!t aare m.nntenant e ( u,tomi-Mon ot the(asern s mark ts tbroughout i

Mti 'n scrat es and a wide range of pn h" t h" % sut heast

' h.ndl( ensulting and programnung ser-u es ire alv i osai!ah!e l

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CalfplanC, lnt.

Can ihna lpg Ct 4p trat k o in a p ant wnture with I'r mv o o

r. ites a 62-l l'a h +r nt ' lfh p df h.i'4"s and ib s gph. qx gt h pp ping pphnp that c(39 a

tnbutes pn pine it iam# N iond Sci bG s nu t s t he ( awm f.xi!ity wit h Done Pipaline rh ttuf l t',.ls tilllNs ln lWi it ' Dbl.lj prr 91 O qqgig gear [i,,,t hune S(iut h G m >hna inuti h hw nu!N in cal;ea, of ; n pme on;l I his hne transp.rts pn pine to industnal l'.o I rni se than i luu rew Irnna!. < ement t'

( w.t< vne rs along it 4 r inte and to Dnue

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SCANA Corporation DIRECTORS J

l K. Addy" W.H. Hipp" l E. Schachte, lr.' '

Ihedwt MlyLkdr.Inc fymtwIad Oa1DaufuC%n null'stattandin,uramsth+a '

i Launuthm,5%th Cankru The Uh rty Gmwaten Oarle,tsn 9uthCankna Grunn!V Swth Carcima W B Bookhart.fr."

V C. Summer" Partna,W D th*iurt f arms Avram Kronsberg

CAwman d tar IturJ Em,wus i

t.'L>nr Suth Grdma i rexiott Ilarnam & Q. lm Gaumtu swth Cand.na Oark%m Wu:h Cankna W R. Bnice" E.C. Wall,ir "

MrcJ ouirnun and l H.Lumpkin" lYm4wl GnallnJuurn unf ratu:nC$rr CVCounsella The MNair Firm Omuuv SwthGrAiu The Siht the C,reur la G4amha SwthCan4na j

G4amfu suth Can4:ru lohn A. Warren'""

f I'C. McMaster" CAuman a4 lB Edwards.DMD" IVedit aM Manaaa Orif boutwOtlut (tedvt Wmndvra Fvtrokum femtum)

Chmlu %uth Carolou M.dualunnmda dhmta Qrdna Wmndvro 9uth Canana i

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Gurfi-J.M. Nuth Grdita E.W (3ke.fr."

r i B. Guen lil'*

ivednt G0nu!Lurtrmcnt Q Ouna. lhdo Farms 1%uufort Swth Cansna lxnmark % uth Cardna Henry Ibnder,l'h D."'

B A. Hagood' Ivedwt liJr Unmuty 14mhtWm M thrJaMG.Im NaJmik Totemv i

Gurfi%e. S wth Gr>4na

@rtyf_ ors (nedf!

l l11. Rhodes" K W l'rrmh i

j l l~. Hawell. Jr."

PredwtanJOnf DawfuC%<r IMlhy l

t ihrrd ouitman and Rhd.5 OICon funu im AC Mw,uiJ Ovf Daidw(Wa Waitahm Suth Ordna 14n C H Smen

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PrM,tnv Gm rrte Cemrung. Im W11 Taalor Garlewi hwth Canana A M Waums t

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OFTICERS l

i John A.Wanen EH Crews,fr ill R.W. Stedman CAuman anJ welvedwt he tvi 61,wt r, G retnfia

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Omf laautwCon M.n Larw(xxl tintura D Blairul LM Grev.ette.lr.

ne rvmht Mrcury theavt Cathy B Novinger Haniett M Gardner i

T C. Nkhols. lr.

We14mkat AwJant Mntuy l

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Inwuurl'res nt W 11 Timmerman 1 C. Roberts i

i Wr Predvil. irr.e ura A< 4 unt Motry j

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26

OfficersofPrincipalSubsidiaries SOUTH CAROUNA ELECTRIC & GAS COMPANY Chairman and W.B.Timmerman S C McMeekin.fr.

D.C McNamara CMEngytive_Offket h"a"J Cu k"" Rktums-th*ci:"4 lohn A.Warrenill lH Young,fr.

W E. Moore

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Pn'sident and Ndur Otvrators Q@&lngOffkg Vice Presidents OtherOfficers T.C Nkhols.Ir 121 G1 Bullwinkei,}r.

EC. Roberts

- -Q D bur 171 gg, Wd Udd customa Relatums-

ssritari,

"'"' % *4'9 EtecpflyeV(cePysidents c >uun Dnwn u

LM. Cressette, fr. 01 B1 Honon, k Patrida T. Smith lall mantr. Gsmtmatral V.R. Coward,lr.

Tnuwn g_gg and Vsuulatory Mars Suryvt huts y

iG Black,ll EH. Crews, fr. NI G C Croft.fr.

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R.W.Stedman iWn Opratams Tramminm and g73 De,ineuram f:npittmnd Hartlett M. Gardner SeniorVkf Pri'sklenis I.W.Weddinglol

""**i"9 0 W. Dhon. fr.

N tM4 lwtvrru Nudurf%n Gmstratrm and (,k kws '

ardl%Istkm f natrumna KU' "'?'

Assistant Vice Cathy it Nosinger f] # ]"*"""d*'

Presiderats Alminaratsm CL Rye

1. Kinkxh Gn Otwfam5

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a EF frkk Ai,Jmnq B M. Smith,lt.

C B McFad(Jen h"""'*"

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Gyattandindustnal Iktd't'mott SOUTH CAROLINA PIPEUNE CORPORATION Atw Earwtxxl R M. Kightlinger W lt Timmerman BT. Horton.fr.

I'r^dvit var Presi.'eit We Presknt Trever WA Darby Bl. Atidnals R W.Stedman E C Roberts we Pnsknt vu Prc dirt ccntrtil,r As:ctant ra r,1ag

[brbaraD Blair17)

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Management Report The Management of SCANA Corporation ithe Comp.nyl is The Board of Directors, through an Audit Committee responsible for the preparation and integnty of the financ al data composed of nonemployee directors. provides oversight for the included in the accompanying Consolidated Financial preparation of these financial statements lhe Audit Committee Statements These statements have been prepared in conformity meets penodically with intemal and independent auditors and with generally accepted accounting princi9les as apphcoble. In representatives of management to review their activities and situations that prevent exact accounting measurements.

responsibihties The intemal and independent auditors have full management has used informec judgments and estimates and free access to the Audit Committee to discuss intemal Finanaal information presented elsewhere in this Annual Report accounting control. auditing and financial reporting matters.

is consistent with thcsc financial statements The independent certified public accounting firm of Deloitte The Company maintains ano relies upon a system of Hasluns & Sells is engaged to examine. in accordance with intemal accounting contiois which is designed to provide generally accepted auditing standards, and to report as to the fair reasonable assurance that all transactions are properly recorded presentation of Management's Consoiidated Financial in the books and records and that assets are protected from Statements and their opinion appears below unauthonzed use The degree of internal accounting control is based upon the determination of the optimum balance between the cost incurred in maintaining a system of intemal controls and the benefits to be derived The system of intemal accounting i

j 4

controls is supported by wntten policies and guidehnes and is

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I complemented by the selection. training and development of professional financial managars and by a staff of intemal W. B.Timmerman R.W.Stedman auditors who conduct comprehem ve intemal audits Vice presdcnt & Tnusurce weprenfcnt & Contro&r Opinion ofindependent Certified Public Accountants Suite 820 1426 Main Street hL Post Oftke Drawer 7128 H64R f

Columbia.5outhCarolina 29202 7128 SCANACORPORATION We have examined the Consolidatal tulance sheets and in our opinion. such Consolidated Financial Statements Consohdated Statements of Capitahzation of SCANA present fairly the consolidated financial position of the Corporathn and consohdated subsidianes (" Companies"I as of Companies at December 31,1986 and 1985 and the results of thember 31.19m and 1985 and the related Conschdated Iheir operations and the changes in their financial position for Statements of income and Retained Ilimings and of Sources of each of the three years in the period ended December 31.1986, in funds for Cross property Additions for each of the three years in conformity with generally acceptal accounting pnnciples the pened ended December 11,1986 Our examinations were applialon a consistent basis made in accordance with generally accepted auditing standards and, accordmgly. includal such tests of the accou nting records and such other auditing procalures as we considered necessary 3x 4 j' [ &

in the circumstances

/

l fchruary 6.1987

)

IctuTt for Nott I l. as la idah the date rs Ftfruary i8. I 987) l i

n

Consolidated BalanceSheels t

December 31.

1986 1985 ASSETS (Tleusardsof Ddlars)

Utility Plant (Notes I,2,3 and 41:

Electric

$ 2,475,332

$ 2,417.565 Gas 277,292 251.686 I Transit 4,188 4.877 l Common 23,622 18,178 a

Total 2,780,434 2.692,306 less accumulated depreciation and amortization 722,996 614.975 Total 2,057,438 2.047,331 Construction workin progress 92,379 65,402 Nuclear fuel, net of accumulated amortization 51,535 65.266 Acquisition adiustment-gas, net of accumulated amortization 35,146 36.143 Utility Plant, Net 2,236,498 2.214.142 a

Other PropertyandInvestments:

Nonutility property (substantially at cost) 30,331 19,IU) 1 Investments (Note 1) 19,213 17.989 Total Other Property and investments 49,544 37,158 I

Current Assets-i l

Cash, temporary cash investments and special deposits l Note 8) 10,913 48,683 Receivables 107,078 105,949 l Inventories (ataveragecost).

i Fuel (Note 3) 54,768 48,156 Materialsand supplies 18,433 13,197 s

Prepa' ments i5,323 13.222 206,515 229.207 TotalCurrent Assets Deferred Debits:

Unamortized debt opense 5,474 6,513 Accumulated deferxd income taxes (Notes I and 7)

I1,208 1.615 Deferred retum on piant investment (Notes I and 2) 36,395 23.945 i

Decommission!ng fund (Note ll 5,128 3.182 i

Other 24,570 27,937 Total Deferred Debits 82,775 v3.192 Total

$ 2,575,332

$ 2.543W)

't I

i i

4 Se Notes to Consddatd Finamial Statements 10 i

December 31, 1986 1985 CAMTAUZATION (See Consolidated Statements of Capitalizationi (Tleusandsd Delfars)

Stockholders' investment:

Common Equity

$ 836,913

$ 806,155 Preferred Stock (Not Subject to Purchase or Sinking Funds!

26,029 26.262 '

TotalStockholders' investment 862,942 832.417 Preferred Stock (Subject to Purchase or Sinking Fundst i17,542 152.514 Lang-Term Debt, Net 745,45I 785.021 TotalCapitalization 1,725,935 1.769.952 UABluTIES Current Uabilities:

Short-term borrowings(Note 8) 80,576 2.388 Current portion of long-term debt, net (Note 3) 21,930 90.348 Accounts payable 82,068 86.089 Customerdeposits 13,417 11,441 Taxesaccrued 45,836 26.813 Interest accrued 12,147 21.183 Dividendsdeclared 25,966 25.989 Other 3,715 5.053 TotalCurrent Liabilittes 285,655 269,304 Deferred Credits:

Accumulated deferred investment tax credits (Note I )

I19,766 129.359 Accumulated deferred income taxes (Note I )

388.789 343,998 Accumulated reserve for decommissioning (Note I )

5,128 3.182 Other 50,059 27,904 Total Deferred Credits

$63,742 504.443 Commitments and Contin 8encies t Note 9)

Total

$ 2,575,332

$ 2.541.UN Sr Netts to CensAlatal Vmamial Statancnts 31

Consolidated Statements of Inconte and Relained Eantings Fo. theYears Ended December 31, 1986 1985 1984 (ThousandsofDollars cucrt pershareamounts)

Operating Revenues (Notes I and 2)

Ek(tric

$ 809,488

$ 787,7%

$ 746.745 Gas 289,429 318.856 378.491 Transit 3,119 3.689 3,178 TotalOperating Revenues I,102,036 1.110.34I l.128.414 Operating Expenses:

Fuelusedin electric generation 216,076 229.249 223.768 Power purchasul nct 12,823)

(8.821) 2.721 Gas purchased for resale 215,928 2M760 289.212 Other operation 155,588 143.016 132.108 Maintenance 56,864 60.836 52,619 Depralation and amortization (Note 1) 90,627 86,899 74.914 Income taxes (Notes I and 7)

I19,108 105,783 108.768 Other taxes 51,952 49.021 45.008 TotalOperating Expenses 903,320 912.743 929.118 Operatingincome 198,716 197.598 199.296 Otherincome(Note I)

Allowance for equity funds used during construction 1,264 1.086 2.885 Deferred return on plant investment (Note 2) 12,450 12.881 11,0M Ot her income lloss). net of income taxes (3,889)

I,754 3 698 TotalOtherincome 9,825 15.721 17.647 income BeforeInterestCharges and Preferred Stock DMdends 208,541 213.319 216.943 InterestCharges(Credits):

Interestonlong termdebt net 68,180 83.817 E5.679 Otherinterest expense 5,77 l 1,789 3R25 Allowance for borrowuf funds used duringconstruction(Note !I 12,017)

(2.1M8) ll1.2%)

Totallnterest Charges. Net 71,934 83 218 78.248 Preferred Stock Cash Dividends of Subsidiary t At statal rates) 14,443 16.541 16.877 Netincome 122,164 113.560 121.818 Retained Eamings at Beginning of Year 230,549 202.988 162.981 Common Stock Cash DMdends Declared (Note 5)

(90,263)

(87.040)

(81.8l I )

Other Capital Stock Transactions, Net 221 1 041 Retained Earnings at_End o_f Year 262,671

$ 230.549

$ 202.988 Earnings Available for Common Stock

$ 122.164 S ll35u)

$ 121,818 Weighted Average Number of Common Shares Outstandinglibousands) 40,296 40.2'Ri 19.900 Eamings,Pey_ Share of Common Stock _ ____ _

_ _ S 3 03 _

S 2 82 S 3 05 See Notes ta Censailtttd nnanial Stattnrents 12

Consolidated Statements of Sources of Funds for Gtoss Propertij Additions For theYears Ended December 31, 1986 1985 1984 SOURCES OF FUNDS (ThousandsofDollan)

Internally Generated:

Netincome

$ 122,164

$ 113.500

$ 121.818 Chargos (credits) to income not requiring (providing) funds.

Depreciation and amortisition 90,627 86.899 74.914 Amortinition of nuclear fuel 30,529 22.612 19.029 Deferredincometaxes. net 33,635 42.497 92.801 Deferred investment tax cretfits, net (9,593) 821 9.231 Allowance for funds used during construction (3,281)

(3.474)

(14.181)

Deferred return on plantinvestment (12,450)

(12.881)

(ll.0M)

Other. net 2,020 1.444 2.853 Funds providalfrom operations 253,651 251.478 295.401 Detluct cash dividends declared on common stock 90,263 87.010 81.811 Internally Generated Funds. Net 163,388 164.438 213.590 ExternalFinancing:

27.954 Common stcxkissual ILink note sold 81.500 Pollution controlbonds sold 1,100 5.500 42.850 Increase (dttreasel ln f uel linancings. net (19,813)

(8 2561 18.011 Reductlon oflong-term debt (89,459)

(44.W4)

(l12.%I )

Retirement of preferred st(xk (35,205)

(4.275)

(1815)

Increasein short term borrowings 78,188 1.915 315 Funds from External Financing (65,169)

(50.082) 103884 OtherSources(Uses):

Decrease in working capital. excluding shott-term borro'vmes and current portion of long-term debt 29,273 15018 17,793 Other chanc,es in noncurrent tulance sheet items net 13.424 (4 371)

(65.9291 Other Sourcesluses) 42,697 10.677 (48.1361 Funds for Pmperty Additions 140.896 125 033 2ul,338 Allow:nce for Funds Used During Construction 3,281 147d 14.181 Gross Property Additions _ _ _ - - -.

$ 144,177 S 128 507 _. S 283.519 SY Nates to CenwMatul V:nandsl Statewnts 31

i Consolidated Statements of Capitalization D:t ember 31.

1986 1985 Common EquityINote 5)

IThouwds # DvIlar9 Cornmon sttd. no pit valuer, aut honzed 75 000 RJO shares, issuod arxf ontstanding.1986arxi l985 40 ?4147 shares

$574,242

$575tf6 Retaintsleamings 262.671 210 549 j

TotalCommon Equity 836,913 49%

Nb.155 4 tit South Carol 6na Liectric & Cao Company:

Cumulathe Preferred Stock INot Subject to Purchase or Sinking Funds h Nres Outstardne Rexlemption ih e Eventual Senes 1986__

19M5 Curnmt Through Miramum

$10) Par 840L 197,668 20U000 105 22 Il-V)M7 100 0) 19,767 20.000

$ % Par 5 0irt 125,214 125 234 52 50 52 50 6,262 6 262 Total Preferred Stock iNot Subject to Purchane or Sinking Funds t 26,029 1%

26 262 l't South Carolina Electric G Cas Company:

Cumulathe Preferred Stock ISubject to Purthase or Sinking Funds k Note 61

$100 Par Value-Authonm] 1,550000 shares

%res outstardng Rnlempta o Ptre Eventual Senes

_1986 19M Currmt Through Minimum 7700 113,894 litx900 10385 tr'lG 87 101 00 18,389 I I.UA) 812't 162,086 167 150 10201 10201 16.209 16 715 11ML 250,000 2% 000 Ii1M tr 1087 10)00 25,000 25.0 0 115 010 13.%.O 10 7 %

20 000

  1. X)0 0 110N L 525,980 lW#050 a

$% Par Value-Authonml.19M - l 728.7M shares.

19M - I.741,4Whans Shares Outstatung Rak mption 1% e I:ventual Senes 1986 19M5 Current Through Minimum 4 970 32.000 litm 51 00 5100 1,600 16M0 4(at, 14,314 15 814 50 50 W 50 717 792 Si OO 2,202 2.302 4(oblAl 44,052 M052 il it) 4 (0 1,114 105,400 10M NJu 50 50 50 50 5,270 5440 5 12 %

81,000 8201) 5100 51 0) 4.050 4100 6OlrL II2,000 l1520) 50 50 50 50 1,600 5.7(0 M000 300,000 Va)(1O iltO I 30 87

%3) 15,000 15000 8 72't 365,400 165 VU 5100 12 31-M 50 00 18,270 1M 270 9 Att 244.692 2451J2 Si 175 il 175 12,21t 3 12265 1,298.878 111717M a=== =

n=

==1 Total Preferred Stoc h (Subject to Purchase or Sinking Fundo 117,542 7%

152 U 4 i

Sx N stts to Con wlulatal Fmaneel Sta wnwnts 14

Darmfer 31, 1986 1985 Long-Term Debt (Notes 3,4 and iI).

(TfouwtJ5ofDollars)

Emith Carohna Elatnc f, Gas Compiny first and Refunding MortgageIbnds Yearof Senes Matunty 1418 L 19M 15.000 15-58 L 1987 8314

%I70 1987 6,176 6.176 4-7 8 L 19M 10,000 10 000 10-l 7L 19M 8,400 9.000 19 0 10,000 10 000 5L IVJl 8.000 8.000 478L 1975 16,000 16.0(X) 5 45 L 1916 15,000 15.000 tr L 1917 15,000 15.000 6-l 7L 1918 20,000 20 000 Mt IVN 35,000 35.000 9-1 ML IPN 15,000 15.000 8L 2001 35,000 35 000 714L 2002 30,000 30 000 9-1 M L 20h 50,000 M 000 8 40L 20h 50,000 M000 8-18 b 2007 30,000 30 0(10 8u0t 2008 30,000 30 000 141ML 201n 35,000 31000 97RL 200) 50,000 50 000 12 1 %

2010 35.890 50.000 lbilutk.n Control f x thtkw Revenue turxh 41 ?L Serks. beanng intertst at 7thof applKabic pome rate due 1987 1.031 2.062 5 95 L Senes, due 2001 7,285 7.380 l' airfield County benes 19M. due 2014 (van. dale rate - 5 5 L tbrough a 3187) 57,000 57.000 Rkbland Omnty.due 2014 Ivariable rate-5 TL tbrough all 87) 5,500 5.500 fairfielj County benes 19% due 2014 Ivanable rate -487% at 1211 M)

I,100 Consylklatal Mortgage Gokj Ibrxts % Sene due lyn t noncallable) 949 977 trase Obbgatkn %14 L.due 1977 240 255 South Carohna Generating Company. inc (frricky County Ibiluta tiControl f.x tht tes Rewnue Ibru ts due 2u14 (vanable rate - 4 5% tbrough W1087) 35,850 35 850 11ank Note duc 19M ivanable rate - 64175 L at i 211 M1 78,500 81,500 buth Caruhna LNG Company inc -

10. I ?L Senes Iirst Mortgage Ibndi due two 4,600 12uo buth Carohna luel Compiny inc Ntklear fuel habthty 52,991 650u6 ftr,sil fuel habihty 17,083 24 79I both Can>hna Lintnc f, Gas I inarx c. N V -

1517t Guarantenl Notes duc 19t) roux)

South Carnhna pip line Corporatam ty t, Series A first Wrtgage ik ods due 19M 1,319 1.963 buth Caruhna Real l'. state Ikvelopment G mpiny Inc.

Notts due lum 6dWi lat vanous rates p

  • s 7 W

M al 767,991 Muo 271 trss -lag term d4t nutuntics inchang sinhng funJ requimments 21,930 30 Its lk nh called for early rolemption 74.110 IJnamortimide*ount 610 794 Totallong-Term Debt 745,451 4n 7M oli 48 L TotalCapitalleation

$1,725.935 100%

SI 70 sus 2

10111, w.sm =.w-

~ - =.=--- =, :__ _ w =- z_ _ a. -.n x=-

.e = a --. _ - - _ _. - - -

Sk Notes to Con wldthti Fnncul Statements 35

1 1

l 1

Notes to Consolidated Financial Statements l

W 1

1.

SUMMARY

OFSIGNIFICANT SCE6G cgxrator of the V C Summer Nuclear Station ISummer Sta-ACCOUNTING POUCIES:

tion). and the South Cardina Pubhc Service Authonty (a pubhc corpora-tion d theState of South Carohnalare nt owners d Summer Station in A. Orgaababa and Principlesof Consolidation the prop >rtons d two-thirds and one-thini respattvely W parties share the costs of operatmg the plant and in energy output in these propor-

$CANA Corporatson (the Company), a South Carchna corp 3 ration, tons. The total cost of the constraction of Summer Station was approxi-

%ds organiIed in 1984 by South Carohna Electnc 6 Gas Company mately $13 bilhon. or about $1.46: per lulowatt, of which SCE6Gs share (SCE6G) and acqwred all of the issued and outstandmg cornmon stcx k d SCE6G under a Plan d Exchange effectwe December 31.1984, whereby wasapproximately$877milhon Accumulateddepreciationassociated the holders of the common stock of SCE6G automatically became the with SCE6Gs share d Summer Station was approximately $96 I million and $62.2 miumn as d Daemba 31.1986 and 1985, mspatively holders of all the outstanding shares of common stcx k d the Company on SCEf4s share of the direct expenses associated with operating Summer a share-for4 hare basis The Prefenul Stock d SCE6C continues to be StationisindudedintheCompany's"Otheroperation and"Mainte-held by nonaff hated parties The Compey is a public utshty holding com-

"""'# CAP""'*5

'pany within the meanmgof the Pubhc Utihty Holding Company Act d 1935, but is exempt from registration under such Act D. Allowance for Funds Used During Construction 1he accompanyihg Consohdated financial Statements reflat the Allow nce for funds used dunng construction (AFC), a noncash item.

consohdation d the accounts d the Company and its whollyownel reflats the period cost of captal devoted to plant under construction subsidanes This accountmg practice results in the inclusion, as a component of con-gg g,,,

struction cost (construction work in progress), d the costs of debt and eq-S>uth Cmohna Elatnc6 Gas Company uity captal d aficated to construction irwestment. AFC will uitimately be South Carohna Generating Company. Inc (GENCO) induded in rate base mvestment in estabhshing rates for utihty services South Carokna Pipehne Corporation (Pipehne CorporatsonJ The Company's regulated subsidianes calculated AFC using the following whx h wholly owns South Carchna LNG Company. Inc and r tes Carohna Exploration Corporation South Carohna l uel Company.inc.

Nan rmukunibusmas 1986 1985 ava4 Carohna LPGCorporatson SCELG 6.h 9%

65%

Carchna Propine Storage Conoration ycq Carotane.Inc South Carohna Real Estate Devek>pment Company. Inc hse rates do not excmi the maximum a!!owable rate as calculated un-MPX Systems. Inc-der i ERC Order No 561 Interest on nuclear fuel is captahzal at the actual SCANASoftware Services. Inc intertst amount.

Primesouth.Inc S;uth Carohna Elatnc 6 Gas Finarwe. 4 V IFinance. N V )

E. Deferred Retum on Plantinvestment During 19% f inarte. N V, whwh had stainal furah outside the Carrying costs prKludmg eqmty retum; assotiated with approxi-Urutal States for use in finarxing the attmtses of SCE6G and Pipehne mately $1148 milhon ($104 4 milhon at December 31.1986) d production Corp;ranon. was dissolved and hquidated Isee Note 3) investment, net of accumulated depraiaton, associated with 400 MW d investments in joint ventures are reportal using the mmty methol elutnc generating capxity remmni from rate tuse are being deferred at d accounting Signihcant intercompany transatons have been chmi-SCE6Gs approved overall rate of retum d i 1.74% for recovery over some natedin consohdation future pericd pursuant to a March 2.1984 PSC rate order (see f k)te 2B) in Dnember 1985. Ihe Financul Accounting Starnlards IWrd IFASB) a MemdAccounts issued an exposure draft whKh wouklamend Statement No 71 " Account-The accountmg raords of t he Cornguny s regulatal subsit hanes are ing for the Elfats d Certain Types of Regulation" to indude certam cnte-maintainal m atordance with the uniform system of aaounts prescntui ria for nxognmng deferrals d current operating costs. Irnludin t carrying by the Faleral Energy Regulatory Commission If ERCI and as adoptul by cost 5 associatal with inwstments in operatmg utihty pl ant.

