Company Quick10K Filing
Quick10K
Scana
Closing Price ($) Shares Out (MM) Market Cap ($MM)
$47.23 143 $6,740
10-Q 2018-09-30 Quarter: 2018-09-30
10-Q 2018-06-30 Quarter: 2018-06-30
10-Q 2018-03-31 Quarter: 2018-03-31
10-K 2017-12-31 Annual: 2017-12-31
10-Q 2017-09-30 Quarter: 2017-09-30
10-Q 2017-06-30 Quarter: 2017-06-30
10-Q 2017-03-31 Quarter: 2017-03-31
10-K 2016-12-31 Annual: 2016-12-31
10-Q 2016-09-30 Quarter: 2016-09-30
10-Q 2016-06-30 Quarter: 2016-06-30
10-Q 2016-03-31 Quarter: 2016-03-31
10-K 2015-12-31 Annual: 2015-12-31
8-K 2019-02-05 Leave Agreement, Amend Bylaw, Exhibits
8-K 2019-01-01 M&A, Shareholder Rights, Control, Amend Bylaw, Exhibits
8-K 2018-12-31 Suspend Trading, Exhibits
8-K 2018-12-12 Enter Agreement, Exhibits
8-K 2018-11-24 Enter Agreement
8-K 2018-11-13 Suspend Trading, Exhibits
8-K 2018-10-25 Earnings, Exhibits
8-K 2018-09-12 Shareholder Vote
8-K 2018-08-14 Other Events
8-K 2018-08-10 Other Events
8-K 2018-08-06 Leave Agreement
8-K 2018-07-31 Shareholder Vote, Other Events, Exhibits
8-K 2018-07-16 Other Events
8-K 2018-07-13 Officers
8-K 2018-04-26 Earnings, Exhibits
8-K 2018-02-22 Earnings, Exhibits
8-K 2018-01-26 Other Events, Exhibits
8-K 2018-01-02 Enter Agreement, Exhibits
EXC Exelon
ED Consolidated Edison
WEC WEC Energy Group
EVRG Evergy
CMS CMS Energy
LNT Alliant Energy
PCG Pg&E
AVA Avista
ENO Enodis
ENJ Entergy New Orleans
SCG 2018-09-30
Part I. Financial Information
Item 1. Financial Statements
Item 2. Management's Discussion and Analysis of Financial Condition and Results
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II. Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 5. Other Information
Item 6. Exhibits
EX-12.01 a2018930-exhibit1201.htm
EX-31.01 a2018930-exhibit3101.htm
EX-31.02 a2018930-exhibit3102.htm
EX-31.03 a2018930-exhibit3103.htm
EX-31.04 a2018930-exhibit3104.htm
EX-32.01 a2018930-exhibit3201.htm
EX-32.02 a2018930-exhibit3202.htm

Scana Earnings 2018-09-30

SCG 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

10-Q 1 a2018930-10q.htm 10-Q Document
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM 10-Q

x
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2018

 scanapowerforlivinga43.jpg
Commission
 
Registrant, State of Incorporation,
 
I.R.S. Employer
File Number
 
Address and Telephone Number
 
Identification No.
1-8809
 
SCANA Corporation (a South Carolina corporation)
 
57-0784499
1-3375
 
South Carolina Electric & Gas Company (a South Carolina corporation)
 
57-0248695
 
 
100 SCANA Parkway, Cayce, South Carolina 29033
 
 
 
 
(803) 217-9000
 
 

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. SCANA Corporation Yes x No o  South Carolina Electric & Gas Company Yes x No o
 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).
SCANA Corporation Yes x No o  South Carolina Electric & Gas Company Yes x No o
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
SCANA Corporation
Large accelerated filer  x
Accelerated filer  o
Non-accelerated filer  o
Smaller reporting company  o
Emerging growth company  o
South Carolina Electric & Gas Company
Large accelerated filer  o
Accelerated filer  o
Non-accelerated filer  x
Smaller reporting company  o
Emerging growth company  o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
SCANA Corporation o     South Carolina Electric & Gas Company   o 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
SCANA Corporation Yes o No x  South Carolina Electric & Gas Company Yes o No x
 
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
 
Description of
Shares Outstanding
Registrant
Common Stock
at October 26, 2018
SCANA Corporation
Without Par Value
142,619,243
South Carolina Electric & Gas Company
Without Par Value
        40,296,147 (a)
 (a) Held beneficially and of record by SCANA Corporation.
 
This combined Form 10-Q is separately filed by SCANA Corporation and South Carolina Electric & Gas Company.  Information contained herein relating to any individual registrant is filed by such registrant on its own behalf.  South Carolina Electric & Gas Company makes no representation as to information relating to SCANA Corporation or its subsidiaries (other than South Carolina Electric & Gas Company and its consolidated affiliates).
 
South Carolina Electric & Gas Company meets the conditions set forth in General Instruction H(1)(a) and (b) of Form 10-Q and therefore is filing this Form with the reduced disclosure format allowed under General Instruction H(2).





