x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Commission | Registrant, State of Incorporation, | I.R.S. Employer | ||
File Number | Address and Telephone Number | Identification No. | ||
1-8809 | SCANA Corporation (a South Carolina corporation) | 57-0784499 | ||
1-3375 | South Carolina Electric & Gas Company (a South Carolina corporation) | 57-0248695 | ||
100 SCANA Parkway, Cayce, South Carolina 29033 | ||||
(803) 217-9000 |
SCANA Corporation | Large accelerated filer x | Accelerated filer o | Non-accelerated filer o |
Smaller reporting company o | |||
South Carolina Electric & Gas Company | Large accelerated filer o | Accelerated filer o | Non-accelerated filer x |
Smaller reporting company o |
Description of | Shares Outstanding | |
Registrant | Common Stock | at October 31, 2015 |
SCANA Corporation | Without Par Value | 142,916,917 |
South Carolina Electric & Gas Company | Without Par Value | 40,296,147 (a) |
Page | |||
(1) | the information is of a preliminary nature and may be subject to further and/or continuing review and adjustment; |
(2) | legislative and regulatory actions, particularly changes in rate regulation, regulations governing electric grid reliability and |
(3) | current and future litigation; |
(4) | changes in the economy, especially in areas served by subsidiaries of SCANA; |
(5) | the impact of competition from other energy suppliers, including competition from alternate fuels in industrial markets; |
(6) | the impact of conservation and demand side management efforts and/or technological advances on customer usage; |
(7) | the loss of sales to distributed generation, such as solar photovoltaic systems; |
(8) | growth opportunities for SCANA’s regulated and diversified subsidiaries; |
(10) | the effects of weather, especially in areas where the generation and transmission facilities of SCANA and its |
(11) | changes in SCANA’s or its subsidiaries’ accounting rules and accounting policies; |
(13) | the results of efforts to license, site, construct and finance facilities for electric generation and transmission, including nuclear generating facilities, and the results of efforts to operate its electric and gas systems and assets in accordance with acceptable performance standards; |
(14) | maintaining creditworthy joint owners for SCE&G’s new nuclear generation project; |
(15) | the ability of suppliers, both domestic and international, to timely provide the labor, secure processes, components, |
(16) | the results of efforts to ensure the physical and cyber security of key assets and processes; |
(17) | the availability of fuels such as coal, natural gas and enriched uranium used to produce electricity; the availability of |
(18) | the availability of skilled and experienced human resources to properly manage, operate, and grow the Company’s |
(19) | labor disputes; |
(20) | performance of SCANA’s pension plan assets; |
(21) | changes in taxes and tax credits, including production tax credits for new nuclear units; |
(22) | inflation or deflation; |
(23) | compliance with regulations; |
(24) | natural disasters and man-made mishaps that directly affect our operations or the regulations governing them; and |
(25) | the other risks and uncertainties described from time to time in the reports filed by SCANA or SCE&G with the SEC. |
TERM | MEANING |
AFC | Allowance for Funds Used During Construction |
ANI | American Nuclear Insurers |
AOCI | Accumulated Other Comprehensive Income |
ARO | Asset Retirement Obligation |
BLRA | Base Load Review Act |
CAA | Clean Air Act, as amended |
CAIR | Clean Air Interstate Rule |
CB&I | Chicago Bridge & Iron Company N.V. |
CCR | Coal Combustion Residuals |
CEO | Chief Executive Officer |
CFO | Chief Financial Officer |
CERCLA | Comprehensive Environmental Response, Compensation and Liability Act |
CGT | Carolina Gas Transmission Corporation |
COL | Combined Construction and Operating License |
Company | SCANA, together with its consolidated subsidiaries |
Consolidated SCE&G | SCE&G and its consolidated affiliates |
Consortium | A consortium consisting of WEC and Stone & Webster |
Court of Appeals | United States Court of Appeals for the District of Columbia |
CSAPR | Cross-State Air Pollution Rule |
CUT | Customer Usage Tracker |
CWA | Clean Water Act |
DER | Distributed Energy Resource |
DHEC | South Carolina Department of Health and Environmental Control |
DOE | United States Department of Energy |
DSM Programs | Demand reduction and energy efficiency programs |
ELG Rule | New federal effluent limitation guidelines for steam electric generating units |
Energy Marketing | The divisions of SEMI, excluding SCANA Energy |
EPA | United States Environmental Protection Agency |
EPC Contract | Engineering, Procurement and Construction Agreement dated May 23, 2008 |
FASB | Financial Accounting Standards Board |
FERC | United States Federal Energy Regulatory Commission |
Fuel Company | South Carolina Fuel Company, Inc. |
GAAP | Accounting principles generally accepted in the United States of America |
GENCO | South Carolina Generating Company, Inc. |
GHG | Greenhouse Gas |
GPSC | Georgia Public Service Commission |
GWh | Gigawatt hour |
IRP | Integrated Resource Plan |
IRS | Internal Revenue Service |
Level 1 | A fair value measurement using unadjusted quoted prices in active markets for identical assets or liabilities |
Level 2 | A fair value measurement using observable inputs other than those for Level 1, including quoted prices for similar (not identical) assets or liabilities or inputs that are derived from observable market data by correlation or other means |
Level 3 | A fair value measurement using unobservable inputs, including situations where there is little, if any, market activity for the asset or liability |