The Pubhc Service Commisskm of S>ut's Carphna dSC) in INcember 19% the FASB issued Statement No 90 " Regulated EnterpnsesAtounting for Aban imments and Disallowarves of Plant C-M Nd"I Costs" This Statement, which acidresses certain aspsts of the FASB s ear-Utihty plant h stated sutr.tantially at ongmal cost The costs of aikli.

her exposure draft, does not spaihcally address accounting rtw.r.ition of tions, renmak and betterments to utihty plant, inc hJding dirat llor, deferrab assmtated with mvestments in operating utikty plant The FASB material and indirnt charges for eng nuting supervisiut and ar alkw has ind(atal that it will contmue to consider this aspxt of th3 Laember ance for furnh usal during constnxtiort are a< kkwi to utihty plant ac-1985 exposure draft counts The ongmal wst of utihty property retirol or et herwise dr posal The future rnovery of SCl%Cs deferrai retum on plant investment of is femmal f rom utthty pkint accounts and generally ( hargai along anet forth in the PSC's Mart h 2.19&l rate order or as prop > sed in with the owt of renual less salvage. to accumulatuidepralation The SCE6G s Apphcation datellanuary 341987 bee Nute 2B) rnay not meet awts of repurs. replArments and renewah of items of property deter-the cntena prop wed in the December 19M exp>sure draft if the FASB mmel to le less than a unit of prop:rty are charge d to mainterurx e wete to adopt such cntena m their cun ent form and absent the necessary mohfKat on of the March 2.19M rareonkt the Compinycouki he re-expense qwrni for accounting purp vs to restate it s financial st.itements in on kt l

to ehmmate the deferral tetum on plant mwstment The effat of such restatement wouki be to tahx e rep >rtai camings per share for 19%

I 19M and 19M by 31c,32c and 28<. respstrvely it is uncerta n if the FASB will issue a hrul statement that sp uhca!!y aldtem deferral of oyst5 as.

sotiatal with operating utihty plant and what. If any cnteru will oe estab-hshel for aaounting racen. tion of sut h deferrak i

36

t F. Depesciallonand Amoreheelon The actuanal present value of accumulated plan benefits and plan

, Provisions for depreciation are recorded using the straight-line net assets as of the most recent benefit information date are as follows:

method for financial reporting purposes and are based on the estimated '

lanuary I.

. servicehvesof thevariousclassesdproperty 'hecompositeweighted-g935 average depreciation rates were 3 3R 3 35% rid 341% for 1986.1985 and iMrflmof Ddan).

ggg Nuclear fuel amortization, whKh is included in Tuel used in electnc Actuartal presentvalueof generation' and is recovered through SCF4G's cost of fuel. is recorded accumulated plan benefits; vested

$ 30.2 S6&5 using the unitsdproduction method Provisions foramortization of nu-Nonvested 7.4 66 clear fuel include amounts necessary to satisfy obligations to the United States Drpartment of Energy under a contact for disposal of spent nu, RetireesiPnorto fune 1983) 45.5 50 2 clearfuel Total

$I33.I SI25 3 The acquisition adlustment relating to the purchase of certain gas Net assets available for benefits

$134.9

$1079 prop 2rties in 1982 is being amotttzed over a forty-year period using the straight-kne method The assumed rate of retum used in determining the actuarial present G. Nuclear Decomminioning value of accumulated plan benefits was 7% for 1986 and 1985, except for Duommissioning of Summer Station is protected to commence in daficated assets (Retirees prior to lune 1983) which are valued at i 1%.

tk2 year 2014. and the expenditures (on a before-tax basis) related to de-In December 1985.the FASB issued Statement No 87. " Employers commissioning actmties are currently estimated to be approximately Accounting for pensions". Statement No. 87 which is generally effective

$211 milhon On 2014 dollarsi SCE4C is providing for estimated decorn-for fiscal years beginning after Decerr.h r 15.1986, requires the use of a missioning costs cver the hfe of Summer Station and has established a standardizcd method of measuring 1ct periodic pension expense. Upon reserve for this purpxe SCE4G is presently fundmg the reserve with adoption of this Statement, certain changes will be required in actuarial amounts collected through elatnc rates (approximately S 83 million an-assumptions and the manner in whKh net periodic pension expense is nually. rtrt of taxesi, and intends for the fund. includmg eamings, to pro-measured. The Company has chosen not to apply the provisions d the vide for all eventual dowmmissioning expenditures on an after-tax basis-Statement pnor to its effective date The Company does not believe that applKation d Statement No 87 in 1987 will have a significant effect on g

its results of operations or financial position.

The Company and its subsidianes file consohdated Federal and State income tax retums income taxes are allocated to all subsidiaries

1. Revenue Recognition

. tasal on their contnbutions to consolidated taxable income-Customers' meters are read and bills are rendered on a monthly The Company provides deferred income taxes for substantially all cycle basis Base revenue is recorded during the accounting period when tirains differences, principally accelerated depreciation, except for certain the metersare read basis differences arising prior to 193! Deferred income tax provisions are Revenue attnbutable to gas costs (to the extent collectible through includal in income currently with correspondmg credits or charges to ac-adiustment clauses) is accrued and recorded in the month during which cumulated deferred income taxes Deferred income ta es are credited or the customers' meters are read rather than when the revenue is billed charged to income in appropnate amounts w hen subscquent income tat prolated fuel costs for electnc generation are collected through the liabihties are greater or less as a result of this practice. -

fuel component in retail electnc rates. as estabhshed by the pSC durtng investment tax credits on eligible property are generally deferred ami semiannual fuel cost beanngs Any differences between actual and prol-

' amortized over the useful hves of the respative assets octed fuel costs are deferred and induded when estimating the fuel cost component during the next semiannual fuel cost hearing At December L

Expense 31.19% SCELG had collected approximately SI 6 million through the The Company has a noncontnbutory defined benefit plan covering elatnc fuel clause component. which is included in ' Deferred Credits -

all employees of its subskhanes The Company's policy is to fund pension Other1 costs trcruni Total pension expense, including the amortization of un-funded prior service cost over a ten-year perkxi. for 19% 1985 and 1984 K. Debt premium.Dbcount and Expense was approximately $104 milhort $8 7 milhon and S I 29 million respec-long-term debt premium, discount and expense are being amor-tively. The decreases in 1986 and 1985 pension expense compared to 1984 tized as components of " Interest on long-term debt. net" over the terms of are largely attnbutable to the dedication of certam plan assets to satisfy the respectivedebt issues future retirement benefit obligations to all employees retired pnor to lune L Reclaenifications

! 1983. with a resultmg darease in the unfunded pnor service cost obinatiert Certain amounts in the financial statements of prior years haw been reclassified to conform with 1986 classifications.

r

{

l l

37

2. RATEMATTERS:

The Berkeley County Pollution Control Facilities Revenue Bonds

( Annual tender - $35.850.000, due October 1. 20141 are suured by an ir.

A.On December 22.1986 SCELG filed with the PSC a report whKh revocable letter d credit expinng in 1791 The Bonds bear interest at the descnbed the anticipated income tax savings associated with the Tax Re-rate of 4 55% per annum through September 30.1987-form Act d 1986 based on the results d operations for the year ended After the interest rate periods descnbed above. the Bonds will bear December 31.1985 On lanuary 15.1987 the ISCdirected SCE6G to re-interest at a rate. whKh will be set tetween 80% and 120% of an index rate duce its retail elatnc rates approximately $25 milhon annua!!y. or 3% On based on one-year yield evaluations of comparable tax-exempt cbhga-lanuary 19.1987. SCELG hled revised retail elatnc rate schedules with the tions. or 65% of one-year yield evaluations of U. S Treasury Bonds at par.

FSC which were subsequently approved by an order dated lanuary 29 but. In any case, not more than 15 L per annum. The interest rate shall be 1987 The revised rates were placed into effett with the first bilhng cycle in adiusted annually or become fixed untd matunty These Bonds also pro-February 1987 v de that the holders may require the Bonds to be purchased at par upon B. As part d a March 2.19M order. the PSC removed from rate base each annual adlustment of the interest rate or at the time the interest rate approximately St I4 8 milhon.1S104 4 million at Decernber 31.1986)of av-kwes fd untd rnatum IW Bon 6 am ehd $he hdh the crage production investment, net of accumulated depreciation, associ-Company intends to reoffer the Bonds to the public. Due to the irrevoca.

ated with 400 MW d eintric generating capaaty However.the order al-ble letter of credit for the Berkeley County Bonds and provisions of the lowed carrying costs. computed on the basis of the approved overall rate Fairficid County Series 19M. Richland County. Fairfield County Senes of retum (l ! 741L assoaated with the removed investment to be deferred 1986 and Berkeley County Bond Indentures, which permit the Company and recovered over some future pencxi The order also allowed the recov-to purchase the Bonds in lieu of redemption and resell them. and to sub-ery. currently through rates. of all operating expenses, including deprecia-stitute other security arrangements, the Bonds are classified as long-term tion and property taxes associated with the 400 MW d electnc generating de capaaty On lanuary 22.1986, the Company's Board of Dirators authorized On lanuary 30.1987. SCELG filed an Apphcation with the PSC for ap-the early redemption d the entire $60 milhon pnnapal amount outstand-pruval to restore to its rate base, effective July 1.1987, the 400 MW of elec' ing of the 15-l'2% Guaranteed Notes d Finance. N V. due 1989 The Notes Inc generating capaaty previously removed and to also include the asso-were redeemai on Apnl 15.1986 at a pnce of 10l% of par value-clatM accumulated deferral canying costs SCE6G also requestal that On February 20.1986. SCELG redetmed at par. prior to matunty, accumulated deferred carrying costs ($364 milhon at December 31.19861 S14.110.000 prinapal amount of its 1215% Series First and Refundmg be amortizal over a ten-year pened commencing luly 1.1987.There has Mortgage Bonds due 2010 Restncted cash totaling $141 I milhon was on been no action by the PSC in response to SCE6G's Apphcation (See Note deposit with the Trustee at December 31.1985, and was available for re-IE) demption of bonds The note repayment bond redemption and the re-C. As a result d a PSC order sted March 2.19M. SCE6G twortk'd stricted cash at December 31.1985 w as reflected in " Current portion of approximately $15 milhon 120c per share. dwhidi I 4c and 4c relate t long term debt, net."as fdlows amounts billal in 1983 and 1982. respatively) as nonrecumng elatnc revenuesin March 19M Th<usands "d

D. On Ottaber 28.1985. the South Carchna Supreme Court upheld a circuit court ruling that allows the State Consumer Advocate to appeal ap-Long term debt matuntres. indudmg proximately $34 milhon of the March 2.19M or ter d the PSC granting smhng fund requirements S 30343 SCE6G approximately $1326 milhon annually in increased retail electnc Note repayment and bond redemption 74.1 t o rates Whi!e the outcome d this matter is uncertain. the Company be-Total 104 458 heves the probabihty of any significant change in the rate order is unhkely and accordingly, has not recortkxi any prousion for refunds Leetntted cash deposit i4 110 E.On December 26.19M. GENCO filal with the FERC a cost of ser-Current portion of long-term debt. net S 90.343 vice formula rate for the sale d power and energy to SCE6G Under a con-tract wit h GENCO, SCELG purchases all of the elatric power generated The annual amounts of long-term debt matunties. Induding the bythe A M.WiiliamsStation.whkhisownedbyCENCO DunngOctober amounts due under nuclear and fossil fuel agreements (see Note 4 L and 1985. a partial settlement was reachal prior to a formal hearing on the smking fund requirements for the calendar years 1987 through 1991 av remaming issues before an Administrative law ludge On February 20 summanzedas follows 19% the Administrative Law ludge issued an initial decision on the re-Year Amount Year Amount mainmg issues Briefs on exceptions to the Administrative law ludge's decision have been hied with the F ERC The Company behetes that the 4TWM D*$1 outcome of the promedings will not have any srgnihcant effat on the

, yg gg ny gy3y Compiny's conschdated hnancial statements i933

9730, i99 37333 iw ai 2w
3. LONG-TERM DEBTISec Note llh

^PP"'"

the Fairheid County Seiies 19M ( Annual tender - $57 mnhon. due I r 1987 may be satished by either deposit and cancellation of bonds is-September i[ 2014 L RKhland County (Annual tender -55 5 milhon. duc "W"

P*

SeMember 1 20l4) and Fairf eki County Senes 19861 Annual tender - Si i million. due September 1. 20141 lbilution Control facihties R6enue n yal uti pa nd fuel mventones are plaigalas col-iknis are seniral by blic pnncipil amounts of SCE6G s First and Re-lateral m connation with long term debt furxling Mortgage Bonds The Fairheid County Senes 10M and Richland County Ikats bear interest at the rate of 55% per annum through August 31.1987 The Fairheld County Senes 1986 Bonds bear interest at a rate a ual to 65% of a pnme rate but not more than 15% per annum through August 31.198714 87% a' December 31.19861 38

n

4. FUELFINANCINGS:
6. PREFERRED STOCK (Subiect to Purchase or Sinking Fundsk

.. Nudear and fossd fuel inventones are financed through the issuance Thecall premium of the respective series of preferred stock in no of short-term commercial paper. nese short-term borrowings are sup-caseexceedstheamountof the annualdividend Retirementsundersink-ported by irremcable bank knes of credit which expire in 1989 Accord-ing fund requirements are at par values

- ingly th2 amounts outstand:ng hase been induded in long-term debt The At any time when dividende have not been paid in full or declared

- bank lirtzs provide formaximum amounts ($75 milhon related to nuclear and set apart for payment on all series of preferred stock, SCESG may not fuel and $25 mdlion related to fossil fuel) that may be outstanding at any redeern any shares of preferred stock (unless all shares of preferred stock time.

then outstanding are redeemed) or purchase or otherwise acquire for At December 31,19% the amount outstanding for nudear fuel was value any shares of preferred stock except in accordance with an offer approximately $530 milhon at a weighted average interest rate of 6.88%

made to all holders of preferred stock. SCELG may not redeem any shares and the amount outstanding for fossil fuel was approximately $ 17.1 mil-of preferred stock (unless all shares of preferred stock then outstanding

. hon at a weighted average interest rate d 63% -

are redeemed) or purchase or otherwise xquire for value any shares of preferred stock except out of monies set aside as purchase funds or sink-

5. STOCKHOLDERS' INVESTMENT (Induding Preferred.

ing funds for one or more series of preferred stock, at any time when it is in Stock Not Suf#ct to Purchase or Sinking Fundsh def uit under the pro.isions d the purchase fund or sinking fund for any seriesof preferred stock The changes in " Common Stock; without par value, during 19%

On May27,19% SCESG's B rd d Directors called for the redemp-985 and 1984 are summanzed as follows:

tion d all the issued and outstanding shares d two series d that compa-nys cumulative preferred stodt In July 1986. all 135.000 shares outstand-Number Thousands ing of the 10-3/4% Senes. $100 par value were redeemed at a price of of Stares of Donars 10484%. and all 200.000 shares outstanding of the 1 I 08% Series. $100 par Balancelanuary t.1984 38.727.652 5546.927 -

valuewere redeemedata pnceof 108%

Akttional Sharesissued.

The aggregate annual amounts of purchase fund or sinking fund re-St Purchase-Savmgs Program for quirements for preferred stock for the years 1987 through 1991 are sum-5 manzedas foHows:

Employee Stock Ownership Plan 9.012 170 Dividend Remvestmentand Stock Year Amount Year Arnount Purchase Plan I.348.709 23.973 Other (1.141) 364 (WusandsotDdlars)

Niance December 31,1984 40.296.147 575 2 1987

$ $298 1990

$ 7.515 1988 12,515 1991 7.515 BalancD December 31,1985 40,296.147 575,606 1989 I4.515 Other gl.364)

~ BalancD December 31,1986 40.296.147

$574,242 The changes in ~ Preferred Stock ISubject to Purchase or Sinking.

Funds)" during 1986.1985 and 1984 are summarized as follows.

In May 1984. the Trustee for the Companys employee stock beneht Number Thousands plans began purchasing previously issued and outstanding shares of the of Shares of Dol'ars Companys common stock in the open market. Commencing with the Balance lanuary 1,1984 2.302'086

$160.604 lanuary 1.1985 dividend payment. an independent agent for the Compa-Shares Redeemed.

nys Dividend Reinvestment and Stock Purchase Plan began purchasing

$100 parvalue 120 400)

(2.0401 shares in the open market. Pnor to the above dates for each Plan, all 30 par value m 5001 Il 7m shares purchased pursuant to each Plan were shares originally issued for Niance December 31.1984 2.246.186 156 789 that purpose Shares Redeemed

. The Restated Artides of incorporation of the Company do not hmit

$100 par value 120.550) 12.055)

' the dividends that may be payable on its common stock. However, the 50 parvalue i44 408) 12 2201 Restated Artides of incorporation of SCESG and the indentures under4-Balance December 31.1985 2.1a1,228 152,514 Irc certain of its bond issues contain provisions that hmit the payment of shares Redeemed cash dividends on common stock Accordingly. $2318 milhon of consoh-

$100 parvalue t343.0701 434,3071

- dat6d retained camings were not restncted as to payment of cash divi-50 parvalue i13.3001 16651 dends on common stock at December 31.1986 Balance December 31.1986 I,824.858

$117,542 Cash dividends on common stock were dalared at an annual rate prr share d $2 24. C216 and $205 for 19% 1985 and 1984. respativdy During 19% SCESG redeemed 2.332 shares of its 840L cumulatise prderred stock.$100 parvalue 39

'Totalprovisionfordekredtaxes.na resultsfranitimingbffe

7. INCOMETAXES:

ences in rec gnition d the following items.

Total income tax expense for 19% 1985 and 1984 is as follows:

N 1985 1984 -

1986 1985 1984 N"58"d5 dO8Eid (Nusands #Do& irs)

Garged to expem Current income taxes.

heterateMWation and Federal

$ 82.637

$ 57.680'

$ 5.767 amorttration

$40,367

. $46.084

. $55.227 State 9.445 8,687 4.053 37.684 gated revenues Foreign 1177) 674 600 Deferred fuei revenue (4.616) '

(801) 249 Totalcurrent taxes 92.305 67.041 10.420 Other. net 12,816) 12.786)

(359)

Deferred taxes. net:

Totalprovision fordeferred Federal 24,257 37,289 82.466 income taxes. net

$33.635

$42.497

$92.80!

State 5,378 5 208 10.335 Totaldeferred taxes 33.635 42.497 92.801 The Company's Federal income tax retums have been examined by - ~

Investment tax credits the intemal Revenue Service through 1981 and have been closed through (l,486) 6.887 15.404 1980 A final report has been received for 1981 and all issues resolved, ex-cept those pertaining to Investment Tax Credits generated in 1982 and deferred (crediti i8.107) 16.065)

(6.173) camed backto 1981.

Other 500 e94 694 Mnkmamme Mce is currently examining the consolidated Totalinvestmenttaxcredits (9.0936 1.5 I6 9 925 Federal income tax retums d SCANA and SCEMI for 1982 through 1984.

Totalincome tax expense

$116.847 si t 1.054

$113.146 No report relating to the present examination has been received. How-ever.the Company does not anticipate any significant effect on its results 1

Total income taxes differ from amounts computed by applyii the of operations or financial position.

statutory Federal income tax rate of 46% to pre-tax income as Mkms:

At December 31.19% the cumulative net amount of income tax t!m-ing differences on which deferred taxes have not been provided totaled 1985 1984 approximately$l10 million.-

1986 (T%sandsof Dollars)

8. SHORT-TERM BORROWINGS:

~

Netincom

$122,164

$113.500

$121.818 The Company pays fees to banks as compensation for its lines of credit. Bank loans are for 270 days or less. Details of lines of credit and Chargedtooperating short-term borrowings at December 31.19% 1%5 and 1984 and for the expenses-119,108 105.783 108.768 Charged tootherincome.

(2,26l) 5.271 4.378 yearsthenendedareas follon preferred stock dividends 14.443 16.541 -

16.877 Total pre-tax income

$253.454

$241.155

$251.841 Dnnber 31.

N 3985 Income taxes on aboveat statu-tory Federalincome tax rate

$l1%589

$110,931

$ll5.847 (Dof!arsin Millens)

Increases (decreases) attributable to-

. Allowance for funds used Unesof cedit at year-end

$133.2

$879

$813 duringconstruction -

Borrowingsagainstcredit lineat (excludmg nuclear fuell 11.053)-

(707)

(5.104) year.end

$ 2.25

$25 Deferred retum on plant Average bank t)alancesdunng investment (5,727)

(5.925) 15.089)

- theyear

$ 3.5

$ 31

$ 50 Depreciation differences 5,309 5.325 5.454 Short-term borrowmgs(including

- Arnortizationof mvestment commercialpaper)duringtheyear:

tax credits (8,107) 46.065)

(6,173 Maximum outstanding

$111.2

~ $ 45

$294 State incometaxes tless

- Averageoutstanding

$ 45.7

$ 1.1

$ 25 l

Federalincome tax effect)

~ 8.220 7.503 7.770 '

Weighted dailyaverageinterest Amortization of acquisition rates-adlustment 460 460 460 Bankloans

. 7.40%

8 527% -

Other differences. net 1,15e (46N (191 Commercialpaper 636%

11.35 %

.Totalincome tax expense

$116.847

'$111_054

$113.146 Sh rt-termborrowingsoutstandingat year-end.

t l-Bankloans

$ 2.25

$ 225 Weighted averageinterest rate 3.25%

8.57%

Commercialpaper

$ 78.2 Weighted averageinterest rate 6.67%

Other

.I3

$.14

$ 5 L-Wemhted average interest rate 9.50 %

9 50 % II22%

140

. - - - - =.

9. COMMITMENTS AND CONTINGENCIES:
10. SEGMENTOFBUSINESSINFORMATION:

A,Ime Segment information at December 31.1986.1985 and 1984 and for theyearsthen endedisasfollows:

The Company leasescerta.in equipment, office fumiture and an office buildmg used for its corporate headquarters under long-term operating 1986 laases withleaseterms(excludingvanousrenewaloptions)experingin -

Electric Gas Transit Total

- 1996.1991 and 2009.respectively in connection with the ofhce building lease, dated Ottober 1984, the Company may be required to purchase a 1 % Note and Mortgage on the operating revenues

$ 809,4ss $2s9,429 $ 3.119 $i.102.036 building in the amount of $44 million in 1989 'the Company pays, as addi.

operating espenses, tional rent, any amount by which a current index rate (8.685% at Decem-excludiatdepreciation ber 31.1986) exceeds the in Note and Mortgage rate Also, the Company and amortization 544,067 261,712 6,9 I 4 s12.093 is reimbursed any amount by which the i n Note and Mortgage rate ex.

DeP ceeds thecurrent index rate.

n 80,825 9.557 245 -

90.627 Total rent expense was approximately $4 4 million. SS 0 million and Totaloperating expenses 624.892 271,269 7.159 903,320

- $20 milhon for 1986,1985 and 1984. respectuely operatingincomellossi $ Ie4,5% $ Is,160 $14,0401 198.716 Future minimum rental payments as of December 31.1986 are as

[ggg,y' Add - Otherincome, net 9.s25 tess -!nterest chartes 71,934

- Preferred stock dividends 14,443 Netincome

$ 122,164 Year Amount Year Amount Capitalexpenditures:

IThusadsWaN Identifiable

$ 110,249 $ 20,981 $ 247 $ 131,477 1987

$4 850 1990

$ 7.124 1988 5.029 1991 5.820 Utilized for overall Company operations 12,700 1989 6.935 1992 2009 117.381 Total

$ 144,177 0, Nuclearinsurance Identifiable assetsat The Pnce-Anderson indemnification Act (the Act) currently hmits the December 31,1986:

liabihty for third-party claims related to an aaident at a utihtys nuclear uulity plant, net

$l,9ss,769 $214,299 $ 1,77s $2.204,s46 inwntodes 62330 6.s45 320 70,095 generating facihty to 5695 million peraccident & Act provides that all owners of nuclear reactors may be assessed up to $5 million per reactor Total

$2,051.699 $22I,I44 $ 2,09s 2,274,94I ownal for each nuclear accident occumng at any reactor in the United Assets utilized for overall company operations 300,39I States with a hmit of two assessments peryear (a retroactive premium).

The Company's maximum exposure, based on its two-thirds ownership of Tetalassets

$2,575.332 Summer Station, would be approximately $67 million per year under this legislation.

The Act is scheduled to expire in August 1987 and Congress is con-sidering several proposals to amend the present Act. The Company is un-able to predict what actions Congress may ultimately take and what ef-1 fects such actions may have on the Company's potential liability.

The Company currently maintains policies with Nuclear Electric In-surance Limited (N EIL) and Amencan Nuclear Insurers (ANI) providing combined property and decontamination insurance coverage of $695 mil-l lion for any losses in excess of $500 milhon pursuant to existmg pnmary I coveragm (with ANI) on Summer Station The Company pays annual pre-i miums and in addition.could be assessed a retroactive premium not to l exceed 7-l/2 times its annual premium. in the event of property damage l

loss to any twclear generating fachties covered by NEIL Based on the cunent annual premium this retroactive premium would be approxi-mately$5 5 million.

To the extent that insurable claims for property damage, decontami-

- nation, repair and replacement and other costs and expenses arising from

a nuclear incident at Summer Station exceed the pohcy hmits of insur-ance, o to the extent such insurance becomes unavadable in the future.

and to the extent that the Company's rates would not recover the cost of any purchased replacement power, the Company retains the nsk of loss as a self-insurer The Commny has no reason to anticipte a serious nudear inadent at Summer Station if such an incident were to occur, it could have a matenally adverse impact on the company's financial position 41

2

' +.

J J

1985 II. SUBSEQUENTEVENTS:

Electric -

Gas Transit Total On February 9.1987, the State Consumer Advocate petitior.ed the (Thousadsof Dohrs)

PSC to require SCE6C to make additional reductions in its retail electric

' Operating revenues S 787.7 %

S318.856. S 3.689 St.110 341 rates based on data for the year 1986 to reflect the reduction of tax ex-pense resulting from provisions of the Tax Reform Act of 19861he reduc-Operating expenses.

exdudingdepreciation tions prenously authonzed by the PSC in January 1987 were based on the and amortization 528.773 289,868 7.203 825.844 results of operations for the year ended December 31,1985 (see Note 2A).

The Company intends to file the updated data as soon as it becomes Depreciation and 86.899 available.The State Consumer Advocate also requested that the PSC, after amortization 77.658 9.033 208 Totaloperating c:xpenses 6n6.431 298.901

. 7.4 I I 912.743 opportunity for hearing. issue its rule to show cause why the PSC should n t order a reduction in the Company's authonzed rate of retum on eq-Operatingincomelloss)

S 181.365 S 19.955 S(3.722l 197.598 uity. cost of debt. cost of preferred stock, and overall authorized rate of Add -Other income, net 15.721 retum. The Company cannot presently predict whether the PSC will issue j

Less-Interestcharges 83.218 its rule to show cause conceming the rate of retum

. -Preferred stock dividends 16.54I On February 18.1987. SCESG issued and sold $100.000.000 principal i

Netincome

$ 113.560 amount of First and Refunding Mortgage Bonds 8ML Senes due Febru-ary 1. 2017.These bonds are part of S200.000.000 principal amount of Capitalexpenditures.