 
Page
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 


2



CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
 
Statements included in this Quarterly Report on Form 10-Q which are not statements of historical fact are intended to be, and are hereby identified as, “forward-looking statements” for purposes of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.  Forward-looking statements include, but are not limited to, statements concerning the proposed merger with Dominion Energy, recovery of Nuclear Project abandonment costs, key earnings drivers, customer growth, environmental regulations and expenditures, leverage ratio, projections for pension fund contributions, financing activities, access to sources of capital, impacts of the adoption of new accounting rules and estimated capital and other expenditures.  In some cases, forward-looking statements can be identified by terminology such as “may,” “will,” “could,” “should,” “expects,” “forecasts,” “plans,” “targets,” “anticipates,” “believes,” “estimates,” “projects,” “predicts,” “potential” or “continue” or the negative of these terms or other similar terminology.  Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties, and that actual results could differ materially from those indicated by such forward-looking statements due to the information being of a preliminary nature and subject to further and/or continuing review and adjustment. Other important factors that could cause such material differences include, but are not limited to, the following:
  
(1) the occurrence of any event, change or other circumstances that could give rise to the failure to consummate the proposed merger with Dominion Energy; (2) the ability of SCE&G to recover through rates the costs expended on the Nuclear Project, and a reasonable return on those costs, under the abandonment provisions of the BLRA or through other means; (3) uncertainties relating to the bankruptcy filing by WEC and WECTEC; (4) further changes in tax laws and realization of tax benefits and credits, and the ability to realize or maintain tax credits and deductions, particularly in light of the abandonment of the Nuclear Project; (5) legislative and regulatory actions, particularly changes related to electric and gas services, rate regulation, regulations governing electric grid reliability and pipeline integrity, environmental regulations including any imposition of fees or taxes on carbon emitting generating facilities, the BLRA, and any actions involving or arising from the abandonment of the Nuclear Project; (6) current and future litigation, including particularly litigation or government investigations or any actions involving or arising from the construction or abandonment of the Nuclear Project or arising from the proposed merger with Dominion Energy, including the possible impacts on liquidity and other financial impacts therefrom; (7) the impact of any decision by SCANA to pay quarterly dividends to its shareholders or the reduction, suspension or elimination of the amount thereof; (8) the results of short- and long-term financing efforts, including prospects for obtaining access to capital markets and other sources of liquidity, and the effect of rating agency actions on the cost of and access to capital and sources of liquidity of SCANA and its subsidiaries (the Company); (9) the ability of suppliers, both domestic and international, to timely provide the labor, secure processes, components, parts, tools, equipment and other supplies needed which may be highly specialized or in short supply, at agreed upon quality and prices, for our construction program, operations and maintenance; (10) the results of efforts to ensure the physical and cyber security of key assets and processes; (11) changes in the economy, especially in areas served by subsidiaries of SCANA; (12) the impact of competition from other energy suppliers, including competition from alternate fuels in industrial markets; (13) the impact of conservation and demand side management efforts and/or technological advances on customer usage; (14) the loss of electricity sales to distributed generation, such as solar photovoltaic systems or energy storage systems; (15) growth opportunities for SCANA’s regulated and other subsidiaries; (16) the effects of weather, especially in areas where the generation and transmission facilities of the Company are located and in areas served by SCANA’s subsidiaries; (17) changes in SCANA’s or its subsidiaries’ accounting rules and accounting policies; (18) payment and performance by counterparties and customers as contracted and when due; (19) the results of efforts to license, site, construct and finance facilities, and to receive related rate recovery, for generation and transmission; (20) the results of efforts to operate the Company's electric and gas systems and assets in accordance with acceptable performance standards, including the impact of additional distributed generation; (21) the availability of fuels such as coal, natural gas and enriched uranium used to produce electricity; the availability of purchased power and natural gas for distribution; the level and volatility of future market prices for such fuels and purchased power; and the ability to recover the costs for such fuels and purchased power; (22) the availability and retention of skilled, licensed and experienced human resources to properly manage, operate, and grow the Company’s businesses, particularly in light of uncertainties with respect to legislative and regulatory actions surrounding recovery of Nuclear Project costs and the announced potential merger with Dominion Energy; (23) labor disputes; (24) performance of SCANA’s pension plan assets and the effect(s) of associated discount rates; (25) inflation or deflation; (26) changes in interest rates; (27) compliance with regulations; (28) natural disasters, man-made mishaps and acts of terrorism that directly affect our operations or the regulations governing them; and (29) the other risks and uncertainties described from time to time in the reports filed by SCANA or SCE&G with the SEC.

SCANA and SCE&G disclaim any obligation to update any forward-looking statements.


3



DEFINITIONS
 
The following abbreviations or terms used in the text have the meanings set forth below unless the context requires otherwise: 
TERM
 
MEANING
ACE
 
Affordable Clean Energy
Act 258
 
Act 258 (previously referenced as H. 4375) adopted by the South Carolina General Assembly
AFC
 
Allowance for Funds Used During Construction
ANI
 
American Nuclear Insurers
AOCI
 
Accumulated Other Comprehensive Income (Loss)
ARO
 
Asset Retirement Obligation
Bankruptcy Court
 
U.S. Bankruptcy Court for the Southern District of New York
BLRA
 
Base Load Review Act
CAA
 
Clean Air Act, as amended
CAIR
 
Clean Air Interstate Rule
CCR
 
Coal Combustion Residuals
CEC
 
Columbia Energy Center
CEO
 
Chief Executive Officer
CFO
 
Chief Financial Officer
CFTC
 
Commodity Futures Trading Commission
Citibank
 
Citibank, N.A.
CO2
 
Carbon Dioxide
Company
 
SCANA, together with its consolidated subsidiaries
Concurrent Dockets
 
Separate dockets before the SCPSC related to the Nuclear Project which are being handled concurrently. The Concurrent Dockets are comprised of the Joint Petition, the Request, and a June 2017 complaint filed by the Friends of the Earth and the Sierra Club.
Consolidated SCE&G
 
