U-13-60 1 uannual.txt U-13-60 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 Form U-13-60 ANNUAL REPORT For the Period Beginning January 1, 2002 and Ending December 31, 2002 TO THE U.S. SECURITIES AND EXCHANGE COMMISSION OF SCANA Services, Inc. ------------------------------------------------------------------------------- (Exact Name of Reporting Company) A Subsidiary Service Company Date of Incorporation: December 15, 1999 State or Sovereign Power under which Incorporated or Organized: South Carolina Location of Principal Executive Offices of Reporting Company: 1426 Main Street Columbia, South Carolina 29201 Name, title and address of officer to whom correspondence concerning this report should be addressed: James E. Swan, IV Controller 1426 Main Street Columbia, SC 29201 Name of Principal Holding Company Whose Subsidiaries are served by Reporting Company: SCANA Corporation INSTRUCTIONS FOR USE OF FORM U-13-60 1. TIME OF FILING. Rule 94 provides that on or before the first day of May in each calendar year, each mutual service company and each subsidiary service company as to which the Commission shall have made a favorable finding pursuant to Rule 88, and every service company whose application for approval or declaration pursuant to Rule 88 is pending shall file with the Commission an annual report on Form U-13-60 and in accordance with the Instructions for that form. 2. NUMBER OF COPIES. Each annual report shall be filed in duplicate. The company should prepare and retain at least one extra copy for itself in case correspondence with reference to the report become necessary. 3. PERIOD COVERED BY REPORT. The first report filed by any company shall cover the period from the date of Uniform System of Accounts was required to be made effective as to that company under Rules 82 and 93 to the end of that calendar year. Subsequent reports should cover a calendar year. 4. REPORT FORMAT. Reports shall be submitted on the forms prepared by the Commission. If the space provided on any sheet of such form is inadequate, additional sheets may be inserted of the same size as a sheet of the form or folded to each size. 5. MONEY AMOUNTS DISPLAYED. All money amounts required to be shown in financial statements may be expressed in whole dollars, in thousands of dollars or in hundred thousands of dollars, as appropriate and subject to provisions of Regulation S-X (Section 210.3-01(b)). 6. DEFICITS DISPLAYED. Deficits and other like entries shall be indicated by the use of either brackets or a parenthesis with corresponding reference in footnotes. (Regulation S-X, Section 210.3-01(c)). 7. MAJOR AMENDMENTS OR CORRECTIONS. Any company desiring to amend or correct a major omission or error in a report after it has been filed with the Commission shall submit an amended report including only those pages, schedules, and entries that are to be amended or corrected. A cover letter shall be submitted requesting the Commission to incorporate the amended report changes and shall be signed by a duly authorized officer of the company. 8. DEFINITIONS. Definitions contained in Instruction 01-8 to the Uniform System of Accounts for Mutual Service Companies and Subsidiary Service Companies, Public Utility Holding Company Act of 1935, as amended February 2, 1979 shall be applicable to words or terms used specifically within this Form U-13-60. 9. ORGANIZATION CHART. The service company shall submit with each annual report a copy of its current organization chart. 10. METHODS OF ALLOCATION. The service company shall submit with each annual report a listing of the currently effective methods of allocation being used by the service company and on file with the Securities and Exchange Commission pursuant to the Public Utility Holding Company Act of 1935. 11. ANNUAL STATEMENT OF COMPENSATION FOR USE OF CAPITAL BILLED. The service company shall submit with each annual report a copy of the annual statement supplied to each associate company in support of the amount of compensation for use of capital billed during the calendar year. 12. ELECTRONIC FILERS. Electronic filers are subject to Regulation S-T and the EDGAR Filer Manual. Any rule or instruction therein shall be controlling unless otherwise specifically provided in rules or instructions pertaining to the submission format documents. Data that appears in tabular or columnar format shall be marked as prescribed in the EDGAR Filer Manual. Signatures shall be in typed form rather than manual format. See rule 13 of Regulation S-T. ------------------------------------------------------------------------------- LISTING OF SCHEDULES AND ANALYSIS OF ACCOUNT Page Number --------------------------------------------------- ----------------------- Schedule or Account Description of Schedules and Accounts Number -------------------------------------------------------------------------- COMPARATIVE BALANCE SHEET Schedule I 6 SERVICE COMPANY PROPERTY Schedule II 8 ACCUMULATED PROVISION FOR DEPRECIATION AND AMORTIZATION OF SERVICE COMPANY PROPERTY Schedule III 10 INVESTMENTS Schedule IV 11 ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES Schedule V 12 FUEL STOCK EXPENSES UNDISTRIBUTED Schedule VI 13 STORES EXPENSE UNDISTRIBUTED Schedule VII 14 MISCELLANEOUS CURRENT AND ACCRUED ASSETS Schedule VIII 15 MISCELLANEOUS DEFERRED DEBITS Schedule IX 16 RESEARCH, DEVELOPMENT OR DEMONSTRATION EXPENDITURES Schedule X 17 PROPRIETARY CAPITAL Schedule XI 18 LONG-TERM DEBT Schedule XII 19 CURRENT AND ACCRUED LIABILITIES Schedule XIII 20 NOTES TO FINANCIAL STATEMENTS Schedule XIV 21 COMPARATIVE INCOME STATEMENT Schedule XV 22 ANALYSIS OF BILLING -ASSOCIATE COMPANIES Account 457 24 ANALYSIS OF BILLING - NONASSOCIATE COMPANIES Account 458 25 ANALYSIS OF CHARGES FOR SERVICE - ASSOCIATE AND NONASSOCIATE COMPANIES Schedule XVI 26 SCHEDULE OF EXPENSE BY DEPARTMENT OR SERVICE FUNCTION Schedule XVII 28 DEPARTMENTAL ANALYSIS OF SALARIES Account 920 32 OUTSIDE SERVICES EMPLOYED Account 923 33 EMPLOYEE PENSIONS AND BENEFITS Account 926 35 GENERAL ADVERTISING EXPENSES Account 930.1 36 MISCELLANEOUS GENERAL EXPENSES Account 930.2 38 RENTS Account 931 39 TAXES OTHER THAN INCOME TAXES Account 408 40 DONATIONS Account 426.1 41 OTHER DEDUCTIONS Account 426.5 43 NOTES TO STATEMENT OF INCOME Schedule XVIII 44 --------------------------------------------------------- ---------------------- -------------------------------------------------------------------------- LISTING OF INSTRUCTIONAL FILING REQUIREMENTS ---------- Page Number -------------------------------------------------------------------------- Description of Reports or Statements --------------------------------------------------------------- ORGANIZATION CHART 45 METHODS OF ALLOCATION 45 ANNUAL STATEMENT OF COMPENSATION FOR USE OF CAPITAL BILLED 52
ANNUAL REPORT OF SCANA Services, Inc. ------------------------------------------------------------------------------------------------------------------------ SCHEDULE I - COMPARATIVE BALANCE SHEET Give balance sheet of the Company as of December 31 of the current and prior year ---------------- ---------------------------------------------------------------------------- -------------------------- ACCOUNT ASSETS AND OTHER DEBITS (Dollars in Thousands) AS OF DECEMBER 31 ---------------- ---------------------------------------------------------------------------- -------------------------- CURRENT PRIOR ------------- ------------ SERVICE COMPANY PROPERTY 101 Service company property (Schedule II) $35,282 $24,190 107 Construction work in progress (Schedule II) 14,173 16,886 ---------------- ------------------------------------------------------- -------------------- ------------- ------------ Total Property 49,455 41,076 ---------------- ------------------------------------------------------- -------------------- ------------- ------------ 108 Less accumulated provision for depreciation and amortization of service company property (Schedule III) (7,997) (4,983) ---------------- ------------------------------------------------------- -------------------- ------------- ------------ Net Service Company Property 41,458 36,093 ---------------- ------------------------------------------------------- -------------------- ------------- ------------ INVESTMENTS 123 Investments in associate companies (Schedule IV) - - 124 Other investments (Schedule IV) - - ---------------- ------------------------------------------------------- -------------------- ------------- ------------ Total Investments - - ---------------- ------------------------------------------------------- -------------------- ------------- ------------ CURRENT AND ACCRUED ASSETS 131 Cash 93 11,541 134 Special deposits 52 28 135 Working funds 102 118 136 Temporary cash investments (Schedule IV) - - 141 Notes receivable - - 143 Accounts receivable 321 148 144 Accumulated provision for uncollectible accounts - - 146 Accounts receivable from associate companies (Schedule V) 46,171 57,972 152 Fuel stock expenses undistributed (Schedule VI) - - 154 Materials and supplies 63 70 163 Stores expense undistributed (Schedule VII) - 2 165 Prepayments 2,152 2,338 174 Miscellaneous current and accrued assets (Schedule VIII) - - ---------------- ------------------------------------------------------- -------------------- ------------- ------------ Total Current and Accrued Assets 48,954 72,217 ---------------- ------------------------------------------------------- -------------------- ------------- ------------ DEFERRED DEBITS 181 Unamortized debt expense - - 184 Clearing accounts 381 1,926 186 Miscellaneous deferred debits (Schedule IX) 1,854 2,742 188 Research, development or demonstration expenditures (Schedule X) - - 190 Accumulated deferred income taxes - - ---------------- ------------------------------------------------------- -------------------- ------------- ------------ Total Deferred Debits 2,235 4,668 ---------------- ------------------------------------------------------- -------------------- ------------- ------------ TOTAL ASSETS AND OTHER DEBITS $92,647 $112,978 ================ ======================================================= ==================== ============= ============ ANNUAL REPORT OF SCANA Services, Inc. ---------------------------------------------------------------------------------------------------------------------------------- SCHEDULE I - COMPARATIVE BALANCE SHEET Give balance sheet of the Company as of December 31 of the current and prior year ----------------- ------------------------------------------------------------------------------------ --------------------------- ACCOUNT LIABILITIES AND PROPRIETARY CAPITAL (Dollars in Thousands) AS OF DECEMBER 31 ----------------- ------------------------------------------------------------------------------------ --------------------------- CURRENT PRIOR -------------- ------------ PROPRIETARY CAPITAL 201 Common stock issued (Schedule XI) $1 $1 211 Miscellaneous paid-in-capital (Schedule XI) 5,465 5,465 215 Appropriated retained earnings (Schedule XI) - - 216 Unappropriated retained earnings (Schedule XI) - - ----------------- ---------------------------------------------------------------- ------------------- -------------- ------------ Total Proprietary Capital 5,466 5,466 ----------------- ---------------------------------------------------------------- ------------------- -------------- ------------ LONG-TERM DEBT 223 Advances from associate companies (Schedule XII) - - 224 Other long-term debt (Schedule XII) 3,274 3,451 225 Unamortized premium on long-term debt - - 226 Unamortized discount on long-term debt-debit - - ----------------- ---------------------------------------------------------------- ------------------- -------------- ------------ Total Long-term Debt 3,274 3,451 ----------------- ---------------------------------------------------------------- ------------------- -------------- ------------ CURRENT AND ACCRUED LIABILITIES 228 Accrued provision injuries and damages 193 121 231 Notes payable - - 232 Accounts payable 20,452 10,618 233 Notes payable to associate companies (Schedule XIII) - - 234 Accounts payable to associate companies (Schedule XIII) 42,630 85,640 236 Taxes accrued 251 (85) 237 Interest accrued - - 238 Dividends declared - - 241 Tax collections payable 224 130 242 Miscellaneous current and accrued liabilities (Schedule XIII) 2,747 2,531 ----------------- ---------------------------------------------------------------- ------------------- -------------- ------------ Total Current and Accrued Liabilities 66,497 98,955 ----------------- ---------------------------------------------------------------- ------------------- -------------- ------------ DEFERRED CREDITS 253 Other deferred credits 12,980 3,389 255 Accumulated deferred investment tax credits - - ----------------- ---------------------------------------------------------------- ------------------- -------------- ------------ Total Deferred Credits 12,980 3,389 ----------------- ---------------------------------------------------------------- ------------------- -------------- ------------ 282 ACCUMULATED DEFERRED INCOME TAXES 4,430 1,717 ------------------- -------------- ------------ ----------------- ---------------------------------------------------------------- TOTAL LIABILITIES AND PROPRIETARY CAPITAL $92,647 $112,978 ================= ================================================================ =================== ============== ============ ANNUAL REPORT OF SCANA Services, Inc. For the Year Ended December 31, 2002 ------------------------------------------------------------------------------------------------------------------------------------ SCHEDULE II - SERVICE COMPANY PROPERTY --------------------------------------------------- ------------ ---------------- ----------------- -------------- --------------- BALANCE AT NCE AT BEGINNING RETIREMENT OTHER SE OF DESCRIPTION (Dollars in Thousands) OF YEAR ADDITIONS OR SALES CHANGES(1) EAR --------- ----------------------------------------------------------- -------------- ----------------- -------------- ------------ SERVICE COMPANY PROPERTY Account 301 ORGANIZATION - - - - - 303 MISCELLANEOUS INTANGIBLE PLANT $7,201 $5,027 - $(192) $12,036 304 LAND AND LAND RIGHTS - - - - - 305 STRUCTURES AND IMPROVEMENTS 159 77 - - 236 306 LEASEHOLD IMPROVEMENTS 2,451 958 - (81) 3,328 307 EQUIPMENT (2) 7,132 1,276 $1,150 - 7,258 308 OFFICE FURNITURE AND EQUIPMENT 988 358 - (18) 1,328 309 AUTOMOBILES, OTHER VEHICLES AND RELATED GARAGE EQUIPMENT 92 - 92 - - 310 AIRCRAFT AND AIRPORT EQUIPMENT 1,810 3,434 - - 5,244 311 OTHER SERVICE COMPANY PROPERTY (3) 4,357 1,672 177 - 5,852 --------- ----------------------------------------------------------- -------------- ----------------- -------------- ------------ SUB-TOTAL 24,190 12,802 1,419 (291) 35,282 --------- ----------------------------------------------------------- -------------- ----------------- -------------- ------------ 107 CONSTRUCTION WORK IN PROGRESS (4) 16,886 20,991 12,803 (10,901) 14,173 --------- ----------------------------------------------------------- -------------- ----------------- -------------- ------------ TOTAL $41,076 $33,793 $14,222 $(11,192) $49,455 --------- ----------------------------------------------------------- -------------- ----------------- -------------- ------------ ---------------------------------------------------------------------------------------------------------------------------------- (1) PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL: The $10,901 reduction in Construction Work in Progress represents transfers of assets/projects managed by SCANA Services, Inc. for the benefit of other business units to those business units which are receiving the benefit of those assets.