LOC | Lines of Credit |
MATS | Mercury and Air Toxics Standards |
MGP | Manufactured Gas Plant |
MMBTU | Million British Thermal Units |
MW or MWh | Megawatt or Megawatt-hour |
NAAQS | National Ambient Air Quality Standards |
NASDAQ | The NASDAQ Stock Market, Inc. |
NCUC | North Carolina Utilities Commission |
NEIL | Nuclear Electric Insurance Limited |
New Units | Nuclear Units 2 and 3 under construction at Summer Station |
NPDES | National Permit Discharge Elimination System |
NRC | United States Nuclear Regulatory Commission |
NSPS | New Source Performance Standards |
Nuclear Waste Act | Nuclear Waste Policy Act of 1982 |
NYMEX | New York Mercantile Exchange |
OCI | Other Comprehensive Income |
October 2015 Amendment | Amendment to the EPC Contract dated October 27, 2015 |
ORS | South Carolina Office of Regulatory Staff |
PGA | Purchased Gas Adjustment |
Price-Anderson | Price-Anderson Indemnification Act |
PSNC Energy | Public Service Company of North Carolina, Incorporated |
Retail Gas Marketing | SCANA Energy |
RSA | Natural Gas Rate Stabilization Act |
Santee Cooper | South Carolina Public Service Authority |
SCANA | SCANA Corporation, the parent company |
SCANA Energy | A division of SEMI which markets natural gas in Georgia |
SCE&G | South Carolina Electric & Gas Company |
SCI | SCANA Communications, Inc. |
SCPSC | Public Service Commission of South Carolina |
SEC | United States Securities and Exchange Commission |
SEMI | SCANA Energy Marketing, Inc. |
Spirit Communications | SCTG Communications, Inc. (a wholly owned subsidiary of SCTG, LLC) d/b/a Spirit Communications |
Stone & Webster | CB&I Stone & Webster, Inc., a subsidiary of CB&I |
Summer Station | V. C. Summer Nuclear Station |
VIE | Variable Interest Entity |
WEC | Westinghouse Electric Company LLC |
Millions of dollars | September 30, 2015 | December 31, 2014 | ||||||
Assets | ||||||||
Utility Plant In Service | $ | 12,692 | $ | 12,289 | ||||
Accumulated Depreciation and Amortization | (4,268 | ) | (4,088 | ) | ||||
Construction Work in Progress | 3,790 | 3,323 | ||||||
Plant to be Retired, Net | — | 169 | ||||||
Nuclear Fuel, Net of Accumulated Amortization | 305 | 329 | ||||||
Goodwill, net of writedown of $230 | 210 | 210 | ||||||
Utility Plant, Net | 12,729 | 12,232 | ||||||
Nonutility Property and Investments: | ||||||||
Nonutility property, net of accumulated depreciation of $122 and $122 | 281 | 284 | ||||||
Assets held in trust, net-nuclear decommissioning | 113 | 113 | ||||||
Other investments | 73 | 75 | ||||||
Nonutility Property and Investments, Net | 467 | 472 | ||||||
Current Assets: | ||||||||
Cash and cash equivalents | 54 | 137 | ||||||
Receivables, net of allowance for uncollectible accounts of $5 and $7 | 618 | 838 | ||||||
Inventories (at average cost): | ||||||||
Fuel and gas supply | 164 | 222 | ||||||
Materials and supplies | 147 | 139 | ||||||
Prepayments | 132 | 320 | ||||||
Other current assets | 106 | 148 | ||||||
Assets held for sale | — | 341 | ||||||
Total Current Assets | 1,221 | 2,145 | ||||||
Deferred Debits and Other Assets: | ||||||||
Regulatory assets | 1,884 | 1,823 | ||||||
Other | 205 | 180 | ||||||
Total Deferred Debits and Other Assets | 2,089 | 2,003 | ||||||
Total | $ | 16,506 | $ | 16,852 |
Millions of dollars | September 30, 2015 | December 31, 2014 | ||||||
Capitalization and Liabilities | ||||||||
Common Stock - no par value (shares outstanding: September 30, 2015 - 142.9 million; December 31, 2014 - 142.7 million) | $ | 2,391 | $ | 2,378 | ||||
Retained Earnings | 3,098 | 2,684 | ||||||
Accumulated Other Comprehensive Loss | (70 | ) | (75 | ) | ||||
Total Common Equity | 5,419 | 4,987 | ||||||
Long-Term Debt, net | 6,018 | 5,531 | ||||||
Total Capitalization | 11,437 | 10,518 | ||||||
Current Liabilities: | ||||||||
Short-term borrowings | 264 | 918 | ||||||
Current portion of long-term debt | 16 | 166 | ||||||
Accounts payable | 312 | 520 | ||||||
Customer deposits and customer prepayments | 110 | 98 | ||||||
Taxes accrued | 183 | 182 | ||||||
Interest accrued | 85 | 83 | ||||||
Dividends declared | 76 | 73 | ||||||
Liabilities held for sale | — | 52 | ||||||
Derivative financial instruments | 125 | 233 | ||||||
Other | 123 | 208 | ||||||
Total Current Liabilities | 1,294 | 2,533 | ||||||
Deferred Credits and Other Liabilities: | ||||||||
Deferred income taxes, net | 1,839 | 1,866 | ||||||
Deferred investment tax credits | 26 | 28 | ||||||
Asset retirement obligations | 489 | 563 | ||||||
Postretirement benefits | 320 | 315 | ||||||
Regulatory liabilities | 859 | 814 | ||||||
Other | 242 | 215 | ||||||
Total Deferred Credits and Other Liabilities | 3,775 | 3,801 | ||||||
Commitments and Contingencies (Note 9) | — | — | ||||||
Total | $ | 16,506 | $ | 16,852 |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
Millions of dollars, except per share amounts | 2015 | 2014 | 2015 | 2014 | ||||||||||||
Operating Revenues: | ||||||||||||||||
Electric | $ | 742 | $ | 739 | $ | 2,008 | $ | 2,027 | ||||||||
Gas - regulated | 112 | 132 | 610 | 740 | ||||||||||||
Gas - nonregulated | 214 | 250 | 805 | 969 | ||||||||||||
Total Operating Revenues | 1,068 | 1,121 | 3,423 | 3,736 | ||||||||||||
Operating Expenses: | ||||||||||||||||
Fuel used in electric generation | 187 | 212 | 525 | 636 | ||||||||||||
Purchased power | 14 | 13 | 38 | 54 | ||||||||||||
Gas purchased for resale | 260 | 304 | 1,030 | 1,291 | ||||||||||||
Other operation and maintenance | 182 | 169 | 527 | 523 | ||||||||||||
Depreciation and amortization | 75 | 96 | 267 | 286 | ||||||||||||
Other taxes | 58 | 58 | 176 | 174 | ||||||||||||
Total Operating Expenses | 776 | 852 | 2,563 | 2,964 | ||||||||||||
Gain on sale of CGT, net of transaction costs | — | — | 235 | — | ||||||||||||