SCE&G and its consolidated affiliates
Consortium
 
A consortium consisting of WEC and WECTEC
Court of Appeals
 
United States Court of Appeals for the Fourth Circuit
CPP
 
Clean Power Plan
CSAPR
 
Cross-State Air Pollution Rule
CUT
 
Customer Usage Tracker (decoupling mechanism)
CWA
 
Clean Water Act
DER
 
Distributed Energy Resource
Derivative Litigation
 
Claims asserted against current and former officers and directors of SCANA in derivative shareholder actions and related actions
DHEC
 
South Carolina Department of Health and Environmental Control
District Court
 
United States District Court for the District of South Carolina
Dodd-Frank
 
Dodd-Frank Wall Street Reform and Consumer Protection Act
Dominion Energy
 
Dominion Energy, Inc.
DOR
 
South Carolina Department of Revenue
DSM Programs
 
Electric Demand Side Management Programs
ELG Rule
 
Federal effluent limitation guidelines for steam electric generating units
EMANI
 
European Mutual Association for Nuclear Insurance
EPA
 
United States Environmental Protection Agency
EPC Contract
 
Engineering, Procurement and Construction Agreement dated May 23, 2008, as amended by the October 2015 Amendment
Exchange Act
 
Securities Exchange Act of 1934, as amended
FASB
 
Financial Accounting Standards Board
FERC
 
United States Federal Energy Regulatory Commission
FILOT
 
Fee in Lieu of Taxes
Fuel Company
 
South Carolina Fuel Company, Inc.
GAAP
 
Accounting principles generally accepted in the United States of America
GENCO
 
South Carolina Generating Company, Inc.
GHG
 
Greenhouse Gas


4



GPSC
 
Georgia Public Service Commission
GWh
 
Gigawatt hour
IAA
 
Interim Assessment Agreement dated March 28, 2017, as amended, among SCE&G, Santee Cooper, WEC and WECTEC
IRC
 
Internal Revenue Code of 1986, as amended
IRS
 
Internal Revenue Service
Joint Petition
 
Joint application and petition of SCE&G and Dominion Energy for review and approval of a proposed business combination as set forth in the Merger Agreement and for a prudency determination regarding the abandonment of the Nuclear Project and associated merger benefits and cost recovery plans, filed with the SCPSC on January 12, 2018
Level 1
 
A fair value measurement using unadjusted quoted prices in active markets for identical assets or liabilities
Level 2
 
A fair value measurement using observable inputs other than those for Level 1, including quoted prices for similar (not identical) assets or liabilities or inputs that are derived from observable market data by correlation or other means
Level 3
 
A fair value measurement using unobservable inputs, including situations where there is little, if any, market activity for the asset or liability
LOC
 
Lines of Credit
MATS
 
Mercury and Air Toxics Standards
Merger Agreement
 
Agreement and Plan of Merger, dated as of January 2, 2018, by and among Dominion Energy, Sedona and SCANA
MGP
 
Manufactured Gas Plant
MMBTU
 
Million British Thermal Units
MW or MWh
 
Megawatt or Megawatt-hour
NAAQS
 
National Ambient Air Quality Standards
NASDAQ
 
The NASDAQ Stock Market, Inc.
NAV
 
Net Asset Value
NCUC
 
North Carolina Utilities Commission
NEIL
 
Nuclear Electric Insurance Limited
NERC
 
North American Electric Reliability Corporation
NOL
 
Net Operating Loss
NOX
 
Nitrogen Oxide
NPDES
 
National Pollutant Discharge Elimination System
NRC
 
United States Nuclear Regulatory Commission
NSPS
 
New Source Performance Standards
NSR
 
New Source Review
Nuclear Project
 
Project to construct Unit 2 and Unit 3 under the EPC Contract
NYMEX
 
New York Mercantile Exchange
OCI
 
Other Comprehensive Income
ORS
 
South Carolina Office of Regulatory Staff
PGA
 
Purchased Gas Adjustment
PHMSA
 
United States Pipeline Hazardous Materials Safety Administration
Price-Anderson
 
Price-Anderson Indemnification Act
PSNC Energy
 
Public Service Company of North Carolina, Incorporated
Registrants
 
SCANA and SCE&G
Reorganization Plan
 
Modified Second Amended Joint Chapter 11 Plan of Reorganization, filed by WEC
Request
 
Request for Rate Relief filed by the ORS on September 26, 2017, as subsequently amended on October 17, 2017
RICO
 
The Racketeer Influenced and Corrupt Organizations Act
ROE
 
Return on Equity
RSA
 
Natural Gas Rate Stabilization Act
RTO/ISO
 
Regional Transmission Organization/Independent System Operator
Santee Cooper
 
South Carolina Public Service Authority
SCANA
 
SCANA Corporation, the parent company
SCANA Energy
 
SCANA Energy Marketing, Inc.
SCANA Services
 
SCANA Services, Inc.
SCE&G
 
South Carolina Electric & Gas Company
SCEUC
 
South Carolina Energy Users Committee


5



SCPSC
 
Public Service Commission of South Carolina
SEC
 
United States Securities and Exchange Commission
Sedona
 
Sedona Corp., a wholly-owned subsidiary of Dominion Energy
SLC
 
Special Litigation Committee
SLED
 
South Carolina Law Enforcement Division
SO2
 
Sulfur Dioxide
Summer Station
 
V. C. Summer Nuclear Station
Tax Act
 
An Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018 (previously known as The Tax Cuts and Jobs Act) enacted on December 22, 2017
Toshiba
 
Toshiba Corporation, parent company of WEC
Toshiba Settlement
 
Settlement Agreement dated as of July 27, 2017, by and among Toshiba, SCE&G and Santee Cooper
Unit 1
 