SCE6Cs First and Refunding Mortgage Bonds registered under the Secu-identifiable S 97.525 S 24 091 $ 609 $ 122.225 rities Act of 1933. pursuant to Rule 415. under a Registration Statement Utihzed for overall Company operations 6.282 whichiseffectiveJuly 1986throughluly 1988.

wal S 128 w

12. QUARTERLY F1NANCIAL DATA (Unauditedh identifiableassets at December 31.1985:

a nrot second Third Fourdi Utility plant. net

$1.988.372 S203.060 S 2.159 S2.193.591 Oum Oum Oum Oum Annual inventones 51.356 7.337 298 58.991 7

ope Total

$2.039.728

$210,397 S 2.457 2.252.582 30.445

$247,363 $2e9.e57

$263.371 $1.102.0%

D Assets utihzed for overall Company operations 291.117 (0001

%.010 40.546 62.920 39.240 198.716 l

Totalassets

$2.543.699 Netincoene t0001 34.343 23.922 41.942 21.957 122.164 Earnings pershare 4

of common stock 1984 as reported

.85

.59 1.04

.55 3.03 Electric Gas Transit Total IThousadsotDeflars) 1985 Operatmg revenues S 746.745 S378.491 S 3.178

$1.128 414 nrst second Third rounh O w ner cuaner cuarter ouarter Annel l

Operating expenses.

excludmgdepreciation Totaloperating andamortization SG J/

34L692 5.765 854.204 revenuest0001

$311.440

$251.487 S282.733

$264.681 $1.110.141 operating Depreciationand -

'"C 'ne t0006 54.767 45318 co.788 36.105 197w amortization 67.173 7.544 197 74.914 Netincoinel000) 32.064 24.106 39A35 17.555 Ill.5e6 4

Totaloperating expenses 573.920 349.236 5.962 929.118 Earnings pershare N

Operatingincomelloss)

S 172.825 5 29.255 S12.784) 199.296 20

.e0

.99 4

232

' Add -Otherincome. net 17.647 Less-Interest charges 78.248

-Preferred stock dividends 16.877 j

Netincome

$ 121.818 Capitalexpenditures l.

identifiable S 259.208 5 20 402 S 504 5 280.114 Utilized for overall Company operations 3.405 Total S 283.519 Identifiableassets at December 31.1984-Utihty plant. net

$1.992.206

$188.077 S 1.820

$2.182.103 Inventories 40.227 7.783 281 48.291 Total

$2.032,433 Sl95 860 S 2 101 2.230.394 Assets utihzed for overall Company operations 269.300 Totalassets

$2.499.694 42

Common Stocklnformation 1986 1985 i

4th 3rd 2nd Ist 4th 3rd 2nd ist Otr.

Otr.

Otr.

Otr.

Otr.

Otr.

Otr Otr PrkO Range:[a)

High 39-7/8 42-7/8 36-l'4 33-l/4 28 28-1.3 28 23-7 8 low 36 34-l/2 31-1/4 27-l/8 23-7.B 23-3 8 23-7.8 22-1,3 DMdends PerShare:

1986 Amount Date Declared Date Paid First Ouarter

$56 January 22,1986 April I,1986 Second Quaner

.56 April 23,1986 July I,1986 Third Ouarter

.56 July 23,1986 October I,1986 Fourth Quarter

.56 October 22.1986 January 1,1987

-1985 Ameunt Date Derfared Date Paid First Quarter

$ 54.

lanuary 23.1985 Apnl 1.1985 SecondQuarter 54 Apnl 24.1985 July 1.19c5 ThirdQuarter 54 fuly 24.1985 October 1.1985 Fourth Quarter

.54 October 23.1985 January 1.1986 December 31, 1986 1985 Numberofcommonsharesoutstanding 40,2 %.I47 40.296,147 -

Number of common stockholders of record 51,738 57.439 The principal market for SCANA common stock is the New York Stock Exchange (stock s>Tnbol-SCG)

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

l l

I l

i 1

43

..,. -, _ _.._ ~. _... _._.,__ ___,.._. - -_. _ _... _ -. _ _ _. _ - -.

4 Management's Discussion and Analysis of Financial Condition and Results of Operation UOUIDITY AND CAPITAL RESOURCES RESULTS OFOPERATIONS Eamings and DMdends The capital needs of the Company anse pnmarily from the capital requirements of SCEGCs operations and construction program Because

. Eamings per share of comrnon stock (based on the weighted average l rates for regulated services are based on histoncal cost amounts. to the number of shares outstandmg). the percent increase (decrease) from the extent inflation occurs and rates are not appropriately adlusted on a previous year and the rate of retum eamed on common equity for the timely basis. the Company's regulated subsidiaries will not be allowed an years 1984 through 1986 were as follows opportunity to recover the costs of providing services Therefore. the 1986 1985-1984

' Companys future financial position and results of operations could be impacted by any future inflationary trends Eamingspershare

. $3.03

$2.82

$305 Theabilityof theCompany'sregulatedsubsidiariestoreplace Percentincrease(decrease) existing plant investment, as well as to expand to meet future demand.

in eamings pershare 7.4%

(7.5%) 33 2 %

will hkely depend upon its ability to attract the necessary financial capital Retumeamed oncommon on reasonable termslhe abihty to attract such capital could. in tum.

_ equity (year-endt 14.6%

I41% 15 7 %

depend upon the subsidianes ability to obtain adequateand timely rate rehef Eamings per share increased from 1985 pnmanly as a result of higher Contmued growth in the Company's non-utihty operations, along electnc energy sales related to the 1986 summer heat wave lower interest with future economic expansion throughout the utihty service temtory.

charges and reduced dividend requirements on preferred stock assocated could have a positive impact on total Company camings.

with the early redemption of two issues of SCEGG s preferred stock (see The pnmary cash requirernents for 1986 were. and as estimated for Nate6of NotestoConsohdatedFinancialStatements).

1987 are.aslollows:

The decrease in ecraings per share for 1985 was pnmanly attnbutable to the recordingof a nonrecurring gain of 20c per share in l987 M86 March 1984 (see Note 2C of Notes to Consolidated Financial Statements)

(Thsands@lars) and a decrease in AFC (see discussion below) and decreased sales of Construction expenditures, exduding natural gas in 1985 in addition to the nonrecurring gain recorded in 1984 allowanceforfunds useddunng the increase in earnings per share dunng 1984 reflects various rate construction (AFC)

$156.790 $125,090 increases placed in effect during 1984 and 1983 and improvul elecinc and Nudearfuelexpenditures 25.529 15,806 natural gas sales.

Maturing obligations. redemptions and AFC is a utihty accounting practice whereby a portion of the cost of sinking and purchase fund requirements 18.000 144.477 both equity and borrowed funds used to finance construction (which is -

shcwn on the balance sheet as construction work in progress) is Total S200.319 $285,373 capitalized Both the equityand the debt portions of AFC, exduding nudear fuel, are noncash items of nonoperating income which have the During 1986. approximately 57 3% of total cash requirements were effect of increasing reported net income by their full amounts. AFC.

provided from intemal sources as compared to 89.7% m 1985 Ecemal exduding nudear fuel. represented approximately 2% of Eamings funds for 1986 were prosided through the issuance of S78.2 million short-Available for Common Stock in 1986 and 1 85. decreasing from term commercial paper and the sale of $1.1 million in tax-exempt annual approximately 9L for 1984 The dechne in AFC reflects a reduction in tender pollution control facihties revenue bonds construction expenditures pnmanly relating to the V. C Summer Nudear The Company anticipates that 1987 cash requirements will be met Station completed and transferred to plant in service in 1984.

pnmanly tbrough intemally generated funds. short-term borrowings and The Company also records carrying costs (indudmg equity retum i the sale of commercial paper Actual 1987 construction and nudear fuel associated with the production investment. net of accumulated expenditures may vary from the estimates set forth above due to factors depreciation. relating to 400 MW of electric generating capacity removed such as inflation and economic conditions, regulation and legislation.

frorn ratebase as a result of a March 2.1984 rate order of the PSC (see rates of load growth. environmental protection standards and the cost Notes I E and 2B of Notes to Consolidated Financial Statements). Total n Muded unda hincon# as n

7.SCESG sold $100 million pnncipal amount of

'#"U"E '**'m" " " an.

ngMM b mye m

n m

First and Refunding Mortgage Bonds. 844% Series due February 1. 2017 m

egentamma@ E %a6d for net proaeds of $98,078.000. The net proceeds were used to repay a hke mmgs Ava ef r mnmStocMortheyears 1% leaM W84 amount of short-term indebtedness outstanding at the date of sale Such short-term indebtedness had been incurred to prepay or pay at maturity nuary 1987, the Company's Board of Directors raised the long-term debt and to redeem preferred stock during 1986 quarterly cash dividend on common stock to 58 cents per share from 56 SCEGG presently has in effect a shelf registration statement under cents per share lhe increase. effective with the drwidend payable on Apnl which it can issue an additional S100 milhon of First and Refunding 1,1987, raised the indicated annual dmdend rate to S2 32 per share. up Mortgage Bonds. Whether additional securities will be sold and the from S2.24. The Company has increased the dividend rate on its common timmg and amount of such sales will depend primanly upon market stockin 34of thelast 35 years conditions and ether factors in existence at the time Forinformationrelatingtooperationsof theCompanyssubsidianes see 1986 Year in Review beginning on page 6.

\\

44 1

Operating Revenues Operating Expenses Revenues from the sale of electric energy increased $21,7 million increases (decreases) in operating expenses, exduding taxes, are t 2.8%) and $410 million (5 5%) for 1986 and 1985. pnmanly as a result of presented in the following table-Increased lulowatt-hour consumption by residential and commercial increase (Dmease) customers ne increased consumption was largely due to the addition of 10.584 (3.1%) and 12.539 (38L) residential customers and 2.092 (4 4%)

and 2.287 (505) commercial customers dunng the resp &tive penods. Be dass6non n86 1985 increases in revenues were partially offset by revenue adjustments relating to changes in the cost of fuel. which is a component in electnc tudionsofDollars; base rates If actual fuel costs are higher or lower than those projected. the differencesarerecordedasincreasesordecreases respectively.In Fuelused in electric generation

$(13.2)

$ 55 optrating revenues.

Power purchased. net 6.0

(!! $)

On January 21.1985, the Compary estabhshed a record peak cas puchamHor resale (30.83 (42 5)

Otheroperation and maintenance 8.6 19 1 demand for electricity of 2.703 MW. surpassing the previous record of u na am e n u

12 0 2.7CD MWset on August 27.1983 Dering 1986.the Company's peak demand record was broken four times Record peaks were set on January Total

$(25.7)

S417.4) 27 and lanuary 28 as a result of urmsually cold temperatures On luly 8.

1986, in the midst of one of the state's worst heat waves in nearly a The decrease in Fuel usaf in ehtnc gneraton expense for 1986 was century. the record fell again and re July 9 the all-time peak demand d pnmarily attnbutable to a reduction in the average cost d fuel bumed 2.853 MW was set.

l$145 versus $1.63 per million BTU in 1986 and 1985. respectively).

Increases (decreases) in elednc customers and megawatt-hour primanlyattnbutable to nudear fuel The increase for 1%5 was due lMWl sales volume by classes of customers are presented in the fallowing pnmanly to increased generation as a result of greater customer demand.

table.

The increase in pmr purdiasaf. net for 1986 was largely due to decreased smes of electricity to other utilities The decrease for 1985 results primanly increase (Decrease) From PnorYear fraimsdesM6@&Mhhhe &

Customers Volume tMW) pardiasaf forresaleexpense for 1986and 1985 reflect reductions in thecost Classification 1986 1985 1986 1985 of gas purchased from the Company's suppliers He decrease in 1985 was also partially attributable to an overall decrease in consumption of Residential 10,584 12.539 434.464 II3.424 natural gas.Otheropera:Un and mam!cnance expenses for 1986 increased Cenmercial 2,092 2.287 233,748 220.986 pnmarily because of the settlement of certain claims relating to injuries industnal (17)

(22) 31,956 53.536 and damages and moderate increases in othat administrative and general expenses, induding pension expense (see Note 1-1 of Notes to Ot r 4

Consolidated Financial Statements) The increase for 1985 was largely due Total' I2,701 14.850 663,245 450.993 to additional operation and maintenance costs associated with the commercial operation of Summer Station as well as increased electric Revenues from the sale of natural gas decreased S294 million (92%)

expense f r 1986 and 1985 reflect additions to plant m service. induding in 1986 and $596 million (158%) in 1985 The decreases in revenues were Summer Station and the Wilhams Station coal conversion in 1984.

primarily attnbutable to reductions in the cost of gas purchased from the Company's suppliers, which are passed along to customers through a Interest Charges purchased gas adjustment dause. and decreased unit sales to industrial interest on long-term debt decreased $156 million in 1986 and S19 customers nese unit sales decreases, approximately 7.7% and 131%.

million in 1985 compared to the respective previous years ne decrcases respedively wre mainly the result of increased competition from lower-in 1986 and 1985 result primanly frorn redemption. pnor to matunty.of priced attematrve fuels used in certain industrial markets'

$14 I I million (1215% Series. due 2010) pnncipal amount of First and increases (decreases) in gas customers and decatherm (DT) sales Refunding Mortgage Bonds m February 1986. $60 milhon pnncipal volume by dasses d customers are presented in the following table amount of the 15-1/2% Guaranteed Notes of South Carolina Electric & Gas increase (Decrease) From PnorYear Finance N V. in Apnl 1986. $6625 milhon (16% Series, due 201 I ) and $8.3 i!! ion ( 15-58% Series, due 19871 pnncipal amount of First and Customers VolumeIDT)

Refunding Mortgage Bonds in March and May.1%5. respectively Classification 1986 1985 1986 1985 Other interest expense increased $40 million in 1986 and decreased

$2 I million in 1985 compared to the respective previous years The Residential I,442 1.148 487,447 i t.5 MISO)

Commercial 532 290 207.888 (743 252) increase in 1986 reflects the increase in short-term bonowings during the industnal (35) 9 (2,353,490) (4 614.44I) year %e d&rease in 1%5 w as primanly the result d interest expense Sales for Resale 1I 4.124,761 (2.060.547) recorded in 19M which was associated with htigated revenues that had beencollected subject to refund Total I.939 f.458 2.466.606 (8.984 190) 45

Selected FinancialData For theYears Ended December 31.

1986 1985 1934 1983 1982 1981 1976 STATEMENT OFINCOME DATA ITfousamis d Dollars crcet statistics and 97 sfure aneunts)

Operating Revenues:

Electnc

$ 809,488 S 787.7 % $ 746.745 5634.127

$574.l l3

$555 716 5275 892 Cas 289,429 318.856 378.491 337.282 266.389 188.167 71.948 l

Transit 3.119 3.689 3.178 3.242 2.603 2.429 1.996 l

TotalOperating Revenues I,102,036 1.110.341 1.128.414 974 651 843.105 746.312 349.836 I

Operating Expenses Fuelusedin electricgeneration 216,076 229.249 223.768 260 381 214.617 234;43 116,892 Cas purchased fct resale 215,928 246.760 289.212 277.091 220.502 154.502 44.789 Otheroperation and maintenance 209,629 195.031 187.448 135.374 147.840 l18519 52.473 Depreciation and amortization 90,627 86.899 74.914 45.000 43.406 39.691 T'.825 Taxes 171,060 154,804 153.776 106.932 77.033 89.049 4' 724 TotalOperating Expenses 903,320 912.743 929.118 824.778 703.398 636.004 290.703 Operatingincome 198,716 197.598 199 296 149.873 139.707 110.308 59.133 TotalOtherincome 9,325 15.721 17,647 11.571 5.230 21.095 24.522 Income BeforeInterest Chargesand Preferred Stock Dividends 208,541 213.319 216.943 161.444 144.937

'131.403 83.655 Totallnterest Charges. Net 71,934 83.218 78 248 57.5 %

57.121 55.520 39.839 lWferred Stock Cash Dividends of Subsidiary 14,443 16.541 16 677 17.186 16.371 14 245 9.169 Net income

$ 122.164 S 113.560 S 121.818

$ 86.752 S 71.445 S 61.638

$ 34.647 Weighted Average Number of Commen Shares Outstand:ng (Thousands) 40,296 40 296 39.900 37.844 34.387 28.139 17.547 Eamings PerShareof Common StM

$3.03 52 82 53 05 S2 29

$208 52 19

$197 Dwidends Dalared Per Share of Common Stock

$2.24

$216

$205 S2 00

$192

$182

$152 Percent of Operatingincome Itoss)

Beforelocome Taxes:

Electnc 93 92 87 93 98 101 88 Cas 9

10 15 10 5

2 15 Transit (2)

(2)

(2)

(3) 131 (3)

(31 i

l t

l 1

46 L

112cembar 31.

1986 1985 1984 1983 1082 1981 1976 BALANCE SHEET DATA (Thousands 4 Dollars exapt stattstics and per shareamounts)

Gross ut:hty Plant

$2.959,494

$2.859.117 $2.764.809

$2.509.581 $2.411.479 $2.131.689

$1300.780 Total Assets

$2.575,332

$2.543.699 $2.4M694 $2358134 $2.202.755 $1.958.772

$1.171.630 TotalCapitahration

$1,725.935

$1.769.952 $1.855.252

$1.685.990 $1.703 860 $1,478391

$ 971.493 Common SharesOutstanding (Year-End)(Thousands) 40,296 40.296 40.296 38.728 36.526 29.690 17.834 BochValue PerSnareof Common Stock (Year-End)

$20.77

$2001

$19 31

$18 33

$1805

$18 39

$17 ll OTHERSTATISTICS Electric:

Customers (Year-End) 406,511 393.810 378.960 366.424 356.709 350.5 %

312.617 Sak.3(Million KWHI 13,704 13 041 12.590 12.063 11.490 11.763 10318 Re:tdential, l

/ verageannual useper customer (KWH) 12.821 l 1.992 12.061 12.009 11.712 12.133 11320 Averageannual rate per KWH

$.0759

$0774

$0757

$ 0642

$ 0637

$ 0577

$ 0361 Generating Capabihty-Net MW (Year End) 3,890 3.959 3.959 3 359 3359 3359 2.852 Temtonal Peak Demand-Net MW 2.853 2.703 2.5%

2.700 2.463 2.557 1.994 Gas.

CustomerslYear-Endl 192,941 191.002 189.544 187,638 186.320 169.294 161.473 Sales (ThousandTherms) 671,881 647,215 737.059 671.429 590.257 493305 490.830 Residential Averageannual use per customer (therms) 548 524 618 610 570 665 767 Averageannual rate per therm

$.68

$67

$ 69

$ 65

$ 56

$ 49

$ 23 Transit-NumberofCoaches 117 122 123 112 104 104 Revenue Passengers Camed lThousands) 8,699 9.032 9 658 9.744 10.720 10.820 8.915 i

l l

l l

i 47

,i

.InyestorInformation Corporate Headquarters SCESCPrefermfStah Palmetto Center South Carolina National Bank -

1426 Main Street

- SecuritiesTransfer Services -

Columbia.SC 101 Greystone Boulevard Telephone:(803) 748-3000 Columbia.SC 29226 MallingAddress TransferAgents SCANACorporation Common Stat l

Columbia.SC 29218.

South Carolina NationalBank SecuritisTransfer Sewics l

1 Common and Preferred Stock IJstings 101 Gmystone Boubard The common stock of SCANA Corporation Columbia.SC 29226 is listed and traded on the New York Stock Exchange. The ticker symbol is SCG. The ManufacturersHanove TrustCompany corporate name SCANA is used in newspa. StockTransfer Department - 8th Flocr 450 West 33rdStreet perstocklistings.

The 5% series cumulative preferred stock of NewYork, NY 10001 SCESGisalsolistedandtraded onthe SCESCPreferred Stat New York Stock Exchange. The ticker sym-South Carolina NationalBank l

bol is SAC Pr; the newspaper listir.g is SecuritiesTransferServices SCrE pf.

101 Greystone Boulevard Columbia.SC 29226 l

DMdend Payment Dates Ouarterly dividends on common stock are The Chase Manhattan Bank.NA normally payable on the first day of Janu-StockTransfer Department ary. April. luly and October to stockholders P.O Box 469. Washington BridgeStation of record on the loth dayof the month pre-NewYork.NY 10033 BoCmad Nag Agent D id o SC s p eferred stockare O

paid quarterly on the same dates as the Bo common stockdividends' Manufacturer's Hanover Trust Company l

DMdend Reinvestment Plan CorporateTrust Department - 10th Floor SCANA offers a Dividend Reinvestment 600 Fifth Avenue and Stock Purchase Plan toitscommon NewYork.NewYork 10020 stockholders of record. A Prospectus. Au-InvestorCommunications

- thorization Form and retum envelopeare Interim reports providing updated financial automatically mailed to all new stockhold-information and Company news are sent to ers Forfurtherinformationorforquestions stockholders with each dividend mailing. A about your reinvestment account, write t copyof SCANA's Annual Reporton Form 1

the Investor Relations Department (054) at 10-K (as filed with the Securities and Ex-theCompany's mailing address.

change Commission) and the Statistical StockholderInquiries Supplement to the 1986 Annual Report are Questions conceming dividend accounts available to stockholders and others with-or related stockholder matters should be out charge. Inquiries conceming activities directed in writing to the investor Relations of SCANA Corporation and requests for Department (054) at the Company's mail-publications should be addressed to H.

ingaddress.

lohnWinn 111. Manager-investorServices (054) at the Company's mailing address.

Deloitte Haskins& Sells Analyst'sContact Certified Public Accountants H. lohnWinn.Ill 1426 Main Street. Suite 820 Manager-InvestorServices Columbia SC29201 Telephone:(803) 748-3240 Recordkeepingand Paying Agents Investors' Association This report is issued sddy for the rurnv 4 gmag in-Common Stat For information about this organization's Jrmaten it is nor inten&#r usein connaten d6 any SCANACorporation activities, write to Association of SCANA rsorrunfase 4 orany sdiatation #ders to (wy or Stockholder Records Department (054)

Investors, c'o Mr. Paul Quattlebaum f r.,

- scfl.any snandes.

Columbia.SC 29218 63 East Bay Street. Charleston. SC 29401.

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Corporate Statistics:

FiscalYear -

6/30/86 ; 6/30/85. 6/30/84 6/30/83 6/30/82 6/30/81 6/30/80 ' 6/30/79 6/30I78 ' 6/30/77 Total Utdity Plant-net induding M pudcar fuel (at } car end) r (in thousands of dollars) 1,745A91 1,773J88. 1,779.161 ' 1,670,571 1,467,710 1,20 1200

~950.628 759,839 ' 577,936 - 437,162 ~

Ih,nded indebtedness (at year end)

, IJ96.545 1,735.850 1,261,420 990.100 : 917,690 810 190 495,190' (in thousands of dollan) 1,938,230 1,919J50. IJ88,750 Operating Rnenues

~

(in thouunds of dollan) s Re,identul -

' 46,529 _

41.414 35.572

_ 28,098 27.121 21,949 17,639 15.25)

'14.585

. 10,801,

Gimmercial 46Je9 39,268 32,865 _ 28.853 28,145 22,452 18,835' 16,822 11530

,12,439.

Industrial 139,681

'l52,549

' l32.833, 124,015 131,189 99,551'

' 40,417

' 35,131 26,672 21,557 hhhtary.

18,000 15,649 13,978 12,M93 12,487 9.225 6,954 6,567 6.330

. 5.049

%funicipal 1,792 I,575 1,254,

1,029 955 704.

587 546

- 526 422 Other Electric l'tilitin'

' 198,826 177,906 140,211 126.104 '

105,994 90,971 65,997 '

59,975 54,101 42,265s Wholesale w

975 hiiuellaneous -

. 3,463

- 2,261 1.986 IJ16

' 1,840

' t,494.

1,364 1,401-1,236 1,219 Total 455,000 430.622 ; 358,699 322J08 307,731 246,346 151593-135,697 118,980;,94J27 '

l Operation & hiainiename Expenses Charged to Operations 71,904 tin thousands of dollan) 260,955 ' 259,233 236.389 211976 226,32t) 187.890 109.997 103,928.

88,144 Pasments in Lieu of 'Iaxes

. Charged to Operations

. 966 928 -

-726

..658 734 On thousands of dollars) ~

2,176 1,920 1,750 981 565 Pas ments to the State Charged to Rcinsesied Earnings l.200 1.201 IJ97..

(in thousands of dollan)

I,901 1J00 1,600 1,500 1,400 1,300 1.300 '

Net Operating Rnenues.

Avadable For Debt Senice

- (in thouunds of dollan) 219,072 195,899 136,186 118.230.

94,219

,66,503 -

46J32. -31958 33J96 '

28,091 Reimested Earnings".

30,106 45,948 50,515-41,057 53,131' 29.330 21,406 10J91

- 5,516.

8,978.

(in thousands of dollars)

Debt Senite Oncrage:

1.83 1.69.

2.18 1.90 2.41.

2.12

.2,30 134 Expansion ihmds -

- 1,47 '

-1.61 Piiorits Obligation & Expansion Bonds 1,46 1,59 IJ8 1.65 2.07 1.79 2.14 -

1.88 1.98 '

2.46 Kilowarduiur $ ales (in thousands) 646,467 559,929 541,522 536,461 472.495 - 443,186 '. 446,247 401107

'l Residential 720,438 : 672,865 0>mmercial 812,520

.738,430 688J48' 595Jj4 569.474 549J37 5tlJ26~ 506,243. 489,437 449,335 5fahtary 443,064 405,802 392.309 373,403 _ 350,127 / 341258 : 306,582 ^IJ88,087 7 1,441.494 1,356J06 Industrial 4,557,796 4.501,626 4.232,994 3.940,3,0 4,049,632.3,952,408 1,890,415 316,537-321763 302JN9 Nfunicipal 30,500 29.571 21448 20.236' 17,841 '

17.572 17,506 16.966.

16,670 15.495 Wholesale -

4,214,322 3,878.087 SJ98.454 3,422.275 3,351.388 3,470,042 3,099,574 2.881J81 2,843,955 2.576J94 Total.

.I0,778,640 10326.381 9,781,420 - 8,911,937 8,879,984 8,869,478 6,298.298 5.592,800 5,561,566 5,104,226

,:l Number of Customers (at scar end) 38.058 35,590

'32.513 r

Residential 63,895..

59J55 55.610 50,255 46,310 41462

' 40,053 ~

0>mmercial 13,733 13,553 11,601 10,5M3

'10,129 -

9J54 9.236.

8,859 8,466

' 8.102 Industrial 26 26 26 25 25 25 24 21.

20 19 1hhtary 3

3 3

3 3

3 3-3 3

3 s

hf unicipal 372 342 329 300 224 216 212 207 ~

197 189 s

Whoinale

.3 3

3 3

3 3

3 3

'3 3

' lutal 78,032 73,6M2 67,572 61,169 a6,694 53,463 49,531 47,151 44,279

.40,829 :

Rnidential Statistics (average)

~ 12.093 12,875 12.151 12,097 '

11174-12,832 Cents /Kilomanhour 6.46 6.15 150

'11J08 Kilowatthout Comumption/ Customer 11,591 II,6%

12.210 5.02 5.01 4.09 333 3.44 1 27 2.68 -

' Generating Capabihty (year end) -

1,456 1,400.

1,120

- (megawans) 2J59 2J64 2J64 2,265 -

1,965 1,965 IJ36 Power Requirements and Supply (Likmatthours in milliom)

, Generation-thdro

. 413 485 628 694 522

'414 824

.680 702

- 715~

Ssam 8,472 '

. 8,442 7,284 s.840

'8,492 8,620

'5,800 5.343 5,238 4,402 Combustion Turbine t

, 2 18 31 10 6-38 21 Nudcar 1,871 1,516

-1,931 494 lotal 10,756 10,444

- 9.848 9,028 9,032 9.065 6,634 6.029

' 5,978 5.138 Purc hases, Net Interchange, Eic, 353 227 355 ~

333 380 371

_ 193 429' 95.