Operating Income | 292 | 269 | 1,095 | 772 | ||||||||||||
Other Income (Expense): | ||||||||||||||||
Other income | 19 | 18 | 56 | 103 | ||||||||||||
Other expense | (16 | ) | (12 | ) | (44 | ) | (39 | ) | ||||||||
Gain on sale of SCI, net of transaction costs | — | — | 107 | — | ||||||||||||
Interest charges, net of allowance for borrowed funds used during construction of $5, $5, $12 and $13 | (81 | ) | (79 | ) | (236 | ) | (231 | ) | ||||||||
Allowance for equity funds used during construction | 8 | 11 | 20 | 26 | ||||||||||||
Total Other Income (Expense) | (70 | ) | (62 | ) | (97 | ) | (141 | ) | ||||||||
Income Before Income Tax Expense | 222 | 207 | 998 | 631 | ||||||||||||
Income Tax Expense | 73 | 63 | 350 | 198 | ||||||||||||
Net Income | $ | 149 | $ | 144 | $ | 648 | $ | 433 | ||||||||
Basic and Diluted Earnings Per Share of Common Stock | $ | 1.04 | $ | 1.01 | $ | 4.53 | $ | 3.06 | ||||||||
Weighted Average Common Shares Outstanding (millions) | 142.9 | 142.1 | 142.9 | 141.6 | ||||||||||||
Dividends Declared Per Share of Common Stock | $ | 0.545 | $ | 0.525 | $ | 1.635 | $ | 1.575 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
Millions of dollars | 2015 | 2014 | 2015 | 2014 | ||||||||||||
Net Income | $ | 149 | $ | 144 | $ | 648 | $ | 433 | ||||||||
Other Comprehensive Income (Loss), net of tax: | ||||||||||||||||
Unrealized Gains (Losses) on Cash Flow Hedging Activities: | ||||||||||||||||
Unrealized gains (losses) on cash flow hedging activities arising during period, net of tax of $(4), $(1), $(5) and $(2) | (7 | ) | (2 | ) | (8 | ) | (3 | ) | ||||||||
Cash flow hedging activities reclassified to interest expense, net tax of $1, $1, $3, and $3 | 2 | 2 | 6 | 5 | ||||||||||||
Cash flow hedging activities reclassified to gas purchased for resale, net of tax of $-, $-, $6, and $(3) | 1 | — | 10 | (4 | ) | |||||||||||
Net unrealized gains (losses) on cash flow hedging activities | (4 | ) | — | 8 | (2 | ) | ||||||||||
Deferred cost of employee benefit plans, net of tax of $-, $-, $(2) and $- | 1 | 1 | (3 | ) | 1 | |||||||||||
Other Comprehensive Income (Loss) | (3 | ) | 1 | 5 | (1 | ) | ||||||||||
Total Comprehensive Income | $ | 146 | $ | 145 | $ | 653 | $ | 432 |
Nine Months Ended September 30, | ||||||||
Millions of dollars | 2015 | 2014 | ||||||
Cash Flows From Operating Activities: | ||||||||
Net income | $ | 648 | $ | 433 | ||||
Adjustments to reconcile net income to net cash provided from operating activities: | ||||||||
Gain on sale of subsidiaries | (355 | ) | — | |||||
Losses from equity method investments | 2 | 2 | ||||||
Deferred income taxes, net | (98 | ) | 63 | |||||
Depreciation and amortization | 276 | 298 | ||||||
Amortization of nuclear fuel | 41 | 31 | ||||||
Allowance for equity funds used during construction | (20 | ) | (26 | ) | ||||
Carrying cost recovery | (9 | ) | (7 | ) | ||||
Changes in certain assets and liabilities: | — | |||||||
Receivables | 192 | 111 | ||||||
Inventories | 2 | (34 | ) | |||||
Prepayments | 196 | (99 | ) | |||||
Regulatory assets | 92 | (171 | ) | |||||
Regulatory liabilities | 9 | (133 | ) | |||||
Accounts payable | (85 | ) | (18 | ) | ||||
Taxes accrued | 2 | (69 | ) | |||||
Pension and other post retirement benefits | (1 | ) | (13 | ) | ||||
Derivative financial instruments | (108 | ) | 105 | |||||
Other assets | 73 | 25 | ||||||
Other liabilities | (50 | ) | 60 | |||||
Net Cash Provided From Operating Activities | 807 | 558 | ||||||
Cash Flows From Investing Activities: | ||||||||
Property additions and construction expenditures | (851 | ) | (778 | ) | ||||
Proceeds from sale of subsidiaries | 647 | — | ||||||
Proceeds from investments (including derivative collateral returned) | 872 | 204 | ||||||
Purchase of investments (including derivative collateral posted) | (872 | ) | (247 | ) | ||||
Payments upon interest rate derivative contract settlement | (152 | ) | (34 | ) | ||||
Proceeds upon interest rate derivative contract settlement | 10 | — | ||||||
Net Cash Used For Investing Activities | (346 | ) | (855 | ) | ||||
Cash Flows From Financing Activities: | ||||||||
Proceeds from issuance of common stock | 14 | 75 | ||||||
Proceeds from issuance of long-term debt | 491 | 294 | ||||||
Repayment of long-term debt | (164 | ) | (17 | ) | ||||
Dividends | (231 | ) | (220 | ) | ||||
Short-term borrowings, net | (654 | ) | 111 | |||||
Net Cash Provided From (Used for) Financing Activities | (544 | ) | 243 | |||||
Net Decrease In Cash and Cash Equivalents | (83 | ) | (54 | ) | ||||
Cash and Cash Equivalents, January 1 | 137 | 136 | ||||||
Cash and Cash Equivalents, September 30 | $ | 54 | $ | 82 | ||||
Supplemental Cash Flow Information: | ||||||||
Cash paid for– Interest (net of capitalized interest of $12 and $13) | $ | 224 | $ | 225 | ||||
– Income taxes | 184 | 246 | ||||||
Noncash Investing and Financing Activities: | ||||||||
Accrued construction expenditures | 85 | 108 | ||||||
Capital leases | 5 | 4 |
1. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
2. | RATE AND OTHER REGULATORY MATTERS |
Year | Effective | Amount | ||||
2015 | First billing cycle of May | $ | 32.0 | million | ||
2014 | First billing cycle of May | $ | 15.4 | million | ||
2013 | First billing cycle of May | $ | 16.9 | million |
Year | Action | Amount | ||||||
2015 | 2.6 | % | Increase | $ | 64.5 | million | ||
2014 | 2.8 | % | Increase | $ | 66.2 | million | ||
2013 | 2.9 | % | Increase | $ | 67.2 | million |
Year | Action | Amount | ||||||
2015 | No change | - | ||||||
2014 | 0.6 | % | Decrease | $ | 2.6 | million | ||
2013 | No change | - |
Millions of dollars | September 30, 2015 | December 31, 2014 | ||||||
Regulatory Assets: | ||||||||
Accumulated deferred income taxes | $ | 284 | $ | 284 | ||||
Under-collections - electric fuel adjustment clause | — | 20 | ||||||