Nuclear Unit 1 at Summer Station
Unit 2
 
Nuclear Unit 2 at Summer Station (abandoned prior to completion)
Unit 3
 
Nuclear Unit 3 at Summer Station (abandoned prior to completion)
USACE
 
United States Army Corps of Engineers
VIE
 
Variable Interest Entity
WARN Act
 
Worker Adjustment and Retraining Notification Act
WEC
 
Westinghouse Electric Company LLC
WEC Subcontractors
 
Subcontractors and suppliers to the Consortium
WECTEC
 
WECTEC Global Project Services, Inc. (formerly known as Stone & Webster, Inc.), a wholly-owned subsidiary of WEC
Williams Station
 
A.M. Williams Generating Station, owned by GENCO
WNA
 
Weather Normalization Adjustment



6



PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS


SCANA Corporation and Subsidiaries
Condensed Consolidated Balance Sheets
(Unaudited) 
Millions of dollars
 
September 30,
2018
 
December 31,
2017
Assets
 
 
 
 
Utility Plant In Service
 
$
15,012

 
$
14,370

Accumulated Depreciation and Amortization
 
(5,059
)
 
(4,611
)
Construction Work in Progress
 
537

 
471

Nuclear Fuel, Net of Accumulated Amortization
 
182

 
208

Goodwill, net of writedown of $230
 
210

 
210

Utility Plant, Net
 
10,882

 
10,648

Nonutility Property and Investments:
 
 
 
 
     Nonutility property, net of accumulated depreciation of $140 and $133
 
269

 
270

Assets held in trust, net-nuclear decommissioning
 
139

 
136

Other investments
 
135

 
68

Nonutility Property and Investments, Net
 
543

 
474

Current Assets:
 
 
 
 
Cash and cash equivalents
 
462

 
409

     Receivables:
 
 
 
 
         Customer, net of allowance for uncollectible accounts of $4 and $6
 
474

 
665

    Income taxes
 

 
198

         Other
 
75

 
105

Inventories (at average cost):
 
 
 
 
Fuel and gas supply
 
123

 
143

Materials and supplies
 
166

 
161

Prepayments
 
108

 
99

     Derivative financial instruments
 

 
54

     Other current assets
 
12

 
17

     Total Current Assets
 
1,420

 
1,851

Deferred Debits and Other Assets:
 
 
 
 
Regulatory assets
 
5,739

 
5,580

Other
 
232

 
186

Total Deferred Debits and Other Assets
 
5,971

 
5,766

Total
 
$
18,816

 
$
18,739


See Notes to Condensed Consolidated Financial Statements.


7



Millions of dollars
 
September 30,
2018
 
December 31,
2017
Capitalization and Liabilities
 
 

 
 

Common Stock - no par value, 143 million shares outstanding
 
$
2,389

 
$
2,390

Retained Earnings
 
3,036

 
2,915

Accumulated Other Comprehensive Loss
 
(34
)
 
(50
)
Total Common Equity
 
5,391

 
5,255

Long-Term Debt, net
 
6,735

 
5,906

Total Capitalization
 
12,126

 
11,161

Current Liabilities:
 
 

 
 

Short-term borrowings
 
314

 
350

Current portion of long-term debt
 
18

 
727

Accounts payable
 
263

 
438

Customer deposits and customer prepayments
 
146

 
112

Revenue subject to refund
 
61

 

Taxes accrued
 
179

 
214

Interest accrued
 
90

 
87

Dividends declared
 
18

 
86

Derivative financial instruments
 
3

 
6

Other
 
72

 
93

Total Current Liabilities
 
1,164

 
2,113

Deferred Credits and Other Liabilities:
 
 

 
 

Deferred income taxes, net
 
1,355

 
1,261

Asset retirement obligations
 
579

 
568

Pension and other postretirement benefits
 
347

 
360

Unrecognized tax benefits
 
19

 
19

Regulatory liabilities
 
3,040

 
3,059

Other
 
186

 
198

Total Deferred Credits and Other Liabilities
 
5,526

 
5,465

Commitments and Contingencies (Note 10)
 
 
 


Total
 
$
18,816

 
$
18,739

 
See Notes to Condensed Consolidated Financial Statements.


8



SCANA Corporation and Subsidiaries
Condensed Consolidated Statements of Income
(Unaudited)
 
 
 
Three Months Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
Millions of dollars, except per share amounts
 
2018
 
2017
 
2018
 
2017
Operating Revenues:
 
 

 
 

 
 

 
 

Electric
 
$
669

 
$
786

 
$
1,767

 
$
2,042

Gas - regulated
 
122

 
123

 
631

 
584

Gas - nonregulated
 
135

 
167

 
550

 
623

Total Operating Revenues
 
926

 
1,076

 
2,948

 
3,249

Operating Expenses:
 
 

 
 
 
 

 
 
Fuel used in electric generation
 
188

 
167

 
503

 
464

Purchased power
 
10

 
22

 
77

 
54

Gas purchased for resale
 
177

 
211

 
774

 
808

Other operation and maintenance
 
201

 
181

 
610

 
535

Impairment loss
 

 
210

 
4

 
210

Depreciation and amortization
 
100

 
96

 
299

 
285

Other taxes
 
67

 
67

 
206

 
200

Total Operating Expenses
 
743

 
954

 
2,473

 
2,556

Operating Income
 
183

 
122

 
475

 
693

Other Income, net
 
3

 
19

 
136

 
45

Interest charges, net of allowance for borrowed funds used during construction of $3, $2, $9 and $16
 
(99
)
 
(95
)
 
(292
)
 
(270
)
Income Before Income Tax Expense
 
87

 
46

 
319

 
468

Income Tax Expense
 
20

 
12

 
75

 
142

Net Income
 
$
67

 
$
34

 
$
244

 
$
326

 
 
 
 
 
 
 
 
 
Earnings Per Share of Common Stock
 
$
0.47

 
$
0.24

 
$
1.71

 
$
2.28

Weighted Average Common Shares Outstanding (millions)
 
143

 
143

 
143

 
143

Dividends Declared Per Share of Common Stock
 
$
0.1237

 
$
0.6125

 
$
0.8599

 
$
1.8375


See Notes to Condensed Consolidated Financial Statements.