474 Total 11,I09 10,671 10,203 9.361 9,412 9,436 6,827 6,458 6.073 5,612

' Calendar Year 1985 19N 1983

~1982 1981 1980-1979 1978' 1977 1976 Territorial Peak loademegawatts) 2,006 1,824 1,810 1,685 1,754 1,554 1,352 1,231 1,161 I,065

  • ElIectivejuly 1,'1977, Interchange sales were reclassified as a credit to purchased power.
  • Reinvested eat nings referred to abme and on pages 50,51; and 52 reflect resenue available to meet Santee Cooper's Bond indenture

' and Resolution requirements, II s

\\

- Financial Summary Souire ofIncome FY86

~

Since Santee Cooper was created in -

%lMfy"3 ]

m l

1931, a net amount of $2f)98,143.000 indourial sacs MM has been invested in its production; siswaw y<gl transmission, distribution, and msn7meum,I l.

general plant facilities.These capital gylgg l m

additions have been financed through otin imon, reinvested earnings issuance of elec.

smp gsI I

tric revenue bonds and notes, lease si7mo20 ts7ss') I contracts, and a federal grant in-aid of OQ/;"g lg

- $31,438,000.

o.in unirm anenue ll 514rai88in7:s)

Santec Cooper's net earnings before s12NN'liN"$ I taxes since the first power was generated in 1912 total $394,436,000.

Payments in lieu of taxes base been Distribution ofIncome FY86

. made to the State of South Carolina.

totaling $26,423D00, and to the coun.

ties and municipalities within our ser.

Ni$"MYdUlM M

M I

vice territory totalitjg $14,263D00. The

,n7,y.al,gg l m

m remaining net carmngs of opamum se uenien.ime a r m. d #'7 N S *rI ;I

$353,750,000 hase been reinvested in

(

i swoossouis%)

E the Authority.

Retirenwnt of Deta !E sl%M4.132(231%)

Revenue bonds totaling $2D66,609D00 P.n nwnis to the Stae g

have been issued since the creation of.

s g,

Santec Cooper. Series 11 bonds which susseis ms4u I were originally issued in 1949,1971,

)

1976, and 1981 have been advance refunded and defeased. Also, port lons of the 1980 Series A,1981 Series A &

C, and 1982 Series A &11 hase been ad-vance refunded and defeased.

All refundingbonds had an outstand.

ing balance of $958,649D00 at the time Average Residential Consumption & Cost Gauu'ns*m mwl0 FM they were refunded. Principal payments on all bond issues, including 33 Outstanding bonds as ofjune 30,1986-n$nI E.

I the issues refunded, total $69,730D00, s,,,ee co yr H M*i E

totaled $1,938,230,000.The average an.

83 I

EE nual interest cost on these bonds is 7.5 smiona

    • i5

[3s !

percent.

)

As ofjune 30,1986, unexpected funds

"""*"'*"0 "

from the sale of bonds amounted to

$63,593D00 in addition to debt reserve, g3 debt service, interest and special funds s niccomper 615' which totaled S271,771000.

gT;.

83 l

samnat 743-r s

L

~

Corporate Statistics Fiacal5 ear.

6/30/96 -- - 6/30/85 -.. 6/30/8'4 6/30/83 6/30/82 6/30/81 6/30/80 6/30/79 ~

6/30/78 ' 6/30I77 '

' Toial Ordits Plant net induding -

1 nuclear fuct (at scar end)

(in thousarwis of dollars) -

1,745391-I,773J88 -1,779,161 ' I,670,571 1,467,710 1.201200 950,628 759,839 ' 577,936 1 437,162' Bonded Indebtedness (at )) car ciul)

. IJ96315 1,731850.. 1,261,420 990,100 - 917,690 810,190 : 495,190-(in thouunds of dollars '

1,933,230. I,919,750.- 1,788,750 Operating Resenues

. (in thousands of dollas) -

.15,255, 14.585 10,801.

Residential -

46329

. 41,414 35,572 28.098 27,121 21,949:

17,639 Commmial ' e 46,709 39,268 32,865 28,853 -

28,145 22.452.

-18,835 16,822 15,530

.12.439.

Industrial 139,601

'152.549 132,833, 124,015 131,189 99,531' 40,417

' 31131

. 26,672 21,557 j

' Shhrary

.18,000 15,649 13,978 12,893 12.487 9,225-6,954 6,567 6,330 5,049 1

Stunidpa'

1,792 I,575,

1,254,

1,029 955 ~.

704 587 546

' 526 422

. Wholesale '

~' 198,826 177,906 140.211 126,104 10 1994 90,971 61997 59,975

- 54.101 '

'42J65 975 Other tlectric t'tilities*

.l.364 1,401 -

1.236 1,219 hfiuellaneous -

3,463 2,261.

I,986 I,716

' 1,840

' t,494 '

i Total 455,000 430,622 358.699 322J08 307J31 246,346 151,793-131697 118,980; 94J27

' Operation & hlaintenance Expenses Charged to Operations

- (in thouunds of dollars) 260,955 - 250,233 236,389 - 218.976 226.32Q 187,890 109,997

.101928 88.144 71,904 Pa)ments in lieu of Taxes C.harged to Operations (in thouunds of dolla4 '

2,176 1,920 IJ50 981

~ 565 966 928

-726 658 734

'Pa ments to the State

' Chaged to Reimested Earnings -

I,200 IJ01 IJ97 (in thousands of dollas) 1,901 IJ00 1,600 1,500 1,400 1,300 1,300 '

Net Operating Resenues Available For Debt Service

- (in thousands ol dollars) 219,072 191899 136,186 118,230,

94.219

,66,503 46J32 31958 33396 28,091

, Reimested Earnings" -

10J91.

5,516.

8,978,

fin thousands of dollars) 30,106 45,948 50,515 -

41,057 53,131 29,330 21,406 Debt Sersite Cmcrage:

1.61.

1.83 1.69.

2.18 1.90 2.41 2.12

.230 334 Espansi<m Bomis 1,47

- Printity Obligation & Expansion Bond 1,46 1.59 158 1.65 2.07 139 2.14 1.88 1,98 2,46 Kilomanhour Sales (in thouunds).

472,495 - 441186 ' 446,247 403,107 Residential L 720,438 672,865 646.467 ' 559,929 ' 541,522 536,461 688J48~. 595J 4 569.474 549,737 511J26. 506,243 489,437 449,335 Commercial 812.520. 738,430 4J32,994 ; 1940,3]s0 _ 4,049,632

_ 1,890,415 IJ88,087 1,441,494 1,356J06 1952,408 Industrial 4,557J96 4,501,626 1hhtaiv -

443,064 401802 392,309 373,403 350,127 ~ 343,258 306,582 " 316,537 323J63 302J89 4

Afonicipal 30,500 29,571 25,488 20,236 17,841 '

17372 17,506 16,966 -

16,670 11495 Whoicule -

4,214,322 1878,087 SJ98.454 ' 3,422.275 1351,388 3,470,042 3,099,574 2.88 tJ81 2,843,955 2.576J98

~ Total -

10,778,640 10,226,381 9J84,420 8,911,937 N,879,984 8,869,478 6.298.298 5,592,800 5,561,566 5,104,226 -

Number of rustomm lat > car end)

Residential 63,895 59J55 55,610 50.255 46,310 43,462 f 40,053 38,058 35,590

'32,513 Commenial 13,733 13,553 11,601 10,583

'10,129 9.754

~ 9,236 8,859 8,466 8,102 Industtial 26 26 26 25 25 25 24 21.

20 19 Military 3

. 3 3

3 3

3 3

3.

3 3

hlunicipal 372 342 329-300 224 216 212 207 ^

197 189

- Wholesale 3

3 3

3 3

3 3

3 3

3

" l otal 78,032 73,682 67,572 61,169 56,694 53,463 49,531 47,151 44,279 40,829 Residential statistics (average)

Kilowatthour Consumption / Customer 11,591 11,696 12.240 11J08 12.093 12.875 12.151 12.097 '

13,174' 12,832 Cents /Kilomatthour 6,46 6,15 5.50 '

5.02 5 01 4.09 333 144 3.27 2.68 -

Generating Capabihty (year end)

(megawatts) 2,759 2J64 2J64 2,265 1,%5 1,965 IJ36 1,456 1,400 1,120 Pomer Requirements and Supply Qilowatthours in millions)-

, bencration-flydro.

413

. 485 628 694 522 414 824 680 702 if5 j

Steam 8,472 -

8,442 7.287 7,840 8,492 8.620 5,800 5.343 5J38 4,402 Ccmbustion Turbine I

. 2 18 31 10 6

38 '

. 21 Nudear -

I,871 1316 1,931 494

' 5,978 5,138 T otal 10,756 10,444

- 9,848 9,028' 9,032 9,065 6,634 6,029

. Pun hases, Nc: Interc hange, Etc, 353 227 355 333 380 371

_ 193 429' 95 474 Total

' 11,109 10,671 10,203 9.361 9,412 9,436 6,827 6,438 6.073 5,612

' Calendar Year

'1985 1984 1983

'1982 1981 1980 1979 1978 1977 1976 Territorial n'eak loads (megawaite 2,006 1,824 1,810 1,685 IJ54 1354 1,352 I 231 1,161 1,065

  • Elfectivejuly 1,'1977, Inierchange sales Were reclassified as a credit to purc hased power.

OReimested can nings referred to abme and on pages 50,51, and 32 reflect resenue available to meet Santee Cooper's Bond Indenture and Resolution sequirements i

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Table of Contents The Palmettvfree.

It s enduring qualitirs have earned its place.

L, -

ment on the stateflagand state seal, and as a Corgn> rate Statistics.

. ii sy mbcd iepresenting South Carolina. The theme Finantial Stumnary.

. iii of this annual report is "Wple, nnar. and the Coinpaiatise liighlights.

.I l'dl*'H" S'd-" 'h' "I""io" "/ d" '"d"'i"K combinatwn ofe< onomie rewurces.

$g; ;9g n

Chairinan an<l Presicient's i.etter

.3 Energy Sales.

.I

!)istiilnition Sprein.

.4 Energt Nian.igemen t.

3 i

Generation ant! !.oatl Giowth.

.10 V

Nuclear Power.

.10 Splein Planning.

.10 Powei Supply.

.10

't ranunission.

10 l

Reliability 10 i

Enginect ing an<l Consti u( tion Comparative Highlights slanaxenieni -

ii Generatioit antl Iransnu.ssion S plein.

Il Fiwal Year 1986 1983

% Change Power Generating Stations.

.16 Retail Customers Sene<l 78,000 73.ti30 3.90 Pio<luttion ()perations.

.22 Ascrage Annual Res. lenn. l u

a Per tot man (c ami l.ns in omnental Conunnption dilowanin>un) 11591 11.696 (0.90)

Sen it es.

. 22 I)esign Engince ing.

.22 As eiage Resi<lential Cost Projec t Af anagement.

.22 (I>cr kilowatthour) 6.46' 6.13' 3.00 General Construction.

.23

()perating Res enue

$455,000,175 S 130fi21.983 3.70 ConImiate Cominunications "1

Gross Inc ome

$481,687,205 S136336.S19 330 Floo<l (,.ontrol.

.28 Niosquito Abatement.

.28 Electric ()perating Water Quality XIanagement.

.33 Expenses

$326,895,138 S322.793.120 1:10 Aqua ( ultu r e.

.28 Gross Expenses

$477,643,805 S171019,890 0.S0 l loi ticulture 28 MCF M" 6

3 U #

D l'ropei tv 5f anagernent.

.28 Eronomic 1)esciogunent.

.29 Costs to be iet os crc <l Spetial Feaiute.

30 ti om iutm e i es enue

$ 27,863,063 S 67,207.278 (38.30)

Piogr.un fi>r Einployee Ene m Sain Paiticipation.

Sti Onegawaithom s) 10,778,640 10.22til181 3.10 Iluinan Resonices.

. 3ti

()a u pational llcalth.

37 Ilulk Energv Sales to other Utilities 104,463 191,911 013.60)

Training aiul 1)escloinnent.

.37 Safets.

37

'li rritoi ial Peak 1)emaint Con potate Forecasting, Rates, onegaivat ts) 2,123 2.00h aSO ami Statistics.

. 12 Calendar Year 1983 1984

% Change i

l llattageineilt liitot:1:ation Sssteins.12 licasuiy.

13

' lei ritorial Peak 1)ctuami Applications of Resenue.

. 13 Onegawatts) 2,006 1.821 10.00 Finan(ial Statements.

. Iti Autlitoi s Repoit.

.17 S(he<lule of Reintulett lloiuls.

37 St hetlule of Ilotuis ()ntstantling.

SS lloai ti ol'l)it et tors, A<ls ison I

iloattl. amt Nianagement.

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.unt ur beliese out cili < icnn of opeia.

s iion was a majoi < onn ibuting 1.u ion.

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In min ing in on a suppoii to a Ic. uter-ship s ole in the ci onomic desclop.

mem of oui st.uc. 5. mice ( oopei w ill

\\

onniihme n, die businemn,d in l

dustiial gn m th ami dcsclopment of Nonth (:aiolina. to suppoit that nu nc.

I Sainec ('nopri estah ished an l{i o no mit l>cu lopment Raic for new aint esp.unting imiuso ics. ~1 his w ill impone om icsennes.unt help hiing new jobs to the state. Ahr.nh. ihis has genciatt il an impic, ' e inn icase in j o t aslIn i.H iis it s.

~

. uni pri im mant e i rmains lasoi ahic esen following a gencial iate im sease i

in Nosembei. (:usiomer irlations uric im} nosed hs keeping our rates among the lowest in the staic aint sontheast.

icsenue ratio was icdut ed by 3 peu en-employ aiul those ne sene -

I tage points. 'l hiongh an.nham e em ploy ees. ( u stoinci s. ( it i/cu s. c om-I We also irsn m tm ed i csulential i ates r eluinting. uc inha ed annual inteirst mu nity leadci s. nat uralists. and in-to redut c the i ost of clet u it ity used bs on long teim debt in Sil million.

sestois. In this icpoit, thes will sh.uc oui scai ionini all cln n it i usiomet s.

'l bese impimements in om short icim peispn in es w hi< h w ill help sou We heline this ocu i.nc will be an ex-

.unt long icim linain i.d statuses understamt this irlationship i ellent m.n keting tool in i oinpetition helped us maimain f.norable bond i

with othei encim soun es.

ratings with the n ating agein ics.

South Caiolinis gica:new is the prod-m i n' its propic, and 5anice (:ooper's In addition, uniking joiinh with om Anoilici majoi f ai. tor sustaining suurw is no dilleient. With the 4 Dal.iiid I.iil su pplict s, ne }n os ided hamec ( oopri s gion th was the t onik-silenglh and dedit ation of our short icun iate irliet to om ilnec uning sm ge of icsidential amt i om.

cinpb aces. the suppoit ol'om laigest iminssiiali nstomcis w hit h men ial gion th and dnclopment

( ustomer s. and thc oppoitunity to u cie l.H iiig plJin t tilh.R ks ni ( losuies.

aIong hoW b I 5aiolinIs ( d nn! hn and.

meet the needs cNpicssed ln our I his plus (ost inha tion.u tions in t he iIntels. oin tominiums. icstauiants, i iii/ ens. 5anice Cooper w ill ensure i u stomci s. allou rd -dl iln ec indusn ics

. uni shopping malls t ontinuc io be that nenthing uc do tonnibutes to to i ontinne opcianng ai t ull nuih.along uith neu iesidential and Ihe (outinued progiess and piosper in piodni tion.

l.asinew do clojanents. goH ( out ses.

of the Palmcito State.

.unt a host of in teational f at ilitics.

( hn iom entration on (ustomet irla-I he sinong gion th in both demain!

/

tions and et onomit growth did not anti encigs itom that sn ion of om Icuen anention ni om tinaniial ar.

insiomer mis helpal maintain hantre

(#9

?. M lis itics. I he iminsn ial i.nc irlict

(:oopet's im u aid moinemu m.

1) night A. llohici slourd om im icase in grow incunes

(. hair man of the llo.nd in 3 pen ent I f ounci h ioniiolling I his icpoi t goes hoinul the nombris

/gg{ g. // pud opciating expenses. we im icased om aint the n.u t atisc w hit h dew r ihe a nei opci.ning ino,mc in 19 pcu cm sc.n ot < hanenge.unt.u inn emem.

WiUI""(hIIC"I"T

.nnt oui at i umulated icimested c.n n Wiih ihe t heme of "Peopic ami Power."

P'esident ami ings in C peu ent. ( hu debt io cijnin uc p.n n ihnte to the iclationship he-

< hiet bn uiise( Mtu n t atio was impu ned in.w peu en.unt turen this utilin.nnt its mosi impm.

out opeiating expense to opcianng.

tant icsoon es - the people we 3

l Enen;y Sales the 1"nious > ear but i:tl Pen ent Distribution System lower than the national aserage.

Attheciulof. hei.ncal > cat. Santee 1)3 namic gn,w th in resi(lential ant!

t Cooper was pim i(ling electr ical ser; l..I he aserage o>st of p(mer for Santee

'""""C " i"I ' I" C I"I"" C "' '"" ' I " "C' '"

s n e to,8.000 t esi(lennat, o>mmen sa be the (Iris ing comomic fou e ahmg Coo unmnial cmom m ami other ictail ( ustomen, an increase South C.u ohna s Graml Straml, w hit h i

. >.,..a tents per kih> watthour. up M l per.

of 1 130 or ti.0 peu ent (aer the n senc(1 by the ilon y Georgetow n cent fiom 198a..

l).n nion.

pin ious year. ()f. h..n mcicase.1,110 t

were t esi(lential aml"10 were o nn.

In(lusu. l sales weic -1 ia u s.,

met rial amt other..I.his com p.u cs w ith megawattluiun. up 1.2 peicent mer

.l~he I f oi ry Geor getown 1).n num n gum th.m 198a.of 1.11 > iesulential aiul responsible for Santce Coopci s h-iom

.ar. I he aserage ont of 1,90a cominci oal amt ot her p mer to imlustiial customers was :1.tHi

" " " ".n on tuul tln.tubunon opera.

(ustomen. I he merall giow th rate m nons m the two-o>unty area, as well as cents per kilowatthour.9._, percent less new customen was 3:1.0 peu ent less the ietail sales w. lu.n the sen ice ar ea.

il than the prn n.ousyear.

than the 9.0 peuent growth rate the

.I h..o unimles the mum..opah..nes of.

pin inus year.

Atlantic lleat h. Ib ian lille Acres. Con-gg,g t.S. Air Fon c bases at Chaileston aml.\\lpile licach ami to way. l.or is..\\ly ttle lleat h, Noi th.\\lp tle Sales to these i etail ( ustomers w a e the Chaileston N.aval Station mcreased llea( h. ami Sm iside lleat h. Paw leys 131i.l.138 megawatthours, up N.a. per-Islatul u as im on porate(1 ami athle(I to 9.2 peicent f rom 103.802 megawat t.

(ent mer the pie ious yeai. 'llu.

hours to 11:1,0tii megawatthoun.

the municipah.. ties sened by the dn..i.

s com-p.ues to last 3c.u 3 gion th in eneigs sion. \\lso sened are the unincor-sales oWI peicent.

Sh un 13 elet n ic cooperatises porated aicas of Aicadian Shores.

through Central Elet tric Power Ganten {:ity..\\luriells Inlet, ami Mac.

.I he aserage aunual umsumption ot.

camaw Nc( k.

Cooperatis e. I nc., Santee C.ooper s ele (toutv hs Santee Cooper iesiden.

lar gest smgle customer. ino cased 8.8 or nal( ustomen deucased to 11591 Alaj.os nuticaton of.raput grow th f.

pel( cut to -l.n78.h09 ineganatthours.

Lilowatthours.0.9 peicent lower than the;uea.nulude l>unn aiul liradstreet

.t he elec tr ic cooperatiscul.ntnbute the ju es n.ous Scar inn 29.., percent C.orporation s suncy ranking Ilorry Samee Cooper power to about '880.000 gieater than the national aserage.

g g,

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County among the 13 f.ntest-grow ing counties in the l m,ied States. Ilon y The aserage cost per kilowaithour for was tanked 1:lth nationallt behimi Sales to the municipah..nesofthunbern counties in the Atlanta anilIfouston Santec Cooper icsidential customei s aml Geoigetown inn.icased 3.o_

was ti.14 (ents, a.0 percent h. her than mett o areas ami ahead of.gieater ig percent.

.\\lianu.

k.nert Senice in the two-u>unty.uca was pro-n N.id;v Sales u n, s ided to 7:1.01I rustomer s, a ti pen ent ino case mer 1983. Energy sales for the n,;3..N".ai I Q

g year totaled 1.lti331:1 megawatthoms with rnenue of 589388.0tili.

w to &4.I iel u n.h com;i

(..mmen ul si2;e n,is>I Continued rapid gion th in ihe dis i.

3, d""[, I g

sion has ictiniicd athlitional of the umun and operations spa (c. A new ictail of-

" "> h 8 " 4 * ;

th e in Nor th N!p tle lle.u h is uiuler siuna yuts 3c,o,nn ec ;, I umstruction. 'I he 1.123 square fnot latilin willimlude customer senice aml.u ea engincen' of fh es. an opera.

tioin (enter aiul a warehouse. it is ex.

n e,,yu n, pecial to be unnpleted in Fall 19Ni.

i;cuo,1"U"$.$ I M

m,. &,..

Consn union was begun on a new w w.m mes,I E

tr.un mitation sen ites center at the

(..mmen ul m n,n7es,I f uture site of the disision (omplex,

,,s.c...m, 1 M

h,cated between his. itIC lleat h ain!

Rmh ntui uAun I.'Hlha\\. I be IIIIUU s(lUal e-I(H 't IE swum i buihling w ill inn hule garage anal uns qu!,

g.c,7 3,o p e,, l iclated sen iles s})at e aiul w.ll set se I

.is the ( critial b)(ali(Hi list' a!! tians-1

portation facilities fi>r the disision.

Encigy.\\f anagement and the Rates

'I here were 14 comersions irom limil Completi<m of the fint phase of con.

and Statistics dis ision ieceised a fuel systems aiul 30 fium electric structi<m is expet ted in Sp ing 1987.

523.000 l)emonstration of Energy Elfi-resistance heat to heat pumps. Ap-(ient Desclopments grant liom proximately Stil7.217 has been

'I he new dis ision distiibution Super.

Annetican Public Pimer Association.

loaned by the WISE Program since it sisory Control and 1)ata Aojuisiti<m

'I he grant inm ides Iunding f or a com.

began in 19X2.

(SCADA) system was o>mpleted in puter program that uill use data from June, and 4ubstation dispat(heis solid-state reon den <m icsidential Santee Cooper's Pawise Solar mmed f r om their \\ly rtle lleat h substa-meters to aid in rate design and Demonstration llome Project is still tion site to the f acilities located at the mai Leting icscan h.

being monitored to serify per fi>r.

Conway ollice complex.The SCAL)A mam c. The solar home experience is system will monitor amt omtiol the Cooperating with a local builder and helping the deselopment of new distribution and transmiwinn substa-development lirm. Santec Cooper an-mar keting plans to improse residen-tions in the two o> unties. Inosiding in.

nourned the tiist energ) ef ficient sub-tialload fauors.

o cased ontoiner sen ice i cliability.

dis ision in ihe compan> N sen ice ar ea.

The s3sicm will also pan ide data

'I he Foxanti subdis ision in.\\lp tle Educational seminars <m energy con-net ewaiy for au utate planning.

lleach w ill consist of :Hi single-family senation were oionlinated by Energy homes, all meeting Santec Cooperi

.\\lanagement personnel fi>r teac hes s, 1)uring the past year, residential and t i.cig) ef ficient home standants.

heat pimip installen, anhitects, small comme cial constitu tion was at Ses eral of ihese i esideia es w ill be builders. des elopers, i ealtors, and an all time high for the.\\hnu ks Cor.

inonitoicd w ith solid 4 tate iccm ders Santee Cooper einployees.

ner distric t. 'I his iiuludes the tam ns of and will be comp.ned for encigy use

.\\loncks Cut ner and St. Stephen and with a control group in an adj.nent Santee Cooper's Energy \\f anagement the uninun porated ateas of Pinopolis.

subdis ision.

section established the South Carolina 15mmeau lica( h. aiul 1. ions llea( h. ~1 he Energy Prodinis Evaluation Commit-number of customen inacased 33 Energy audits. pun iding prmen ont-tee, a state-wide organization. I he peicent to a total of l.939.

elfeuise suggestions on waw to s.nc conunittee s es iews new ener gy sas ing energs and dol!at s, weic gisen to 121 products and literature to determine Undeigiound sen ic e was pros ided to iesidential t ustomers. A (onnnercial au eptability and fight energy fraud.

a tesidential subdisision consisting of eneigs audit inogram helped

'I he group is associated with the State 2tilots, with an additional 100 lots to businesses sase energs and dollars h3 Consumer Altairs I)epartment.

be dncloped later. Sen ice was pro.

impros ing load f auor and loweiing s ided to sncral (onunercial ollice demand. Ninetyihice c ommercial Educational iesourc es were pn n ided buildings and a new automobile audits wei e c onduued.

to schools. (ommunity gioups, and dealci ship.

dubs in Santee Cooper's sen ice area, l.oad cak ulations and theimal design and the onnpany sponsored National

'lo Inoside foi new grow th and im.

analpes f or cle( tr ic heating and o >ol-Energy Education Day (NEED)in pone seni e to existing customers, a ing sprems weie pim ided f or tilti Horr3 County. A leadership con-new distiibution feeder ciicuit was lesidential(ustomen and 123 ann-feicia e, with representation f rom ca(h t onstruued, and an existing cia uit men cial untomet s. The pi ogram, w hool, was held at the beginning of icomdat toicd to punide for new asailable to all Santec Cooper the w hool year. The conference in-grow th and to impnne seni e to ev untomet s helped in the proper selec-troduc ed asailable energy resouices tion of equi unent whi(h climinates and explained the importaine of mak-isting customen.

l met siring and the resulting ef feu on ing energs awareness a part of educa-llusinew and industiial grow th pro.

peak load.

tion. Pee Dee Elementary S(hool won jeued for the Trident aica iiulicates an the South Carolina Energy Award and e en sitonger gionth rate for the The Weather i/ation, insulation and the Nationaljunior 1.n el Sc hool of

.\\lom ks Cornei distria in the onming Solar Encigs (W15E) Program pro-the Year Awant in NEED oimpetition 3 ca r.

sided $27Kl8S in low intciest loan %

in Washington.

to lesidential Gntomen for upgrading Encrgy Management or instaliing insui.uion. weadienn ipp.

Energv.\\ianagemem woikca widi ing. storm windows heat pumps. solar neighbor ing power annpanies and Piomoting low (ost and eth..oent use r hm n ad bat wmen odm militin dm>@m h omm of eneig> to satish the needs of n' doim himnest lom um mde m adme ad e6 m w idm untomen was the ettoit of Santee m

in liti d anmwn WI5E Mum mwmind pne Cooper s Encigs \\lanagement set non bxun im bded Sl97 >S I tm indl#

midmi A M mm niA m m duiing the pastycar. Consenation was g m,,

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emphasi/cd to miluem e peak load and to delay future plant unntruuion.