Environmental remediation costs | 39 | 40 | ||||||
AROs and related funding | 376 | 366 | ||||||
Franchise agreements | 23 | 26 | ||||||
Deferred employee benefit plan costs | 328 | 350 | ||||||
Planned major maintenance | — | 2 | ||||||
Deferred losses on interest rate derivatives | 538 | 453 | ||||||
Deferred pollution control costs | 35 | 36 | ||||||
Unrecovered plant | 128 | 137 | ||||||
DSM Programs | 59 | 56 | ||||||
Carrying costs on deferred tax assets related to nuclear construction | 15 | 9 | ||||||
Pipeline integrity management costs | 16 | 9 | ||||||
Other | 43 | 35 | ||||||
Total Regulatory Assets | $ | 1,884 | $ | 1,823 |
Regulatory Liabilities: | ||||||||
Accumulated deferred income taxes | $ | 22 | $ | 22 | ||||
Asset removal costs | 729 | 703 | ||||||
Storm damage reserve | 6 | 6 | ||||||
Deferred gains on interest rate derivatives | 87 | 82 | ||||||
Planned major maintenance | 12 | — | ||||||
Other | 3 | 1 | ||||||
Total Regulatory Liabilities | $ | 859 | $ | 814 |
Common Stock | Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||||||||||||
Millions | Shares | Outstanding Amount | Treasury Shares | Retained Earnings | Gains(Losses) on Cash Flow Hedges | Deferred Employee Benefit Plans | Total AOCI | Total Common Equity | |||||||||||||||||||||||
Balance as of January 1, 2015 | 143 | $ | 2,388 | $ | (10 | ) | $ | 2,684 | $ | (63 | ) | $ | (12 | ) | $ | (75 | ) | $ | 4,987 | ||||||||||||
Net Income | 648 | 648 | |||||||||||||||||||||||||||||
Other Comprehensive Income (Loss): | |||||||||||||||||||||||||||||||
Losses during the period | (8 | ) | (3 | ) | (11 | ) | (11 | ) | |||||||||||||||||||||||
Reclassified from AOCI | 16 | — | 16 | 16 | |||||||||||||||||||||||||||
Total Comprehensive Income (Loss) | 648 | 8 | (3 | ) | 5 | 653 | |||||||||||||||||||||||||
Issuance of Common Stock | — | 14 | (1 | ) | 13 | ||||||||||||||||||||||||||
Dividends Declared | (234 | ) | (234 | ) | |||||||||||||||||||||||||||
Balance as of September 30, 2015 | 143 | $ | 2,402 | $ | (11 | ) | $ | 3,098 | $ | (55 | ) | $ | (15 | ) | $ | (70 | ) | $ | 5,419 | ||||||||||||
Balance as of January 1, 2014 | 141 | $ | 2,289 | $ | (9 | ) | $ | 2,444 | $ | (52 | ) | $ | (8 | ) | $ | (60 | ) | $ | 4,664 | ||||||||||||
Net Income | 433 | 433 | |||||||||||||||||||||||||||||
Other Comprehensive Income: | |||||||||||||||||||||||||||||||
Losses during the period | (3 | ) | — | (3 | ) | (3 | ) | ||||||||||||||||||||||||
Reclassified from AOCI | 1 | 1 | 2 | 2 | |||||||||||||||||||||||||||
Total Comprehensive Income | 433 | (2 | ) | 1 | (1 | ) | 432 | ||||||||||||||||||||||||
Issuance of Common Stock | 1 | 76 | (1 | ) | 75 | ||||||||||||||||||||||||||
Dividends Declared | (223 | ) | (223 | ) | |||||||||||||||||||||||||||
Balance as of September 30, 2014 | 142 | $ | 2,365 | $ | (10 | ) | $ | 2,654 | $ | (54 | ) | $ | (7 | ) | $ | (61 | ) | $ | 4,948 |
4. | LONG-TERM DEBT AND LIQUIDITY |
SCANA | SCE&G | PSNC Energy | ||||||||||||||||||||||
Millions of dollars | September 30, 2015 | December 31, 2014 | September 30, 2015 | December 31, 2014 | September 30, 2015 | December 31, 2014 | ||||||||||||||||||
Lines of credit: | ||||||||||||||||||||||||
Total committed long-term | $ | 300 | $ | 300 | $ | 1,400 | $ | 1,400 | $ | 100 | $ | 100 | ||||||||||||
Outstanding commercial paper ( 270 or fewer days) | $ | 14 | $ | 179 | $ | 234 | $ | 709 | $ | 16 | $ | 30 | ||||||||||||
Weighted average interest rate | 0.66 | % | 0.54 | % | 0.44 | % | 0.52 | % | 0.45 | % | 0.65 | % | ||||||||||||
Letters of credit supported by LOC | $ | 3 | $ | 3 | $ | 0.3 | $ | 0.3 | — | — | ||||||||||||||
Available | $ | 283 | $ | 118 | $ | 1,166 | $ | 691 | $ | 84 | $ | 70 |
5. | INCOME TAXES |
6. | DERIVATIVE FINANCIAL INSTRUMENTS |
Commodity and Other Energy Management Contracts (in MMBTU) | ||||||||||||
Hedge designation | Gas Distribution | Retail Gas Marketing | Energy Marketing | Total | ||||||||
As of September 30, 2015 | ||||||||||||
Commodity contracts | 9,270,000 | 11,788,000 | 4,335,500 | 25,393,500 | ||||||||
Energy management contracts (a) | — | — | 32,211,282 | 32,211,282 | ||||||||
Total (a) | 9,270,000 | 11,788,000 | 36,546,782 | 57,604,782 | ||||||||
As of December 31, 2014 | ||||||||||||
Commodity contracts | 6,840,000 | 7,951,000 | 3,446,720 | 18,237,720 | ||||||||
Energy management contracts (b) | — | — | 37,495,339 | 37,495,339 | ||||||||
Total (b) | 6,840,000 | 7,951,000 | 40,942,059 | 55,733,059 |
Fair Values of Derivative Instruments | ||||||||||
Millions of dollars | Balance Sheet Location | Asset | Liability | |||||||
As of September 30, 2015 | ||||||||||
Designated as hedging instruments | ||||||||||
Interest rate contracts | Derivative financial instruments | $ | 4 | |||||||
Other deferred credits and other liabilities | 31 | |||||||||
Commodity contracts | Other current assets | 1 | ||||||||
Derivative financial instruments | 6 | |||||||||
Total | $ | 42 | ||||||||
Not designated as hedging instruments | ||||||||||
Interest rate contracts | Other deferred debits and other assets | $ | 6 | — | ||||||
Derivative financial instruments | — | $ | 107 | |||||||
Other deferred credits and other liabilities | — | 60 | ||||||||
Energy management contracts | Other current assets | 10 | 2 | |||||||
Derivative financial instruments | — | 8 | ||||||||
Other deferred debits and other assets | 5 | — | ||||||||
Other deferred credits and other liabilities | — | 4 | ||||||||
Total | $ | 21 | $ | 181 |
Millions of dollars | Balance Sheet Location | Asset | Liability | |||||||
As of December 31, 2014 | ||||||||||
Designated as hedging instruments | ||||||||||
Interest rate contracts | Derivative financial instruments | $ | 5 | |||||||
Other deferred credits and other liabilities | 28 | |||||||||