SCHEDULE II - CONTINUED -------------------------------------------------------------------------------- (2)SUBACCOUNTS ARE REQUIRED FOR EACH CLASS OF EQUIPMENT OWNED. THE SERVICE COMPANY SHALL PROVIDE A LISTING BY SUBACCOUNT OF EQUIPMENT ADDITIONS DURING THE YEAR AND THE BALANCE AT THE CLOSE OF THE YEAR: --------------------------------------------------------------------------- BALANCE AT CLOSE SUBACCOUNT DESCRIPTION (Dollars in Thousands) ADDITIONS OF YEAR ----------------------------------------------- ------------ -------------- EDP Equipment $1,064 $6,851 Office Data Handling Equipment 212 407 ---------- --------- TOTAL $1,276 $7,258 --------------------------------------------------------------------- (3)DESCRIBE OTHER SERVICE COMPANY PROPERTY: Capitalized computer leases of $3,274, communication equipment of $1,448 and office furniture and equipment of $1,130. ------------------------------------------------------------------------- ---- (4)DESCRIBE CONSTRUCTION WORK IN PROGRESS: Primarily data processing systems ------------------------------------------------------------------------- ----
ANNUAL REPORT OF SCANA Services, Inc. For the Year Ended December 31, 2002 ------------------------------------------------------------------------------------------------------------------------- SCHEDULE III ACCUMULATED PROVISION FOR DEPRECIATION AND AMORTIZATION OF SERVICE COMPANY PROPERTY ---------------------------------------------------------------------------------------------------------------------------------- --------------------------------------------- ---------- ----------------- ------------- --------------- ------------------------- BALANCE AT ADDITIONS BALANCE AT -------------------------------- ------------------- BEGINNING CHARGED TO OTHER CHANGES CLOSE OF DESCRIPTION (Dollars in Thousands) OF YEAR ACCOUNT 403 (2) RETIREMENTS ADD (DEDUCT)(1) YEAR --------- ------------------------------------------------------ -------------------------------- -------------------------------- Account 301 ORGANIZATION - - - - - 303 MISCELLANEOUS INTANGIBLE PLANT $1,070 $1,915 - $(39) $2,946 304 LAND AND LAND RIGHTS - - - - - 305 STRUCTURES AND IMPROVEMENTS 44 6 - - 50 306 LEASEHOLD IMPROVEMENTS 675 86 - - 761 307 EQUIPMENT 2,526 1,782 $1,150 - 3,158 308 OFFICE FURNITURE AND FIXTURES 320 126 - - 446 309 AUTOMOBILES, OTHER VEHICLES AND RELATED GARAGE EQUIPMENT 53 5 91 33 - 310 AIRCRAFT AND AIRPORT EQUIPMENT 268 159 - - 427 311 OTHER SERVICE COMPANY PROPERTY 27 182 - - 209 --------- ------------------------------------------------------ -------------------------------- -------------------------------- TOTAL $4,983 $4,261 $1,241 $(6) $7,997 --------- ------------------------------------------------------ -------------------------------- -------------------------------- ---------------------------------------------------------------------------------------------------------------------------------- (1)PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL: None considered material (2) Depreciation Expense is charged to account 414 per FERC guidelines. -------------------------------------------------------------------------------
ANNUAL REPORT OF SCANA Services, Inc. For the Year Ended December 31, 2002 ------------------------------------------------------------------------------- SCHEDULE IV - INVESTMENTS ------------------------------------------------------------------------------- ------------------------------------------------------------------------------- INSTRUCTIONS: Complete the following schedule concerning investments. Under Account 124, "Other Investments", state each investment separately, with description, including, the the name of issuing company, number of shares or principal amount, etc. Under Account 136, "Temporary Cash Investments", list each investment separately. ------------------------------------------------------------------------------- BALANCE AT BALANCE BEGINNING AT CLOSE DESCRIPTION (Dollars in Thousands) OF YEAR OF YEAR -------------------------------------------------- ------------------ --------- ACCOUNT 123 - INVESTMENT IN ASSOCIATE COMPANIES $- $- ACCOUNT 124 - OTHER INVESTMENTS - - ACCOUNT 136 - TEMPORARY CASH INVESTMENTS - - TOTAL $- $- ------------------------------------------------------ ------------------ ANNUAL REPORT OF SCANA Services, Inc. For the Year Ended December 31, 2002 ------------------------------------------------------------------------------- SCHEDULE V - ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES ------------------------------------------------------------------------------- ------------------------------------------------------------------------------- INSTRUCTIONS: Complete the following schedule listing accounts receivable from each associate company. Where the service company has provided accommodation or convenience payments for associate companies, a separate listing of total payments for each associate company by subaccount should be provided. -------------------------------------------------------------------------------- BALANCE AT BALANCE BEGINNING AT CLOSE DESCRIPTION (Dollars in Thousands) OF YEAR OF YEAR ------------------------------------------------------------------- ------------ ACCOUNT 146 - ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES ServiceCare, Inc. $230 $534 SCANA Propane Gas, Inc. - - SCANA Energy Marketing, Inc. 6,664 3,623 Primesouth Inc. 330 300 SCANA Petroleum Resources 1 - SCANA Development Corporation 12 8 South Carolina Pipeline Corporation 504 1,577 SCANA Communications, Inc. 200 254 SCANA Resources, Inc. - - Public Service Company of North Carolina, Incorporated 7,103 7,690 South Carolina Electric & Gas Company 42,928 32,185 ------- ----------- TOTAL $57,972 $46,171 ----------------------------------------------------- --------------- ---------- TOTAL ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS: PAYMENTS ---------- South Carolina Pipeline Corporation $4 SCANA Energy Marketing 4 --------- TOTAL PAYMENTS $8 ------------------------------------------------------------------- --------- ANNUAL REPORT OF SCANA Services, Inc. For the Year Ended December 31, 2002 -------------------------------------------------------------------------------- SCHEDULE VI - FUEL STOCK EXPENSES UNDISTRIBUTED -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- INSTRUCTIONS: Report the amount of labor and expenses incurred with respect to fuel stock expenses during the year and indicate amount attributable to each associate company. Under the section headed "Summary" listed below give an overall report of the fuel functions performed by the service company. -------------------------------------------------------------------------------- DESCRIPTION (Dollars in Thousands) LABOR EXPENSES TOTAL -------------------------------------------------------------------------------- ACCOUNT 152 - FUEL STOCK EXPENSES UNDISTRIBUTED $- $- $- --------------- --------------- -------- TOTAL $- $- $- --------------------------------------- --------------- --------------- SUMMARY: ----------------------------------------------------------------------- -------- ANNUAL REPORT OF SCANA Services, Inc. For the Year Ended December 31, 2002 ------------------------------------------------------------------------------- SCHEDULE VII - STORES EXPENSE UNDISTRIBUTED ------------------------------------------------------------------------------- ------------------------------------------------------------------------------- INSTRUCTIONS: Report the amount of labor and expenses incurred with respect to stores expense during the year and indicate amount attributable to each associate company. -------------------------------------------------------------------------------- DESCRIPTION (Dollars in Thousands) LABOR EXPENSES TOTAL ---------------------------------------- --------------------------------------- ACCOUNT 163 - STORES EXPENSE UNDISTRIBUTED $- $- $- South Carolina Electric and Gas --------------- --------------- ------------- TOTAL $- $- $- ---------------------------------- --------------- --------------- ------------- ANNUAL REPORT OF SCANA Services, Inc. For the Year Ended December 31, 2002 -------------------------------------------------------------------------------- SCHEDULE VIII MISCELLANEOUS CURRENT AND ACCRUED ASSETS -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- INSTRUCTIONS: Provide detail of items in this account. Items less than $10,000 may be grouped, showing the number of items in each group. -------------------------------------------------------------------------------- BALANCE AT BALANCE BEGINNING AT CLOSE DESCRIPTION (Dollars In Thousands) OF YEAR OF YEAR --------------------------------------------------------------------- ---------- $- $- ACCOUNT 174 - MISCELLANEOUS CURRENT AND ACCRUED ASSETS -------------------- -------------- TOTAL $- $- -------------------------------------------- -------------------- -------------- ANNUAL REPORT OF SCANA Services, Inc. For the Year Ended December 31, 2002 -------------------------------------------------------------------------------- SCHEDULE IX MISCELLANEOUS DEFERRED DEBITS -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- INSTRUCTIONS: Provide detail of items in this account. Items less than $10,000 may be grouped by class showing the number of items in each class. -------------------------------------------------------------------------------- BALANCE AT BALANCE BEGINNING AT CLOSE DESCRIPTION (Dollars in Thousands) OF YEAR OF YEAR -------------------------------------------------- ----------------- ----------- ACCOUNT 186 - MISCELLANEOUS DEFERRED DEBITS Other work in progress $1,690 $795 Prepaid software 512 1,110 Unbilled clearing 535 (51) Other (1 item) 5 - ------------ -------------- TOTAL $2,742 $1,854 -------------------------------------------------- ------------ -------------- ANNUAL REPORT OF SCANA Services, Inc. For the Year Ended December 31, 2002 -------------------------------------------------------------------------------- SCHEDULE X RESEARCH, DEVELOPMENT OR DEMONSTRATION EXPENDITURES -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- INSTRUCTIONS: Provide a description of each material research, development, or demonstration project which incurred costs by the service corporation during the year. -------------------------------------------------------------------------------- DESCRIPTION (Dollars in Thousands) AMOUNT ------------------------------------------------------------------ ------------- ACCOUNT 188 - RESEARCH, DEVELOPMENT, OR DEMONSTRATION EXPENDITURES $- --------------- TOTAL $- --------------------------------------------------------------------------------
ANNUAL REPORT OF SCANA Services, Inc. For the Year Ended December 31, 2002 ------------------------------------------------------------------------------------------------------------------------------------ SCHEDULE XI - PROPRIETARY CAPITAL ------------------------------------------------------------------------------------------------------------------------------------ NUMBER OF PAR OR STATED OUTSTANDING ACCOUNT SHARES VALUE CLOSE OF PERIOD --------------------------------- NUMBER CLASS OF STOCK AUTHORIZED PER SHARE NO. OF SHARES TOTAL AMOUNT ----------------------------------------------------- ---------------------- --------------------- ---------------- ---------------- 201 COMMON STOCK ISSUED 1,000 No Par 1,000 $1,000 ----------------------------------------------------- ---------------------- --------------------- ---------------- ---------------- INSTRUCTIONS: Classify amounts in each account with brief explanation, disclosing the general nature of transactions which gave rise to the reported amounts. -------------------------------------------------------------------------------------------------------------------------------- DESCRIPTION (Dollars in AMOUNT Thousands) ---------------------------------------------------------------------------- --------------------- ------------------------------- ACCOUNT 211 - MISCELLANEOUS PAID-IN CAPITAL Capitalization of company $5,465 ACCOUNT 215 - APPROPRIATED RETAINED EARNINGS - ---------------- TOTAL $5,465 ------------------------------ ---------------------- ---------------------- --------------------- -------------------------------
INSTRUCTIONS: Give particulars concerning net income or (loss) during the year, distinguishing between compensation for the use of capital owed or net loss remaining from servicing nonassociates per the General Instructions of the Uniform System of Accounts. For dividends paid during the year in cash or otherwise, provide rate percentage, amount of dividend, date declared and date paid. -------------------------------------------------------------------------------- BALANCE AT NET INCOME BALANCE AT BEGINNING OR DIVIDENDS CLOSE DESCRIPTION OF YEAR (LOSS) PAID OF YEAR -------------------------------------------------------------------------------- ACCOUNT 216 -- UNAPPROPRIATED RETAINED EARNINGS ------------------------------------------------------- TOTAL $- $- $- $- -------------------------------------------------------------------------------- ANNUAL REPORT OF SCANA Services, Inc. For the Year Ended December 31, 2002 -------------------------------------------------------------------------------- SCHEDULE XII - LONG-TERM DEBT -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- INSTRUCTIONS: Advances from associate companies should be reported separately for advances on notes, and advances on open account. Names of associate companies from which advances were received shall be shown under the class and series of obligation column. For Account 224 - Other long-term debt provide the name of the creditor company or organization, terms of the obligation, date of maturity, interest rate, and the amount authorized and outstanding.