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Generation and load Power Supply ~1 his included xmer prmidolihr twu i Growth Compuieri,aiion has heipea increase inunicipalities, three iyiilitary installa-tions,26 large mdustrial ciistomers, cil...n iency during the past scar in aieas Santec Cooper f au.lities. includ.mg o f.transm' nsum and generan.on spiem and la. of. he states 20 electne t o n e.tlu.nt owncislu. p of he VC.S.um-t cooperatises sened through 212 omtrol. \\\\.ith the S.upen isory Control mer Nuclear Station, generated delisery points. l'he co-ops sene ap. atul1)ata Auju...nition Systein (SCAL)A). lo,.. 936 Het inegawlitthours of. lec. pioximatcl) 280.000 Cuuomers m s aa, c ti nctly this seal, all iticicase of 312.219 Sutem O, mtrol personnel obtained South C,at ollina s iural :uld un han an cas. operating intbrmation from outly.m "o inegawattliouis, or 3.0 petreint oser last substattoris azul geilerating units aini Dun.ng die pau gai; 10 eln uic } "#' operated this equipment remotelv. cooperatne dein, ery po, mis were ~1 hev also used SCAL)A to analv/c Of,the total power generated,78.8 per' enE rmion hat inh >nuion il> mAe added to the trainimssion syuem. (ent was produced hv unal,17.I per. (ent by ntalear, and.;LS peu em by ietjuire(Iinhtistitierits inn sutein gelicilltioni. Ali(>l.l.litte cortijnller plo. A loop-feed transmiwion spiem and hylro. Peak houily demand f.orthe the abih.ty of transmission crews to s('at IC.K bed 2,l23 filegawatthours, all gram was used to help determme the oj)(iintiin tinit cotiltilitineilt,[)ower gjer[orjy) inoQ i}}ajitteigang(c wog ( on IIM icase of 3.9 pett call oser the sales ami pun bases f,or the most cricigi/ed Cirrttits pios igled Santee piniousscar. Cooper customers with scry icliable

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sen ice, Nuclear Power Short and medium-term planning .Ihen m la.-nu ong Matwba to Duiing the past > car the W:. Summer operations weie expanded to include Nuclear Station, jointiv owned with problem-aica studies and contingeinv I"'"" %""I 30D00 soh Hnc was plat ed mto mutr in ay. . along wn, h South Caiolina l'.In tiic aint Gas Com. analpes to inus ide maximum sptem pany, continued to prmide secur ity under all operating onuh.. the new jolms Island 230/113 k\\ '" h " ".". i """I"? am the new Rucyba 230 coun nuical and depemlable inmer. It tions > car iouml. Santec Cooper's "N ""I" ** U *

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generated almost 1.9 billion kihmatt. shor t tei m sutem planning got a boost aHown antw Coopu in wne du-hours of ein tiicity tnr Santee Cooper with the addition of a computerized customers, w hit h was 17. l pet t ent of (olor radar ustem. With this advanced eley Coopnadw fanMn on 3"'* ' Hun u ne consu umal dun."I"" ""'""'"'i Santec Cooper \\ total generation. Sas. warning ostem, ustem controllers can ng the year. ings to < uvomm s weie more than $26 jnepare 10r any snese weather condi-million u nnparnt to the cost of Ibwil tions u hich may af fn t ustem secm itv. AU suhuation conuruction plus some f uels. l'or IT 86, the station at hined a ~ "'""'"""'"""""'""'""I""""' capacity Iauor of 72.6 peu ent. Spiem Contiol puu hased I11,12 I per fnrmed by Santee Cooper < rews to chm naw connau lainnuuni teduw megawatthours of power from the in. Duiing the l'all of 1983 the station teiconne ini utilitin in IT 86 to underwent its seunut icibeling, a-displace higher cost generation Ihr a .hi fuuher increase the icliabih.ty of. w hit h tiine a modinal f uelload was wasings of $1,033,188. In athlition, "I"'"'"""'"" ""'" C""P installed. 'l his will estemt ihe intenal 101.163 megawatthours of power wcic between f uture icfuelings to 18 sohl to the interconneued utilities thr maitytained 12 trjmsmision intercon-months, r.uher than the 12 months for a total of $2.911;118. ~1 he iesult was ad. nanons wnh mhawnt unhan dunughout dm wunn. pin ious f uel cp in, amt will inult in ditional ro enue to Santec Cooper aiul inricased caparity operation aint rnhued power wsts foi the intercon-rnlural f requemy of schnluled nected utilities. Reliability outages. The next t elueling is v he. duled to begin in inidalan h 1987 aiul TtilnSmlSSIOn ~1b impime ustem r eliability. Santee Cooper maintains interconnections last approximately eight weeks. Santee Cooper; transmission sptem with other eleuric utilities imluding omsists of 3.316 iniles of line and 31 the Southeastern Power Adminiura-System Planru,ng subuaions and swin hing nations w ith tion and Somhern Company anhe "S" '""Nk"h ansmiwinn f an.'h.. N'"* R.ll Russell Dam; with South Carolina Sutem Planning was icoigani/ed at s. nes I'leuric & Gas Company at Bushy tlie beginning of 1983 to imptow an' loc. uni m. ofI sta 16 Park, Nor th Charleston. St. Geoige, o midination atul unnmunications mun un udt unnnn Nuden with Power Supply and to iminow produais it). 'l he Sptem Plannin g N':" Ion; with Southeaveni Power Ad. staft was also increased bs 23 perrent, More yhan 1I billion kilowanhours of. nmuuranon. Duke Powei Company, f rom S to 10. da o u n> war dehwred to about .uul the Souther n Company at Clai k 33R000 customeis within the state Ilill; and w ith Car olina Power & l.ight either diical) or indiicctly through Compam at Dailington. llemingway, Samee Cooper transmission f acilities. Kingurec. I.ugof f, and Robinson. 10

l In addition, the compan) is dr ises wer e pl.a ed in storage at the commercial greenhouse was com-negotiating with Savannah Electric Cross Station to asoid storage costs at pleted and placed in opeiation. Power Company and Georgia Power the supplier's location. Engineering Company on a lluce-way was mmpleted to icpla(e the plastic Three piojects were completed during 230 kV mterconnec tion acrow the temporary wall of the tuihine buihling the year whic h were not directly Savannah Riser w hi(h will proside a with metal siding. iciated to power generation. A waste-significant inocase in reliability to the to-energy study repoit on ieducing the southein half of the Santec Cooper At Winyah Station. the l! nit No. 2 landfill requirements in the 11 coastal sptem. boiler modification was tested. and the counties was completed in October manulaunier was icquiicd to design and presented to the board of direc-Santec Cooper is one of 28 member fuither iminosenients w hi( h will be in. tors. A study con (erning the use of the organizations in the Southeaster n stalled under wairanty next 3cas. A ma-take sptem as a regional water supply Eln tric Reliability Coutu il, mmpiised joi modilitation to the l' nit No. l FGD sptem was completed injune, and the of all power suppliers in the region Spicm was designed and installed dur-report was presented to the board in with at least 23 megawatts of ing the spring outage. I his imprmed July.This section also prm ided generating capa(ity eac h.Through the icliability and elik iency. and deo cased tec hnical awistance and construction ( nuncil, member sprems wordinate operation and maintenan(c costs. management for the main of fice com-oserall planning to at hicsc maximum 'I he heating water sprem bom L nit plex pasement improvement project. icliability of power supply. No. 3 and l' nit No..I woling towers to Santec Cooper is also one of sesen power sprems in the Virginia-Caiolinas Reliability Gion whith also iin ludes Caiolina Power & l.ight Generation and Compant, Duke Power Compant, South Carolina Eleuiic & Gas C'om-Transmission System pany,Southeasten n Power Administra-tion, Viiginia Power, and Vadkin, Inc. Engineering and Construction Management Dming the past Scar, the majority of all mustna tion auivities aworiated with Crow t' nit No. 2 weie finished, most of the mntiaus for Crow Unit No. I were canceled, aiul piojc( t engince ing aint mnstruction management sen it es for inajor equip-ment upgrades at Winyah Generating Station weic prosided.The section also espanded its scope of actis itics to le itu lude proin is w hich fell outside ihe ach aica of ein a ical power generation. At Crow Station, equipment supplier s were requit ed to upgrade the pen for-maru e of the boiler and the air heater. Ahhough aihitration omiinues for deo" unicuion by the(ontia( tot of the ilne gas desulfuiiration (FGD) sptem pei-loimain e deficiem ics, the spiem has been temporatily modified to suppoit its operation aint maintenain e. on lead Sescral piojn ts innoh iiig site hoik, html steel au ew plattoi ms, and coal car unloading la(ilities wer e designed and installed. 'l he boiler feed pump tin hine 1I

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Engineering Statulants Supervisor 2 [ Santee Cooper..\\loncks Corner, SC "Ti>u don't buihl substations or transmission lines overnight. It takes a lot of teamwork to make sure that Santee Cooper has the power delheiy system O E planned and constructed to meet the needs of our customers.That invohes coordinating the work of planners. engineers. electrical and conununications [ tecimicians, enviromnental specialists, and a host of other professionals. This ~ team elli>rt assures that flicilities are constructed on schedule and on budget, f ~,. which helps us maintain the liworable rates paid hv our customers." s (,' ~[ '; ; '. ' f, > - [ ]. ( L'-.,, -' ..s ,,~ ' ~ s s 4 -a y, i ,s ,I g-s 4

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l l Power Generating Stations Jefferies liydro Santee Spillway Grainger Steam Jefferies Steam Myrtle Beach Generating Station Generating Unit Generating Station Generating Station Combustion Turbines t 8 l "} c e D l no l l g p / ha t y y u . ?; w$%?hM s.f * 'y oe.. ,r j, "7. n%p'(;;;Q%/'& %. M 'e b n W GM.;Q e,.J %.y m ::: 5,_ % ,4 q <r w &~ g y-s 4 !i laxation: Pinopoln. %(; lan ation: l'inr% ille. S(. laxation:( onw a%. %(, Iairatioti:Pi no}w ili %. %( ' laxation: \\f s t tle Ot at h. %(; Iuct Ty pe: llu h orici n a F uel Ty pe: Iluh orIra n n Fuel Ty pe: Coal F uci Ty pe: F uci Ty pe:( hl l mn 1 A 2 -(hl Generating Capability: Generating Capability: Generating Capability: ngn 3 g., _ g gi Generating Capabihty: l mn i A 2 - 2n megawatn 12smtgawans 2 megawain l'mn i A 2 - 17nsnegawata Generating Capabiliev: l mn 3 & 1 - inmegawain C,onstructiim Cost: Construe tism Cost: Construction Cost: Cnin 1 A 2 - 92 rEpun hin i - innmun s w n nulln.nj %tunnon7 $29 2 milhon Cmn 3 A 6 - inii muaan% %1 W pre b 52nn pre n 5172 per kw Construction Cost: Construction Cost: L mn 1 A 2 - $2n imlhon! Began Commen ial Hegan Commercial Began C.ommerrial l ma l A 2 -- $1.> 7 imihon-51li pri W Operatiom Operation: Operation: $i;l per b t mn 3 A I - $ 6 nullnint 1942 loin 14hh ! mn 3 A l-Sil M nulloin! $l13 per b F Y 19M6 Generation: I Y 1946 Generation: I Y 19M6 Generation: $17n per b t mt i - $2 7 nullnine P' " 211 imilnin kwh 117 nnih..n kwh win nuljom lk h Oegan Commercial O eration: Began Commercial f uel Consumption - E Y 19M6: Fuel Consumption - i Y 1986: Fuel Consumption - F Y 1986: P %2 7sn tons of i oal 1 mis 1 & 2 - 19;4 Operation: none none ) 1mn3A4-I 1 mn i A 2 - 1962 I).1986 Generan. "7n I uci Cost - t Y 19M6: I uel Cost - FY 19M6: Fuel Cost - FY 1986: I nn41 A I - 1972 on: $ li132 '*olil g g 3_ p,7n no ne nonc l mis ! A 2 - none Generation rose per b h: Generation rest per kw h: Generation row per Wh: I mn 3 A 1 - 1 I FY 19M6 Generation: i 1721 i rnt s hilln.n b h 129non kw h none none Principal Features: Printipalleasures: Principal Features: Fuel Consumption - F Y 19'46: Fuel Consumption - E i 19M6: ft tiri ers llutro has lour fut hmr ilubo unit w nli %mallins hme brainger %fram benet atmg %ta tnul_n 873 g; g.,[h,ng og ot] i j gent ratot s w hu h were Imnal genciator w.n natallett to non w as t onttim irtiin.nul a l mt -' _ n f uel Cost - t Y 19M6: U mt '$ gni 93g ton, nmit toi the %anter ( ooper gc not air power u%mg the re-ow nrilin ('e nnal t Irt it u P.mer Shh l'h 2 i lluho t irt u it avul Naugation qunexi sint harge of ilii tt mio ( Wprianse,lin. w ith tumig or (nat %otrm m 19 82 Power house n % antre Rncr t ini n opriairtl tri en cil thiough a Rural F ic4 L mt1 - 24;nlutofn Generation tost per kw h: Im alril at h.nr of I akr \\foultur. t emon h f r om lettra irs %icam tuin anon.tinu nnn anon loan of t oal ,g.gn7, enn w nh water Ir%cl 7; tre i abo % e (.t not anng %tanon. %pillw.n n I he plant n n;wn atott anit mam Iuci Cost - t Y 19M6: Principal f eatures: lails.n r (. anal %mgle hit los k u eil m unhn % lloo<l t ontial I.untilla % antre ( ooptr. w hit h n ITIJ k In g as furtit4 (*T11110 h stig _IMI* ! A 1 ' M'We 51% 1Ilr Orat il t f utilin% tis 6tt till ln e rg uit % he tal lva%%.igt briwrrn pt e gt ain h bl It h a%t's e et w afrl it im RI \\ { bial)N brn Ihr beJn 1% Ud* Nh~ hints tirtr ilulallf tI b 6 lH iji T11rrt ( a ss elit a P.pri altsl %Jnirt th m n %.intre Rnot ('eM*lWr lakrs h att I te ntat t e a pa t tis bll. %.4 tut"r ('e ne nj wl w ill b U OsIT Jd'I'$1tlat s pr ak tiefliansl% 'C'ninn g pr un.u ih hoin unn 5 tilntalanoM U1 lu'l % allei %lt rann mJlulain ow not ship iit the Generation cost per kw h: f nfl fif ur p uslativ en eslPIs *%1*Ill (If.artillig l %,flf M 6 geluale f ttile %tal t< an g g ,g !""d'" " " ' ' ' ' " " " " ' " ' %.htilrr Nnot ha%m U AtrI%hril. L mf g 3 N I - 1974t rntt k UlI* air pIr%Cllt!% n%r81 Il prak, w hit h rsIrtish thlt6il(b itte t t 11 n al amt uppoi p.n t of the 4tair Principal Features: loail gr nei at v.n I min wr% ire n \\or th ('.u ohna. lc!let ett %iram t nin I aml 2 air s ul llitti liir hlfir gt'llf t Jlr +1 % lli % aIlent w hrtl 4'11 wJ4 Ilw if n %t et Iene t!!ilt al %e allrt c 8il lht 1. 'Ihr%r ultitt at t n% Cal h Hit all)t >Il a 4tanalhg hd%H atull.it peak h eavl grf wt atis en 1. litt s 1 anel I w ere nat1.tIh ml fin eI.nulIalti t on \\rt losl la e 4 (nal le e i.ekr ath atitage of the more rionoimt al f uel l Ili

liilton llead Winyah Steam Summer Nuclear Cross Steam St. Stephen Ilydro Combustion Turbines Generating Station Generating Station Generating Station Generating Station l I t . _ ~ 'Q 1 /r I ,. ~ yf* tA. @. YRl w v,, 1 / h$ )... L ... - 2 ..b .,.i i l Imation: l filson lir.nl lslami. S(: In< ation: (.cor ge tow n. M 1m ation: lrnk om ille M 1mation: ( r ou. S( - Imration:51 5:ephrn.M f~uci 1)pe:( hl Furl'I)pe:( oal f uel Ty pe:N m irat Fuel 1)pe:( oal Iuel Ty pe: llu h o

Generating Capahihty Generating Capability Generating Capabihty Generating Capability Generating Capability t ini 1 - 2n megawanis I e n t s 1. 2.1 A I -

1'o em gau ain i ' of inn nu gaw at o M i turgawaii. i I l'mi 2 -- Jn megaw an. 27nme gaw atts rat h 'H 'n inrgaw atis e 1 "' t int 5 - 17 megawans Consitut tion Cost: Consiruction Cost: % ( i t i im!!n ern $4: e imlhon . Construc tion Cost: 1 mi 1 - %21 nullo.n- % i n i nnihon 51.11* pri kw $727 pe t kw $7'in pt k w I mi 1 - $2 7 nulhon 42 51 pe i km $l n pn Lw I mt 2 - $7 5 2 nothon Began Omnmnrial tan Commercial Restan Commercial O " i"n - Operation: Operation: P t no 2 -- $.' 2 rmlhon' 527' I> w k - l ui i 1%4 im, $1In po r kw I nn 1 -illso nnilo n: L mt :t - 519 nulhow % i 17 pt I k w F Y 19M6 Generation: F Y 19M6 Generation: IY 19M6 Generation: ilT2 pii kw l nn 1 - slin 7 nulhon I n ndh, n ku ti 2 7 bdhon kw h lw l onlhon kwh % llo pi i kw Regan Commercial i url Cost - F i 19M6: } url(:onsuuription - F Y 19M6: F uel Consumption - t Y 19M6: Operation: Reitan Commercial vin.1 I t.w2 $7 I o inleil i,in, of i oal none 1 mi 1 - 197 i Operation: t no 2 - 197 4 Lini1 -In;, Gennasion msa per kwh: f uel Cost - F Y 19M6: f uel Cost - I Y 19M6: I nit 1 - ICs I mt 2 - 1977 "3"'"'" C'" " C I ' " \\\\ "" ~ " Principal f eatures: Generation cosa per kwhr Generation cost per kw h: t i 19M6 Generaiion: i "o I - I"*l s mn ( oopn h.n one ilnni 1Mi~erna Ng a

ngg, g _["I

[.nkah 8 I of ' g n ip 1 fe turn: Principal Fea, turn: luel Consumptiem - t Y 19M6: g ue phen I owe i Hint was e on - 1 I bdhon kw h 1 ""hna l In n n am t 1.as ( om I '"" d""n tus t he hu nt st su s \\% i mt '" d ' " " " ' " \\"""~ I "'P" '"*'"I'""I""""'"'"""I Pd m M I O ' "g.t 8 nC' '"'I m.n o f uel Cost - F) 1986: i "" 1 ~ - ~1 P ee m iaung mn m i n los an it iht t% \\r an ( or ps of g nono "i "D ( hown n I akn \\l.n mn amt i ngmreis as pati of the ( oopo so odaumrNipn Generation mst per kwh: ',, l h n k w h' '"" h d f P'"P ' i m t he s.ni br et """ I" "' \\ " " " l"C h " " "' " ' I"~ N '" ' N" h " ' """ '"Fh" ad onnng b n.n ninne ( noi e ops t ainlinnoich M Nann e i i Ng he tw e < n puhh. not pe n air "" h d '"" '""I "nr hau.n r r ( oopo 1 oni the enn o inunof f uel Consumption - F V 19M6: nohne s Prin< ipal leatures: ( n n [

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< < ettet sei \\l.iru ks t in in t the flihon t h a.i t omhusnon hu ,a, oal mg itsninal heat irom thi va Ri dne uon Pioin I w e ilt hmn w o e a.html n. minn in [ n n j _ gnn gno,on, non s i omin.g < u k men d to inhn e the ulnne of .nsnt m merung gtowing peak of i mal ( h.o1ruon Has hor h nh ns lomlilemand. p.uin ni n h on the t nn g _ q ;, gni n,n, ope t anon. w an t pin iou sh muss sonihn n end of %.nner , a, g,; dn. h.n ent i hr ongh ihr i nope t s ti.unnus n n marm t jn g _ gi g gn;,,un se '+1at m g tui o ne s as the l I mis also pim uirn! nu gawaits og, g,g Pinopoln Poun House n sob of hai k u p uno ge m s ge nu ain o u t ent ihrough the %I %n phrn tot the b.n i n e nhmal it soii otn i url Cost - F ) 19M6: 1.n ihn amt iln. h.n gni uno ihr mumts d it shonhl hr s us oil I"oI-%'""h7"iI 5 out r Rhor In.m ihr istunhnni pown inpph I m'2 - $227'"2b M II hs a hurin anr or othe r seu ie l uit I -- %Il lh"3 7 4 lh w e.n h o 1 mt ! - %ln.1773 n u Generavion rust per kw h: ti.oI - InTisina l no 2 - 2 n2n e e ms t nu i-2 t uie nn l pit I - 211:2 trna Prmt ipal Features: h unah n % ante i (. ope i s l o gru genet aimg uatn in l von wiir onso ns ti dilm ma a halt ik i ads ol 4 DN t eb n r n lugh in Ibnon i nmg. nsn m n.m i ma ailst tasn of gli sw ietg l4:Iis M! d alt m nul arul i i.e i e gt, w t h m i s m parn s hnn a s 17

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1 Production Operations heat rates and identify potential im-31ajor design projens include the prmement of unit etliciencies.This in. Alcintosh tie with Savannah Electric A secord4ctring f.ne turbine-generator formation was also used to help Power and Georgia Power companies per hauls weie per formed this year by predic t unit maintenance re-and the new Union Carbide plant.The m-house penonnel, eliminating quirements, deteimine which units are Johns Island and Mateeba projects sur hine generator maintenance om-the most economical to operate, and were completed during the year. tracts and s educing labor and outside calculate precise o>sts for generating omtrador s o>sts approximately 40 electricit).. For all of these projects, early coor-percent. dination of design was essential. Re-An analysis program was started in quirements were established at an ear-In the first major outage since initial w hich field test data are used to con-It date. and manufacturinX schedules start-up in 1983. C,r oss Gener ating Sta-y st u specign. t3termo<g narmc com-for major equipment are monitored tioris turbine-generator was puter inodel of each generating umt. closelv to l)res ent delass in deliverv. disassembled, m.spected, and reawem. B me a on of design criteria. Stand'ard designs and c' omputerized ~ bled after a war ranty impeoion. ahernate operation modes, operating draw ings are applied wherever possi-abnormalities, and maintenance re-ble to decrease engineering and Jef feries, the oldest generatmg station, quirements resulted in incicased draftin8 time.'Ib reduce field iro-I and trms, the newest station, weic co-regji;; amg mo e econou a; enn. constnadion groups are con-winners of the fint goals [nogram "PeraHons-sulted during the design stage. competition, w hit h iesulted in a lower fuel (mt per kilowatthour genciated Em inmmental S.en ices provided, These measures and others will allow g. techm, cal assistance to the generatmg the division to continue providing stations and other dh isions of Santee project design in a timely manner fbr An aggrewke fly ash byprodm,: Cooper in sm h areas as hazardous and the' benefit of Santee Cooper's maiketing and sales program wa' non haian dous wastes, acid rain, sur-customers. begtm this 3 ear to generate sesenue fac e water. ground water, air, from a waste prodm t while reducing imdergmund storage tanks, and PCns Project Management icquirements for 11) ash ponds aint in order to ensure compliance with . e Pn>jed anagement dn...nion of large construction imestments. 'loial state and federal emiionmental Engineering and Operanons ad-sales of the byprodm t m IT 8ti weie regulmiom. 8,136 tons for 531.382. Next yeari pio-ministers substanon and transmission H "e ("P '"I "" P".*e"'c"t "d i jetted sales are 39JH)O tom, estimated Design Engineering at Sl80JHH) resenue. mamtenance projects. Design Engineering was (hallenged Performance and during the pei 3 ear with demanding Fnim the planning phae thniughjob Environmental Services schedules for sescral trammission and completion. this dit:sion performed sulntation pn>jan planned or con-project engineering and control and The combined efibris of Performance stnicted on the Santee Cooper system. constniction management functions enges presented on approximately 140 active and In nwe ng ( c fi icut til ut It .t t [. by these projects, a strong pmlessional forecast projects making up the and economical generation of. power st'aif and the utilization ot o>mputer 104 car comtruction budget. m the most emironmenta!!y accept-capabilities base been essential. All ~ able manner. aree of Design Engineering hase been Recenth completed, the Johns Island called upon for their resources,in-sen ice In o.I'ect included' approximate- .I he Per formam e gioup t onducted (luding substation design, com-Iv 20 miles of 230 kV transnuuion line, oimInchens.ne thermo<h namic tests munications and SCADA design, a new 230 kV switchinh station at on each of the nine c oal f. ired trammioion design, sune), and a Mateeba, and a new 230/113 kV substa-generating units to dmument unit number of support groups-tion onJohns Island.Th.n sen ice I allowed one of Santec Cooper's elec-Fuel Generating CostlEWil tric coopet ative distributors to ghe (Cents /KWil) FY 86 better sen ice to theJohns Island area, including the Kiawah and Seabiook ( q.g lg g Island t esoi ts. Caieful monitoring and excellent cooperation among the onn-pan > s sariom units allowed this pro-

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i.yl l ject to be oimpleted on sc hedule and '"d w ithin budget. 22

General Construction 'r""'mi"cr ins'"Iled at the C'"" di'P "Y ""d " 'crie' "f " i"' '"edi" "d' l I Generating Station. It would also be fbr leading business azul mdustrial As capital construction perf<n med by used to rmtily residents w hen spilling desetopment publicati<ms. this area continues to grow, so do the operations are planned or in the esent requirements of operating and mairl-of sescre weather conditions. In addi-Employee and external communica-taining Santee Cooper assets, primari-tion, the FERC has required the in-tion were improsed through the ly the 12 miles of dams ami dikes im-stallation of a siren warning system redesign of fi>rmats and editorial pounding the Santee Cooper downstream of the North Santee Dam. direction in the company's publica. II)dioelectrir and Navigation Project. A test of the emergenq action plan tions. (imnutiom was changed from a Yet, General Coint rut tion was able to will be perfbrmed in early 1987. quar terly magazine to an as-needed lower its operation azul maintenance budget by inore than $200,000 fbr IT G,eneral C,onstruction's ongoing ser' puidication to present comprehenshe treatment ofimportant issues. The Me, usmg mnovative project manage. uces nuluded dearing, grading, and hum wm deseloped as a more suc-ment tec hniques. site preparation of new substations cinc t himonddy feature publication ami switc hing stations inntallation of. widi dmrter an tides and a magazine The primaiy resp <msibility of General the station foundations; inaintenance tabloid format. Aiut the weckiv Construt tion is the safety and of access roads ami drainages for employee newslener, X<mbriefi, was maintenance of the original projc(t. Santee C(soper s a2 subdn isions; arul