Commodity contracts | Other current assets | 1 | ||||||||
Derivative financial instruments | 11 | |||||||||
Total | $ | 45 | ||||||||
Not designated as hedging instruments | ||||||||||
Interest rate contracts | Derivative financial instruments | — | $ | 207 | ||||||
Other deferred credits and other liabilities | — | 17 | ||||||||
Commodity contracts | Other current assets | $ | 1 | — | ||||||
Energy management contracts | Other current assets | 15 | 5 | |||||||
Derivative financial instruments | — | 10 | ||||||||
Other deferred debits and other assets | 5 | — | ||||||||
Other deferred credits and other liabilities | — | 5 | ||||||||
Total | $ | 21 | $ | 244 |
Loss Deferred in Regulatory Accounts | Loss Reclassified from Deferred Accounts into Income | |||||||||||||||||
(Effective Portion) | (Effective Portion) | |||||||||||||||||
Millions of dollars | 2015 | 2014 | Location | 2015 | 2014 | |||||||||||||
Three Months Ended September 30, | ||||||||||||||||||
Interest rate contracts | $ | (3 | ) | $ | (1 | ) | Interest expense | $ | (1 | ) | $ | (1 | ) | |||||
Nine Months Ended September 30, | ||||||||||||||||||
Interest rate contracts | $ | (3 | ) | $ | (5 | ) | Interest expense | $ | (2 | ) | $ | (2 | ) |
Gain (Loss) Recognized in OCI, net of tax | Gain (Loss) Reclassified from AOCI into Income, net of tax | |||||||||||||||||
(Effective Portion) | (Effective Portion) | |||||||||||||||||
Millions of dollars | 2015 | 2014 | Location | 2015 | 2014 | |||||||||||||
Three Months Ended September 30, | ||||||||||||||||||
Interest rate contracts | $ | (3 | ) | — | Interest expense | $ | (2 | ) | $ | (2 | ) | |||||||
Commodity contracts | (4 | ) | $ | (2 | ) | Gas purchased for resale | (1 | ) | — | |||||||||
Total | $ | (7 | ) | $ | (2 | ) | $ | (3 | ) | $ | (2 | ) | ||||||
Nine Months Ended September 30, | ||||||||||||||||||
Interest rate contracts | $ | (3 | ) | $ | (4 | ) | Interest expense | $ | (6 | ) | $ | (5 | ) | |||||
Commodity contracts | (5 | ) | 1 | Gas purchased for resale | (10 | ) | 4 | |||||||||||
Total | $ | (8 | ) | $ | (3 | ) | $ | (16 | ) | $ | (1 | ) |
Derivatives not designated as Hedging Instruments | ||||||||||||||||||
Loss Deferred in Regulatory Accounts | Gain Reclassified from Deferred Accounts into Income | |||||||||||||||||
Millions of dollars | 2015 | 2014 | Location | 2015 | 2014 | |||||||||||||
Three Months Ended September 30, | ||||||||||||||||||
Interest rate contracts | $ | (116 | ) | $ | (35 | ) | Other income | — | $ | 5 | ||||||||
Nine Months Ended September 30, | ||||||||||||||||||
Interest rate contracts | $ | (79 | ) | $ | (220 | ) | Other income | $ | 5 | $ | 60 |
Gross Amounts of Recognized Assets | Gross Amounts Offset in the Statement of Financial Position | Net Amounts Presented in the Statement of Financial Position | Gross Amounts Not Offset in the Statement of Financial Position | Net Amount | |||||||||||||||||
Millions of dollars | Financial Instruments | Cash Collateral Received | |||||||||||||||||||
As of September 30, 2015 | |||||||||||||||||||||
Interest rate contracts | $ | 6 | — | $ | 6 | $ | (3 | ) | — | $ | 3 | ||||||||||
Energy management contracts | 15 | — | 15 | — | — | 15 | |||||||||||||||
Total | $ | 21 | — | $ | 21 | $ | (3 | ) | — | $ | 18 | ||||||||||
Balance sheet location | Other current assets | $ | 10 | ||||||||||||||||||
Other deferred debits and other assets | 11 | ||||||||||||||||||||
Total | $ | 21 |
As of December 31, 2014 | ||||||||||||||||||||
Commodity contracts | $ | 1 | — | $ | 1 | — | — | $ | 1 | |||||||||||
Energy management contracts | 20 | — | 20 | — | — | 20 | ||||||||||||||
Total | $ | 21 | — | $ | 21 | — | — | $ | 21 | |||||||||||
Balance sheet location | Other current assets | $ | 16 | |||||||||||||||||
Other deferred debits and other assets | 5 | |||||||||||||||||||
Total | $ | 21 |
Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Statement of Financial Position | Net Amounts Presented in the Statement of Financial Position | Gross Amounts Not Offset in the Statement of Financial Position | Net Amount | ||||||||||||||||||
Millions of dollars | Financial Instruments | Cash Collateral Posted | ||||||||||||||||||||
As of September 30, 2015 | ||||||||||||||||||||||
Interest rate contracts | $ | 202 | — | $ | 202 | $ | (3 | ) | $ | (135 | ) | $ | 64 | |||||||||
Commodity contracts | 7 | — | 7 | — | (6 | ) | 1 | |||||||||||||||
Energy management contracts | 14 | — | 14 | — | (7 | ) | 7 | |||||||||||||||
Total | $ | 223 | — | $ | 223 | $ | (3 | ) | $ | (148 | ) | $ | 72 | |||||||||
Balance sheet location | Other current assets | $ | 3 | |||||||||||||||||||
Derivative financial instruments | 125 | |||||||||||||||||||||
Other deferred credits and other liabilities | 95 | |||||||||||||||||||||
Total | $ | 223 |
As of December 31, 2014 | |||||||||||||||||||||
Interest rate contracts | $ | 257 | — | $ | 257 | — | $ | (131 | ) | $ | 126 | ||||||||||
Commodity contracts | 12 | — | 12 | — | (10 | ) | 2 | ||||||||||||||
Energy management contracts | 20 | — | 20 | — | (11 | ) | 9 | ||||||||||||||
Total | $ | 289 | — | $ | 289 | — | $ | (152 | ) | $ | 137 | ||||||||||
Balance sheet location | Other current assets | $ | 6 | ||||||||||||||||||
Derivative financial instruments | 233 | ||||||||||||||||||||
Other deferred credits and other liabilities | 50 | ||||||||||||||||||||
Total | $ | 289 |
7. | FAIR VALUE MEASUREMENTS, INCLUDING DERIVATIVES |
As of September 30, 2015 | As of December 31, 2014 | |||||||||||||||
Millions of dollars | Level 1 | Level 2 | Level 1 | Level 2 | ||||||||||||
Assets: | ||||||||||||||||
Available for sale securities | $ | 13 | — | $ | 13 | — | ||||||||||
Interest rate contracts | — | $ | 6 | — | — | |||||||||||
Commodity contracts | — | — | 1 | — | ||||||||||||
Energy management contracts | — | 15 | — | $ | 20 | |||||||||||