9



SCANA Corporation and Subsidiaries
Condensed Consolidated Statements of Comprehensive Income
(Unaudited) 
 
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
Millions of dollars
 
2018
 
2017
 
2018
 
2017
Net Income
 
$
67

 
$
34

 
$
244

 
$
326

Other Comprehensive Income (Loss), net of tax:
 
 
 
 
 
 
 
 
Unrealized Gains (Losses) on Cash Flow Hedging Activities:
 
 
 
 
 
 
 
 
Arising during period, net of tax of $-, $-, $1, and $(3)
 
1

 

 
5

 
(5
)
Reclassified as increase to interest expense, net of tax of $1, $1, $2, and $3
 
3

 
2

 
7

 
6

Reclassified as increase (decrease) to gas purchased for resale, net of tax of $-, $-, $1 and $(1)
 

 

 
2

 
(2
)
Net unrealized gains (losses) on cash flow hedging activities
 
4

 
2

 
14

 
(1
)
Deferred cost of employee benefit plans, net of tax of $-, $-, $-, and $-
 
1

 
1

 
2

 
1

      Other Comprehensive Income
 
5

 
3

 
16

 

Total Comprehensive Income
 
$
72

 
$
37

 
$
260

 
$
326


See Notes to Condensed Consolidated Financial Statements.



10



SCANA Corporation and Subsidiaries
Condensed Consolidated Statements of Cash Flows
(Unaudited) 
 
 
Nine Months Ended September 30,
Millions of dollars
 
2018
 
2017
Cash Flows From Operating Activities:
 
 

 
 

Net income
 
$
244

 
$
326

Adjustments to reconcile net income to net cash provided from operating activities:
 
 

 
 

Impairment loss
 
4

 
210

Deferred income taxes, net
 
89

 
(395
)
Depreciation and amortization
 
327

 
302

Amortization of nuclear fuel
 
41

 
31

Allowance for equity funds used during construction
 
(12
)
 
(17
)
Carrying cost recovery
 
(4
)
 
(27
)
Changes in certain assets and liabilities:
 
 
 
 
Receivables
 
207

 
79

Income taxes receivable
 
198

 
136

Inventories
 
(40
)
 
(58
)
Prepayments
 
(5
)
 
(6
)
Regulatory assets
 
(10
)
 
(48
)
Regulatory liabilities
 
(95
)
 
(3
)
Accounts payable
 
(53
)
 
(22
)
Revenue subject to refund
 
61

 

Unrecognized tax benefits
 

 
183

Taxes accrued
 
(35
)
 
325

Derivative financial instruments
 
(2
)
 
(3
)
Other assets
 
(69
)
 
(37
)
Other liabilities
 
12

 
(49
)
Net Cash Provided From Operating Activities
 
858

 
927

Cash Flows From Investing Activities:
 
 

 
 

Property additions and construction expenditures
 
(743
)
 
(1,095
)
Proceeds from monetization of guaranty settlement
 

 
1,013

Proceeds from investments and sales of assets (including derivative collateral returned)
 
87

 
116

Purchase of investments (including derivative collateral posted)
 
(144
)
 
(115
)
Proceeds upon interest rate derivative contract settlements
 
115

 

Net Cash Used For Investing Activities
 
(685
)
 
(81
)
Cash Flows From Financing Activities:
 
 

 
 

Proceeds from issuance of long-term debt
 
935

 
150

Repayment of long-term debt
 
(828
)
 
(16
)
Dividends
 
(191
)
 
(258
)
Short-term borrowings, net
 
(36
)
 
81

Net Cash Used For Financing Activities
 
(120
)
 
(43
)
Net Increase In Cash and Cash Equivalents
 
53

 
803

Cash and Cash Equivalents, January 1
 
409

 
208

Cash and Cash Equivalents, September 30
 
$
462

 
$
1,011

Supplemental Cash Flow Information:
 
 

 
 

Cash for–Interest paid (net of capitalized interest of $9 and $16)
 
$
270

 
$
247

              –Income taxes paid
 
3

 
1

              –Income taxes received
 
206

 
123

Noncash Investing and Financing Activities:
 
 
 
 
Accrued construction expenditures
 
49

 
44

Capital leases
 
9

 
6

Guaranty settlement receivable
 

 
83

See Notes to Condensed Consolidated Financial Statements.