(Dollars in Thousands) ----------------------- ------------------------------------------------------------------ ----------------------------------------- TERMS OF OBLIG BALANCE AT BALANCE NAME OF CLASS & SERIES DATE OF INTEREST AMOUNT BEGINNING AT CLOSE OF CREDITOR OF OBLIGATION MATURITY RATE AUTHORIZED OF YEAR ADDITIONS DEDUCTIONS (1) YEAR ------------------------------------------------------------------ ----------------------------- ----------------------- ACCOUNT 223- ADVANCES FROM ASSOCIATE COMPANIES: ACCOUNT 224 - OTHER LONG- TERM DEBT: O/E Systems, Inc. master lease of from 6 to ranging - $3,451 $1,447 $1,624 $3,274 computer equipment 36 months from 2.7% to 3.1% ------------ ------------------------- ----------- ----------- ----------- TOTAL $3,451 $1,447 $1,624 $3,274 ------------------ ---------------------- ------------ ------------------------- ----------- ----------- -----------
(1) GIVE AN EXPLANATION OF DEDUCTIONS: Amortization of capital lease obligations in accordance with the capital lease accounting instructions prescribed in the Federal Energy Regulatory Commission Uniform System of Accounts. -------------------------------------------------------------------------------- ANNUAL REPORT OF SCANA Services, Inc. For the Year Ended December 31, 2002 -------------------------------------------------------------------------------- SCHEDULE XIII - CURRENT AND ACCRUED LIABILITIES -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- INSTRUCTIONS: Provide balance of notes and accounts payable to each associate company. Give description and amount of miscellaneous current and accrued liabilities. Items less than $10,000 may be grouped, showing the number of items in each group. -------------------------------------------------------------------------------- BALANCE AT BALANCE BEGINNING AT CLOSE DESCRIPTION (Dollars in Thousands) OF YEAR OF YEAR ------------------------------------------------------------------- ------------ ACCOUNT 233 - NOTES PAYABLE TO ASSOCIATE COMPANIES ------------------ --------------- TOTAL $- $- -------------------------------------------- ------------------ --------------- ACCOUNT 234 - ACCOUNTS PAYABLE TO ASSOCIATE COMPANIES SCANA Corporation $85,640 $42,630 ------------------ --------------- TOTAL $85,640 $42,630 -------------------------------------------- ------------------ --------------- ACCOUNT 242 - MISCELLANEOUS CURRENT AND ACCRUED LIABILITIES Accrued payroll $2,531 $2,747 ------------------ --------------- TOTAL $2,531 $2,747 --------------------------------------------- ------------------ --------------- ANNUAL REPORT OF SCANA Services, Inc. For the Year Ended December 31, 2002 -------------------------------------------------------------------------------- SCHEDULE XIV NOTES TO FINANCIAL STATEMENTS -------------------------------------------------------------------------------- INSTRUCTIONS: The space below is provided for important notes regarding the financial statements or any account thereof. Furnish particulars as to any significant contingent assets or liabilities existing at the end of the year. Notes relating to financial statements shown elsewhere in this report may be indicated here by reference. -------------------------------------------------------------------------------- 1. SCANA Services, Inc. was established to provide certain administrative and service functions for the SCANA system companies. Initial capitalization was provided by SCANA Corporation through the purchase of SCANA Services, Inc.'s common stock and the transfers of certain assets from SCANA system companies to SCANA Services, Inc. 2. The financial statements are presented using the accrual method of accounting. 3. Provisions for depreciation and amortization are recorded using the straight- line method and are based on the estimated service lives of the various classes of property. 4. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. --------------------------------------------------------------------------- ---- ANNUAL REPORT OF SCANA Services, Inc. For the Year Ended December 31, 2002 -------------------------------------------------------------------------------- SCHEDULE XV STATEMENT OF INCOME ----------- ---------------------------------------------------- ----------- ACCOUNT DESCRIPTION (Dollars in Thousands) CURRENT YEAR PRIOR YEAR ----------- ---------------------------------------------------- ----------- INCOME 415 Revenue from merchandise $8 $175 417.0 Other nonutility revenue 3,381 12,648 418.0 Non operating rent 281 205 419.0 Interest & dividends 8 5 419.1 AFUDC - - 421 Miscellaneous income or loss 3,210 4,166 453 Sales of water - - 454 Rent from electric property 220 223 456 Other electric revenue 255 375 457 Services rendered to associate companies 233,973 222,464 493 Rent from gas property 75 7 ----------- ------------ Total Income 241,411 240,268 ------------- ------------ EXPENSE 350 Superintendence operations 16 26 351 Superintendence maint 9 7 370 Administrative and general 3 10 408 Taxes other than income taxes 7,710 6,449 409 Income taxes (2,713) (1,607) 410 Provision for deferred income taxes 2,713 1,607 414 Depreciation and amortization expense 4,824 1,698 416 Expense from merchandise 1,796 2,318 417.1 Other nonutility expenses 3,736 11,092 426.1 Donations 1,618 2,355 426.2 Life insurance (2,961) (1,110) 426.3 Penalties 6 - 426.4 Civic, politic and related accounts 1,219 1,181 426.5 Other deductions 3,904 3,640 430 Interest on debt to associate companies 2,990 1,733 431 Other interest expense 555 661 432 AFUDC (386) (469) 500 Operation supervision and engineering steam 4 - 501 Fuel handling expense - 78 502 Operation steam power 1 - 506 Operation misc steam 876 576 510 Maint supervision and engineering 40 51 511 Maint structures steam - 2 512 Maint boiler plant steam 7 19 513 Maint electric plant steam 3 5 514 Maint Misc steam plant 19 - 517 Operation supervision and engineering nuclear 246 234 519 Operation coolants and water 36 79 520 Operation steam expenses nuclear 233 73 524 Operation misc nuclear 2,549 1,832 530 Maint reactor plant equipment - 29 532 Maint misc nuclear 194 273 537 Operation expenses hydro 26 28 539 Operation misc hydraulic pwr gen 86 66 543 Maint reservoirs dams 1 2 544 Maint electric plant hydro 142 - 545 Maint misc hydro plant 7 - 546 Operation supervision and engineering 9 6 549 Operation misc other power generation 25 14 552 Maint structures other power - 2 556 System control and load 121 122 560 Operation supervision and engineering 5 11 561 Operation load dispatching transmission 29 35 562 Operation station expenses transmission 85 84 563 Operation OH line expenses transmission 1 1 566 Operation misc transmission 364 375 567 Oper rents Transmission 186 - 568 Maint supervision and engineering 8 10 569 Maint structures transmission 36 22 570 Maint station equipment transmission 161 90 571 Maint overhead lines transmission 2 2 573 Maint misc transmission 34 35 580 Distribution operation supervision and engineering 8 10 581 Distribution operation load dispatch 1 3 582 Distribution operation station expenses 100 91 583 Distribution operation remove and reset 1 1 585 Distribution operation street light and sign 9 87 586 Distribution operation meter expenses 12 484 587 Distribution operation customer install - 1 588 Distribution operation misc distribution 1,087 693 592 Distribution maint of station equipment 55 29 593 Distribution maint of OH Lines 204 100 594 Distribution maint underground lines 30 30 595 Distribution maint line transformer - 2 596 Distribution maint street light and signal 17 20 597 Distribution maint meters 1 - 598 Distribution maint misc distribution plant 1 11 717 Operation liquid petroleum gas 3 - 735 Environmental amortization and misc 168 219 851 System control and load dispatch 252 129 853 Compressor station labor and expenses - 4 856 Mains expense - 5 857 Meas and reg station - 1 861 Maint supervision and engineering - 11 870 Supervision and engineering natural gas distribution 1 1 874 Mains and services natural gas distribution 6 43 878 Meter and house regulator 8 240 879 Customer installation 1 13 880 Other expenses natural gas 349 294 887 Maint mains natural gas distribution - 2 893 Maint meters/house regtr natural gas distribution 12 - 901 Supervision customer accounting 2,517 3,258 902 Meter reading 1,021 7,178 903 Customer records and collections 36,797 36,256 905 Miscellaneous customer accounts 1,433 1,410 907 Supervision customer service 292 312 908 Customer assistance 1,536 2,118 909 Informational and instructional advertising 37 30 910 Miscellaneous customer service 270 1,198 911 Supervision sales activities 699 680 912 Demonstrating and selling 5,502 5,581 913 Advertising 105 141 916 Miscellaneous sales 640 1,083 920 Salaries and wages * 51,301 39,469 921 Office supplies and expenses 46,834 46,997 923 Outside services employed 22,449 21,444 925 Injuries and damages 2,419 1,586 926 Employee pensions and benefits 15,827 18,123 928 Regulatory commission expense 1,499 787 929 Duplicate charges-credit - (13) 930.1 General advertising expenses 611 808 930.2 Miscellaneous general expenses 7,284 6,914 931 Rents 6,520 6,278 932 Maintenance of structures and equipment - 345 935 Maintenance of general plant 2,917 2,014 ------- -------- Total Expense 241,411 240,268 --------------------- -------- -------------------- ----- Net Income or (Loss) $- $- --------------- ----------------------------------------- --------------------- *Salary and wage amounts are charged to Account 920 and other expense accounts, as appropriate per the Federal Energy Regulatory Commission Uniform System of Accounts. -------------------------------------------------------------------------------
ANNUAL REPORT OF SCANA Services, Inc. For the Year Ended December 31, 2002 -------------------------------------------------------------------------------------------------------------- ANALYSIS OF BILLING ASSOCIATE COMPANIES ACCOUNT 457 -------------------------------------------------------------------------------------------------------------- DIRECT INDIRECT COMPENSATION TOTAL COSTS COSTS FOR USE AMOUNT NAME OF ASSOCIATE COMPANY CHARGED CHARGED OF CAPITAL BILLED -------------- -------------- -------------------- (Dollars in Thousands) 457-1 457-2 457-3 ------------------------------------------- -------------- -------------- -------------------- --------------- South Carolina Electric & Gas Company $124,723 $32,776 $- $157,499 South Carolina Fuel Company, Inc. 14 - - 14 South Carolina Pipeline Corporation 6,636 3,231 - 9,867 Public Service Company of North Carolina, Incorporated 23,797 8,853 - 32,650 SCANA Communications, Inc. 887 256 - 1,143 SCANA Energy Marketing, Inc. 20,757 5,311 - 26,068 ServiceCare, Inc. 1,000 333 - 1,333 SCANA Resources, Inc. 225 - - 225 SCANA Development Corporation 13 - - 13 SCANA Petroleum Resources, Inc. 12 - - 12 South Carolina Generating Company, Inc. 712 1,420 - 2,132 Primesouth Inc. 1,478 979 - 2,457 SCANA Holding 379 181 - 560 -------------- -------------- -------------------- --------------- TOTAL $180,633 $53,340 $- $233,973 -------------- -------------- -------------------- --------------- -------------- -------------- -------------------- --------------- ------------------------------------------- -------------- -------------- -------------------- ---------------
ANNUAL REPORT OF SCANA Services, Inc. For the Year Ended December 31, 2002 -------------------------------------------------------------------------------- ANALYSIS OF BILLING NONASSOCIATE COMPANIES ACCOUNT 458 ------------------------------------------------------------------------------- NAME OF DIRECT INDIRECT COMPENSATION EXCESS TOTAL NONASSOCIATE COST COST FOR USE TOTAL OR AMOUNT COMPANY CHARGED CHARGED OF CAPITAL COST DEFICIENCY BILLED --------------------------------- -------------- 458-1 458-2 458-3 458-4 ------------------------------------------------------------------------------- ------------------------------------------------------------------------- TOTAL $- $- $- $- $- $- ------ ------------------------------------------------------------------------- INSTRUCTION: Provide a brief description of the services rendered to each nonassociate company. --------------------------------------------------------------------------------