Liabilities: | ||||||||||||||||
Interest rate contracts | — | 202 | — | 257 | ||||||||||||
Commodity contracts | 1 | 6 | 1 | 11 | ||||||||||||
Energy management contracts | 2 | 15 | 5 | 18 |
September 30, 2015 | December 31, 2014 | |||||||||||||||
Millions of dollars | Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | ||||||||||||
Long-term debt | $ | 6,034.3 | $ | 6,623.3 | $ | 5,697.2 | $ | 6,592.1 |
8. | EMPLOYEE BENEFIT PLANS |
Pension Benefits | Other Postretirement Benefits | |||||||||||||||
Millions of dollars | 2015 | 2014 | 2015 | 2014 | ||||||||||||
Three months ended September 30, | ||||||||||||||||
Service cost | $ | 6.6 | $ | 5.0 | $ | 1.2 | $ | 0.9 | ||||||||
Interest cost | 9.6 | 9.9 | 2.8 | 2.8 | ||||||||||||
Expected return on assets | (15.5 | ) | (16.4 | ) | — | — | ||||||||||
Prior service cost amortization | 1.0 | 1.1 | 0.1 | 0.1 | ||||||||||||
Amortization of actuarial losses (gains) | 3.2 | 0.9 | 0.4 | (0.2 | ) | |||||||||||
Net periodic benefit cost | $ | 4.9 | $ | 0.5 | $ | 4.5 | $ | 3.6 |
Nine months ended September 30, | ||||||||||||||||
Service cost | $ | 18.1 | $ | 15.0 | $ | 4.0 | $ | 3.4 | ||||||||
Interest cost | 28.7 | 30.3 | 8.6 | 9.0 | ||||||||||||
Expected return on assets | (46.5 | ) | (50.0 | ) | — | — | ||||||||||
Prior service cost amortization | 3.0 | 3.1 | 0.3 | 0.3 | ||||||||||||
Amortization of actuarial losses | 10.2 | 3.5 | 1.5 | — | ||||||||||||
Net periodic benefit cost | $ | 13.5 | $ | 1.9 | $ | 14.4 | $ | 12.7 |
9. | COMMITMENTS AND CONTINGENCIES |
Millions of dollars | September 30, 2015 | December 31, 2014 | ||||||
Beginning balance | $ | 563 | $ | 576 | ||||
Liabilities incurred | — | 3 | ||||||
Liabilities settled | (15 | ) | (6 | ) | ||||
Accretion expense | 20 | 26 | ||||||
Revisions in estimated cash flows | (79 | ) | (36 | ) | ||||
Ending balance | $ | 489 | $ | 563 |
10. | SEGMENT OF BUSINESS INFORMATION |
Millions of dollars | External Revenue | Intersegment Revenue | Operating Income | Net Income | ||||||||||||
Three Months Ended September 30, 2015 | ||||||||||||||||
Electric Operations | $ | 742 | $ | 1 | $ | 313 | n/a | |||||||||
Gas Distribution | 112 | 2 | (13 | ) | n/a | |||||||||||
Retail Gas Marketing | 68 | — | n/a | $ | (3 | ) | ||||||||||
Energy Marketing | 146 | 34 | n/a | (1 | ) | |||||||||||
All Other | — | 102 | — | (9 | ) | |||||||||||
Adjustments/Eliminations | — | (139 | ) | (8 | ) | 162 | ||||||||||
Consolidated Total | $ | 1,068 | $ | — | $ | 292 | $ | 149 |
Nine Months Ended September 30, 2015 | ||||||||||||||||
Electric Operations | $ | 2,008 | $ | 4 | $ | 728 | n/a | |||||||||
Gas Distribution | 609 | 2 | 88 | n/a | ||||||||||||
Retail Gas Marketing | 344 | — | n/a | $ | 18 | |||||||||||
Energy Marketing | 461 | 101 | n/a | 8 | ||||||||||||
All Other | 5 | 309 | 237 | 188 | ||||||||||||
Adjustments/Eliminations | (4 | ) | (416 | ) | 42 | 434 | ||||||||||
Consolidated Total | $ | 3,423 | $ | — | $ | 1,095 | $ | 648 |
Three Months Ended September 30, 2014 | ||||||||||||||||
Electric Operations | $ | 739 | $ | 1 | $ | 275 | n/a | |||||||||
Gas Distribution | 127 | — | (6 | ) | n/a | |||||||||||
Retail Gas Marketing | 68 | — | n/a | $ | (3 | ) | ||||||||||
Energy Marketing | 182 | 47 | n/a | (2 | ) | |||||||||||
All Other | 9 | 103 | 7 | (5 | ) | |||||||||||
Adjustments/Eliminations | (4 | ) | (151 | ) | (7 | ) | 154 | |||||||||
Consolidated Total | $ | 1,121 | $ | — | $ | 269 | $ | 144 |
Nine Months Ended September 30, 2014 | ||||||||||||||||
Electric Operations | $ | 2,027 | $ | 5 | $ | 616 | n/a | |||||||||
Gas Distribution | 728 | — | 98 | n/a | ||||||||||||
Retail Gas Marketing | 367 | — | n/a | $ | 16 | |||||||||||
Energy Marketing | 602 | 154 | n/a | 5 | ||||||||||||
All Other | 27 | 317 | 21 | (3 | ) | |||||||||||
Adjustments/Eliminations | (15 | ) | (476 | ) | 37 | 415 | ||||||||||
Consolidated Total | $ | 3,736 | $ | — | $ | 772 | $ | 433 |
September 30, | December 31, | |||||||
Segment Assets | 2015 | 2014 | ||||||
Electric Operations | $ | 10,531 | $ | 10,182 | ||||
Gas Distribution | 2,498 | 2,487 | ||||||
Retail Gas Marketing | 107 | 140 | ||||||
Energy Marketing | 102 | 150 | ||||||
All Other | 998 | 1,474 | ||||||
Adjustments/Eliminations | 2,270 | 2,419 | ||||||
Consolidated Total | $ | 16,506 | $ | 16,852 |
Millions of dollars | CGT | SCI | Total | |||||||||
Assets Held for Sale | ||||||||||||
Utility Plant, Net | $ | 288.4 | — | $ | 288.4 | |||||||
Nonutility Property and Investments, Net | 0.6 | $ | 40.1 | 40.7 | ||||||||
Current Assets | 6.5 | 3.9 | 10.4 | |||||||||
Deferred Debits and Other Assets | 0.9 | 0.2 | 1.1 | |||||||||
Total Assets Held for Sale | $ | 296.4 | $ | 44.2 | $ | 340.6 | ||||||
Liabilities Held for Sale | ||||||||||||
Current Liabilities | $ | 3.5 | $ | 2.2 | $ | 5.7 | ||||||
Deferred Credits and Other Liabilities | 42.9 | 3.1 | 46.0 | |||||||||
Total Liabilities Held for Sale | $ | 46.4 | $ | 5.3 | $ | 51.7 |
Third Quarter | Year to Date | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
GAAP earnings per share | $ | 1.04 | $ | 1.01 | $ | 4.53 | $ | 3.06 | ||||||||
Deduct: | ||||||||||||||||
Gain on sale of CGT | — | — | 0.95 | — | ||||||||||||
Gain on sale of SCI | — | — | 0.46 | — | ||||||||||||
SCE&G Electric - effect of abnormal weather | 0.11 | 0.07 | 0.22 | 0.23 | ||||||||||||
GAAP-adjusted weather-normalized net earnings per share | $ | 0.93 | $ | 0.94 | $ | 2.90 | $ | 2.83 |
Declaration Date | Dividend Per Share | Record Date | Payment Date | |||
February 20, 2015 | $0.545 | March 10, 2015 | April 1, 2015 | |||
April 30, 2015 | $0.545 | June 10, 2015 | July 1, 2015 | |||
July 30, 2015 | $0.545 | September 10, 2015 | October 1, 2015 | |||
October 29, 2015 | $0.545 | December 10, 2015 | January 1, 2016 |