11



SCANA Corporation and Subsidiaries
Condensed Consolidated Statements of Changes in Common Equity
(Unaudited)
 
Common Stock
 
 
 
Accumulated Other Comprehensive Income (Loss)
 
 
Millions
Shares
 
Outstanding Amount
 
Treasury Amount
 
Retained Earnings
 
Gains (Losses) from Cash Flow Hedges
 
Deferred Employee Benefit Plans
 
Total AOCI
 
Total
Balance as of January 1, 2018
143

 
$
2,402

 
$
(12
)
 
$
2,915

 
$
(37
)
 
$
(13
)
 
$
(50
)
 
$
5,255

Net Income
 
 
 
 
 
 
169

 
 
 
 
 
 
 
169

Other Comprehensive Income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gains arising during the period
 
 
 
 
 
 
 
 
3

 

 
3

 
3

Losses/amortization reclassified from AOCI
 
 
 
 
 
 
 
 
4

 
1

 
5

 
5

Total Comprehensive Income
 
 
 
 
 
 
169

 
7

 
1

 
8

 
177

Purchase of Treasury Stock
 
 
 
 
(1
)
 
 
 
 
 
 
 
 
 
(1
)
Dividends Declared ($0.6125 per share)
 
 
 
 
 
 
(87
)
 
 
 
 
 
 
 
(87
)
Balance as of March 31, 2018
143

 
$
2,402


$
(13
)

$
2,997

 
$
(30
)

$
(12
)

$
(42
)
 
$
5,344

Net Income
 
 
 
 
 
 
8

 
 
 
 
 
 
 
8

Other Comprehensive Income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gains arising during the period
 
 
 
 
 
 
 
 
1

 

 
1

 
1

Losses/amortization reclassified from AOCI
 
 
 
 
 
 
 
 
2

 

 
2

 
2

Total Comprehensive Income
 
 
 
 
 
 
8

 
3

 

 
3

 
11

Dividends Declared ($0.1237 per share)
 
 
 
 
 
 
(18
)
 
 
 
 
 
 
 
(18
)
Balance as of June 30, 2018
143

 
$
2,402


$
(13
)

$
2,987

 
$
(27
)

$
(12
)

$
(39
)
 
$
5,337

Net Income
 
 
 
 
 
 
67

 
 
 
 
 
 
 
67

Other Comprehensive Income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Gains arising during the period
 
 
 
 
 
 
 
 
1

 

 
1

 
1

Losses/amortization reclassified from AOCI
 
 
 
 
 
 
 
 
3

 
1

 
4

 
4

Total Comprehensive Income
 
 
 
 
 
 
67

 
4

 
1

 
5

 
72

Dividends Declared ($0.1237 per share)
 
 
 
 
 
 
(18
)
 
 
 
 
 
 
 
(18
)
Balance as of September 30, 2018
143

 
$
2,402

 
$
(13
)
 
$
3,036

 
$
(23
)
 
$
(11
)
 
$
(34
)
 
$
5,391

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance as of January 1, 2017
143

 
$
2,402

 
$
(12
)
 
$
3,384

 
$
(36
)
 
$
(13
)
 
$
(49
)
 
$
5,725

Net Income
 
 
 
 
 
 
171

 
 
 
 
 
 
 
171

Other Comprehensive Income (Loss)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Losses arising during the period
 
 
 
 
 
 
 
 
(2
)
 

 
(2
)
 
(2
)
Total Comprehensive Income
 
 
 
 
 
 
171

 
(2
)
 

 
(2
)
 
169

Purchase of Treasury Stock
 
 
 
 
(1
)
 
 
 
 
 
 
 
 
 
(1
)
Dividends Declared ($0.6125 per share)
 
 
 
 
 
 
(87
)
 
 
 
 
 
 
 
(87
)
Balance as of March 31, 2017
143

 
$
2,402

 
$
(13
)
 
$
3,468

 
$
(38
)
 
$
(13
)
 
$
(51
)
 
$
5,806

Net Income
 
 
 
 
 
 
121

 
 
 
 
 
 
 
121

Other Comprehensive Income (Loss)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Losses arising during the period
 
 
 
 
 
 
 
 
(3
)
 

 
(3
)
 
(3
)
Losses/amortization reclassified from AOCI
 
 
 
 
 
 
 
 
2

 

 
2

 
2

Total Comprehensive Income
 
 
 
 
 
 
121

 
(1
)
 

 
(1
)
 
120

Dividends Declared ($0.6125 per share)
 
 
 
 
 
 
(88
)
 
 
 
 
 
 
 
(88
)
Balance as of June 30, 2017
143

 
$
2,402

 
$
(13
)
 
$
3,501

 
$
(39
)
 
$
(13
)
 
$
(52
)
 
$
5,838

Net Income
 
 
 
 
 
 
34

 
 
 
 
 
 
 
34

Other Comprehensive Income
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Losses/amortization reclassified from AOCI
 
 
 
 
 
 
 
 
2

 
1

 
3

 
3

Total Comprehensive Income
 
 
 
 
 
 
34

 
2

 
1

 
3

 
37

Dividends Declared ($0.6125 per share)
 
 
 
 
 
 
(88
)
 
 
 
 
 
 
 
(88
)
Balance as of September 30, 2017
143

 
$
2,402

 
$
(13
)
 
$
3,447

 
$
(37
)
 
$
(12
)
 
$
(49
)
 
$
5,787


See Notes to Condensed Consolidated Financial Statements.