ANNUAL REPORT OF SCANA Services, Inc. For the Year Ended December 31, 2002 ----------------------------------------------------------------------------------------------------------------------------------- SCHEDULE XVI ANALYSIS OF CHARGES FOR SERVICE ASSOCIATE AND NONASSOCIATE COMPANIES ------------------------------------------------------------------------------------------------------------------------------------ ASSOCIATE COMPANY CHARGES NONASSOCIATE COMPANY CHARGES TOTAL CHARGES FOR SERVICE -------------------------------------------------------- --------------------- DESCRIPTION OF ITEMS (Dollars in Thousands) RECT INDIRECT DIRECT INDIRECT DIRECT INDIRECT COST COST TOTAL COST COST TOTAL COST COST TOTAL ----------------------------------------------------------- --------- ----------------------------------- -------------------------- 350 SUPERINTENDENCE OPERATIONS $16 - $16 - - - $16 - $16 351 SUPERINTENDENCE MAINT 9 - 9 - - - 9 - 9 370 ADMINISTRATIVE AND GENERAL 3 - 3 - - - 3 - 3 408 TAXES OTHER THAN INCOME TAXES 5,378 $2,332 7,710 - - - 5,378 $2,332 7,710 414 DEPRECIATION AND AMORTIZATION EXPENSE - 4,824 4,824 - - - - 4,824 4,824 416 EXPENSES FROM MERCHANDISE 1,483 312 1,796 - - - 1,483 312 1,796 417.1 OTHER NONUTILITY EXPENSES 3,517 219 3,736 - - - 3,517 219 3,736 426.1 DONATIONS 354 1,264 1,618 - - - 354 1,264 1,618 426.2 LIFE INSURANCE 86 (3,047) 2,961) - - - 86 (3,047) (2,961) 426.3 PENALTIES 6 - 6 - - - 6 - 6 426.4 CIVIC, POLITIC AND RELATED ACCOUNTS 647 572 1,219 - - - 647 572 1,219 426.5 OTHER DEDUCTIONS 2,505 1,399 3,904 - - - 2,505 1,399 3,904 431 OTHER INTEREST EXPENSE 555 - 555 - - - 555 - 555 432 AFUDC - (386) (386) - - - - (386) (386) 500 OPERATION SUPERVISION AND ENGINEERING STEAM 4 - 4 - - - 4 - 4 502 OPERATING STEAM POWER EXPENSES 1 - 1 - - - 1 - 1 506 OPERATION MISC STEAM 876 - 876 - - - 876 - 876 510 MAINT SUPERVISION AND ENGINEERING 40 - 40 - - - 40 - 40 512 MAINT BOILER PLANT STEAM 7 - 7 - - - 7 - 7 513 MAINT ELECTRIC PLANT STEAM 3 - 3 - - - 3 - 3 514 MAINTENANCE MISC STEAM POWER EXPENSES 19 - 19 - - - 19 - 19 517 OPERATION SUPERVISION AND ENGINEERING NUCLEAR 246 - 246 - - - 246 - 246 519 OPERATION COOLANTS AND WATER 36 - 36 - - - 36 - 36 520 OPERATION STEAM EXPENSES NUCLEAR 233 - 233 - - - 233 - 233 524 OPERATION MISC NUCLEAR 2,549 - 2,549 - - - 2,549 - 2,549 532 MAINT MISC NUCLEAR 194 - 194 - - - 194 - 194 537 OPERATION EXPENSES HYDRO 26 - 26 - - - 26 - 26 539 OPERATION MISC HYDRAULIC PWR GEN 86 - 86 - - - 86 - 86 543 MAINT RESERVOIRS DAMS 1 - 1 - - - 1 - 1 544 MAINT ELECTRIC PLANT HYDRO 142 - 142 - - - 142 - 142 545 MAINT MISC HYDRO POWER 7 - 7 - - - 7 - 7 546 OPERATION SUPERVISION AND ENGINEERING 9 - 9 - - - 9 - 9 549 OPERATION MISC OTHER POWER GENERATION 25 - 25 - - - 25 - 25 556 SYSTEM CONTROL AND LOAD 121 - 121 - - - 121 - 121 560 OPERATION SUPERVISION AND ENGINEERING 5 - 5 - - - 5 - 5 561 OPERATION LOAD DISPATCHING TRANSMISSION 29 - 29 - - - 29 - 29 562 OPERATION STATION EXPENSES TRANSMISSION 85 - 85 - - - 85 - 85 563 OPERATION OH LINE EXPENSES TRANSMISSION 1 - 1 - - - 1 - 1 566 OPERATION MISC TRANSMISSION 364 - 364 - - - 364 - 364 567 OPER RENTS TRANS 186 - 186 - - - 186 - 186 568 MAINT SUPERVISION AND ENGINEERING 8 - 8 - - - 8 - 8 569 MAINT STRUCTURES TRANSMISSION 36 - 36 - - - 36 - 36 570 MAINT STATION EQUIPMENT TRANSMISSION 161 - 161 - - - 161 - 161 571 MAINT OVERHEAD LINES TRANSMISSION 2 - 2 - - - 2 - 2 573 MAINT MISC TRANSMISSION 34 - 34 - - - 34 - 34 580 DISTRIBUTION OPER SUPERVISION AND ENGINEERIN 8 - 8 - - - 8 - 8 581 DISTRIBUTION OPER LOAD DISPATCH 1 - 1 - - - 1 - 1 582 DISTRIBUTION OPER STATION EXPENSES 100 - 100 - - - 100 - 100 583 DISTRIBUTION OPER REMOVE AND RESET 1 - 1 - - - 1 - 1 585 DISTRIBUTION OPER STREET LIGHT AND SIGNAL 9 - 9 - - - 9 - 9 586 DISTRIBUTION OPER METER EXPENSES 12 - 12 - - - 12 - 12 588 DISTRIBUTION OPER MISC DISTRIBUTION 1,087 - 1,087 - - - 1,087 - 1,087 592 DISTRIBUTION MAINT OF STATION EQUIPMENT 55 - 55 - - - 55 - 55 593 DISTRIBUTION MAINT OF OH LINES 204 - 204 - - - 204 - 204 594 DISTRIBUTION MAINT UNDERGROUND LINES 30 - 30 - - - 30 - 30 596 DISTRIBUTION MAINT STREET LIGHT AND SIGNAL 17 - 17 - - - 17 - 17 598 DISTRIBUTION MAINT MISC DISTRIBUTION PLANT 1 - 1 - - - 1 - 1 597 DISTRIBUTION MAINT METERS 1 - 1 - - - 1 - 1 717 OPERATION LIQUID PETROLEUM GAS 3 - 3 - - - 3 - 3 735 ENVIRONMENTAL AMORTIZATION AND MISC 168 - 168 - - - 168 - 168 851 SYSTEM CONTROL AND LOAD DISPATCH 252 - 252 - - - 252 - 252 870 SUPERVISION AND ENGINEERING NAT URAL GAS DISTRIBUTION 1 - 1 - - - 1 - 1 874 MAINS AND SERVICE NATURAL GAS DISTRIBUTION 6 - 6 - - - 6 - 6 878 METER AND HOUSE REGULATOR 8 - 8 - - - 8 - 8 879 CUSTOMER INSTALLATION 1 - 1 - - - 1 - 1 880 OTHER EXPENSES NATURAL GAS 349 - 349 - - - 349 - 349 893 MAINT METRS/HOUSE REGTR NG DIS 12 - 12 - - - 12 - 12 901 SUPERVISION CUSTOMER ACCOUNTING 2,517 - 2,517 - - - 2,517 - 2,517 902 METER READING 1,021 - 1,021 - - - 1,021 - 1,021 903 CUSTOMER RECORDS AND COLLECTIONS 36,778 19 36,797 - - - 36,778 19 36,797 905 MISCELLANEOUS CUSTOMER ACCOUNTS 1,392 42 1,433 - - - 1,392 42 1,433 907 SUPERVISION CUSTOMER SERVICE 292 - 292 - - - 292 - 292 908 CUSTOMER ASSISTANCE 1,536 - 1,536 - - - 1,536 - 1,536 909 INFORMATIONAL AND INSTRUCTIONAL ADVERTISING 37 - 37 - - - 37 - 37 910 MISCELLANEOUS CUSTOMER SERVICE 270 - 270 - - - 270 - 270 911 SUPERVISION SALES ACTIVITIES 699 - 699 - - - 699 - 699 912 DEMONSTRATING AND SELLING 5,479 23 5,502 - - - 5,479 23 5,502 913 ADVERTISING 104 - 105 - - - 104 - 105 916 MISCELLANEOUS SALES 640 - 640 - - - 640 - 640 920 SALARIES AND WAGES 35,803 15,498 51,301 - - - 35,803 15,498 51,301 921 OFFICE SUPPLIES AND EXPENSES 34,822 12,012 46,834 - - - 34,822 12,012 46,834 923 OUTSIDE SERVICES EMPLOYED 17,564 4,886 22,449 - - - 17,564 4,886 22,449 925 INJURIES AND DAMAGES 2,329 90 2,419 - - - 2,329 90 2,419 926 EMPLOYEE PENSIONS AND BENEFITS 12,376 3,451 15,827 - - - 12,376 3,451 15,827 928 REGULATORY COMMISSION EXPENSE 1,473 26 1,499 - - - 1,473 26 1,499 930.1 GENERAL ADVERTISING EXPENSES 472 139 611 - - - 472 139 611 930.2 MISCELLANEOUS GENERAL EXPENSES 3,257 4,027 7,284 - - - 3,257 4,027 7,284 931 RENTS 2,593 3,927 6,520 - - - 2,593 3,927 6,520 935 MAINTENANCE OF GENERAL PLANT 2,665 252 2,917 - - - 2,665 252 2,917 INSTRUCTION: Total cost of service will equal for associate and nonassociate companies the total amount billed under the separate analysis of billing schedules. ------- --------- --------------------------- --------------------------- TOTAL EXPENSES = 186,54 51,881 238,421 - - - 186,540 51,881 238,421 ------- --------------------- ----- ------- --------------- ----------- ------- COMPENSATION FOR USE OF EQUITY CAPITAL = ------- --------------------- ----- ------- ------ ----------- ----------- ---- - 2,990 2,990 - - - - 2,990 2,990 430 INTEREST ON DEBT TO ASSOCIATE COMPANIES = ------- --------------------- ----- ------- ------------- --------- ---------- TOTAL COST OF SERVICE = $186,540 $54,871 $241,411 - - - $186,540 $54,871 $241,411 ---------------------------------------------------- --------- --------------------- ----- ------- ------------- ----------- -------
ANNUAL REPORT OF SCANA Services, Inc. For the Year Ended December 31, 2002 ------------------------------------------------------------------------------------------------------------------------------------ SCHEDULE XVII SCHEDULE OF EXPENSE DISTRIBUTION BY DEPARTMENT OR SERVICE FUNCTION ------------------------------------------------------------------------------------------------------------------------------------ -------------------------------------------------------- --------------------------------------------------------------------------- DEPARTMENT OR SERVICE FUNCTION --------------------------------------------------------------------------- ----------- ----------- ------- ----------- ----------- ------- ----------- DESCRIPTION OF ITEMS TOTAL CUSTOMER EMPLOYEE ENVIRON- EXECUTIVE FINANCIAL GAS INFORMATION INVESTOR LAND & FACL (Dollars in Thousands) AMOUNT SERVICES SERVICES MENTAL SERVICES SERVICES SUPPLY SERVICES RELATIONS MGMT - -------------------------------------------------------- ----------- --------- ------- ----------- ----------- ------- ------------- -------------------------------------------------------- -------------------------------------- ----------- ------- --------------- 350 SUPERINTENDENCE OPERATIONS $16 - - - - - - - - - 351 SUPERINTENDENCE MAINT 9 - - - - - - - - - 370 ADMINISTRATIVE AND GENERAL 3 - - - - - - - - - 408 TAXES OTHER THAN INCOME TAXES 7,710 $1 - $1 $18 $4 - $35 - $17 414 DEPRECIATION AND AMORTIZATION EXPENSE 4,824 - - - - 4,794 - 30 - - 416 EXPENSES FROM MERCHANDISE 1,796 7 $62 - 40 30 $5 18 $11 3 417.1 OTHER NONUTILITY EXPENSES 3,736 5 - 2 62 74 1 221 213 426.1 DONATIONS 1,618 26 2 - 4 72 - 12 - - 426.2 LIFE INSURANCE (2,961) - - - - (2,963) - - - - 426.4 PENALTIES 6 - 6 - - - - - - - 426.4 CIVIC, POLITIC AND RELATED ACCOUNTS 1,219 - - - - - - - - - 426.5 OTHER DEDUCTIONS 3,904 - 114 27 485 983 1 154 34 499 430 INTEREST ON BEDT TO ASSOC CO 2,990 - - - - 2,990 - - - - 431 OTHER INTEREST EXPENSE 555 - - - - 555 - - - - 432 AFUDC (386) - - - - (386) - - - - 500 OPERATION SUPERVISION AND ENGINEERING STEAM 4 - - 4 - - - - - - 502 OPERATING STEAM POWER EXPENSES 1 - - - - - - - - - 506 OPERATION MISC STEAM 876 - - 106 - - - 25 - (3) 510 MAINT SUPERVISION AND ENGINEERING 40 - - - - - - - - - 512 MAINT BOILER PLANT STEAM 7 - - - - - - - - - 513 MAINT ELECTRIC PLANT STEAM 3 - - - - - - - - - 514 MAINTENANCE MISC STEAM POWER EXPENSES 19 - - - - - - - - - 517 OPERATION SUPERVISION AND ENGINEERING NUCLEAR 246 2 - - - - - 45 - - 519 OPERATION COOLANTS AND WATER 36 - - - - - - 1 - - 520 OPERATION STEAM EXPENSES NUCLEAR 233 - - - - - - 55 - - 524 OPERATION MISC NUCLEAR 2,549 - 2 2 - 21 - 1,206 - 1 532 MAINT MISC NUCLEAR 194 - - - - - - 150 - - 537 OPERATION EXPENSES HYDRO 26 - - - - - - - - 13 539 OPERATION MISC HYDRAULIC PWR GEN 86 - - - - - - - - - 543 MAINT RESERVOIRS DAMS 1 - - - - - - - - - 544 MAINT ELECTRIC PLANT HYDRO 142 - - - - - - - - - 545 MAINT MISC HYDRO POWER 7 - - - - - - - - - 546 OPERATION SUPERVISION AND ENGINEERING 9 - - - - - - - - - 549 OPERATION MISC OTHER POWER GENERATION 25 - - 1 - - - - - - 556 SYSTEM CONTROL AND LOAD 121 - - - - 38 - 8 - - 560 OPERATION SUPERVISION AND ENGINEERING 5 - - - - - - 5 - - 561 OPERATION LOAD DISPATCHING TRANSMISSION 29 - - - - - - 6 - - 562 OPERATION STATION EXPENSES TRANSMISSION 85 - - - - - - 85 - - 563 OPERATION OH LINE EXPENSES TRANSMISSION 1 - - - - - - 1 - - 566 OPERATION MISC TRANSMISSION 364 - - - - 6 - 7 - - 567 OPER RENTS TRANS 186 - - - - - - - - - 568 MAINT SUPERVISION AND ENGINEERING 8 - - - - - - 2 - - 569 MAINT STRUCTURES TRANSMISSION 36 - - - - - - - - - 570 MAINT STATION EQUIPMENT TRANSMISSION 161 - - - - - - - - - 571 MAINT OVERHEAD LINES TRANSMISSION 2 - - - - - - 1 - - 573 MAINT MISC TRANSMISSION 34 - - - - - - 34 - - 580 DISTRIBUTION OPER SUPERVISION AND ENGINEERING 8 - - - - - - - - - 581 DISTRIBUTION OPER LOAD DISPATCH 1 - - - - - - 1 - - 582 DISTRIBUTION OPER STATION EXPENSES 100 - - - - - - 85 - - 583 DISTRIBUTION OPER REMOVE AND RESET 1 - - - - - - - - - 585 DISTRIBUTION OPER STREET LIGHT AND SIGNAL 9 - - - - - - - - - 586 DISTRIBUTION OPER METER EXPENSES 12 3 - - - - - 4 - - 588 DISTRIBUTION OPER MISC DISTRIBUTION 1,087 - - 1 - 13 - 689 - - 592 DISTRIBUTION MAINT OF STATION EQUIPMENT 55 - - - - - - - - - 593 DISTRIBUTION MAINT OF OH LINES 204 32 - - - - - 30 - - 594 DISTRIBUTION MAINT UNDERGROUND LINES 30 - - - - - - 30 - - 596 DISTRIBUTION MAINT STREET LIGHT AND SIGNAL 17 - - - - - - - - - 598 DISTRIBUTION MAINT MISC DISTRIBUTION PLANT 1 - - - - - - - - - 597 DISTRIBUTION MAINT METERS 1 - - - - - - - - - 717 OPERATION LIQUID PETROLEUM GAS 3 - - - - - - - - - 735 ENVIRONMENTAL AMORTIZATION AND MISC 168 - - 2,749 - (2,585) - 2 - - 851 SYSTEM CONTROL AND LOAD DISPATCH 252 - - - - - 241 11 - - 870 SUPERVISION AND ENGINEERING NAT GAS DISTRIBUTION 1 - - - - - - - - - 874 MAINS AND SERVICE NATURAL GAS DISTRIBUTION 6 - - - - - - 6 - - 878 METER AND HOUSE REGULATOR 8 1 - - - - - 4 - - 879 CUSTOMER INSTALLATION 1 - - - - - - - - - 880 OTHER EXPENSES NATURAL GAS 349 - - - - 6 - - - - 893 MAINT METRS/HOUSE REGTR NG DIS 12 - - - - - - - - 901 SUPERVISION CUSTOMER ACCOUNTING 2,517 2,251 - - - 10 - 130 - - 902 METER READING 1,021 42 1 - - 226 - 660 - - 903 CUSTOMER RECORDS AND COLLECTIONS 36,797 21,882 107 - - 120 - 13,918 - - 905 MISCELLANEOUS CUSTOMER ACCOUNTS 1,433 1,257 - - - 9 - 1 - - 907 SUPERVISION CUSTOMER SERVICE 292 4 - - - 59 - - - - 908 CUSTOMER ASSISTANCE 1,536 38 - - 509 3 - 3 - - 909 INFORMATIONAL AND INSTRUCTIONAL ADVERTISING 37 - - - - - - - - - 910 MISCELLANEOUS CUSTOMER SERVICE 270 187 - - - - - - - - 911 SUPERVISION SALES ACTIVITIES 699 - - - - - - 1 - - 912 DEMONSTRATING AND SELLING 5,502 10 - - - 1 72 71 - - 913 ADVERTISING 105 21 - - - - - - - - 916 MISCELLANEOUS SALES 640 - - - - - - 581 - - 920 SALARIES AND WAGES 51,301 730 4,429 781 3,722 23,129 ,400 250 569 1,150 921 OFFICE SUPPLIES AND EXPENSES 46,834 1,421 1,807 552 1,264 7,680 316 18,806 172 1,373 923 OUTSIDE SERVICES EMPLOYED 22,449 4 2,190 259 1,119 2,424 99 19 21 6,048 925 INJURIES AND DAMAGES 2,419 - - - - - - - - - 926 EMPLOYEE PENSIONS AND BENEFITS 15,827 - - - - - - - - - 928 REGULATORY COMMISSION EXPENSE 1,499 - - - 49 101 - - - - 930.1 GENERAL ADVERTISING EXPENSES 611 - 15 - - 3 - - - - 930.2 MISCELLANEOUS GENERAL EXPENSES 7,284 3 22 - 1,000 70 18 1,299 395 - 931 RENTS 6,520 251 729 169 1,696 573 - 220 3 314 935 MAINTENANCE OF GENERAL PLANT 2,917 41 1 382 - 235 - 1,089 - 643 ------------------------------------------------------- ----------------------------------- ---------------------------------------- ------------------------------------------------------------ ------- ----------- ----- -------- --------- ---- ----------------- --- INSTRUCTION: Indicate each department or service function. (see Instruction 01-3 General Structure of Accounting System: Uniform System Account) TOTAL EXPENSES = $28,319 $9,487 $5,036 $9,968 $38,295 $2,153 $40,011 $1,205 $10,271 $241,411 ------------------------------------------------------ ----------- ----------- ---------- ----------- ------- ---------- ----------- ANNUAL REPORT OF SCANA Services, Inc. For the Year Ended December 31, 2002 ------------------------------------------------------------------------------------------------------------------------------------ SCHEDULE XVII SCHEDULE OF EXPENSE DISTRIBUTION BY DEPARTMENT OR SERVICE FUNCTION ------------------------------------------------------------------------------------------------------------------------------------ ------------------------------------------------ ---------- ------------------------------------------------------------------------ DEPARTMENT OR SERVICE FUNCTION ------------------------------------------------------------------------ ------- ------------- -------------- ------------ ---------------- ----- DESCRIPTION OF ITEMS TOTAL MARKETING OPERATIONAL OVER- PRO- PUBLIC STRATEGIC (Dollars in Thousands) AMOUNT LEGAL & SALES SUPPORT HEAD CUREMENT AFFAIRS REGULATORY PLANNING - ------------------------------------------------ ---------- ------- ------------- -------------- ------------ ---------------- ----- ------------------------------------------------ ---------- ------- ------------- -------------- ------------ ---------------- ----- 350 SUPERINTENDENCE OPERATIONS $16 - - $16 - - - - - 351 SUPERINTENDENCE MAINT 9 - - 9 - - - - - 370 ADMINISTRATIVE AND GENERAL 3 - - 3 - - - - - 408 TAXES OTHER THAN INCOME TAXES 7,710 $1 $51 - $7,561 - $18 - $1 414 DEPRECIATION AND AMORTIZATION EXPENSE 4,824 - - - - - - - - 416 EXPENSES FROM MERCHANDISE 1,796 51 1,476 53 - - 35 $1 24 417.1 OTHER NONUTILITY EXPENSES 3,736 82 3,001 8 - - 63 - 5 426.1 DONATIONS 1,618 - 1 2 - - 1,499 - - 426.2 LIFE INSURANCE (2,961) - 1 - - - - - - 426.5 PENALTIES 6 - - - - - - - - 426.4 CIVIC, POLITIC AND RELATED ACCOUNTS 1,219 - - - - - 1,218 - - 426.5 OTHER DEDUCTIONS 3,904 282 749 27 - 21 - 2 16 430 INTEREST ON BEDT TO ASSOC CO 2,990 - - - - - - - - 431 OTHER INTEREST EXPENSE 555 - - - - - - - - 432 AFUDC (386) - - - - - - - - 500 OPERATION SUPERVISION AND ENGINEERING STEAM 4 - - - - - - - - 502 OPERATING STEAM POWER EXPENSES 1 - - 1 - - - - - 506 OPERATION MISC STEAM 876 2 - 745 - 2 - - - 510 MAINT SUPERVISION AND ENGINEERING 40 - - - - - - - 40 512 MAINT BOILER PLANT STEAM 7 - - 7 - - - - - 513 MAINT ELECTRIC PLANT STEAM 3 - - 3 - - - - - 514 MAINTENANCE MISC STEAM POWER EXPENSES 19 - - 19 - - - - - 517 OPERATION SUPERVISION AND ENGINEERING NUCLEAR 246 - - 179 - 20 - - - 519 OPERATION COOLANTS AND WATER 36 - - 35 - - - - - 520 OPERATION STEAM EXPENSES NUCLEAR 233 - - 178 - - - - - 524 OPERATION MISC NUCLEAR 2,549 - - 1,313 - 4 - - - 532 MAINT MISC NUCLEAR 194 - - 44 - - - - - 537 OPERATION EXPENSES HYDRO 26 - - 12 - - - - - 539 OPERATION MISC HYDRAULIC PWR GEN 86 - - 86 - - - - - 543 MAINT RESERVOIRS DAMS 1 - - 1 - - - - - 544 MAINT ELECTRIC PLANT HYDRO 142 - - 142 - - - - - 545 MAINT MISC HYDRO POWER 7 - - 7 - - - - - 546 OPERATION SUPERVISION AND ENGINEERING 9 - - 9 - - - - - 549 OPERATION MISC OTHER POWER GENERATION 25 - - 24 - - - - - 556 SYSTEM CONTROL AND LOAD 121 - - 75 - - - - - 560 OPERATION SUPERVISION AND ENGINEERING 5 - - - - - - - - 561 OPERATION LOAD DISPATCHING TRANSMISSION 29 - - 23 - - - - - 562 OPERATION STATION EXPENSES TRANSMISSION 85 - - - - - - - - 563 OPERATION OH LINE EXPENSES TRANSMISSION 1 - - - - - - - - 566 OPERATION MISC TRANSMISSION 364 - 1 350 - - - - - 567 OPER RENTS TRANS 186 - 186 - - - - - - 568 MAINT SUPERVISION AND ENGINEERING 8 - - 6 - - - - - 569 MAINT STRUCTURES TRANSMISSION 36 - - 36 - - - - - 570 MAINT STATION EQUIPMENT TRANSMISSION 161 - - 161 - - - - - 571 MAINT OVERHEAD LINES TRANSMISSION 2 - - 1 - - - - - 573 MAINT MISC TRANSMISSION 34 - - - - - - - - 580 DISTRIBUTION OPER SUPERVISION AND ENGINEERING 8 - - 8 - - - - - 581 DISTRIBUTION OPER LOAD DISPATCH 1 - - - - - - - - 582 DISTRIBUTION OPER STATION EXPENSES 100 - - 15 - - - - - 583 DISTRIBUTION OPER REMOVE AND RESET 1 - - 1 - - - - - 585 DISTRIBUTION OPER STREET LIGHT AND SIGNAL 9 - - 9 - - - - - 586 DISTRIBUTION OPER METER EXPENSES 12 - - 4 - - - - - 588 DISTRIBUTION OPER MISC DISTRIBUTION 1,087 - - 385 - - - - - 592 DISTRIBUTION MAINT OF STATION EQUIPMENT 55 - - 55 - - - - - 593 DISTRIBUTION MAINT OF OH LINES 204 - 4 39 - - - - - 594 DISTRIBUTION MAINT UNDERGROUND LINES 30 - - - - - - - - 596 DISTRIBUTION MAINT STREET LIGHT AND SIGNAL 17 - - 17 - - - - - 598 DISTRIBUTION MAINT MISC DISTRIBUTION PLANT 1 - - 1 - - - - - 597 DISTRIBUTION MAINT METERS 1 - - 1 - - - - - 717 OPERATION LIQUID PETROLEUM GAS 3 - - 3 - - - - - 735 ENVIRONMENTAL AMORTIZATION AND MISC 168 3 - - - - - - - 851 SYSTEM CONTROL AND LOAD DISPATCH 252 - - - - - - - - 870 SUPERVISION AND ENGINEERING NAT URAL GAS DISTRIBUTION 1 - - 1 - - - - - 874 MAINS AND SERVICE NATURAL GAS DISTRIBUTION 6 - (1) 1 - - - - - 878 METER AND HOUSE REGULATOR 8 - - 4 - - - - - 879 CUSTOMER INSTALLATION 1 - 1 1 - - - - - 880 OTHER EXPENSES NATURAL GAS 349 - - 342 - - - - - 893 MAINT METRS/HOUSE REGTR NG DIS 12 - - 12 - - - - - 901 SUPERVISION CUSTOMER ACCOUNTING 2,517 - 60 67 - - - - - 902 METER READING 1,021 - 1 91 - - - - - 903 CUSTOMER RECORDS AND COLLECTIONS 36,797 - 106 663 - - - - - 905 MISCELLANEOUS CUSTOMER ACCOUNTS 1,433 - 9 63 - 94 - - - 907 SUPERVISION CUSTOMER SERVICE 292 - 219 4 - 6 - - - 908 CUSTOMER ASSISTANCE 1,536 - 909 74 - - 1 - - 909 INFORMATIONAL AND INSTRUCTIONAL ADVERTISING 37 - 34 8 - - (5) - - 910 MISCELLANEOUS CUSTOMER SERVICE 270 - - 79 - - 4 - - 911 SUPERVISION SALES ACTIVITIES 699 - 698 - - - - - - 912 DEMONSTRATING AND SELLING 5,502 2 5,344 - - 3 - - - 913 ADVERTISING 105 - 86 - - - (2) - - 916 MISCELLANEOUS SALES 640 3 33 - - 23 - - 920 SALARIES AND WAGES 51,301 5,603 1,842 1,025 - 2,146 2,767 673 1,083 921 OFFICE SUPPLIES AND EXPENSES 46,834 1,975 387 7,820 - 325 2,396 170 371 923 OUTSIDE SERVICES EMPLOYED 22,449 9,833 14 85 - 53 190 43 47 925 INJURIES AND DAMAGES 2,419 2,419 - - - - - - - 926 EMPLOYEE PENSIONS AND BENEFITS 15,827 - - - 15,827 - - - - 928 REGULATORY COMMISSION EXPENSE 1,499 637 16 - - - - 664 32 930.1 GENERAL ADVERTISING EXPENSES 611 - 579 7 - - 6 - - 930.2 MISCELLANEOUS GENERAL EXPENSES 7,284 1,410 1,013 20 - 585 6 2 1,442 931 RENTS 6,520 651 405 531 - 28 594 124 233 935 MAINTENANCE OF GENERAL PLANT 2,917 1 - 524 - - - - - ------------------------------------------------------ ---------- ----- ---------- ---------- ---------- ---------- ---------- ------------------------------------------------------ ---------- ----- ---------- ---------- ------------ ---------------- --- INSTRUCTION: Indicate each department or service function. (see Instruction 01-3 General Structure of Accounting System: Uniform System Account) TOTAL EXPENSES = $241,411 $22,955 $17,225 $15,535 $23,388 $3,291 $9,299 $1,679 $3,294 --------------------------------------------------------------- ---------- -------- --------- -------------- ------------ ---------- ANNUAL REPORT OF SCANA Services, Inc. For the Year Ended December 31, 2002 ----------------------------------------------------------------------------------------------------------------------------------- DEPARTMENTAL ANALYSIS OF SALARIES ACCOUNT 920 --------------------------------------------- ------------------------------------------------------------------------------ ------ NAME OF DEPARTMENT DEPARTMENTAL SALARY EXPENSE NUMBER ---------------------------------------------------------------------------- INCLUDED IN AMOUNTS BILLED TO PERSONNEL ----------------------------------------------------- ------------ Indicate each department or service TOTAL PARENT OTHER NON END OF function. (Dollars in Thousands) AMOUNT COMPANY ASSOCIATES ASSOCIATES YEAR --------------------------------------------- --------------- ------------------ ------------------------------------ ------------- Customer Services $730 $- $730 $- 426 Employee Services 4,430 - 4,430 - 114 Environmental 781 - 781 - 24 Executive Services 3,722 - 3,722 - 26 Financial Services 23,129 - 23,129 - 193 Gas Supply 1,400 - 1,400 - 22 Information Services 250 - 250 - 432 Investor Relations 569 - 569 - 13 Land and Facilities Management 1,151 - 1,151 - 82 Legal 5,603 - 5,603 - 94 Marketing & Sales 1,842 - 1,842 - 96 Operational Support 1,025 - 1,025 - 14 Procurement 2,146 - 2,146 - 60 Public Affairs 2,767 - 2,767 - 41 Regulatory 673 - 673 - 16 Strategic Planning 1,083 - 1,083 - 18 --------- --------- --------------------------------- -------------------------- -------------- TOTAL $51,301 $- $51,301 $- 1,671 --------------------------------------------- --------- --------------------------------- -------------------------- --------------
ANNUAL REPORT OF SCANA Services, Inc. For the Year Ended December 31, 2002 -------------------------------------------------------------------------------- OUTSIDE SERVICES EMPLOYED ACCOUNT 923 -------------------------------------------------------------------------------- INSTRUCTIONS: Provide a breakdown by subaccount of outside services employed. If the aggregate amounts paid to any one payee and included within one subaccount is less than $25,000, only the aggregate number and amount of all such payments included within the subaccount need be shown. Provide a subtotal for each type of service. -------------------------------------------------------------------------------- RELATIONSHIP ---------------------- "A" = ASSOCIATE FROM WHOM PURCHASED ADDRESS "NA" = NON ASSOCIATE AMOUNT (in Thousands) -------------------------------------------------------------------------------- Accounting & Auditing Services: Deloitte & Touche NA 1,338 Ernst & Young NA 66 ------ 1,404 ------ ------ Banking Services and Maintenance: Bank of America NA 338 Branch Banking & Trust NA 84 J P Morgan Chase Bank NA 170 National Bank of SC NA 87 Selkirk Financial Technologies NA 74 The Bank of New York NA 71 Wachovia NA 384 ------ ------ 1,208 ------ ------ Payroll and Benefits Administration & Maintenance: ADP, Inc. NA 63 Towers Perrin NA 557 ------ 620 ------ ------ Construction Management & Oversight ------ ------ Armor Group NA 51 ------ Consulting: Beaver & Associates NA 44 Cambridge Energy Research Associates NA 43 Corporate Executive Board NA 51 Hewitt Associates LLC NA 298 McAlister Communications NA 55 Mercer Human Resource Consulting NA 235 PricewaterhouseCoopers NA 51 Rawle Mrudy Associates Inc NA 30 SC Pipeline Co. A 43 The Norton Group NA 84 Transchannel NA 64 Van Rickland Clary, CDP NA 52 ------ ------ 1,050 ------ ------ Employment Services: Adecco Employment Services NA 137 Melissa Hubbard NA 45 Mind Your Businesses NA 36 ------ ------ 218 ------ ------ Engineering Services: ------ ------ Withers & Ravenel NA 124 ------ Insurance Services: Key Risk Management Services, Inc. NA 50 South Carolina Second Injury Fund NA 592 South Carolina Workers' Comp NA 57 ---------- ---------- 699 ---------- ---------- Legal Services: A. H. Gibbes NA 126 Alala Mullen Holland & Cooper PA NA 83 Barnes Alford Stork & Johnson NA 36 Belton T. Zeigler NA 50 Cameron McKenna LLP NA 1,204 Carter Ledyard & Milburn NA 110 Crim & Bassler LLP NA 41 Ellzey & Brooks, LLC NA 95 Harris Beach LLP NA 36 Haynsworth Baldwin Johnson & Greaves NA 135 Haynsworth Sinkler Boyd, PA NA 274 Hobbs & Associates, Inc. NA 260 Hunton & Williams NA 40 Inglesby NA 39 J. A. Wright & Associates. Inc. NA 614 Joe Tanner & Associates, Inc NA 47 Jones Day Reavis, & Pogue NA 448 Kilpatrick Stockton LLP NA 280 King and Spaulding NA 545 LeBoeuf, Lamb, Greene & Macrae NA 85 McDermott, Will & Emery NA 440 McNair Law Firm NA 373 Moore and Van Allen NA 431 Navigant Consulting Inc NA 50 Nelson Mullins Riley & Scarborough NA 371 New Energy Associates, LLC NA 87 Nexsen Pruet Jacobs & Pollard NA 277 Ogletree, Deakins, Nash, Smoak & Stewart,PC NA 443 Patricia T Smith NA 241 Pennington & Lott LLP NA 55 Person & Craver LLP NA 27 Richardson, Plowden, Carpenter & Robinson, PA NA 33 Smith, Galloway, Lyndall & Fuchs, LLP NA 479 Stacey M Jenkins PA NA 143 Turner Padgett Graham & Laney NA 45 Willoughby & Hoefer PA NA 124 Winston & Strawn NA 49 ---------- ---------- 8,216 ---------- Rating Services: Fitch, Inc. NA 40 Moody's Investor NA 153 Standard & Poor NA 188 ---------- ---------- 381 ---------- Security Services: Coastal Burglar Alarm NA 35 Coastal International NA 5,953 MS Joint Venture NA 65 Nuclear Security Services Corp NA 27 Shred First LLC NA 28 ---------- ---------- 6,108 ---------- Training Services: ---------- ---------- Edge Training Systems NA 61 ---------- ---------- ---------- ---------- All Others less than $25,000 ( 465 Items) NA 2,309 ---------- ---------- ---------------------------------------------------- ------------------------ ---------- TOTAL $22,449 ---------------------------------------------------- --------------.