Third Quarter | Year to Date | |||||||||||||||||||||
Millions of dollars | 2015 | Change | 2014 | 2015 | Change | 2014 | ||||||||||||||||
Operating revenues | $ | 743.6 | 0.4 | % | $ | 740.4 | $ | 2,012.7 | (1.0 | )% | $ | 2,032.7 | ||||||||||
Less: Fuel used in generation | 186.7 | (12.5 | )% | 213.3 | 524.8 | (18.0 | )% | 639.9 | ||||||||||||||
Purchased power | 14.0 | 6.9 | % | 13.1 | 38.3 | (29.6 | )% | 54.4 | ||||||||||||||
Margin | 542.9 | 5.6 | % | 514.0 | 1,449.6 | 8.3 | % | 1,338.4 | ||||||||||||||
Other operation and maintenance expenses | 126.3 | 8.8 | % | 116.1 | 367.3 | 3.1 | % | 356.4 | ||||||||||||||
Depreciation and amortization | 55.2 | (26.5 | )% | 75.1 | 207.5 | (11.2 | )% | 233.8 | ||||||||||||||
Other taxes | 48.6 | 1.5 | % | 47.9 | 146.6 | 3.0 | % | 142.3 | ||||||||||||||
Operating Income | $ | 312.8 | 13.8 | % | $ | 274.9 | $ | 728.2 | 20.2 | % | $ | 605.9 |
Third Quarter | Year to Date | |||||||||||||||||
Classification | 2015 | Change | 2014 | 2015 | Change | 2014 | ||||||||||||
Residential | 2,426 | 4.8 | % | 2,315 | 6,425 | 0.9 | % | 6,370 | ||||||||||
Commercial | 2,143 | 2.0 | % | 2,100 | 5,754 | 1.4 | % | 5,676 | ||||||||||
Industrial | 1,660 | (0.5 | )% | 1,668 | 4,726 | 1.4 | % | 4,662 | ||||||||||
Other | 165 | (2.9 | )% | 170 | 458 | (0.2 | )% | 459 | ||||||||||
Total Retail Sales | 6,394 | 2.3 | % | 6,253 | 17,363 | 1.1 | % | 17,167 | ||||||||||
Wholesale | 266 | 3.1 | % | 258 | 749 | 1.6 | % | 737 | ||||||||||
Total Sales | 6,660 | 2.3 | % | 6,511 | 18,112 | 1.2 | % | 17,904 |
Third Quarter | Year to Date | |||||||||||||||||||||
Millions of dollars | 2015 | Change | 2014 | 2015 | Change | 2014 | ||||||||||||||||
Operating revenues | $ | 112.1 | (12.4 | )% | $ | 127.9 | $ | 610.7 | (16.3 | )% | $ | 729.5 | ||||||||||
Less: Gas purchased for resale | 53.9 | (22.3 | )% | 69.4 | 317.9 | (27.4 | )% | 437.6 | ||||||||||||||
Margin | 58.2 | (0.5 | )% | 58.5 | 292.8 | 0.3 | % | 291.9 | ||||||||||||||
Other operation and maintenance expenses | 42.6 | 15.8 | % | 36.8 | 119.4 | 5.3 | % | 113.4 | ||||||||||||||
Depreciation and amortization | 19.4 | 6.6 | % | 18.2 | 57.7 | 6.9 | % | 54.0 | ||||||||||||||
Other taxes | 9.3 | 6.9 | % | 8.7 | 28.0 | 6.9 | % | 26.2 | ||||||||||||||
Operating Income (Loss) | $ | (13.1 | ) | 151.9 | % | $ | (5.2 | ) | $ | 87.7 | (10.8 | )% | $ | 98.3 |
Third Quarter | Year to Date | |||||||||||||||||
Classification (in thousands) | 2015 | Change | 2014 | 2015 | Change | 2014 | ||||||||||||
Residential | 2,069 | (3.7 | )% | 2,149 | 29,786 | (4.4 | )% | 31,165 | ||||||||||
Commercial | 4,329 | (1.5 | )% | 4,396 | 21,233 | (2.6 | )% | 21,808 | ||||||||||
Industrial | 4,786 | 0.8 | % | 4,749 | 15,024 | (0.7 | )% | 15,128 | ||||||||||
Transportation | 13,610 | 20.0 | % | 11,341 | 36,101 | 9.7 | % | 32,912 | ||||||||||
Total | 24,794 | 9.5 | % | 22,635 | 102,144 | 1.1 | % | 101,013 |
Third Quarter | Year to Date | |||||||||||||||||||||
Millions of dollars | 2015 | Change | 2014 | 2015 | Change | 2014 | ||||||||||||||||
Operating revenues | $ | 67.9 | (0.7 | )% | $ | 68.4 | $ | 344.0 | (6.4 | )% | $ | 367.4 | ||||||||||
Net income (loss) | (3.9 | ) | 39.3 | % | (2.8 | ) | 17.6 | 7.3 | % | 16.4 |
Third Quarter | Year to Date | |||||||||||||||||||||
Millions of dollars | 2015 | Change | 2014 | 2015 | Change | 2014 | ||||||||||||||||
Operating revenues | $ | 180.4 | (21.2 | )% | $ | 228.8 | $ | 562.5 | (25.6 | )% | $ | 756.1 | ||||||||||
Net income (loss) | (0.6 | ) | (76.9 | )% | (2.6 | ) | 8.1 | 58.8 | % | 5.1 |
Third Quarter | Year to Date | |||||||||||||||||||||
Millions of dollars | 2015 | Change | 2014 | 2015 | Change | 2014 | ||||||||||||||||
Other operation and maintenance | $ | 181.8 | 7.4 | % | $ | 169.2 | $ | 527.0 | 0.8 | % | $ | 522.9 | ||||||||||
Depreciation and amortization | 75.0 | (21.8 | )% | 95.9 | 267.3 | (6.6 | )% | 286.1 | ||||||||||||||
Other taxes | 58.3 | 0.2 | % | 58.2 | 176.3 | 1.4 | % | 173.8 |
Third Quarter | Year to Date | |||||||||||||||||||||
Millions of dollars | 2015 | Change | 2014 | 2015 | Change | 2014 | ||||||||||||||||
Other income | $ | 18.5 | 3.4 | % | $ | 17.9 | $ | 55.6 | (46.0 | )% | $ | 103.0 | ||||||||||
Other expense | (16.4 | ) | 37.8 | % | (11.9 | ) | (43.5 | ) | 12.7 | % | (38.6 | ) | ||||||||||
AFC - equity funds | 8.2 | (24.1 | )% | 10.8 | 19.9 | (22.3 | )% | 25.6 |
Expected Maturity | Expected Maturity | |||||||||||||||||
Futures - Long | 2015 | 2016 | 2017 | Options Purchased Call - Long | 2015 | 2016 | ||||||||||||
Settlement Price (a) | 2.62 | 2.81 | 3.05 | Strike Price (a) | 3.68 | 3.64 | ||||||||||||
Contract Amount (b) | 6.8 | 13.3 | 1.0 | Contract Amount (b) | 13.3 | 22.7 | ||||||||||||
Fair Value (b) | 5.4 | 11.7 | 1.0 | Fair Value (b) | — | 0.5 | ||||||||||||
Futures - Short | 2015 | 2016 | ||||||||||||||||
Settlement Price (a) | — | 2.83 | ||||||||||||||||
Contract Amount (b) | — | 1.3 | ||||||||||||||||
Fair Value (b) | — | 1.2 | ||||||||||||||||
(a) Weighted average, in dollars | ||||||||||||||||||
(b) Millions of dollars |
Expected Maturity | ||||||||||||
Swaps | 2015 | 2016 | 2017 | 2018 | ||||||||
Commodity Swaps: | ||||||||||||
Pay fixed/receive variable (b) | 23.4 | 51.8 | 7.3 | 3.7 | ||||||||
Average pay rate (a) | 3.4295 | 3.4853 | 4.0251 | 4.1974 | ||||||||
Average received rate (a) | 2.6239 | 2.8108 | 3.0169 | 3.0498 | ||||||||
Fair value (b) | 17.9 | 41.8 | 5.5 | 2.7 | ||||||||
Pay variable/receive fixed (b) | 9.3 | 25.1 | 5.3 | 2.6 | ||||||||
Average pay rate (a) | 2.6155 | 2.8063 | 3.0133 | 3.0485 | ||||||||
Average received rate (a) | 3.6083 | 3.6926 | 4.0385 | 4.2471 | ||||||||
Fair value (b) | 12.8 | 33.1 | 7.1 | 3.6 | ||||||||
Basis Swaps: | ||||||||||||
Pay variable/receive variable (b) | 1.7 | 0.9 | 0.8 | — | ||||||||
Average pay rate (a) | 2.6058 | 2.8875 | 3.1687 | — | ||||||||