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'I he lake sptem cmcis more than construction seruces Ihr the llorrp 170,000 act es aiul contains nearly two Georgdown Diuuon amt oudy mg enter page featute, the use of inillion acie-feet of water. I he lakes "I I " C photographs, and a section for llaman Resource news. recche inihm f rom the omtluence of Corporate Communications the C<mgar ee and Waterce Risers with h All B,gan itM 1\\hter was a cor[mrate a total watershed of 15000 square-Corgmrate Com mu nications incr eased multi-image presentation produced to miles.The Emile.long nas igation its support i,198(i by providing a tell the storv of Santee Cooper's st rong diannel was maintained by wm k timely, an urate, ami ef fe(t he flow of emiiomner'nal commitment and the forces in Gencial Comtruc tion w ho intbrmation to Santee Co< g r management and protection of temmed floatage and repaired ami emplo)cesaus. omen s, and the pubh.c. natu ral resources. maintained channel markers and buo>s. Recent inspections by the The results indude the inacased 3 faking 3fonchi Corner 3/ainstreet CS.1 Federal Energy Regulatory Commis-awareness of Santec Cooper's opera-was the theme deseloped for Stoncks sion (FERC) confirm that the project is tions ami acth ities, atrention gettmg Cor ner's downtow n res italization pro-in ex(ellent condition Ihr normal amt motivating promotions for gram w hidi m mppm ted by Santee static loads and is well-maintained. cronomic deselopment and energy Cooper and managed on a full-time management, and imprm ed employ ee, hmis ihr one scar bv a member of the Santee Cooper is ( ontinuing its cf forts conununity, and customer relations. Co orme CEundications stalf. ) to tesohe w hat the FERC indicates to he seismic load delkiem ies in the N! ore customers, actmd peak Local, t egional, amt naional rn ogni-West Pinopolis Dam aml North Santee demamk, incicased emphasis on tion wm iccei ed for ac hiesements in Dam. 'l he l'.S. Army Corps of economic desclopment, rate relief for ads eitising. promotion, and com-Engineers has been dirn ted by Con-economically dhnewed industrial municmion progrann and priects gi ew to analy /c, design, and icpair the customers, and ino cased prodm o..uty comlutted in Corporate Communica-West Pinopolis Dam, and comtruction in power generation were among the tion Thk idduded lunmn amt is proje ted to begin in the Sununer of subjects w hic h wer e interpicted, ex-umds from the American Public 1987. Federal fu nding has been ob-plained, and communicated through a Power Aw>ciaion, American tained to accompli h this woik. satiety of conununications programs. Economic Dnek>pmem Council, Southern Indusuial Dnclopment 'I he FERC gase tentatise approval to a An aggiewh c a<h crtiu.ng and promo-Counciladscuising Federation of Samce Cooper pmposal w hit h of fers tion campaign was dacloped to sup-Chadevon. and Imtmt rial an alte nati e to new comtruction on poit the company's economic desclop-Plmmgrapin magazine. the Nm th Santee Dam. ~1 bis plan re-ment piogram, with the theme "In quires Santee Cooper to pim ide amt South Carolina. We Will Ghc \\bu I he maimain ior all iesidents immediatch Chnest 'I hing ibu'il Ese Get 'Ib A dow nsticam ol'the Nm th Santee Dam Guarantec...And Nlme "I he pmmo-a tone alen t radio that would notify tional piogr.un im hided prodm tion them in the ment of an caithquake, of a mar keting booklet. s ideo tape The tone alcit sptem wouhl be ac. piesentation, dirn i mail br odim es thated by a National Weather Sen ic e 23

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i Flood Control data weie transmined to the En-Horticulture sironniental Prote(ti<m Agesun WPA) A dec..hion was made late m the year to As part of, s flood omtrol program, Storet data base hv.m-house o nnptiter. convert the greenlu>use crop h.om cut u Santec Cooper unulucts spilh.ng E'" operatioin w heneser necessary t" Noxious aquatic plant management lems caused by insects and diseases, in maintain proper elesations of the corninmd m ;>nddem in dE th S. mice Cooper lakes ami to reduce p.n ticularly in die q)per seat hes of flooding of the h>wer Santee Riser. 1.ake Mar ion. Ilydrilla, in a greater Income from horticuhure was mer '"l"*"I".cml m er a larger area. Low SN2J)00 for the year, with tomato sales S >illinR was reiIuired fi>r a total of guml lesels m the lakes caused in strong late m the period. gesenues are i only eight dayuluring the inonths of. doinglu unulitioiwnuributd u> diis Nosember and De(ember 1985, ibr an expected to incicase dramancally dur-

gc,c,sr, gong,gg,(,;,;,;c,,c,c wg, ing next year s $>perations because of aserage spill of 8535 cubic feet per dumd on 2E19 m m o%umic crop modifications.

secona-segetation dm ing the 3 car. I-.PA- "I 4 " "" **' * " ""' " P P'i"d ") All met hanical ssstems Ior energy con-Mosquito Abatement helicopter, air boah, amt tru(L nu>unt - ion operate <l at maximum elli-Mosquito at tisit) on pioject lands and spray tinih.}Iiital cost of the prograin ciency throughout the sear. ILukup waters was below the lesel of presious was $39ti,18, of w hit h 5332339 wa' systems were only requ' ired brictly dur 3cai s becau se ol exn emely d ry hmded in the S.C. A<juane Pl.mt ing encrating station down time. weather tumb,nons throughout the Management Coniu il. period. / uaculture u horticulture waste heat program continues to attract national aiulinter-Moic than 71H)0 inspections weie con-Appn>x mately 100J)00 Tilapia fish national interest, particularly Irom ducted m the fise-county atea ainutul weie pinduced at Santec Cooper's latul grant unis ersities in the' L'nited the r esermirs to gather entomological aqua (ultute hatcherv at Wimah Sta-States data for planning purposesfl his sec-tion in Georgeu>wil'or aqEnic weed tion is tespomible for a program that mal alpe connul, most of these fish Property Management motiols mosquitoes w hile in escrung were sim ked in Santec CooI>cr waters, ,I.he Santee Cooper in oject mt ludes igte em ironment. im luding die Winyah Station cooling gg g; - ,g g teservoir. Since the fish were first . " I" " "* More than 80J)00 ames oflaiul ami suded in pne 1977,expensise miis I ake Marion aml Lake Moultne, water weie ticated ihr mouIuito con. t henu. cal < ontrol amou nting to ,'" "" *y"""'g"", " ""'" " 7 trol during the fiscal >carf!h n edut e SS0JH)0 annually ha not been re-hiceding h> cations, undeihi ush quired in the -10itacre resenoir. habitats weic (lear ed, ami ditt hes and acres of shore lands surround the two ""i "PI"["l *"'"l 2J 9 ' i l inarshy areas weie maintained, drain. More than 200.000 mosquito fish Gam-ed, aiul lilled on more than 300 act es. /noin n/ finis weie supplied to the Mos-liiological mntrol with the inosquit" quiu> Al>mement seuion for mosquito lish, Gam /noin n//inis, was condm ted in

g.me o>mrol on du Samee Cooper administered 1.l_"_,$"E"*""

. ' - " ','"P"D 3 leases around the all suitable aicas thionghout the pnijet t. C.ooperatise b. logical MmeW >cr IAes.These im lude io P"d"d-iescan h elloris continued wnh the o yg 5,.cnMimi loh in Samee ' " " * " ) " ' 5"" * ' '"h "" Cooper subdis isiom.1.111 marginal Water Quality Managentent iesean h imit. located on the South to dWem m pimelv mmd ud>- Sampling continued on a regidar beis Santee Rner. dis isions 93 conunen i.it lots,21 at the a0 water quality monitoring sta-mimllacelean ad Plgrmis tions located tinuughout the I.ake Genetic engineering iescauh to pio-leases to public and quasi-public agen-Mar um 1.ake Moultiie v escimir. Sta-duce a inploul btenic) sersion of the (i Resenues mllected Irom these tions were monitoicd monthly for a Chinese (.iass Carp was mndm ted I un ded Si293 Idio dming la hiuad spet tium of phyical. c henucal, during the last quaiter of the Scar. x 1 hese leases pius ide a w ide varie. and biological mndinom, amt iti.tiSa n of tecicational f acilities to the public. analpes weic c onducted duiing the A pproximatelv 200.000 li y were pro-Scar in the unit's laboratot yJI hese duced and anl heing iaised at the hm imlwd amt ninety 4ix signs weic aquacuhut e sue. Reimemenh w di he maimained on majoi inadwass in the made m the hat hing pnxess and full. 't the Santec Cooper lakes piodmtion of the triphmt graw caip is dig h Ndic m vmiom poimmf planned for the mming 3 car. m een I.Aes Maion and Moultrie. M.un of these areas prm ide boat laum h-ing, food, boat amt motor tentals. 28

1 lishing, water skiing. golf, hu nting, miles of firebreaks were constrinled

n additioit Santee Cooperjoined camping, amt many other ty pes of or maintained around 0tmg pine
esen other state agencies on the 3

icocation to the s isiting public. Pro-plantations to proteu them bom South Carolina Economic Develop-perty.\\tanagement penoimel proside wikilites. Resenues fiom the sale of ment Cmmcil, w hich was established soutine mainten,m(e amt icpairs for f or est pimhu ts ami agricultural ! cases by the General Assembly to coonlinate 17 public imat launching ramps and totaled S7 Di29. economic de.elopment promoti<m for par king areas umler lease to the S.C. th e state. Wikilife aml 5!atine Resources Econontic Development

Depaitment.

..in Somh Carolina, we will gisc sou liccause of potential fi>r imestments the closest thing you'll eser get to a 'n the Mate by fi> reign cotmtries, A ico cational area of Ptl6 ancs, pro-guaranice...amt nune" is the theme of Santec C(x>per participated in the sided through a gratis lease to Claren-Samec Cooper's new adset tising cam-S""thCd't CS japan Awociation ami don County in the Taw Caw impound' paign imroduc ed this sear. As par t 01-the Southeast ES. Koican Association. ment aica of 1.ake Station, was this pumu>tional c!!or't, national deseloped and completed duiing the maga /ines, sm h as Foi mne aint Inc., Shu Leting of excess generating capaci-fiscal > car. It (ontains public fishinM (arried a seiies of ads to attra( t new ty and energy to other utilities was pier s, boat lauin hing and pi( nic ami cynding induurt to Soudi begun, and a contra (t was completed facilities natut e tr ails bo u dwalks Carolina. with the Southeastern Power playgiounds and p.u king aicas. Administration. I A total of 18.899 acres of prime Peak Demand (51W) Site location and man keting programs wikilife and wateif owl habitat were C"I'"' I "* ucie expanded with the addition of ' leased to the SC. Wikilite aml.\\larine penonnel and a computerized data Resout( es Department on a gratis iN,s l I base to respond to industrial inquiries, basis for use as par t of the state's y] 3 match site selection criteria, aint pro-Wikilite.\\lanagement Program. Adja-a vide suppon t for the economic (ent to 1.ake.\\loultr ic in llei keley tyl; desclopment pnigrams of the State Counts, a 330 acie waterfow1 im-SwI Desclopment iloard and 33 of the p nualment is nearly complete and yl l state's iti counties. w ill pim ide a wateilowl management s area im use bs the general public Pro. T,d ; in April, the 1.inoe Disision of Union (ceds liom the sale of wikilite manage-6,I Cai bide Corporation announced ment area pcimits were put b.u k into M plans for conuruction of a new air the Wikilite Nianagement Area Pro- 'C" l separation plant near Camden.The I

gram on Santec Cooper lands to be ini S17 million f acility will prmide 50 to j used for planting public dme hunting OI MM 130 diic(t and relatedjob oppor-i fichts and game food plots, and other 2 '" l g

tunities to the local at ea. Santec s. projc(ts related to wikilife enham e-Cooper's Economic Desclopment Rate ment. I hese areas itu luded in the omtriinited to l'nion CaibidcN deci-Wikilife.\\lanagement Area Program sion to locate the plant in Kenhaw pimide spoitsmen some of the best Capacin M9 C"" "' }- hig and small game and wateif m1 Calemiahr.u ininling in tlic state. ...enI A loveu management plan was r dneloped ihr the management of the 'f; timber, foico, amt u ikilite r esoun es m,I located on the Pee Dec genciating site gl m I loience Counts. m twoI M Duiing the fiwal cas, a total of yo I ME 3 633.000 genetit ally impimed pine ,,4 l secanngs weic piamca on s90 anes <d w I Santee Cooper non-loieved landt Ap-so plosimately 1,330,u tes of t<ncyt weic .,[,y l (ontrol buined to icdu(c w,hthic si i ""l haralds, impime acubetin and wiktlite habitat, and comiol [LM undesirable spn ies A total of ISO "9

SPECIAL FEATURE: Economic Development for SC - Priority Number 1 Santee Cooper's highest priority during 1986 was ec onomic deselo]nnent for the benefit of the people of South Carolina. Following the mandate set forth in 1983 by its new chairtuan, Santee Cooper took the lead role within a net-work of st:ue agencies and pursued. hat guiding philosophy, pooling resources to present the story of South N' c ^ Carolina to the leadership of commence, industry, and s O government in every state in the nation :.nd in a number of foreign countries. ~ U_ y g .N The story of South Carolina is a story of South Carolinians, for the people of the Paimetto State are its most important resource. Reliable, productive workers; a strong support 4* g' structure of state agencies; and Santec Cooper's own ability i to of fer dependable electric power at low cost;this com-I bination enables the utility to of fer prospectise industry i "the closest thing you'll eser get to a guarantee..and more" The assurance oflong-term, low-cost electricity is a fun-l damental attraction for companies looking to build, ex. l pand, or relocate. Ilut it is the offer of additional benefits abuse and beyond the guarantee of reasonably priced elec. h tricity that prosides a strong incentise for industry to take a good hard look at South Carolina. k And industry likes what it sees: K

  • A State Technical Education system that is recognized as I

the nation's finest, the bem hmark in training skilled wm kers for industry. Mg y .g /

  • The South Carolina ports system, ranked Number I in 3

iontainer tonnage in the South Atlantic,and Number 3 for the entire East and Gulf coasts. w,,--, 9 k 30

"It is our duty and resfxmsibility tajoster the economic development ofourgreat state. We mnstjoin hands and be fxirtnm in progren with all othm who share that res]xmsibility." t h ight i lioliter. thaionan Annual \\f erting. 5 antre Cooper lloan d of Dis cuors Juh. lW

  • The State l>cpar tinent of Ilealth amt Environmental C<m-m 7..; f,, 3 q;; g.

. w g 31,.g.;. trol, a single, one stop agenn to hamile all permitting re- ,?-., '9:-;.i -PM ' 7 p n, quirements for imiustry. 3,;.. L.T. . k.t... y,3 l *

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  • The State l>neloinnent floani, w hi( h, pet haps moic than j 5 ?? -.

v.; ' JJ.' '/Jm b'1,..,# " ' 'd.,' F ^ I t' [ - ~~ ] e' i If any other state entity, wor ks (losely with new imiustry in s South Carolina,liom initial conta(t to ribbon <utting atul 4 r. . m. f n- ~. ~ ~' hnomi. +i II ., :...w ). g. ww, g w" Alm'hevowW8ts/"MJr-T***M.

  • The 1)cpairment of Par ks, Recreation ami'Iburism, whi(h Newwp#4Wg e gieng m ersees ami promotes South Car olina's unparallete(I g

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  • 'I he South Cat olina Arts Commission, speaking the

'j[:1'.,".. C 2 '.. /e p, f,' E 7 : J. uni cisal language of the (icatise ami performing arts, . ce - ~^t whi(h <traws upon the sic h cultural heritage of the Palmet. ? N. k,'j.f %,','I- [',osf ' ' ' i f. - 4:. to State ami piesenes its inagnificent legarv for futute c

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  • Atul, ahme all else, the people of South Cat olina. People w ho at e iminstr ious aiul capable, with a woik ethic that woi ks. People w ho bring to the wor kpla(c an infinite

<legice of eager ness amiloyalty. People w ho woik hant people of the Pahnetto State, who, mote than any other

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_ = _ i Progrant for Employee fhe benethynom Pi P d tinaiu-ial intentiws to seek the least i"xM""""l""*" "' "7 olla r s.n. l Participation ' C'"" " 1 '"I" 'i" C " C'"" '"" h '" I " C""" C" '- Pl."'"houhllead to hmer health car woiLing unulitions - aic projn ted to iluss Program fi>r Employee Participation im rease as the number of gioupunut rate increases in the f utur e. (PEP), established in Nmember,1983, projn is inn ie.ncs. 'l he mor e { wo Led to impime o evall annpany employ ees im ohed. the gwater the ~1 he salary plan was ululated through a prodm tisity by better using employee s.n ings are for Santec Cooper amt its total re-evaluation of all exempt posi-knowledge and expciiern c. Alter a 17-( u stomer s. tions. Su(h a thorough analysis is done l month pilot plugram managernent ap-periodically to allow the pay ranges to pim ed unnpanyw ide impicinentation. I-Iunian Resources he modificit as responsibiliiies (hange. I he 1,El, administrator and own.. Alajor < hanges in benelin and salai) Pay for per fm mance omlinued Ihr P d "' Md* "" P "> CC' "P'I""' d

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both the exempt and non-exempt l I dinator s tr ained, o ninlinated, amt maintained employee imohement unni that dicy wac onnpensated f air. C"'P;">CC*- b I"I ""' k "I""""I-P te.uns thn mghout the annpany. ~1 hese g, g grouin idenn,h,ed impo nement op-pos tunities with.m their.ucas aml S pco. h.talh. giou p imu rain e ( os erage for its opportumnes. I.he promotion worked through a group problem-hs Ilealth Niaintenam e Digani/atioin liom witlu...n po; icy ena;i;ed 189 sohing pirnew to make set onunemla-(l'INI( N was oflered to emI>lmees ib empimees to a< hance to new respon-tiom for (hange. the tiist time as an alternate a >Inoat h sibilities thr ough the internal job to heahh raie. Approximatch 20 per-pmting s) stem or by natural - Emphace training was comba ted in wnt of employecu hose an llNIO In ogr ession. se cral' areas of the llor >ocongetown w hile the remaimici sta>cd with tiadi. Disision aint at Cims Generating Sta. tiotial health i owrage. 'I he t ompany ineiwd mer 1.000 ap-tion, amt groups une expamled in the plicatiom dur ing the scar amt hired I 'liansminion Dh ision aiulibroughout in aihlition to ihe existing deferied I32 "C" ""P ")CC': II"' I" PC" C"' P ot niement and Stones. onnpemation plan, a tolK plan ior I""Cd" in gion th inocasnt total l C"'P ")'"C"' '" 1,191. Filipone tem-tavdefened sasings was intiodm ed to Siine PEPN iiucption,21 piojn is haw giw employees hetter au essibilin to P"riu y eniployees woe usal to supple-been stairnt by 13 gioups. All 16 pro-their s;n ings. nu nt the workloue amt to limit f ull-posah m.ute to management haw til"C ci"plo) ment. Santee Cooper has been appiowd, amt onh one pioja t Also. imprmements weie made in the d *' ) I"" "" ""* r I'"C I PC" C" wasabandoned. o nopany's dental plan w hit h im luded "unp.u nt to the national awrage of. ina casing the lifetime or thodomic L2 PC " C "'- 'I he gioups met an a ciage of one benefit and iedm ing the waih f.uuih hour per week, and n pically spent dedm tible. ~ Emplo) ment da isium aie based on the and one hall mo' uhs on a pioje t. inten icus, hat kgioumi t hn ks, and i 'I he as erage ont of impleinentation As a ont omtainment measure, phpical examinatiom. in addition to was $'m, with an annual o nt of $90 employees weic eno>uraged tin ough applic ant testing f or skilled < raf t and (leiscal nnitiom-and annual s.nings of SI,997per project. i Rate Comparison FY 86 Employ ment penonnel weie imohed lhon W 11 Routential an ge Ceiso in the ronununities and awas u hete Santee Coopei senes. 'l his iiuluded s3n I E numcious programs and gioups. sm h "T.@'.; l ped Conunitter. i ollege and high as the Employ ment of the llandicap. se co i, I E EI 5" w hool (.n cer daw, and ininot in $l M QWE edm ation piogrann at saiious itate I"' gig I g9 g u hook. An imeinal dewtopment por giam helped oillege gi.nluates gain , %,,, I EY EE

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compam expet iem e. and oioI>cratiw l 5h Q l cdurahon piogiann ptmidal ev So em pio3 ces. s,in nential lu t m e }'y j g g per ience for nas bs annp.un m .n SW" I E EE icpiesentatiws to < ollege (ampuses ""$'Nl lM Mggq an.1 applii.mt s isin to sations Santn uul Coopei 1.n ihnes lughlighted a un - '"2"' (ewtul in s uiting piogram. 36

The aimp.my operated au onling to Piogiain and, for the seunul um-cralt aiul tec hnical training pro-the sesised Af fi mative At tion Plan ap-set utise year, had the lowest claims gram was umdut ted for production prmed by the South Carolina Iluman lesel of all South Carolina State l'umi penonnel. Af f air s Commiwion in Nosember pa r ticip.ut t s. 19C>.12.m ployment, u n n pensat ion, One hundred and sesenty the pn nuotion..md otherjob-related deci. Eur Uralth and Fitnen magazine at d em ploy ces com pleted ( ollege les el and siorn were based solely (mjob iciated Hmith IUnin, a health newsletter te(Imical education u>urses through qualifications wittu>ut icgant to race, fiom'hident Regional Sledical Center. the tuition aid program. u > lor. sex. icligion, nationat origin, ase distributed to cinployees bimtmth-

1. lilood 1)onor programs at Cross, Safety age, or handicap, cucpt w her e those 3

faunis wer e hona tide ou upational N!oin ks Con ner. Winyah, aiul Conway .g.he nation's number one safety sec out qualiti( ations. helped ineet the needs of thme f or large public ly-on ned electr'ci OccuIjational Health "'ili'ic?as at hicsed l@unw C""P""n 198Mor the Mih tnuminn-Ou u pational licalth u nn entrated on Trattillig attd Deve1opment diminipq em ned die n>}> inonitor ing and impiusing the health haining and Deselopment pronted safety awant, presented by the of employees as well aulescloping and sen ices designed to innease the pro-Ameiican Public P(mer Association, administer ing ielated piogiana. din tis itv of employces and imprme for h.n ing woiLed 2A71.titio man. 'I hese gn ogiams im lude evahiation the deselopment of management, pro-houn with an incident rate of.lS, well and unitiol of the woik emironment, lessional, tec hnical, ami craf t skills. below the national aserage. 'I he unn-medic al n aluatiorn, amt health-Employees asemged attending I.fijob-pany is evaluated annually and aim-iciated naining. t elated courses duiing the fiscal year. petes foi this icuignition with olher member utilities opeiating mot e th.m 'I he health esaluation piogram was ex- [:if teen engincen weie emulled in an im> million man boun. Santee C(niper p.uuled to im lude all employees. In external piolewinnal engineering is the onh utility to eser win this awant addition to nonnal wicening. cler-in icw poigram at a hical uillege to in consecutise yeais. trocanliograms and ( oloin tal rain er help them obtain their PI'. lic ense. tests weic administeied to employees in athlition to this in ognition,27 age 10 and mer. A (omputeii/ed I here weic 127 internal training ino-units carned safety awaids hom the heahh iisk appiaisal was administered grams }n m ided, w hit h im luded the National Salety Coum it, and 23 for a sampling of einployees, ami areas of supenision anal managemem. cained safety awanh f rom the South iesults weie shared with thme ( om pu ter, t onunu nications. cu stomer Carolina Occupational Safets Coumil. penon nel. sen ice, electi ical aiul elecounic in-Jet teries Generating Station ic(cised st r u mentation, mn hanical an Awant of Nfeiit for operating l'out humbnl aint eighty-tluce maintenance, power plant operations. 1.188.2tio man hom s without a disabl-employees c ompleted tint aid traini"M aiul linen ew operations. 'I hese pn e-ing injury. I he Ptesident's Salety in 19sti, more than double last yeai s grams prmided prolewinnat aiul Awaid, for acw anti set tion ufety partic ipation. A signific ant inocase in in hnical skills dnelopment at all u hile operating umler haraoh us (on-CI'R training was also seen. I he respir-In cis oli om pany operations ditions without a disabling injury in atory pnucoion piogram, now in its 1983, was c.u ned by 87 news ami second year, continued to espand with Ilighlights of 12Y 86 included ( omple-seminin. ahnmi half of S. mice Cooper tion of the inst umentation training employees attending annual training-simulator, start-up of the powei plant Safe Senice Awant pim weie simulator used as a seticsher training pr esented to 210 empimees Sale lh iv-A new piogiam ottered "l'icedom progiam f or unit operaton, and ing Awaids wete presental to 136 12nnn Smoking" nening (lawes to establislunent of unnputer-based driseis of (ompany schicles, and 12 emphnees azul their f amilies and the tiaining in ogrann for u nnputer solt-employws bn.une innnhen of Industrialliygiene unit omdia ted wate user gumin. Apponimately 1i00 satious utets (lubs w hit h icu>gni/c tescau h at sat iom wor k hu atiom to employees innn the Produoion thme who asoid injun in wearing dnelop a complete imentot) of I)cp.u tment in eised uimpichemi e salcty dnit es or equipment. As an cv potential ( hemit al haiants hands on n aining in tit c0ghting .unple of the dedit ation and unnmit. In hnitpics 'I he l'Cil tramtoi mer ment to utety in empimees ami all I he medic al stalt otteied traditional t raining In ogr am, in at u n dant e w ith incis of management, four einpimecs sen it euut h as medit al u m melinM the 1)cpaument of Ilealth and im were icuigni/cd hu outstamling and teteiral pic-emphn ment medit.al s innunental Comnil standants was leadenhip in units opeiating for 13 naluatiom, azulemergenn medit al unnpleted bs 278cmphnees I he skilled scan without a diubling injun. ticannent. Ou upational IIcahh ad-ministried the Wiken' Compemation 37

= g-w E= it ?' -Q F ~ E p = E s =- ), y gw: - 3.~ Mse j t 7 l 1 h n .a AQ ~ .,e s >+ ~. . p.,,,, -v +_ . ; sw ^* ' t Abie Ladson Personnel Representative Santee Cooper Coinvay, SC "Every day at Santee Cooper, we get a better understanding of corporate philosophy that says that 'Our Product is Enctgy llut Our Most linportant Resource is People: It takes talented, dedicated, and skilled people to operate our giowing power system. In the company's recruiting, employment, train-ing, and communications programs, we place the highest priority on human resource values.That's because, when it comes down to providing service to the customers out there, we're only as good as our people"

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f 1 'i Corporate Forecasting, Rates, <lude testing of new optical encoder m include certain cmnmercial applica- "i"i nnent. tions. s infonn tion wil help l l and Statistics Santec Cooper achiese its corporate Santee Cooper placed a general rate T he Rate section's innovatisc residen-objectives in rate design, energy adjustment into eliett Nmember 1, tial monitoring program using 75 management, and marketing. 1985, whic h increased customeis' rates solid-state iccorders to determine the by an aserage of 5.5 percent. Santee load ( haracteristics of residential The Statistics section tested programs Cooper does not antic ipate another customers' hot water, heating, cooling, that will be used to billlarge in-rate adjusunent until the 1990's. and total energy use was awarded an dustrial, municipal, and cooperative l American Public Power Associatioris customers on a calendar-month basis A pilot program, to determine the Demonstration of Energy Elficient beginning with the August,1986, bill-teliability of billing data irom solid. Des elopments grant. Showing good in-ing forJuly consumption. This process state icon ders, was extended to in. itial results, the project was expanded fits calendar-month energy-sales to monthly operation records, which are l used in cost-of-service studies and rate I Peak Demand Foircasts (%IW) designs. It also allows Santee Cooper calen< tar Year and its customers to match monthly expenses and revenues. [uI MM I Management Information el l MB Systems d'a I M M Peripheral e<iuipment was added to ., ' " l m the com pany's mainframe com puter 7i system.This included more disk 2.2'nI ~ storage fier imprmed data access, a 21 l M new controller to impros e com-yl m munication with remote locations, and an unmterruptible power supply, a 2X l battery-based backup system to pre- .$l,, IM M sent computer downtime due to power fluctuations. gl gg 2b l ME In the area of commercial applica. 2,0, I tions, the following were accomplished: Energy Forecasts (GWil)

  • %!ade significant enhancements to Calenitar Year applications systems, including pur-chasing and retail billing.