---------- ANNUAL REPORT OF SCANA Services, Inc. For the Year Ended December 31, 2002 ------------------------------------------------------------------------- EMPLOYEE PENSIONS AND BENEFITS ACCOUNT 926 ------------------------------------------------------------------------- INSTRUCTIONS: Provide a listing of each pension plan and benefit program provided by the service company. Such listing should be limited to $25,000. ------------------------------------------------------------------------- DESCRIPTION AMOUNT (in Thousands) ---------------------------------------------- -------------------------- Pension Plan $1,442 Key Employee Retention Program (1) Group Insurance 9,734 Stock Purchase Plan 3,264 Disability 930 Education and Tuition Assistance 114 Recreational Clubs 130 Employee Assistance Program 27 Parking 103 Service Awards 44 Others 40 ---------------- TOTAL $15,827 ----------------------------------------------- ------------------------- ANNUAL REPORT OF SCANA Services, Inc. For the Year Ended December 31, 2002 -------------------------------------------------------------------------------- GENERAL ADVERTISING EXPENSES ACCOUNT 930.1 -------------------------------------------------------------------------------- INSTRUCTIONS: Provide a listing of the amount included in Account 930.1, "General Advertising Expenses", classifying the items according to the nature of the advertising and as defined in the account definition. If a particular class includes an amount in excess of $3,000 applicable to a single payee, show separately the name of the payee and the aggregate amount applicable thereto. -------------------------------------------------------------------------------- DESCRIPTION NAME OF PAYEE AMOUNT (in Thousands) ----------------- Advertising Company Retainers Chernoff/Silver $30 Other 2 ----- ----- 32 ----- ----- Brand Advertising McRae Communications, Inc. 38 Wallace State Printing Company 13 ----- ----- 51 ----- ----- Directory Memberships Atlantic Publication Group 3 Directory Assistance, Inc 6 ----- ----- 9 ----- ----- Event Sponsorship/Expo Marketing Clear Channel 4 Columbiana Center 5 Ocain Advertising 5 Home Builders Association of Greater Cola 11 Others - Net 7 ----- ----- 32 ----- ----- ----- ----- Job Advertisements TMP Worldwide 32 ----- ----- ----- ----- Media Campaign Chernoff/Silver 178 ----- ----- Minority Advertising Black Pages USA 38 Minority Business News 7 ----- ----- 45 ----- ----- Newspaper Advertising Chernoff/Silver 12 Wray Ward Laseter Advertising, LLC 15 Others - Net 2 ----- ----- 29 ----- ----- Print Media Advertising Augusta Magazine 4 Berry Network, Inc. 12 Capital City/Lake Murray Country 6 Chernoff/Silver 18 Crow International 15 Kiplingers Personal Finance 8 S.C. Homes & Gardens 16 Wray Ward Laseter Advertising, LLC 4 Others - Net 7 ----- ----- 90 ----- ----- ----- ----- Project Management Wray Ward Laseter Advertising, LLC 25 ----- ----- TV Advertising Chernoff/Silver 4 McRae Communications, Inc 11 WIS TV 23 ----- ----- 38 ---- ---- Weatherline Service Advertising Clear Channel 3 Weatherline Inc. 14 ----- ----- 17 ----- ----- ----- ----- Web Media Advertising Net - Others 5 ----- ----- ----- ----- Other Net - Others 28 ----- ----- ----------------------------------------------------------------------- ------ TOTAL $611 ----------------------------------------------------------------------- ------ ANNUAL REPORT OF SCANA Services, Inc. For the Year Ended December 31, 2002 ----------------------------------------------------------------------------- MISCELLANEOUS GENERAL EXPENSES ACCOUNT 930.2 ----------------------------------------------------------------------------- INSTRUCTIONS: Provide a listing of the amount included in Account 930.2, "Miscellaneous General Expenses", classifying such expenses according to their nature. Payments and expenses permitted by Section 321 (b) (2) of the Federal Election Campaign Act, as amended by Public Law 94-283 in 1976 (2 U.S.C. Section 441 (b) (2)) shall be separately classified. ---------------------------------------------------------------------------- DESCRIPTION AMOUNT (in Thousands) ----------------------------------------------------- ---------------------- Industry association dues $2,508 Board of Directors expenses 889 Computer resource usage expenses 1,247 Travel expenses (including meals) 149 Postage 308 Computer Hardware/Software Maintenance 446 Office of Corporate Secretary 237 Telephone Resource Usage 60 Shareholders expenses 266 Land/Building/Equipment Rentals 184 Miscellaneous Employee Expenses 21 Marketing research/Information 884 Liability insurance 11 Miscellaneous supplies 36 Other miscellaneous expenses 38 ------------------------------------------------------------ ------------ TOTAL $7,284 ------------------------------------------------------------ ------------ ANNUAL REPORT OF SCANA Services, Inc. For the Year Ended December 31, 2002 Note: Rent amounts are charged to Account 931 and other expense accounts, as appropriate per the Federal Energy Regulatory Commission Uniform System of Accounts. -------------------------------------------------------------------------------- RENTS ACCOUNT 931 ------------------------------------------------------------------------------- INSTRUCTIONS: Provide a listing of the amount included in Account 931, "Rents", classifying such expenses by major groupings of property, as defined in the account definition of the Uniform System of Accounts. ------------------------------------------------------------------------------- TYPE OF PROPERTY AMOUNT (in Thousands) -------------------------------------------------------------------- Office space $5,102 Use of Subsidiary ownedAssets 243 Computer equipment 1,138 Other equipment rent 37 ------------ TOTAL $6,520 ------------------------------------ ------------ ANNUAL REPORT OF SCANA Services, Inc. For the Year Ended December 31, 2002 ------------------------------------------------------------------------- TAXES OTHER THAN INCOME TAXES ACCOUNT 408 ------------------------------------------------------------------------- INSTRUCTIONS: Provide an analysis of Account 408, "Taxes Other Than Income Taxes". Separate the analysis into two groups: (1) other than U. S. Government taxes, and (2) U. S. Government taxes. Specify each of the various kinds of taxes and show the amounts thereof. Provide a subtotal for each class of tax. ------------------------------------------------------------------------- KIND OF TAX AMOUNT (in Thousands) ----------------------------------------------- ------------------------- Other than U. S. Government Taxes: Business License Fees/Prop Tax $1,302 State Income Taxes Withholdings 1,001 State Unemployment Tax 86 -------- -------- 2,389 -------- -------- U. S. Government Taxes: Social Security and Medicare Tax 2,785 Federal Income Tax Withholdings 2,513 Federal Unemployment Tax 23 -------- -------- 5,321 -------- -------- -------------- TOTAL $7,710 ----------------------------------------------------- -------------- ANNUAL REPORT OF SCANA Services, Inc. For the Year Ended December 31, 2002 -------------------------------------------------------------------------------- DONATIONS ACCOUNT 426.1 -------------------------------------------------------------------------------- INSTRUCTIONS: Provide a listing of the amount included in Account 426.1, "Donations", classifying such expenses by its purpose. The aggregate number and amount of all items of less than $3,000 may be shown in lieu of details. -------------------------------------------------------------------------------- NAME OF RECIPIENT PURPOSE OF DONATION AMOUNT (in Thousands) ------------------------------------- --------------------------------- -------- Aiken Center for the Arts Corporate Contribution 5 Aiken/Barnwell/Lexington CAC, Inc Corporate Contribution 18 Alzheimer's Association Corporate Contribution 5 American Cancer Society Corporate Contribution 3 American Heart Association Corporate Contribution 12 Beaufort County United Way Corporate Contribution 16 Beaufort Memorial Hospital Foundation Corporate Contribution 13 Benedict College Corporate Contribution 8 Boy Scouts of America Corporate Contribution 8 Boys & Girls Club of the Midlands, Inc. Corporate Contribution 3 Brevard Music Center Corporate Contribution 5 Brookgreen Gardens Corporate Contribution 5 Carolinas Minority Supplier Development Councils, Inc. Corporate Contribution 3 Celebrate Freedom Foundation Corporate Contribution 8 Charleston County Corporate Contribution 18 Charleston Metro Chamber of Commerce Corporate Contribution 8 Charleston Stage Company, Inc. Corporate Contribution 7 Children's Chance Corporate Contribution 3 Christ Central Ministry, Inc. Corporate Contribution 3 City of Charleston Corporate Contribution 18 City of Columbia Corporate Contribution 11 City of North Charleston Corporate Contribution 5 Clemson University Foundation Corporate Contribution 106 Cold War Submararine Memorial Foundation Corporate Contribution 5 Columbia Chamber of Commerce Corporate Contribution 11 Columbia City Ballet Corporate Contribution 10 Columbia Jewish Community Center Corporate Contribution 10 Columbia Urban League, Inc. Corporate Contribution 18 Communities in Schools SC Inc. Corporate Contribution 8 Cultural Council of Richland & Lexington Counties Corporate Contribution 25 East Coop Family YMCA Corporate Contribution 10 Edventure Inc. Corporate Contribution 20 Erskine College Corporate Contribution 10 First Steps Corporate Contribution 100 Francis Marion University Corporate Contribution 10 Friends of the Hunley Inc Corporate Contribution 33 Friends of the Sumter County Library Corporate Contribution 8 Geiger Bros Corporate Contribution 5 Georgetown County United Way Corporate Contribution 3 Greater Beaufort Chamber of Commerce Corporate Contribution 4 Greater Charleston Naval Base Memorial Corporate Contribution 6 Greater Summerville-Dorchester Counties Chamber of Commerce Corporate Contribution 8 Hartsville Family YMCA-Darlington Ext Corporate Contribution 5 Healthy Learners Corporate Contribution 5 IEEE Corporate Contribution 54 Independent Colleges and Universities Corporate Contribution 16 Junior Achievement of Central SC Corporate Contribution 21 Juvenile Diabetes Foundation Corporate Contribution 3 March of Dimes Corporate Contribution 5 Morris College Corporate Contribution 3 NAACP Corporate Contribution 4 Newberry College Corporate Contribution 3 Orangeburg Calhoun Tech Foundation Corporate Contribution 6 Palmetto Health Alliance Corporate Contribution 25 Part-Time Players Corporate Contribution 25 Ronald McDonald Corporate Contribution 5 SC Attorney General's Father of the Year Award Corporate Contribution 4 Sand River Woman's Club Corporate Contribution 4 SC State University Corporate Contribution 7 SCE&G Employee Good Neighbor Fund Corporate Contribution 20 South Carolina Philharmonic Corporate Contribution 10 South Carolina Chamber of Commerce Corporate Contribution 93 South Carolina Aquarium Corporate Contribution 21 South Carolina Stars, Inc. Corporate Contribution 5 South Carolina Law Enforcement Division Corporate Contribution 5 South Carolina Waterfowl Association Corporate Contribution 10 Special Olympics Corporate Contribution 5 Spoleto Festival USA Corporate Contribution 15 Sumter County Museum Corporate Contribution 5 The Community Foundation Corporate Contribution 10 The Nurturing Center Inc. Corporate Contribution 5 Town of Johnston Corporate Contribution 5 Town of Kingstree Corporate Contribution 20 Town of St. Matthews Corporate Contribution 3 Trident United Way Corporate Contribution 79 United Way Corporate Contribution 134 University of South Carolina Business Partnership Association Corporate Contribution 135 USC Educational Foundation Corporate Contribution 15 VWF Post 6740 Corporate Contribution 10 Others less than $3,000 (353 items) Corporate Contribution 223 ------------------------------------------- --------------------- -------------- TOTAL $1,618 ---------------------------------------------------------------------- --------- ANNUAL REPORT OF SCANA Services, Inc. For the Year Ended December 31, 2002 -------------------------------------------------------------------------------- OTHER DEDUCTIONS ACCOUNT 426.5 -------------------------------------------------------------------------------- INSTRUCTIONS: Provide a listing of the amount included in Account 426.5, "Other Deductions", classifying such expenses according to their nature. -------------------------------------------------------------------------------- DESCRIPTION NAME OF PAYEE AMOUNT (in Thousands) -------------------------------------------------------------------------------- Miscellaneous non-operating labor and benefits $1,453 Dues and memberships 114 Event Sponsorship 15 Facility maintenance 48 Utilities 83 Supplies 52 Leases & Rentals 184 Keyman Retention 838 Vehicle/Aircraft expenses 61 Travel and meal expenses 36 Legal 139 Printing 15 Computer resources 120 Temporary Employee Labor 40 Consulting 47 Contributions and Donations 42 Other 617 -------------------------------------------------------------- ------------ TOTAL $3,904 -------------------------------------------------------------- ------------ ANNUAL REPORT OF SCANA Services, Inc. For the Year Ended December 31, 2002 ------------------------------------------------------------------------------- SCHEDULE XVIII NOTES TO STATEMENT OF INCOME ------------------------------------------------------------------------------- INSTRUCTIONS: The space below is provided for important notes regarding the statement of income or any account thereof. Furnish particulars as to any significant increases and services rendered or expenses incurred during the year. Notes relating to financial statements shown elsewhere in this report may be indicated here by reference. ------------------------------------------------------------------------------- See Notes to Financial Statements on page 21. --------------------------------------------------------- --------------------- ANNUAL REPORT OF SCANA Services, Inc. Organization Chart President and Chief Operating Officer Senior Vice President and Chief Financial Officer Senior Vice President, General Counsel and Assistant Secretary Senior Vice President, Natural Gas Asset Management and Procurement Executive for South Carolina Retail Utility Operations Executive for Pipeline Operations and Communications Operations Senior Vice President for Human Resources Officer for Corporate Compliance and Internal Auditing Senior Vice President for Governmental Affairs and Economic Development Senior Vice President for Nuclear Operations Senior Vice President for Pipeline Operations Vice President for Finance Secretary Treasurer Controller Risk Management Officer ANNUAL REPORT OF SCANA Services, Inc. Methods of Allocation Form of Service Agreement This Service Agreement (this "Agreement") is entered into as of the ____ day of __________, by and between [insert name of subsidiary], a __________ corporation (the "Company") and SCANA Services, Inc., a South Carolina corporation ("SCANA Services"). WHEREAS, SCANA Services is a direct or indirect wholly owned subsidiary of SCANA Corporation; WHEREAS, SCANA Services has been