12




South Carolina Electric & Gas Company and Affiliates
Condensed Consolidated Balance Sheets
(Unaudited)
Millions of dollars
 
September 30,
2018
 
December 31,
2017
Assets
 
 

 
 

Utility Plant In Service
 
$
12,716

 
$
12,161

Accumulated Depreciation and Amortization
 
(4,541
)
 
(4,124
)
Construction Work in Progress
 
333

 
375

Nuclear Fuel, Net of Accumulated Amortization
 
182

 
208

Utility Plant, Net ($677 and $711 related to VIEs)
 
8,690

 
8,620

Nonutility Property and Investments:
 
 

 
 

Nonutility property, net of accumulated depreciation
 
73

 
71

Assets held in trust, net-nuclear decommissioning
 
139

 
136

Other investments
 
1

 
2

Nonutility Property and Investments, Net
 
213

 
209

Current Assets:
 
 

 
 

     Cash and cash equivalents
 
439

 
395

     Receivables:
 
 
 
 
          Customer, net of allowance for uncollectible accounts of $3 and $4
 
357

 
390

          Affiliated companies
 
186

 
32

          Income taxes
 

 
198

          Other
 
54

 
85

     Inventories (at average cost):
 
 

 
 

     Fuel
 
64

 
90

     Materials and supplies
 
155

 
149

     Prepayments
 
95

 
82

     Derivative financial instrument
 

 
54

     Other current assets
 
2

 
2

     Total Current Assets ($74 and $191 related to VIEs)
 
1,352

 
1,477

Deferred Debits and Other Assets:
 
 

 
 

Regulatory assets
 
5,623

 
5,476

Other
 
180

 
164

Other affiliate
 
71

 

     Total Deferred Debits and Other Assets ($34 and $50 related to VIEs)
 
5,874

 
5,640

Total
 
$
16,129

 
$
15,946


See Notes to Condensed Consolidated Financial Statements.


13



Millions of dollars
 
September 30,
2018
 
December 31,
2017
Capitalization and Liabilities
 
 
 
 
Common Stock - no par value, 40.3 million shares outstanding
 
$
2,860

 
$
2,860

Retained Earnings
 
2,146

 
1,982

Accumulated Other Comprehensive Loss
 
(3
)
 
(4
)
Total Common Equity
 
5,003

 
4,838

Noncontrolling Interest
 
169

 
142

Total Equity
 
5,172

 
4,980

Long-Term Debt, net
 
5,132

 
4,441

Total Capitalization
 
10,304

 
9,421

Current Liabilities:
 
 
 
 
Short-term borrowings
 
173

 
252

Current portion of long-term debt
 
14

 
723

Accounts payable
 
136

 
251

Affiliated payables
 
259

 
102

Customer deposits and customer prepayments
 
117

 
70

Revenue subject to refund
 
61

 

Taxes accrued
 
169

 
208

Interest accrued
 
64

 
67

Dividends declared
 
9

 
82

Derivative financial instruments
 
1

 
2

Other
 
34

 
47

Total Current Liabilities
 
1,037

 
1,804

Deferred Credits and Other Liabilities:
 
 
 
 
Deferred income taxes, net
 
1,266

 
1,173

Asset retirement obligations
 
539

 
529

Pension and other postretirement benefits
 
207

 
217

Unrecognized tax benefits
 
19

 
19

Regulatory liabilities
 
2,635

 
2,667

Other
 
104

 
97

Other affiliate
 
18

 
19

Total Deferred Credits and Other Liabilities
 
4,788

 
4,721

 Commitments and Contingencies (Note 10)
 


 


Total
 
$
16,129

 
$
15,946

 
See Notes to Condensed Consolidated Financial Statements.


14



South Carolina Electric & Gas Company and Affiliates
Condensed Consolidated Statements of Comprehensive Income
(Unaudited) 
 
 
 Three Months Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
Millions of dollars
 
2018
 
2017
 
2018
 
2017
Operating Revenues:
 
 
 
 
 
 

 
 
Electric
 
$
669

 
$
786

 
$
1,767

 
$
2,042

Electric - nonconsolidated affiliate
 
1

 
1

 
3

 
4

Gas
 
69

 
69

 
303

 
284

Gas - nonconsolidated affiliate
 

 

 
1

 
1

Total Operating Revenues
 
739

 
856

 
2,074

 
2,331

Operating Expenses:
 
 
 
 
 
 

 
 
Fuel used in electric generation
 
153

 
132

 
408

 
370

Fuel used in electric generation - nonconsolidated affiliate
 
35

 
35

 
95

 
94

Purchased power
 
10

 
22

 
77

 
54

Gas purchased for resale
 
41

 
39

 
161

 
147

Other operation and maintenance
 
105

 
109

 
320

 
305

Other operation and maintenance - nonconsolidated affiliate
 
39

 
44

 
135

 
135

Impairment loss
 

 
210

 
4

 
210

Depreciation and amortization
 
81

 
78

 
242

 
232

Other taxes
 
61

 
62

 
188

 
183

Other taxes - nonconsolidated affiliate
 
2

 
1

 
4

 
4

Total Operating Expenses
 
527

 
732

 
1,634

 
1,734

Operating Income
 
212

 
124

 
440

 
597

Other Income (Expense), net
 
(1
)
 
11

 
124

 
26

Interest charges, net of allowance for borrowed funds used during construction of $2, $2, $7 and $15
 
(79
)
 
(76
)
 
(232
)
 
(214
)
Income Before Income Tax Expense
 
132

 
59

 
332

 
409

Income Tax Expense
 
29

 
17

 
70

 
129

Net Income
 
103

 
42

 
262

 
280

Other Comprehensive Income
 
 
 
 
 
 
 
 
Deferred cost of employee benefit plans, net of tax of $-, $-, $- and $-
 
1

 

 
1

 

Total Comprehensive Income
 
104

 
42

 
263

 
280

Less Comprehensive Income Attributable to Noncontrolling Interest
 
6

 
3

 
15

 
10

Comprehensive Income Available to Common Shareholder
 
$
98

 
$
39

 
$
248

 
$
270

 
 
 
 
 
 
 
 
 
Dividends Declared on Common Stock
 
$
17

 
$
81

 
$
91

 
$
240

 
See Notes to Condensed Consolidated Financial Statements.