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  • Added a taxable fringe benefit pro-i gram fi>r the payroll system.

11.9 8", i[$.

  • Developed a reporting system to pro-ya{

y ide accurate accountmg fi>r meter ..i im entory. 12n,. .r j iiii.,

  • Completed a study with Transmis-i 93 sion and PEP for a ssstem to

'T' automate inspection, pres entive j iso maintenance scheduling, and work d'),g activity. w 'Y = Designed a system to prmide infi>r-1imi mation processing ofinternal and 9s l Ll7dl 4

external training }n ograms, tuition Applications of Revenue aid, professional memberships and exams, college degrees, equipment Years EmledJune 30,1986 and 1983 imentory, andjob des elopment. 1986 1985

  • Descloped a system to recold, track,

~Iotal Operating Resenues $ 455,000.175 $ 430421.983 and topot t the availability of stthsta* Oper.ning tapen',es: tion equipment, sut h as Operation transfortners and circtait hicakers. Produaion 195.057,706 2o3183x27 that base been capitali/ed and at e Pun hased amt Inten hanged (uttently out of sets ice. P"wer - net (213.379) (43713316 'Iransminion I,991,478 1.512.677 Disinhution 2,158,299 1.664 t03

  • Analyzed ami pur hased a soltware Cuvomer Au ounn IS49,974 1.521921 package to meet material-control m.-
  • , An 283M5 Rd 300 f ormation Iequiretnents.

Alnnniumiiu.unt Gennal 25,231,152 23.331008 .St ain tena nt e 38,596,425 31.1933 >03

  1. Analy/ed a fuels management system and obtained management approval lotal Operation aint to design a system in house.

Staintenanc e tapenses 260,955,500 239.231233 Sums in 1.icu of l'ases 2,176,137 1.020.109 During the fiscal year, the himical I' tal Operating tapenses 263.131437 261.133.664 Support staff upgraded all operating system sof twate running on the com. Net Operating Rnenues 191,868,538 169.16x319 pany's two nlainirame compuletx l'his Oiher inc ome 26.687,030 2193:366 included a new telecommunications system whic h gives access to either Rnenue. bailable for Debt senit e mainfranie.The suppoit prosided to and Other Purposes 218,555,568 1914o1183 the engineering and scientific users 'gi,tal Debt Senice 150,910,358 12123o337 was greatly inctcased. A modeling

t. ease Pas menn in Central 5,466,375 1466.230 system w hic h evaluates the perfor.

Principal amt Interest on Other mance and ef ficiencies of each of the obligation

  • 23J59.265 1o.167.o17 Eencrating stations was a major ac-Italanc e af ter Debt Sen it e,1. case complislunent m ilu.s area. I he of hcc P.nmenn. and Other Obligations 38,419,570 36,330.o31 automation pilot project was com-P na to die St.uc of South pleted suc(essfully, and personal com-Cool na 1,900.012 1.7003'M puter wolkstations here athled to the P.nment to lhe Spu i.d Resene mainframe based computer system.

t und - net 1,392S65 1.20 % 22 Standaton Wi Allocation for Treasury Capiiai im p,osements 26,057,7i4 36.2o7.922 In FY 86 Santee Cooper sold an addi-Re enue Asailable for Operating tional Electric System Expans.tjnt Requiiements 9.068,979 17.426.109 Resenue 15ond,1986 A & 11 Ref umling Series, at an average cost of 7.89 per-cent. The proceeds of the lef unding bonds, along with other asailable m t his smnmai pain n pwgied hom disinam ial ummenmnd odwi dara monics, were used to advance refund og ggggn,iin ad has m>i heen minim d in die indwendent andin>is. $166,973.000 ou tstanding bonds. This nnounnnan p,esenn ihe neiinenues.n adable niihe Rnenne i und 6,r resulted in an aserage annual savings pm poscout h a, pon idmg lor mo eases m woi king t apiialiequiicmenn. ii of b893.94 ! and a total savillgs oser the dallen tions the statemeni ot Reisneurd t ai nings ut that it iepresents t ash life of the a umding bonds of n ans.u non on acht sen i< c and..n i oohns.ru iu les non c ash nems suc h Q4 2(i,[(',3, Js (tepict iation, allowath e loi lunds used duiing (onstlu(lion. t ost nI he iconcied hom f uture inenue. and.unoriti/ation of dehi diw ount and "P""'"- Duting the year, management of daily cash deposits was imprmed thiough the use of personal computer pro-grams and better conununication with district ollices. 43

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~ ' Financial- -Stat'ements South Carolina. - Public Service Autbority ~ Fiscal Year 1986 e S 1 46

Report of Independent Certified. Public Accountants-( ~ The A<hisory Board and Board of Directors , South Carolina Public ' Senice Authority Columbia South Carolina ~ We hase examined the balarice sheets of the South Carolina Public Service - Authority as ofjune 30.1986 and 1985, and the related statemenhof. reinvested earnings, accumulated - earnings reitivested in the business, -. and changes i_n financial position for each of the three years in the period endedJune 30,1986. Our examina - tions were made in accordance with generally accepted auditing standards and, accordingly, included such tests.

6f the accounting records and such -

other auditing procedures as we con-sidered necessary in the drcumstances. In our opinion, the financial statements referred to above'present ; fairly the financial position of the South Carolina Public Service Authority as ofjune 30,1986 and 1985, and the results of its operations and changes in its financial position for each,of the three years in the period endedJune 30,1986, in con- ~ formity _with generally accepted ac, counting princi~ples applied on a con-4 sistent basis. N .2 b Coopers & l.3 rand Columbia, South Carolina

August 29,1986 l

l W 47

3. ~ Balance SheetsL S South Carolina I ublic Service Authority ~ - June 30,1986 and 1985 -Assets 1986 1985 - (Thousands) - (' . Utility Plant - At Cost:- , $ 2,018,545.. .. S 1,955,788 ~ Electric plani in service l Construction work in progress ' 57,232 .,. 77,658 ? ' Intal..,. 2,075,777.' 2,033,446. ~ . 352,252 290,869 .- 1. css acctunulated depreciation - ~ " Electric plant - net '- 1,723,525 ,1,742,577 31,211' ' Nudear fuel-- net-

22,366 Utility plant - net.

1,745,891

1,773,788
,

~ 390 400. Other Physical Property (Net of Accumulated Depreciation) . Unexpended Funds from Sale of Electrie - ' System Expansion Revenue Bonds- ~ 63,593; [46,367 Debt Service and Other Special Funds 271,771' 247,218. Current Assets: 33,125. 35,688.. Cash and securities held by trustee - Accounts receivable,less' allowance for. -51,967-40S90f doub'tful accounts of $3,619,000 in 1986 and $4,202,000 in 1985; -Accrued interest receivable. 1,683. 2373 Inventories, at average costi. Fuel (coal and oil). 41,100 51 611- ...\\laterials and supplies. 5,911 -5,393-Prepaid expenses

s. 2,024-1,407 Ltal current assets

135,810 137,062 Deferred Debits:' Unamortized debt expense;. 22,045 22,248- - Unamortized loss on refunded debt ' _154,666 ',127,593 Costs to be recovered from future revenue ' ~ 168,426 ' :140,563 2,727 1,230 - Other Jibral deferred debits .347,864 29tE34 JIntal . $ 2,565,319 $ 2,496,169 1 ~ 2-4 lhe accompanying notes he an ititegral part of the financial staternents ~ u 48,

J A f 4 Liabilities and Capitalization 1986 1985- . (Thousands) Iemg-Term Debt: Priority obligations! 62,385 S 1 64,175 - 1 ElectricSptem Expansion Revenue Bonds' 1,740,845 '1,720,575. Subtotal 1,803,230 1,784,750 . Electric Revenue Bonds. .135,000 135,000 ' Capitalized lease obligations 74,538 77,254 Other ' 543' -1,311 Total long term debt 2,013,311 lessi ,199O15, Reacquired debt 2,88'O 2,025 Unamortized debt discount and premium - net ' 18,387-20,416 Loiig-term debt - net .1,992,044 '1S75374 ' Accrued Interest on I2mg-Term Debt 71,819 65,651 Construction Fund Liabilities - Accounts Pay'able 6,632 14,238 Other Non-current Liabilities - 4,410 '2,662-Current Liabilities:. Commercial paper 50,000 ? '25,000 Accounts _ payable. - 22,819 28,212 Customer deposits - 4,435 3,700 Accrued sums in lieu of taxes 'I,076 1,019 Other. 6,935 3,406: . Total current liabilities . 85,265, '61,337 Commitments'and Contingencies Deferred Credits: J ' Unamortiicd gain on reacquired debt.. 833

769, Nuclear fuel settlement 16,128 15,955-Total deferred credits 16,961 16,724

- Capital Codtributions - U.S. Government Grants 34,438 34,438 ~ - Accuinulated Earning's Reinvested in the Business 353,7504 325,545-Total- $ 2,565,319 $ 2,496,469, 3 e t = b t a k e 4

~ Statements of Accumulated - 4 Earnings l Reinvested in'the Business Sout!i Ca'rolina Public Service Authority. Years EndedJune 30,1986,1985 and 1984 ~ 1985 1981 ~1986 (Thousands) ' ~ '. Accunnilated earnings reinvested in the business -. $ 232,482 beginning of ) ear :. $ 325,545 5 281,297 - ' Reinvested earnini;s for the year 30,106' 45,948' 50,415 'Ibtal 355,651

327,215 282,897

' Distributiori to the State of Sduth Carolina (See note below) .lS01 1,700 1,600 - Accumulated earnings reinvested in the business -- end of year - $ 353,750~ S 325,545-S 281,297 8 < Note: The distribution to'the State of South barolina is determined utilizing a calculation formula re-(luired under the Indenture which is based essentially on operating cash flow and man- .datoryLresene requirements. Such calculation ' varies substantially from reinvested earnings for. the year which includes among other things, in-terest income earned on restricted funds and, where applicable, an allowance for funds used during construction. f. L F n b -6 O 4 ~ f K L 4 4 The anompaming nStes are an inirgral pait of the finanaal uatementt 50-

~ 7 ~ ll J, Statenients~of Reinvested Earnings ~ - I [Sout!! Carolina Mbiie Senice Auth[ority - ^' . Years Ended June 30,1986,1985 and 1984 1986' 1985L -l198I~ (Thousands)E . Operatird Revenues: 4 .$ 428301l $ U6,713 :,- Sales of electricity $ ' 451,537 ~

Other <iperating reienuesi 3,463' 2,2611 1,986'

'Ibtal operating revenues ' 455,000, - 430,622 358,699 ~ Operating Expenses: Operation expense: . Prodtiction - 195,058 : 203,383 ; 164515' - Purchased md interchanged power-net ~ 1,991 1,842 fl,720 *: (213); (4,371)

  • ~ ~ 17,472. ~ -

Transmission Distrihtition? 2,1587 1,665 ' 1308L Custoiner accour:ts 1,850 11,826

2,319.

Sales 2&l . 16C ~ 97 Administrative and general '25,231 23533 '20,240'. Maintenance expense 34,5% : 31,193 - 28,718 'Thtal operation and maintenance expense-260,955.' -259,233' 236,389 _ ~ , Depreciation ; ' _ 63,764 '61440

47372i'

' Sums'in lieu of taxes 2,176

1920..

'1,750-JIbtal operating expenses = 326,895 ' - 322,793L 285511 Operating Income 128,105. 107329 ,73,188; . Other Income: Interest income: Other funds 26,833 26,059 15,2'8' ' 5 ~ llorrowed funds '5,459 16,583. 34D70 Other income (exl ense);- net ' (146) ' -(125) (iO4) i i 'Ibtal other income 32,146 - 42517-i '49,251' 160,251

150316 (122,439 -

Interest Charges: '{ ~1nterest on long. term debt. 150,224' 159,634 -160,259 J ,. Allowance,Ibr' ftmds used during construction - bor: owed fimds ~ ~ '(61,296) Other 5,983 8,205 3,571 'Ibral interest' charges.

156,207.

167,839 - 102534. 4,044 (17,493)i 19,905 - Costs to be recovered from future revenue 27,863 67,207-30510- . Other deductions - net (1,801)~ (3,766) ~ ~~ ' Reinvested Earnings 30,106. S 45,918 -5:'50,415" m I e V t he anoinpanying notes are an iiitegial part of the finanaal starrinents. ~ 51 6

Statements of Changes in . Fina~ncial Position -

  • South Carolina Public Service Authority.

Years EndedJune 30,19'86,1985 and 1984 1986 1985: -1984-(Thousands) Funds Provided By: . Operations: Reimested earnings $ 30,106 _ $ 45,948 $. 50,415 Charges (credits) to reinvested earnings - not prmiding or requiring funds: Depreciation 63,764 61,640 ' 47372i (61,296) . Allo ance for funds used during construction w Amortiza' tion of debt discount and expense 2,281 2,483 2,516 Amorttiation of gain or loss on reacquired . (146) 37 s 1,228 debt'- net c Costs to be recmcred from future revenue (27,863) (67,207) ~ (30,510) Total from operations 69,516 . 42,718 8334 Sale of bondsInotes 195,955 - 489,060 75,000-Long-term purchase' agreement 1,311 Increase (decrease) in accrued interest on long term' debt 6,167 (10,529) (7,151). Nuclear fuel settlement .173 479 1398 'lbtal ftmds'provided ' 271,811 523,039 '77,781 , Funds Applied To: Increase in utility plant. 35,857 .-56,256 94/i57. Retirement of long-term debt 177,475 493,268 83,291. _ increase (decrease) in unexpended funds from the sale of Electric System Expansion Bonds 17,226 .(64341) 4 /14 8' Increase (decrease) iii debt service and other (47/i33) (97,929). special funds ' 24,553 Increase (decrease) in unamortized Elebt discount '~ and' expense 50 ' (1,770)? 396f Decrease (increase) in constructiim fund liabilities 7,606 4,051 - 3,935, Principal payments -capitalized lease obligations 2,716 2/i45. 2,568. Distribution to the State of South Carolina . 1,901 1,700 1/10 0 Increase in unamortized loss.on refunded debt ' 28,237 .56,460 Other - net. 1,370 1,290 (529)' 501,406 92,637 ilbtal funds applied 296,991 increase (Decrease) in Working Capital - $ (25,180) $ 21h33 -$' (14S56)' increase (Decrease) in Working Capital by Component: Cash and securities -(2,563') ' 9,74 0 $ ', 5333 Accounts receivable,less allowance for doubtful - (1j)87) - accounts 11,877 9,908; Accrued interest receivable (1,190) 372 , (63)- Inventories (9,993) 9,030 (3,376) 'Other current assets, 617 (193) 211 Accounts payable 5,393 (6,201) (3,200) Customer deposits '(735)~ (809) (303) Accrued sums in lieu of taxes - (57). (154) (307) Commercial paper (25,000) (10,000) Other current liabilities (3,529) (80) (2/)ti4) Increase (Decrease) in Working Capital $ (25,180) S 21Ji33 $ (14856) The a<(ompanying notes are an integral pari of the unancial statements. .52

,-.i... Motes to Financial Statements .fnnn fmumenue. Alsnahe nqdmd of caulating f the allowance Ihr funds used durmg construction June 30;19F6 ("AFUDC") was changed to reflect the nei cost of bor-rowed funds used during construction rather than the fbnnulary method pres iousiv Ibliowed. The com-Note I - Summary of Significant ponents ofcost to be recoser'ed from future revenue Accounting Policies: and the adjustments to AFUDC resulting from theim- . plementation ofSFAS No. 71 lbilows: ' A - System of Accounts - The accounting reconis 'of'the Authority are maintained substantially in ac. 1986 1985 1984. . cordance with the Uniform System of Accounts . (Thousands) prescribed by the Federal Energy Regulatory Commis-Costs to be ' ecovered r I" "" I"'" '" ' 11 t ty Plant Capitalization and Alaintenance - Ness ordepn?""# ciauon Additions to plant are recorded at cost, which in-(ludes material, hhor, overhead, and an allowance for over debt senice. $ 27#63 $ 11,159 $ 30510 ~ funds used during constiuction;The costs of repairs Funded intcrest costs and minor replacements are charged to appropriate after in sen ice date. 26.048 operating arut maintenance expense. The costs of 236'l 67207 30510 renewals and betterments are capitahied. The original cost of utility plant retired and the cost of removal less salvage are charged to accumulated depr eciation. AFUDC. - (12,722) 7,403 C - Depreciation - Depreciation is computed on $ 27,863 $ 51,485 $ 37.913 a straight line basis over the estimated useful lives of the various classes of the plant. Annual depreciation provisions, expressed as a percent of average . depreciable utility plant in senice, was approximately Note 3 - Unexpended Funds from Sale of 33% lbr each of the three years in the period ended Expansion Bonds, Debt Service Funds, . June 30,198ti. Other Special Funds and Cash and Securities: D - Revenue Recognition - Substantially all mholesale and industrial revenues are billed'and Unexpended funds from the sale of expansion recmded at the end of each month. Revenues from bonds, debt service funds, other special funds and cash. retail customers are recognized on a monthly cycle and securities are held and maintained by trustees and basis. Fuel costs are reflected in operating expenses as tlye,ir use restricted in accordance with applicable pro-ons of various trust indentures; bomt resolutums, consumed. lease agreements, and the Enabling Act included in the E - Pension Costs - Employees of the Authority are covered by a State Pension Plan administered b'y South Carolina law. Such funds consist principally of the South Carolina State Retirement System which. mvestments m government secunties carned at amor-provides for employee and Authority contributions. tiicd cost,' which approximates market. Contribution rates are established by State statutes. Balances in the various funds athme 30,1986 and The Authmity's contributions to the' State Pension 1985 were: Plan were $2811j)00, $2jiO5,000 and $2,414j)00 for . the years endedJune 30,1986,1985 and 1984, respec-1986 ~1985 titelv. Data concerning accrued benefits and pension fund assets relating to Authority employees are not (Thousands) available.. Unexpended Funds F - Allowance ihr l'unds Used During Construc-1982B llonds (Cross '84) $ 18547. $ ' 21,171 tion - The Allowance ihr Funds Used During Con-GeneralImprovement Funds 45,046 25,196 siniction (AFUDC) is the net cost of borrowed funds e used during construction. 1btal $ 63593' S 46367 ~ G - Amortization - Unamortized debt discount, premium and expense are being amortized to income Debt Service Reserve Funds over the terms of the related debt issues. Unamortiied Indenture Bonds $ llS26 $ 11E80 gains or losses on refunded debt are amortized to m' come as impacted through the rate-mak, g process' Expansion Bonds 219,003 220,135 m Subordinated Llonds 23561 9,199-generally mer the terms of,the new debt issues. Special Funds CapitalImprovement Fund 2,810 228 Note 2 - Costs to be Recovered from Future Revenue:

1. case Fund (Central System) 459 436 Contingency Fund 1,169 1,156 In Fiscal Year 1985, the Authority fully adopted the Nuclear Fuel Working Fund 8,189 2377 provisions o Statement,Nf Financial Accounting Standards lloard Summer Plant
o. 71 SFAS No. 71), uhi(h pim,i,ibes the 1)ecommissioning Fund 3,282 1.607

, 3 accountmg pnnciples to be ibliowed by entities subject to certam types of regulanon. The most sigmhcant im. SC. Energy Office Fund '1,372 pact on the Authority was to recognire timing dif-lbtal $ 271,771 S 247.218 ferences between costs as dc6ned in the rate making process and costs determined in accoidance with Cash and Securities IIcid generallv accepted accounting ptinciples.The Authori. by Trustee .ty's rates' arc established based upon debt senice and Resenue Fund $ 28,488 $ 30,412 operating fund requirements. Depreciation is not con. Special Reserve Fund 4,637 5.276 sidered in the cost of sen ice calculation. This results in .Ibtal S 33,125 S 35.688 urumg dif ferences recogniicd as costs to be termered 53

. deconunissioning costs oser the iemaining life of tlye Note 4 - Summer Nuclear Statiom firmty. I hese costs are bemg recosered through the The Autimrity and South Carolina Electric and Gas Authority's rates.The estimated decommissioning costs (SCE&G) are parties to ajoint ownership agreement are periodically reviewed aiul adjustments recorded as providing that the Authority and SCF&O shall own the appropnale. ~ Sununer Nuclear Station wnh undivided interest of The supplier under the original uranium supply . contract breached the contract in 1975 due to uranium i 33 % % aml 66% G, respectisely. SCE&G is soleiv responsible for the design, construction, operat' ion, market conditions.SCE&G initiated action seeking mamtenance, and decommissioning of the Summer specinc perfi>rmance of the contract provisions, and a Nuc! car Station, and the Authority is obligated to pay ~ imal settlement was reached and approsed by all par. its ownership share uf all costs ielating thereto. AtJune - ties in April 1980, lly terms of the order approving the 30,1986 and 1983, the plant accounts included sentenient, the court imposed conGdentiality upon the = appioximately $121980j)OO and S 117,619,000, respec. - details of the settlement.The Authority has receised tively, representing the Authority's investment, in. approximately $10,213J)00 in cash as partial settlement cluding AFUDC,in the Summer Nmlear Station. of the lawsuit. Additionally, the agreement pnp idg for Nudear fuel costs are being amortised based on delisery of some uranium,long-term delisenes o. energy expended whit h includes a component for equipment and senices (induding conversion and fuel estimated dispos d costs of spent nuclear fuel.These fabrication) at a discount. i amortizations ar e included in fuel expense and are' Amounts receised due to the breach of contract hase ierovered through the Anthority's rates.Decommis. been included in deferred credits and will be applied - sioning costs (costs to take the p'lant out of sen ice in as a reduction of uranium fuel costs. This is consistent t the futuie) for the Sum ner Nuclear Station are with SCE&G's treatment pursuant to an order from the ~ estitaated to be $314 mPlion, for the Authority's % South Carolina Public Serviie Commission.The cost of [ ow nership, based on a 30 > car useful life with 'decom. nuclear fuel purchased has been redured by approxii [ missioning expcaed to commence in the Scar 2013. mately $ 1D00000. [ The Authority accrues liar its share of the estimated Note 5 - Lemg. Term Debt Outstanding: June 30 e [ -1986 1983

(Thousands).

g [ Priority Obligations: Electric Resenue Bonds. Series of 1930, bearing interest at 2.70% and due 1986 to 1993 $ 9,295 $ 9,580 Electric Res enue Bonds, Series of 1967, bearing interest at i 1.109 and duc 1986 and 2006 49,135 49,763 Electric Resenue ihmds. Refimding Series of 1973, bearing interest at 59 and duc 1986 to 1989 3,955 1830-j [ 'Ibral Priority Obligations 62,385 ' 61,175 Elcoric System Expansion Resenue lionds: 1973 Series, bearing intciest from 3 F 5.209 to 3 % %. and duc 1986 to 1993 and 2013 94,315 93390 l 1971 Series, bearing interest from g 6% to 6 % % and due 1986 to 1999 and 2014 141,015 101120 r 1977 Refunding Series, bearing interest from 1 % % to 6% and due 198G to 1997 and 2002 and 2016 196,230 199/Hi3 1977 Series,bearinginterest from 1.10% to 5 % 9 and duc 1986 to 2002 and 2017 113,290 113,733 ( 1978 Series bearing interest from 4.70% i .to 5%9 and due 1986 to 1998 and 2008 and 2018 197,055 198/123 t-1979 Series A, hearing interest from 5 % % E to 6%Q and duc 1986 to 2003 and 2009 and 2019 107,280 108,263

  • 1980 Series A, bearing interest from 8.80%

i to 9.80% and due 1986 to 1993 and 2002 30,450 73S13

  • 1981 Series A, bearing interest from 7.fi3%

b to 9 % % and due 1986 to 1997 and 2002 32,445 71000 f

  • 1981 Series B. bearing interest from 9 % %

[- to 11 % % 61,000

  • 1981 Series C, bearing interest from 10 % 9

[ to 1I % % and due 1986 to 1991 5.580 10.000 ~

  • 1982 Series A, bearing interest from 9 % %

E to 11 % % and due 1986 to 1991 10,180 18.000

  • 1982 Series B, bearing intciest from Sh 9 l

to 11 % H and due 1986 to 1992 5S90 13J)00 r 1982 Refunding Series, bearing interest from 7 % 9 to 9.709 E and duc 1987 to 1991 and 2002 and 2012 and 2022 294,000 29ID00 g 1983 Refunding Series, bearing iniciest from e 5 % 9 tu9% 9 and duc 1986 to 2000 and 2003 and 2022 176 215 176.213

1985A Refunding Series, bearing inidrest from 5 % % to 9.20% and due 1987 to 1999 and 2003 and 2021 1986 A&ll Refunding Series,liearing interest front 6 % %

177,845' 177845 to 310% ;ind dne 1991 to.2008 and 2019 and 2020 ' 195,955, 1 li>tal Electric System Expansion Res enue Ilonds 1,740345 1,720,575 - Electric Resenue llornis,1985 Series, bearing interest - . f om 6% to 8.70% and due 1986 to 1995 ~ 135,000 135J000 , Capitalized Subordinated 1. case Cdnt racts, payable s ._' 1986 to 201a. . e4,538 - '77,254 'O,her-543 1311 lhtal1.ongTerm Debt . $ 2,013,311 $1,998315 ' oSee schedule below Ior icfunded debt. The Authoritv utilizes proceeds of debt issues niiginal book lois of approximatelv S16 if)00J)00, debt - primarily in financing its constructim_i prognun.. service reductions will total S 151,273J)00 over the The Authority refunds and defcases debt primarily refunding period. Refunded bonds are retired as they' eas a means of reducing debt service, thereby postpon. mature, or at the can liest callable date, from the pro-ing or reducing hitm e electric rate adjustments, cceds of gmernment obligations held by the Refunding Ahhough advance refundings have resulted in an Trustee. . Amounts outstanding, original loss on refunding, and the unamortized loss atJune 30,1986 follows: - Refunded Refunding ' . Refunded Amount Original. Unamortized Issue' Bonds Outstanding Imss . Loss ~ (Thousands) 1977 Refunding and. Special Obligation Refunding 1971 and 1976 Series

    • S 99315 S 11.211 S 7,772 -

$100J)00 of the 1981 Series C 198" Refunding and $127J)OO of the 1982 Series A .227/000 62,588 62.588 1 .1985 Refumling .S150,000 of the 1982 Series 11 150/100 30,570 25389 $139J100 of the 1981 Series 11 1985A Refunding and . $~ 40J100 of the 1981 Series C 179J)oo 27853 26363 Cash Defcasance ..S 20J)00 of the 1982 Seiies A 20,000 2.763 2,652 198tI A&ll Relimding S 12,725 of the.1980 Series A S 112J)00 of the 1981 Series A' S 61floo of the 1981 Series 11 S 1,420 of the 1981 Series C S 7820 of the 1982 Series A S 9J010 ofihe 1982 Series 11 166.975 ~2881" "9,102 'tht'al S 812320 S 163330 S)51/166

    • Inchules principal outstanding on Special Obligation Refunding and refunded bonds.