formed for the purpose of providing administrative, management and other services to subsidiaries of SCANA Corporation; and WHEREAS, the Company believes that it is in the interest of the Company to provide for an arrangement whereby the Company may, from time to time and at the option of the Company, agree to purchase such administrative, management and other services from SCANA Services; NOW, THEREFORE, in consideration of the mutual covenants contained herein and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as follows: I. SERVICES. SCANA Services supplies, or will supply, certain administrative, management or other services to Company similar to those supplied to other subsidiaries of SCANA Corporation. Such services are and will be provided to the Company only at the request of the Company. Exhibit I hereto lists and describes all of the services that are available from SCANA Services. II. PERSONNEL. SCANA Services provides and will provide such services by utilizing the services of their executives, accountants, financial advisers, technical advisers, attorneys and other persons with the necessary qualifications. If necessary, SCANA Services, after consultation with the Company, may also arrange for the services of nonaffiliated experts, consultants and attorneys in connection with the performance of any of the services supplied under this Agreement. III. COMPENSATION AND ALLOCATION. As and to the extent required by law, SCANA Services provides and will provide such services at cost. Exhibit I hereof contains rules for determining and allocating such costs. IV. [TO BE INCLUDED IN CONTRACT WITH PSNC ONLY] NORTH CAROLINA PROVISIONS. (A) PSNC hereby agrees that: (1) it will not incur a charge hereunder except in accordance with North Carolina law and the rules, regulations and orders of the North Carolina Utilities Commission (the "NCUC") promulgated thereunder; (2) it will not seek to reflect in rates any cost incurred hereunder to the extent disallowed by the NCUC; and (3) it will not incur a charge hereunder except for charges determined in accordance with Rules 90 and 91 of the Act. (B) PSNC and SCANA Services acknowledge that as a result of the agreements contained in Sections IV(A)(1) and (A)(3), PSNC will not accept services from SCANA Services if the cost to be charged for such service, as calculated pursuant to Rules 90 and 91 of the Act, differs from the amount of charges PSNC is permitted to incur under North Carolina law and the rules, regulations and orders of the NCUC promulgated thereunder. V. TERMINATION AND MODIFICATION. The Company may terminate this Agreement by providing 60 days written notice of such termination to SCANA Services. SCANA Services may terminate this Agreement by providing 60 days written notice of such termination to the Company. This Agreement is subject to termination or modification at any time to the extent its performance may conflict with the provisions of the Public Utility Holding Company Act of 1935, as amended, or with any rule, regulation or order of the Securities and Exchange Commission adopted before or after the making of this Agreement. This Agreement shall be subject to the approval of any state commission or other state regulatory body whose approval is, by the laws of said state, a legal prerequisite to the execution and delivery or the performance of this Agreement [For contract with PSNC only: and any subsequent modifications thereof]. VI. SERVICE REQUESTS. The Company and SCANA Services will prepare a Service Request on or before _____________ of each year listing services to be provided to the Company by SCANA Services and any special arrangements related to the provision of such services for the coming year, based on services provided during the past year. The Company and SCANA Services may supplement the Service Request during the year to reflect any additional or special services that the Company wishes to obtain from SCANA Services, and the arrangements relating thereto. VII. BILLING AND PAYMENT. Unless otherwise set forth in a Service Request, payment for services provided by SCANA Services shall be by making remittance of the amount billed or by making appropriate accounting entries on the books of the Company and SCANA Services. Billing will be made on a monthly basis, with the bill to be rendered by the 25th of the month, and remittance or accounting entries completed within 30 days of billing. VIII. NOTICE. Where written notice is required by this Agreement, all notices, consents, certificates, or other communications hereunder shall be in writing and shall be deemed given when mailed by United States registered or certified mail, postage prepaid, return receipt requested, addressed as follows: 1. To the Company: ==================== ==================== 2. To SCANA Services: ==================== ==================== IX. GOVERNING LAW. This Agreement shall be governed by and construed in accordance with the laws of the State of South Carolina, without regard to their conflict of laws provisions. X. MODIFICATION. No amendment, change or modification of this Agreement shall be valid, unless made in writing and signed by all parties hereto. XI. ENTIRE AGREEMENT. This Agreement, together with its exhibits, constitutes the entire understanding and agreement of the parties with respect to its subject matter, and effective upon the execution of this Agreement by the respective parties hereof and thereto, any and all prior agreements, understandings or representations with respect to this subject matter are hereby terminated and canceled in their entirety and are of no further force or effect. XII. WAIVER. No waiver by any party hereto of a breach of any provision of this Agreement shall constitute a waiver of any preceding or succeeding breach of the same or any other provision hereof. XIII. ASSIGNMENT. This Agreement shall inure to the benefit and shall be binding upon the parties and their respective successors and assigns. No assignment of this Agreement or any party's rights, interests or obligations hereunder may be made without the other party's consent, which shall not be unreasonably withheld, delayed or conditioned. XIV. SEVERABILITY. If any provision or provisions of this Agreement shall be held by a court of competent jurisdiction to be invalid, illegal, or unenforceable, the validity, legality, and enforceability of the remaining provisions shall in no way be affected or impaired thereby. IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed as of this ________ day of _________. SCANA SERVICES, INC. By: _____________________________ Name: Title: [Subsidiary] By: Name: Title: EXHIBIT I Description of Services, Cost Accumulation, Assignment and Allocation Methodologies for SCANA Service Company This document sets forth the methodologies used to accumulate the costs of services performed by SCANA Services, Inc. ("SCANA Services") and to assign or allocate such costs to other subsidiaries and business units within SCANA Corporation ("Client Entities"). Cost of Services Performed SCANA Services maintains an accounting system that enables costs to be identified by Cost Center, Account Number or Project, Activity, Resource, and Event ("Account Codes"). The primary inputs to the accounting system are time records of hours worked by SCANA Services employees, accounts payable transactions and journal entries. Charges for labor are made at the employees' effective hourly rate, including the cost of pensions, other employee benefits and payroll taxes. To the extent practicable, costs of services are directly assigned to the applicable Account Codes. The full cost of providing services also includes certain indirect costs, e.g., departmental overheads, administrative and general costs, and taxes. Indirect costs are associated with the services performed in proportion to the directly assigned costs of the services or other relevant cost allocators. Cost Assignment and Allocation SCANA Services costs will be directly assigned, distributed or allocated to Client Entities in the manner prescribed below. 1. Costs accumulated in Account Codes for services specifically performed for a single Client Entity will be directly assigned or charged to such Client Entity. 2. Costs accumulated in Account Codes for services specifically performed for two or more Client Entities will be distributed among and charged to such Client Entities using methods determined on a case-by-case basis consistent with the nature of the work performed and based on one of the allocation methods described below. 3. Costs accumulated in Account Codes for services of a general nature which are applicable to all Client Entities or to a class or classes of Client Entities will be allocated among and charged to such Client Entities by application of one or more of the allocation methods described below. Allocation Methods The following methods will be applied, as indicated in the Description of Services section that follows, to allocate costs for services of a general nature. 1. Information Systems Chargeback Rates - Rates for services, including but not limited to Software, Consulting, Mainframe, Midtier and Network Connectivity Services, are based on the costs of labor, materials and Information Services overheads related to the provision of each service. Such rates are applied based on the specific equipment employed and the measured usage of services by Client Entities. These rates will be determined annually based on actual experience and may be adjusted for any known and reasonably quantifiable events, or at such time as may be required due to significant changes. 2. Margin Revenue Ratio - "Margin" is equal to the excess of sales revenues over the applicable cost of sales, i.e., cost of fuel for generation and gas for resale. The numerator is equal to margin revenues for a specific Client Entity and the denominator is equal to the combined margin revenues of all the applicable Client Entities. This ratio will be evaluated annually based on actual results of operations for the previous calendar year and may be adjusted for any known and reasonably quantifiable events, or at such time, based on results of operations for a subsequent twelve-month period, as may be required due to significant changes. 3. Number of Customers Ratio - A ratio based on the number of retail electric and/or gas customers. This ratio will be determined annually based on the actual number of customers at the end of the previous calendar year and may be adjusted for any known and reasonably quantifiable events, or at such time as may be required due to significant changes. 4. Number of Employees Ratio - A ratio based on the number of employees benefiting from the performance of a service. This ratio will be determined annually based on actual counts of applicable employees at the end of the previous calendar year and may be adjusted for any known and reasonably quantifiable events, or at such time as may be required due to significant changes. 5. Three-Factor Formula - This formula will be determined annually based on the average of gross property (original cost of plant in service, excluding depreciation), payroll charges (salaries and wages, including overtime, shift premium and holiday pay, but not including pension, benefit and company-paid payroll taxes) and gross revenues during the previous calendar year and may be adjusted for any known and reasonably quantifiable events, or at such time as may be required due to significant changes. 6. Modified Three-Factor Method - a ratio for the allocation of non-directly assigned corporate governance costs. The Modified Three-Factor Method provides for an allocation of cost to the parent company; the Three-Factor Method does not. The formula will be determined annually based on the average of gross property (original cost of plant in service, excluding depreciation), payroll charges (salaries and wages, including overtime, shift premium and holiday pay, but not including pension, benefit and company paid payroll taxes) and gross revenues during the previous calendar year. For the purpose of the Modified Three-Factor Method, the dividends resulting from operations of the subsidiaries are used as a proxy for revenues for the parent company. 7. Telecommunications Chargeback Rates - Rates for use of telecommunications services other than those encompassed by Information Systems Chargeback Rates are based on the costs of labor, materials, outside services and Telecommunications overheads. Such rates are applied based on the specific equipment employment and the measured usage of services by Client Entities. These rates will be determined annually based on actual experience and may be adjusted for any known and reasonably quantifiable events, or at such time as may be required due to significant changes. 8. Gas Sales Ratio - A ratio based on the actual number of dekatherms of natural gas sold by the applicable gas distribution or marketing operations. This ratio will be determined annually based on actual results of operations for the previous calendar year and may be adjusted for any known and reasonably quantifiable events, or at such time, based on results of operations for a subsequent twelve-month period, as may be required due to significant changes. Description of Services A description of each of the services performed by SCANA Services, which may be modified from time to time, is presented below. As discussed above, where identifiable, costs will be directly assigned or distributed to Client Entities. For costs accumulated in Account Codes which are for services of a general nature that cannot be directly assigned or distributed, the method or methods of allocation are also set forth. Substitution or changes may be made in the methods of allocation hereinafter specified, as may be appropriate, and will be provided to state regulatory agencies and to each affected Client Entity. 