15



South Carolina Electric & Gas Company and Affiliates
Condensed Consolidated Statements of Cash Flows
(Unaudited)
 
 
Nine Months Ended September 30,
Millions of dollars
 
2018
 
2017
Cash Flows From Operating Activities:
 
 
 
 
Net income
 
$
262

 
$
280

Adjustments to reconcile net income to net cash provided from operating activities:
 
 
 
 
Impairment loss
 
4

 
210

Deferred income taxes, net
 
93

 
(434
)
Depreciation and amortization
 
259

 
238

Amortization of nuclear fuel
 
41

 
31

Allowance for equity funds used during construction
 
(7
)
 
(13
)
Carrying cost recovery
 
(4
)
 
(27
)
Changes in certain assets and liabilities:
 
 
 
 
Receivables
 
49

 
(27
)
Receivables - affiliate
 
(4
)
 
8

Income tax receivable
 
198

 
53

Inventories
 
(15
)
 
(34
)
Prepayments
 
(13
)
 
(10
)
Regulatory assets
 
2

 
(40
)
Regulatory liabilities
 
(102
)
 
(1
)
Accounts payable
 
(10
)
 
31

Accounts payable - affiliate
 

 
(28
)
Revenue subject to refund
 
61

 

Taxes accrued
 
(39
)
 
468

Unrecognized tax benefit
 

 
166

Other assets
 
(44
)
 
(29
)
Other liabilities
 
38

 
(14
)
Net Cash Provided From Operating Activities
 
769

 
828

Cash Flows From Investing Activities:
 
 
 
 
Property additions and construction expenditures
 
(538
)
 
(882
)
Proceeds from monetization of guaranty settlement
 

 
1,013

Proceeds from investments and sales of assets (including derivative collateral returned)
 
35

 
96

Purchase of investments (including derivative collateral posted)
 
(21
)
 
(98
)
Purchase of investments - affiliate
 
(113
)
 

Proceeds from interest rate derivative contract settlement
 
115

 

Proceeds from investments - affiliate
 
42

 

Investment in affiliate
 
(150
)
 

Net Cash Provided From (Used For) Investing Activities
 
(630
)
 
129

Cash Flows From Financing Activities:
 
 
 
 
Proceeds from issuance of debt
 
795

 

Repayment of long-term debt
 
(824
)
 
(11
)
Dividends
 
(164
)
 
(238
)
Money pool borrowings, net
 
157

 
2

Contribution from parent
 
20

 

Short-term borrowings, net
 
(79
)
 
141

Net Cash Used For Financing Activities
 
(95
)
 
(106
)
Net Increase In Cash and Cash Equivalents
 
44

 
851

Cash and Cash Equivalents, January 1
 
395

 
164

Cash and Cash Equivalents, September 30
 
$
439

 
$
1,015

 
 
 
 
 
 Supplemental Cash Flow Information:
 
 
 
 
Cash for–Interest (net of capitalized interest of $7 and $15)
 
$
211

 
$
195

              –Income taxes paid
 
3

 
3

              –Income taxes received
 
216

 
143

Noncash Investing and Financing Activities:
 
 
 
 
Accrued construction expenditures
 
25

 
21

Capital leases
 
7

 
6

Guaranty settlement receivable
 

 
83


See Notes to Condensed Consolidated Financial Statements.


16



South Carolina Electric & Gas Company and Affiliates
Condensed Consolidated Statements of Changes in Common Equity
(Unaudited)

 
 
Common Stock
 
 
 
 
 
 
 
 
Millions
 
Shares
 
Amount
 
Retained Earnings
 
AOCI
 
Noncontrolling Interest
 
Total Equity
Balance at January 1, 2018
 
40

 
$
2,860

 
$
1,982

 
$
(4
)
 
$
142

 
$
4,980

Earnings available to common shareholder
 
 
 
 
 
124

 
 
 
4

 
128

Total Comprehensive Income
 
 
 
 
 
124

 

 
4

 
128

Cash dividend declared
 
 
 
 
 
(72
)
 
 
 
(2
)
 
(74
)
Balance at March 31, 2018
 
40

 
2,860

 
2,034

 
(4
)
 
144

 
5,034

 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings available to common shareholder
 
 
 
 
 
26

 
 
 
5

 
31

Total Comprehensive Income
 
 
 
 
 
26

 

 
5

 
31

  Contribution from Parent
 
 
 
 
 
 
 
 
 
20

 
20

Balance at June 30, 2018
 
40

 
2,860

 
2,060

 
(4
)
 
169

 
5,085

 
 
 
 
 
 
 
 
 
 
 
 
 
Earnings available to common shareholder
 
 
 
 
 
97

 

 
6

 
103

  Deferred Cost of Employee Benefit Plans, net of tax $-
 
 
 
 
 
 
 
1

 
 
 
1

Total Comprehensive Income
 
 
 
 
 
97

 
1

 
6

 
104

Cash dividend declared
 
 
 
 
 
(11
)
 
 
 
(6
)
 
(17
)
Balance at September 30, 2018
 
40

 
$
2,860

 
$
2,146

 
$
(3
)
 
$
169

 
$
5,172

 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at January 1, 2017
 
40

 
$
2,860

 
$
2,481

 
$
(3
)
 
$
134

 
$
5,472

Earnings available to common shareholder
 
 
 
 
 
109