The Authorits's hond indentures iro(ide Ihr ces tain deposited therein in the two preceding ibcal, restrictions, the most'significant of hich are: yeais,is at least e<[ualjo W ot the Authont) s ~ The Authority onenants to establish rates and grow agenues (as delnyed),m the three I"'CSC. ding Ibcal cars. Ihe Authority may issue charges adc<piate to pnnide resenues sulti-3 cient, among other things, to pay debt service addinonal panty expansion bonds it, among w hen due on the prioritv ohh,gations and ex-other things, the Authon,ty s Consultmg pansion bonds, to makeie<1uired payments (inied) ni cach succeedirg f;iscal year after the. ngineer ceinhes that net iesenues (as de-when due into the lease timd and the capital . im]nmement limd, and to par the costs of date on, which such additmnal bonds are sohl opeiation and maintenance of the Authmitv's to and nicluding the later of(a) the third suc-electric sntem and all necessary repairs, ?cding Iall fiscal year atter such date or (b) the first full fiscal car af ter the estimated date of replacenients, and i;cnewals thereof. 3 communal operation of any power plant to 'I he Authmity is presently re<piired to pay an-pay the cost 01 c onstrucuon of which addi-nually into its capital impunement hmd an tional expansion bonds base been, are being. amount u hich, together with the amounts or are then authori/ed to be issued. shall be at 55 l'.

9 a i s t leist equal to the sundof the amounts required - own.45?c of the second unit at Cr'oss and the Pee Dee ' ~ priority obligations and the expansion bonds. - generating statio'ns subject to obtaining financing. ~ in such liscal > car fi>r (i) debt service on the; . guaranteed by REA. , tl.ien outstanding, being issued, or authoriied Future minimum Icase pay ments on Centralleases, f but not >d (iii) payments mto the capital im-et issued,(ii) payments into the lease. atJune 30,1986, weref fund, an , T.e rs end'm.gjune 30:, .- Amount. provement fund.' Maturities of electric resenue b' nds, priority obligal (Thousands). o tions and expansion bonds during the years ending i1987 '$ 5,466 Ju ne 30,198, through 1991, are as fi>llows: 1988 - ~ L,402 5 . Elcoric ' Priority a Revenu[ Obligaiions k -

1990 5,258.

. Bands icxpansiorilk>nds Total 1991:. - 5,258 Thereafter 85,677 . (Tluiuund9

Junc an.1987 s 1333o

$ ti.lso s 27t>30 Total minimum lease payments: 112,406. 'Junc 30.1988 .133H) IMMO 29.280 Less, amounts representing interest. 137,868 Junr30.1989 13;00- . lfwo .30,310 Balance atJune 30,1986' $ 74,538 June 30.19W 13310 17.945 31,445 '.junc30.199 - 13SH) 19,1M0 ' '32t80 Note 8. Comm tments and Contingencies: i Ibial $ f>7JM) $ 83345 $ 151,345 : The Authority's Consttisclion Budget,as adjusted. ~ fi>r known changes, provides for expenditures of ap-N:t2 6 - Commercial Paper: ' proximately $83,100,000 during the fiscal year endmg. ' June 30,1987, and $157,600,000 during the folldwing-The Board of Directors authorized the issuance of two years. commercial paper not to exceed $50,000,000. The - Based on a Alav 1985 loa'd forecast, the Board defeb paper will be issued fi>r valid corporate purposes with red indefinitelv t'he consttucti6n of the second unit at a term not to exceed 270 days at an annual interest rate the Cross Gene' rating Station. In conjunction with this not to exceed 9 % L As ofjune 30,1986 and 1985, the. deferral, $3,766,000 of contract cancellation charges. 'eff ective mterest rate on outstanding borrowings was were incurred and charged to reinvested earnings for 4.17% and 4.55("c, respectively. During 1986 and 1985

1935, the as erage ef fective interest rate was 4.72% and During 1982, FERC notified the Authority that the.

5.361 the average amount outstanding was Pinopolis West Dam and the North Santee Dam, ' $ 13.829,000 and $25,000,000 and the average maturity. . which fi>rm a part of the Authority's electric utility was 43 and 21 days, respectively. system, possessed marginal scismic stability tinder ap. AtJune 30,1986, the Authonty had a Revolving. . p'licable design e'arthquake criteria. FERC lndicated ' Credit Agreement with various lenders of $50/)00J)00. that remedial measures should be undertaken by the This Agreemept is used to suppor.t'the Authority's is-o

Authority to provide an increased level of seismic.

suance of commercial paper. O nder the Agreement.. stability.'rhe Authority engaged an engineering firm. 1 the Authority is required to pay a fee equal to % of 1% to perform studies and planning to determine the. on the total line of credit; plus % of I re of the average . extent and cost'of work necessary to correct the design-. . principal amount of the paper outstanding. No loans weaknesses. The initial engineering study has been were outstanding under the Agreement atJune 30,1986- - completed and submitted to FERC for its' review. L'ntil FERC has completed its res iew on the pro-Not: 7 - Contracts with Central ' Posed modifications to the Pinopolis West Dam and . the Aut mnty on the North Santee Dam, ydertaken dg pn msed remedial measures to be ut Electric Power Cooperative,Inc.: a is not

The Authority has lease contracts with Central Elec-

. possible to estimate th'e extent of work necessary to tric Psycr Cooperative,Inc., covering a steam electric correct the design weaknesses. Based on the facts as generating plant, transmission facilities, and various they curren_tly exist, management belieses that any othei facilities. The lease terms range from nine to cost incurred by the Authority related to the dams twenty nine years. Quarterly lease payments are based would not matdrially affect tiie financial position of . on a sum equal to the interest on and principal of, the Authority. Central's indebtedness to the Rural Electrification Administration for fuilds borrowed to construct the ahme mentioned facilities.The Authoritv has an Note 9 - Major Customers: . option to purcluse the leased properties'at any time = M-d&dwin's mW' or msmss for the during the permd of the lease agreement Ihr a sum - equal to Central,s mdebtedness remammg outstand- . years endedJune 30, were: 1986-1985 1984-mg on the property intohed at the time the option is. - exercised or to return the properties at the termina. (Thousands) tion of thelease.The Authority plans to exercise each -Central Electric Power _ and every option to acqulre ownership of such Cooperatis e. Inc. $ 193,000 S 173,000 $ 135.000 facihnes pnor to expiratmn of the leases. Power supp-ly and transmission services are provided to Central in Alumax of South accordance with the Powers stem Coordmatmn arul 3 Carolina. Inc. S 68,000 $ 86.000 S 79,000 Integration Agnecment datedjanuary 19,1981. Flus agreement also provides that each party will have an option to share ownership of future generating facilities to be constructed by the other. Central has advised the Authority that it'will exercise its option to 56

>.-) , ~; ~,,, i ' ~ Schedule ~of Refunded Bonds , " ', A5 Nfjurle 30,1986 : ((IliThousarids). r 1 s Series 19761ssue' 1980A lsaue '198IA lssue-- 1981BIssue f 'l981Cissue 1982A ltsuef,,. ' 8982B I'ssue ;

Call Date.

' july 1,1986. JJuly 1,1990 - July 1.1991 ' July 1,1991 July 1,1991 - ? uly 1,1991 '.

July 1,1992 -

J 7 Original - j-Maturity _ Date ' ' int. Mate ' Amt.. ' Int. Rate Amt. Int. Rate Amt. - Int. Rate Amt. Int. Rate - Amt. Int. Rate' Amt.... Int. Rate'. Amt.: 19M6 . 5't. 795 <1987 5.65. [ M15 - ' [ 19MM. 5.MO. .l905- [ s

i

.19M9. 5.90 t 970 ? ~1990 .690 ID30 1991 fi. l5_- 1.105. 1315 1992' 630 ' 1,18'i, .- 12D0 7 1290 2335. 31993 .640, 1.275 12W. 1.470 " 12,*)' i2590' I1.60 ~ 1345 e 6% '1370-12 % ,11i35 ,12JE 2B95' -11.90- /1,515 2 -

1998 1995

' 6.60 1,865 llJn).,3/090 - 12.10 s1815', -1996 670 1580 11.10 4D00 . 12.20, 2D 10 1997 6% . Ifi95 - l1.20 ' 4,220 . 1230 - ~ 2.295 1 -,'-199M - 6%. 1825. 1130 4.~60 - 1991) I1.40 5 dim) s 3)00 11 % I2D10 - 2001 13 % 20DOfl* ' 3 40 s 2003 13 % ~20D00* ' 200t. ^' < - 12%. 40,000*' 20t6 ~ 2tH)7 '6% ' - 20,750* 2006 2(H)N 2009- '2010- ~ 10U. 82.725

2011

~2012- . i. '2013. 9'/. 2K000*' .'2014 4 f, 2015. 10.00 20/xW)* . 20lti. - - 7DO 59,940*

201,

- 2018 ^ ~ 2019 - 2020 10 % 12/h)0 121H) - 89D00*' 2021 10 % 50.000* 13 % 100,000* 2022 .14 '/.' 127D00*' 13D0;.110.000* - ~ Per series 96735 12.725 42,000 2i)o/H W) 114.420 154820 '159,010 e

  • Ten m Boruts t

1 m J b e 4 ) s

3 * ..f I 4 Schedule of Bonds Outstanding (In Thousands). - As 6fjune 30,1986 ,- Masurit/. 1950 luue - l'%7 Inue - 1973 Refunding luue 1973luue 1974 Issue l 1977 Refunding luue - l 1977 luue. 1978 luue pote + <~ ply I ' Int. Rate Ame. - Int. Rate Amt. Int. Rate A mt.' Int. Rate Amt. Int. Rate. Amt.. Int. Rate - Amt. , Int. Rate Amt.. Int. Rate Ame 2 .> 290 4.10 660* 100 - 920 5.20 1,130 6JN) I,170 4%- 2375 4.40 470 4.70 . l#1: 1986 , 2.70 198{, 2.70, l $M)f 4.10 6M5*' 3DO ~ ' 965 120; 1,185 6DO-1,250 490 1120.', 4%l _496;.4801. 'l#71 i s '198M . 2.70 $10 4.10 - 715*

100, l#10 120

-1,250 ROO 1325-5fM) 1280-4.60 515 '490 l.12: 1989 2.70 480 - 4.10 ^ 575* -100 lJnio ' ' 5% - 1,315 610 1,405 110 ' 3,450 4.70 ' 540 E 100 1.2tu p f1990 2.70. IS00 1.10 '420*? '5% 1,3N0 G20 ' I,505 120 -. 33i2 0 ' 4.80 - 570 105 1,15 '1991 2.70 1950 4.10 440* - 130 I,453 6%' 1590 530-3A$) J490s '.590 ; 110 - 1,22i 1992 2.70 : 2J xG' 4.10 ' 455* 5 10 1530 630 . IJi95 140-4S35 500 625 115 1,28: ' L1993-2.70 '2960.. 4.10. 4M0* 540 IJil5 - 6.30 ' ,1,795 - 5%. ' 4.2tio : 110 660 120, 131 1998 4.10 2fiO5* - 5% 1,700* 640 1910 5.60 1,480 -120 720 5%. 1,4 44 . Itr.G ~ -4.10 ~ 2,720* 5%- 1,795* & 10 ' 2933 165 4,710 130 785 130 1,51l

l..1996 4.10 2315* '

5% ' 1900* 640 2,155 170 499Ti ' -140. 830 135 15N: [ ,1997 'l.10 2S79 5% 2p10*. 6% 2.295' 170 - 1265 545 890 140 - 1,6 71 L '199M. 4.10 3,105* 5% 2.125* 6% ~ 2,435 ' 5% 5390* 5%. .935.'140 1,7th 5% 2,245* 6% 2,590 5% 5915* -5%. 1/10 5 1 70 IE3I j;.1909 . 4.10 12155 +

i. 2000 4.10 3395*

5% 2375*. 6% 2.750' 5% ' 6,275* 555 1JHi3 1 70 1,94i f ' ~ 2001 .4.10 3,545* 5% 2,510* 6% 2920* 5%. 6 fig 5* - - 5.tio 1,130. 170 2#1 2002 4.10 1705* 5% . 2.655* 6% 3,110 * -5% 7D50* 160' l.220. 170 2,14 2003 4.10 3,870* 5% 2 /10* 6% 3.293* tiOO 7.490 % 5%. 1,295*.170 - 2,26 2006 4.10 -4485* ,5% 2 S 70* 6% - 3540* (dH) - 7S50* - 5% 1380* 'i70 .2,36 ,2005 1.10' 4,230' 5% 3,140* 6% 3,730* Goo N,4 50* 5% 1,460* 5.70 - 250 F 2n06 4.10 1,420' 5% 3325* 6% 3950' 6DO 8 S 70* 5% 1570* 1 70 2Ji5 '_. 2007-5% 3315*- 6% 4.205* 600. 9,400* .5% I,7tG* 170 ' 7,3d 200M 5% 3 715* 6% 4,470* 6DO 9,950' 5% 1945* 170.- 784 5 2009 5% 3930*. 6 % 4,745* E00 ~ -10365* 5%. ' 29M0*.5% 835 5% 4,155* 6%- .5945* ' GD0 " 11,210'

57. -

2,225* 5%. 8,84 2010' 13M* E00. 4,980* .5%. 2,180*- 5 % 939 2011 5% _ 11,520* 6% 2012 5V. 12.180* 6% ' 5,693* 600' 5315* .5% 2,300* 5% 9,im 2013-5% '12380* 6% 6,0 8.5* ' 6DO 5/12 5 ' 5W 2,500*. - 5% 1059 - 2014 ~ 6% 20D15* ' 600 -(0110* : 5%' 2Ji10* 5%' ' ll,25 20D 61HL 9315' 5%. :21Jni3* 5 %. 1110 2016 6JM) - l l,285* 5% 21,235* SW 12,55. 2017 5% 345N0* ' 5% 13,194 2018 5%. ' 50,60i 2019- '2020 '2021 2022 'Ibtal IOutstanding 9.293 19,135 ~ 1953 94,315 108,015 196,230 113,290 197D% Illonds Redeemed Jto 6 30 86 6h05 2,465. M095 5JiH3 4985 1M920 1,710 294 lionds Refunded j - to 6-30 $6 'O O O O O O O l ihiginallouc 15300 51JiOO. 12D50 100D00 109D00 215,150 111000 200,0C . reim isond. "$3Jk)0f M10 maturity at 9%4 and $l5D90SO4) sinking fund redemption at 9%%. Ser N hedule of Refunded lionds. 58

9 t 197M lesse ISAM leaue ' 19BBAlause. ISO Issue StalAIssur. ~ 19828 leone 3932RefoodsegIsame ' 1986 Refunding Imus [ 1985 lease, 19004 Reesading lame' 390628 Ransedlaglamme I 1hast '., Aresising Mast - t Freeripal. Issseuse Ds&s lus. Rese' AsmL~ Inc. Esse kauL. f luL Rase Ases. los. Amar Ams, las.Rene Asme.,, ' las. Rene Asus.., las. Rase Asse.. Bee Rase Asme. lat. Rose Ams, ' lat. Rame Ass. ,, ImL Rose ; Ams. Bessasiasse Seretme _.27430. 146238 174.465. 5% IA25 8m0, nuo 7AS . 615. 40%

750, 9%

1375 9% _565 5%,. 450 600 ; 13300, . MO ' l.105 9D0 950 s 800 760 IIDO. (865'. 10D0- I.465 1040 - 655 7% 435 '.' ' 6% 435. 6% 11500,. 5%- .,320 '155 *IA65 ',h90 ' ' 875 ,7A0 6HO ' ; 10% - 785 ' : 21280' .144 Al9 '371299' ("," s 10% M 1595 10 % 740 :- 7% 470 ' ' 6% ' 460 ' ' 6 %. 11500 6% ' 335

  • 34310 142.165 - 172.473

?- 31.445 : 140.140 . 8783R3

835,
7%

505' 700 490y 7 10 '11500 ; 6%-l

360,

', 940 110 f.350 ' 9101' IA35. 815 845;.,11%' 9e,.llD0. I.735, 10 % [32AA0 [ 137s62? ,110A41, 5%', l.195 ' 4 20, 1.130 ~,830 - 940 " Il%. I A70 ;11% J.. IS05,, 10 % 800 . 545 -7% 525 ,740 :. IS,500 7D0 380 -. 770-13300 7% '

  • 410 -

. 6%. I A90., 51900-135A52 171352 585 1.240 9%. - I.235 845 -IA5d ' Il% I.185 Il% 2.805. 1100 ' IA60 A20. 585 - 7% 565- ' A00 '; 11500 ' ' 7%' S - 440 7AO. % $665. ' -. 37.445 f.' 13M45 IM530 , 190 I.300 930 1350 ' A80 *. l.165 1 13 %. 1.195, ' R40 -' 635 '7% 605 595 1.360

  • 940 1.475 8% - 1.29$ ' '

v3 880 690', - 800 l 650 , 420 11500 0 7%-, 470 715 ' 7.3m0 :

  • 39A45, 194419 16%464 -

' 40AAS. 127Asa0 164375

  • 600 1.425 ' 945

?8%' .'750 - 120. '705 ' 840 ' 11500 800 -. 510 - 730 '. 7A90 '605' ' l.490 9% ~ J I A15 ' A90 1.435 e ' l.765 ' 900 ' IA00 9%- - 815 % 840 '765 E70 - 11500 -, R20.' [ 2.425 ' , 744 i - 65A0 I " 42300.. 124.759 - 167.259 ^ c ) 860 825. !...' ' 840 2D30. - 7%- ' 7A45 30S70 ' 12tA23 .152393 9% - R90* $13 1365,;9AG* 1330* ( R15 ,1.775 ' 860 4 2.390, . 7110 S i.7S95 31100- '.319300. 152Aan - A > . A45 RHO 2.120'. 930 f 1.970 ' 9% - 975*- ,, Ra0.[1p60 I ' . * / '&70(4S90.

7.70, f 1925 1 31230, 117.197

'852.427 ' 900 - 4 620 ' 6.30 ' l.725 .9A0 - 2.330*, 9% 2.190 * *

  • y; i

'9%- ' I A70*. '990, I 6.35 , I AIS 9AG. 2360*, 9% ;, 2.430* -9%: . ).165* ,905 .l.160 - .. 8%. .'.1405 ' ^ 7A0, ' E365 37.750. ! Il4A79 f 152.429 I 640.. LSIS ; 9AD, ' 2310* > b% ; 2.700* e E,9% ' 'l.275% ) 9 10 ". 3.150 *. 5.. 7A0l ;11200 ' .I40A50 ' 11$54. ' 52A04 Son 5* 9% 2995* '.'900 . IIA 20*. 790 ' 'M35 ' / 41330 g., 10R039 ,130369 645

  • 2A25, SMO, 13A5*, 9%, [ 4000*,

e -9% 1.395* .9% 1360* M 9% '

  • 1325*

9%.'.2 2.710* 9DO. - 6090*.' " 790 ? *. 900 , 44A30-101938

154568 6%
  • 2.135 ; 9Ao i

,s , '900 i11390* 800, ' 4A95 3 .,44025 c } 102.549. 150.574 ' '960 ('. l A70* :

f. 9% + 2.990* **

4% * - 2.260 e 800 '.1475. [p i 58.579 m ' 6% 2.390* ' ;1980* .1', ' 800 ; 5A70 ' e - 99hol 150371 9fio. 3000* 9% s .' ',l 960 i 11275'l 7 '. 51490 9V38 - 1503'8. 20A90* : 6%. - 2.540* .,i. 6%.- 2A95* ' 9fie :. 3375* 9% ".1320* '

200 1910 - - e.3R565

'90A65 129.430 ' 960, .3895* 9%. 1AAS* O - 110 fL390' * ~ 41.135,- SE306, '12s441 6% 2A65* ' + 4 A.,

  • R60 '

4.250* 9%. ' 1 A55*E ' ',f ' ' 8 IO ;6905 , S 41945 814n6 ,129.431 5% SDIO*. , 9fio 4 A40* 9% 2A50* 6% 1335* ,n

  • ; 500 ;

7465*. 7; f

  • 154210.-

19.229 .12%439 ' 6%: 1160* - 46965, 82.46n -12R433 : + 9/i0 .',5070* / .9% 2.265*. .$,. e ;800, R060* 6% 3325* 3 ( ;.,, A00 -'14480* ;. . 5M85, 71753 12%43R . 960 - 17556.. 9% 2305* , RDO 57.360 ..,72A74 ' 12S434 - l . 11335*. n. ,. 960 4.105*.. 9%, 2.750* 6% 1720'. 1 6&l36 12s44I I ROD. ' 12.230* j /". 68305 ' .V E'88 ' f 4.485t 1%. 1025* R20 4745*

800

_2A96* 61.105 - 61913 12418 l 6%' 1925*. '6% ' 4.140* - R70 1465* .9% 1315' + + i-C% 4.370* R10. :5445'. 9% / 3455* 1 . 120 7.700*2 800. 2.260*,. g 64160, Sg469. ' 121629 ,n s 170..l7A85* / 9% 4A20'. ROO. 2.445* cy 74A35 - 54S00 : 128S35 6% 4 AIO*- s ( . 800I ' 2A25'. d 79.285 9.70 5

9%

4,445* / ' " ' 49635 12L920 f 19,575 6'Is 4A70* e + e 6% 1135' . S70 21.425*

  • 9 %,. 4.930* i

, e'- 7 ROO 2A50*

  • 84S40,

,.44906 12A946 y R70 21445*. 9%. 1465* 4 ' 920,.' 240* A00 / 1740*,

  • 87.720

' 57S06 f12V26 6%- 25550* . R20, 31725* - 700 ' ' 23A75* '

  • 91275
30341, 125A16 9.70
25A15*;.

9% 6060* c-a.- 4,104.245. 21S49 - -124194 i_ R70 54330*. 9% 6 715*. 920 '. 41.200$ ; 1 R70 62 S70*. / 9%,, 62A20* ; y( y 121590 6028 ,.131588' 's y ? '.' [, e s ' p:,, s p s e 2 107 ?M0 30.450 ' 32.445. 1580 .14180'. } l 176.285 ' - . 135000 ' .< 177A45 f, 195955,.; 193&230 136 %721' 1307SSI , &990 294A00, t s ) 4 [ g 0" 'O . O, 'O' O 0l, { 51910 ? 2.720 IA25 555 - 0 '0 '6. ~ 0 42.725 42D00 .144.420 .H4A20\\ . 159010 O. 'a.' '0' 542S75 O-iiomo

  • 7s000 75n00 i50n00 i65900 i65n00 294,00 ivatiS isso00

. i77A45 19s955' 2.537.ii5 r t) i

1 l 1 1 4 i Board t u 1 of Directors l l i; .h'. 4 l 1 L..: 3 r u *cis 3..'t

Q' %

j q, s t j' 48' j P b i e{ i l> wight.t II,dder James TGner Walter TCra liti Alderman,Jr. Robertla IIennett -.me, y y, y l t asse .+ 4 92 p il p \\ i,

t. t t

m.-

  • \\

\\ George WJones,Jr. John E.S1 des EugeneF Olner liarold S1. Robertum Marvun M. Donias J1. lushungton,til I I Changes in the Board Department of Par ks, Recreation and Dwight A.Ifolder Robert 11 liennett liarold 11. Robertson Lurism, and was its first chairman Pi Lens and liitton IIcad Columbia Waherixero Iwo a hanges on the lxiard of dircc tors from 19ti7 to 1977. Chairman - For mer iIcc tric - Reprcwnting Ist k ou urscd during the past fiwal car. Cingwrative Execuine Ca mgressional Dhn i< t S OnJulv 1.19MS, Dwight A. liolder of ununcnon twgan wnic e on the Spananburg George W. Jones,Jr. Alan in M. 'l homas Pn kcns and f lilton llead Island began '"'"".1, repicscnting the Sixth Con-1st Vitc Chairman

1. orts Gcingetsmn

{ wn i< c au hair man, c ompleting the gicwsonal Dhu-ict. He rcpla(cd - Reperwnting 4th - Reprewnting lior ry County - Repicwnting Georgetow n I Aldetman of %fanmng, who had Congiewional Distric't County u ncspired ter m of Robert S. D.n is of I Columbia. w ho setired following 15 wned on the guscruing lxiant sim c tran ol wn it c. 'I hat term < ontinues alle John F_ Wes l I ""Her j f. WashingtonJII l """t %f ay 19, I!m. C#'nson - guesendng 5th Orangeburg Ri< kenbaker is a Clarendon County 2nd Vice Chairman Congrenional Distric t - Reprewnting 2nd agti business leader and has served as - Reptcwnting 3rd l Iloider, w ho om ns and operates scieral < h, airman of the South Carolina unit Congiewinnal Distrit t Eugene E Oliser Congicuional Distrit l' J buunewes m the southeast, had most of the Liional Cotton Council and in Ston(Ls Can ner in ently wned au hairman of the a variety of icadenhip roics in c om liG. Alderman,Jr. - Reprewnting lier kricy l 6.uih C,irolmajobs F< onomic muniiv.md cisit nig.mintions. M.mning County l Dnclopment Authoiity. Pa ior to that, - Reprewming tith } he had wned in the South C.uolina On August 21,19% Dircrior Congtcuional District l Ilouw of Reps ewntaliscs, was in-J 1. Washington, !!! of Giangchurg j her umental in estabbshing the SC, clied following a inicf illnew. l r ($lI

~ Management Advisory Board William C..\\f esc her i1. Roderick.\\f urchison Richard W. Riley President and Chief Executive Treasurer Gmernor Oliker Emily llrown J.Travis.\\fedlock W. Andrew Buiie Corporate Secretary Attorney General Vice President - Economic Desclogunent Albert Boyt.Jr. Grady I Patterson,Jr. Grou p.\\f anager - State Treasurer Kenneth R. Ford Transmission Vice President - Earle E..\\f orris,Jr. Finance Bill NicCall,Jr. Comptroller General Group.\\lanager - Joe C. Not man Production Operations John T. Campbell Vice President - Secretary of State Commercial Operations Robert E Petracca Group hlanager - Robert E. Rainear Property & Transportation Vice President - Systems Engineering & Operations Byron C. Rodgers,Jr. Robert V. Tanner N!anager - Vice President - Station Construction Production Joseph P. Thomas E Eugene Williams 51anager - Vice President - Design Engineering Gosernmcntal Affairs Ronald iI. Ilolmes Cuitis L Williamson .\\f anager - Division Vice President - Iluman Resources llorry-Georgetown Division Jerry L Stafford Charles 11. AlcGlothlin,Jr. Director - General Counsel Corporate Communications John E. Bishop Controller For Additional Inlormation

Contact:

Jerry L Stallord Director Corporate Communications One Riverwood Drise N!oncks Corner South Carolina 29161-0398 (803)761-1031 l l

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