1. Information Systems Services - Provides electronic data processing services. Costs of a general nature are allocated using the Information Systems Chargeback Rates. 2. Customer Services - Provides billing, mailing, remittance processing, call center and customer communication services for electric and gas customers. Costs of a general nature are allocated using the Margin Revenue Ratio. 3. Marketing and Sales - Establishing strategies, provides oversight for marketing, sales and branding of utility and related services and conducts marketing and sales programs. Costs of a general nature are allocated using the Number of Customers Ratio. 4. Employee Services - Includes Human Resources which establishes and administers policies and oversees compliance with regulations in the areas of employment, compensation and benefits, processes payroll and administers corporate training. Also includes employee communications, facilities management and mail services. Costs of a general nature are allocated using the Number of Employees Ratio or the Modified Three-Factor Method as appropriate. 5. Corporate Compliance - Oversees compliance with all laws, regulations and policies applicable to all of SCANA Corporation's businesses and directs compliance training. Costs of general nature are allocated using the Modified Three-Factor Method. 6. Purchasing - Provides procurement services. Costs of a general nature are allocated using the Three-Factor Formula. 7. Financial Services - Provides treasury, accounting, tax, financial planning, rate and auditing services. Costs of a general nature are allocated using the Three-Factor Formula or the Modified Three-Factor Method as appropriate. 8. Risk Management - Provides insurance, claims, security, environmental and safety services. Costs of a general nature are allocated using the Three-Factor Formula or the Modified Three-Factor Method as appropriate. 9. Public Affairs - Maintains relationships with government policy makers, conducts lobbying activities and provides community relations functions. Costs of a general nature are allocated using the Three-Factor Formula or the Modified Three-Factor Method as appropriate. 10. Legal Services - Provides various legal services and general legal oversight; handles claims. Costs of a general nature are allocated using the Modified Three-Factor Formula. 11. Investor Relations - Maintains relationships with the financial community and provides shareholder services. Costs of a general nature are allocated using the Modified Three-Factor Formula. 12. Telecommunications - Provides telecommunications services, primarily the use of telephone equipment. Costs are allocated using the Telecommunications Chargeback Rates. 13. Gas Supply and Capacity Management - Provides gas supply and capacity management services. Costs of a general nature are allocated using the Gas Sales Ratio. 14. Strategic Planning - Develops corporate strategies and business plans. Costs of a general nature are allocated using the Modified Three-Factor Formula. 15. Executive - Provides executive and general administrative services. Costs of a general nature are allocated using the Modified Three-Factor Formula. EXHIBIT II FORM OF INITIAL SERVICE REQUEST The undersigned requests all of the services listed in Exhibit I from SCANA Service Company, except for _______________________________________. The services requested hereunder shall commence on _____________ and be provided through ----------------. [Subsidiary] By: ______________________________ Name: Title: EXHIBIT C-2 SCANA Service Company Policies and Procedures SCANA Service Company ("SCANA Service") will provide administrative, management and other services to the subsidiaries and business units within SCANA Corporation ("Client Entities") in accordance with the terms of Service Agreements. SCANA Service will provide the necessary accounting and procedural infrastructure to support the administration of the Service Agreements in accordance with the rules and regulations of the Securities and Exchange Commission ("SEC") as promulgated in the Public Utility Holding Company Act of 1935 (the "1935 Act"). Service Requests and Agreements SCANA Service and each Client Entity will enter into a Service Agreement that will set forth, in general terms, the services to be performed by each organization in SCANA Service directly for or on behalf of each Client Entity. Pursuant to the Service Agreement, SCANA Service and each Client Entity will prepare Service Request forms designed to provide guidance as to the service expectations of the parties thereto. The Service Request forms will be reviewed annually, or more often if necessary. The Service Agreements will be approved by authorized representatives of SCANA Service and the management of each Client Entity. Service Requests will typically contain the following information: 1. Type and Scope of Services 2. Any Cost Parameters 3. Payment Terms 4. Applicable Contingencies Accounting System SCANA Service will maintain an accounting system that provides the ability to assign costs to the category of service to which they relate. The system also enables the costs of services to be charged directly to the Client Entity for which they were performed or, when appropriate, accumulated in such a manner that they can be distributed or allocated to two or more Client Entities using an approved methodology. The system will also generate all necessary Client Entity billing information. The system is based on the use of codes to assign charges to the applicable Cost Center, Account Number or Project, Activity, Resource, and Event ("Account Codes"). The Account Numbers conform to the System of Accounts for Mutual Service Companies prescribed by the 1935 Act, as modified to include additional account numbers from the Federal Energy Regulatory Commission's Uniform System of Accounts to provide for the accumulation of costs of certain utility operating activities. The Account Codes facilitate the tracking of the cost of each service by its component costs, such as labor, materials and outside services, and provide the ability to break the costs of services down by amounts directly charged to specific Client Entities and amounts allocated. Labor and labor-related costs will likely be the most significant costs that the SCANA Service incurs. Accordingly, SCANA Service will maintain a time-entry subsystem that enables SCANA Service employees to accurately assign hours worked to the appropriate Account Codes. All SCANA Service employees will prepare standard timesheets or similar records that indicate the purpose of each hour worked. The employee's supervisor will approve timesheets. Information from the timesheets will be entered into the time-entry subsystem no later than the last pay period to which it relates. Charges for labor will be made at each employee's effective hourly rate and will include the cost of pensions, other employee benefits and payroll taxes. An initial training session for employees will occur in the beginning of March and will be conducted by accounting professionals to ensure understanding of the new coding procedures. All employees (both from SCANA Service and Client Entities) who code time and expenses will be included in this training. Ongoing support and follow-up will be provided through the same accounting professionals conducting the initial training. Moreover, additional training will be provided during the May time frame to ensure understanding of coding impact upon the system's financial statements as well as to provide instruction regarding the proper analysis of charges. All other accounting subsystems, including accounts payable processing, will be designed to support the use of the necessary Account Codes. In all cases, the SCANA Service will retain the applicable underlying source documents that indicate the nature and purpose of the costs incurred. To the extent practicable, SCANA Service employees will assign costs directly to the Account Codes associated with the services rendered. However, the full cost of providing services also includes certain indirect costs, e.g., departmental overheads, administrative and general costs, and taxes, which cannot be associated with specific services. Indirect costs will be associated with the services performed in proportion to the directly assigned costs of the services or other relevant cost allocators. SCANA Service costs will be directly charged, distributed or allocated to Client Entities in the manner prescribed below. 1. Costs accumulated in Account Codes for services specifically performed for a single Client Entity will be directly charged to such Client Entity. 2. Costs accumulated in Account Codes for services specifically performed for two or more Client Entities will be distributed to such Client Entities using methods determined on a case-by-case basis consistent with the nature of the work performed and based on one of the approved allocation methods. 3. Costs accumulated in Account Codes for services of a general nature which are applicable to all Client Entities or to a class or classes of Client Entities will be allocated to such Client Entities by application of one or more approved allocation methods. Billing Monthly, SCANA Service will prepare and submit a bill to each Client Entity for services rendered. At a minimum, the bill will itemize the cost of each service charged to the Client Entity. The bill will be rendered by the 25th of the following month with payment due 30 days thereafter. The management of each Client Entity is responsible for reviewing the bill from SCANA Service to determine the accuracy and appropriateness of the charges. The accounting system contains the detailed transactions supporting the services billed. Using the system, SCANA Service will assist the Client Entities, as necessary, with the review and validation of charges. Any adjustments required will be made in the subsequent month. SCANA Service will put in place processes and applicable systems designed to provide information to Client Entities regarding services provided and related costs. The information should enable the Client Entities to determine if they have been billed consistent with the terms of the Service Agreements. Accounting Department Responsibilities The SCANA Service Accounting Department will be responsible for administering, monitoring and maintaining the processes by which SCANA Service costs are accumulated and billed to client entities. In connection with this responsibility, the Accounting Department will: 1. Coordinate the preparation of Service Requests 2. Control the establishment and use of SCANA Service Account Codes 3. Review and evaluate the reasonableness of monthly bills to each Client Entity 4. Assist Client Entities with the review and validation of charges The Accounting Department will update all allocations used by the SCANA Service annually, or more often as conditions warrant, and maintain all documentation supporting the calculations. The Accounting Department will ensure the allocation methods are appropriate for the type of cost incurred, have been approved by the SEC and are consistent with applicable orders of state utility commissions. Dispute Resolution In the event disputes arise between the SCANA Service and the Client Entity over amounts billed, the Accounting Department and representatives of the Client Entity will attempt to resolve the issues. If necessary, the Chief Financial Officer will mediate. Unresolved disputes will be referred to Senior Management for final disposition. Internal Review The Audit Services Department will conduct periodic audits of the SCANA Service administration and accounting processes. The audits will include examinations of Service Agreements, accounting systems, source documents, allocation methods and billings to determine if services are authorized and properly accounted for. In addition, Service Request and Agreement policies, operating procedures and controls will be evaluated annually. Evaluation and Measurement In order to encourage the efficient and cost competitive provision of services, SCANA Service will establish appropriate benchmarking measures and a customer review process. The customer review process will allow for input from the Client Entities as to the volume and value of the products and services provided by SCANA Service. This review will be part of the annual budget development process and the completion of the Service Requests and Agreements. ANNUAL REPORT OF SCANA Services, Inc. Annual Statement of Compensation for Use of Capital Billed NA ANNUAL REPORT OF SCANA Services, Inc. Signature Clause Pursuant to the requirements of the Public Utility Holding Company Act of 1935 and the rules and regulations of the Securities and Exchange Commission issued thereunder, the undersigned company has duly caused this report to be signed on its behalf by the undersigned officer thereunto duly authorized. SCANA Services, Inc. (Name of Reporting Company) By: s/James E. Swan, IV -------------------------------------- (Signature of Signing Officer) Controller (Printed Name and Title of Signing Officer) Date: April 28, 2003 ------------------------------------------------