Average received rate (a) | 2.5905 | 2.8576 | 3.1678 | — | ||||||||
Fair value (b) | 1.7 | 0.9 | 0.8 | — | ||||||||
(a) Weighted average, in dollars | ||||||||||||
(b) Millions of dollars |
ITEM 4. | CONTROLS AND PROCEDURES |
Millions of dollars | September 30, 2015 | December 31, 2014 | ||||||
Assets | ||||||||
Utility Plant In Service | $ | 11,007 | $ | 10,650 | ||||
Accumulated Depreciation and Amortization | (3,830 | ) | (3,667 | ) | ||||
Construction Work in Progress | 3,734 | 3,302 | ||||||
Plant to be Retired, Net | — | 169 | ||||||
Nuclear Fuel, Net of Accumulated Amortization | 305 | 329 | ||||||
Utility Plant, Net ($694 and $675 related to VIEs) | 11,216 | 10,783 | ||||||
Nonutility Property and Investments: | ||||||||
Nonutility property, net of accumulated depreciation | 67 | 67 | ||||||
Assets held in trust, net-nuclear decommissioning | 113 | 113 | ||||||
Other investments | 2 | 2 | ||||||
Nonutility Property and Investments, Net | 182 | 182 | ||||||
Current Assets: | ||||||||
Cash and cash equivalents | 30 | 100 | ||||||
Receivables, net of allowance for uncollectible accounts of $4 and $4 | 462 | 524 | ||||||
Affiliated receivables | 22 | 109 | ||||||
Inventories (at average cost): | ||||||||
Fuel and gas supply | 102 | 131 | ||||||
Materials and supplies | 136 | 129 | ||||||
Prepayments | 100 | 154 | ||||||
Other current assets | 80 | 99 | ||||||
Total Current Assets ($100 and $158 related to VIEs) | 932 | 1,246 | ||||||
Deferred Debits and Other Assets: | ||||||||
Pension asset | 9 | 10 | ||||||
Regulatory assets | 1,808 | 1,745 | ||||||
Other | 165 | 141 | ||||||
Total Deferred Debits and Other Assets ($52 and $50 related to VIEs) | 1,982 | 1,896 | ||||||
Total | $ | 14,312 | $ | 14,107 |
Millions of dollars | September 30, 2015 | December 31, 2014 | ||||||
Capitalization and Liabilities | ||||||||
Common Stock - no par value, 40.3 million shares outstanding | $ | 2,756 | $ | 2,560 | ||||
Retained Earnings | 2,266 | 2,077 | ||||||
Accumulated Other Comprehensive Loss | (3 | ) | (3 | ) | ||||
Total Common Equity | 5,019 | 4,634 | ||||||
Noncontrolling Interest | 129 | 123 | ||||||
Total Equity | 5,148 | 4,757 | ||||||
Long-Term Debt, net | 4,790 | 4,299 | ||||||
Total Capitalization | 9,938 | 9,056 | ||||||
Current Liabilities: | ||||||||
Short-term borrowings | 234 | 709 | ||||||
Current portion of long-term debt | 10 | 10 | ||||||
Accounts payable | 184 | 294 | ||||||
Affiliated payables | 125 | 180 | ||||||
Customer deposits and customer prepayments | 69 | 61 | ||||||
Taxes accrued | 279 | 170 | ||||||
Interest accrued | 66 | 64 | ||||||
Dividends declared | 71 | 74 | ||||||
Derivative financial instruments | 108 | 208 | ||||||
Other | 76 | 99 | ||||||
Total Current Liabilities | 1,222 | 1,869 | ||||||
Deferred Credits and Other Liabilities: | ||||||||
Deferred income taxes, net | 1,682 | 1,696 | ||||||
Deferred investment tax credits | 26 | 28 | ||||||
Asset retirement obligations | 460 | 536 | ||||||
Postretirement benefits | 198 | 195 | ||||||
Regulatory liabilities | 641 | 610 | ||||||
Other | 145 | 117 | ||||||
Total Deferred Credits and Other Liabilities | 3,152 | 3,182 | ||||||
Commitments and Contingencies (Note 9) | — | — | ||||||
Total | $ | 14,312 | $ | 14,107 |
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
Millions of dollars | 2015 | 2014 | 2015 | 2014 | ||||||||||||
Operating Revenues: | ||||||||||||||||
Electric | $ | 743 | $ | 740 | $ | 2,013 | $ | 2,032 | ||||||||
Gas | 63 | 72 | 275 | 337 | ||||||||||||
Total Operating Revenues | 806 | 812 | 2,288 | 2,369 | ||||||||||||
Operating Expenses: | ||||||||||||||||
Fuel used in electric generation | 187 | 213 | 525 | 640 | ||||||||||||
Purchased power | 14 | 13 | 38 | 54 | ||||||||||||
Gas purchased for resale | 37 | 46 | 151 | 210 | ||||||||||||
Other operation and maintenance | 148 | 136 | 428 | 415 | ||||||||||||
Depreciation and amortization | 59 | 79 | 220 | 236 | ||||||||||||
Other taxes | 54 | 53 | 163 | 158 | ||||||||||||
Total Operating Expenses | 499 | 540 | 1,525 | 1,713 | ||||||||||||
Operating Income | 307 | 272 | 763 | 656 | ||||||||||||
Other Income (Expense): | ||||||||||||||||
Other income | 6 | 9 | 24 | 71 | ||||||||||||
Other expense | (7 | ) | (7 | ) | (21 | ) | (19 | ) | ||||||||
Interest charges, net of allowance for borrowed funds used during construction of $4, $5, $11 and $11 | (63 | ) | (57 | ) | (183 | ) | (169 | ) | ||||||||
Allowance for equity funds used during construction | 8 | 10 | 18 | 22 | ||||||||||||
Total Other Income (Expense) | (56 | ) | (45 | ) | (162 | ) | (95 | ) | ||||||||
Income Before Income Tax Expense | 251 | 227 | 601 | 561 | ||||||||||||
Income Tax Expense | 84 | 70 | 196 | 178 | ||||||||||||
Net Income | 167 | 157 | 405 | 383 | ||||||||||||
Net Income Attributable to Noncontrolling Interest | (3 | ) | (3 | ) | (11 | ) | (9 | ) | ||||||||
Earnings Available to Common Shareholder | $ | 164 | $ | 154 | $ | 394 | $ | 374 | ||||||||
Dividends Declared on Common Stock | $ | 71 | $ | 69 | $ | 211 | $ | 197 |
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
Millions of dollars | 2015 | 2014 | 2015 | 2014 | ||||||||||||
Net Income and Total Comprehensive Income | 167 | 157 | 405 | 383 | ||||||||||||
Comprehensive income attributable to noncontrolling interest | (3 | ) | (3 | ) | (11 | ) | (9 | ) | ||||||||
Comprehensive income available to common shareholder | $ | 164 | $ | 154 | $ | 394 | $ | 374 |
Nine Months Ended September 30, | ||||||||
Millions of dollars | 2015 | 2014 | ||||||
Cash Flows From Operating Activities: | ||||||||
Net income | $ | 405 | $ | 383 | ||||
Adjustments to reconcile net income to net cash provided from operating activities: | ||||||||
Losses from equity method investments | 3 | 4 | ||||||
Deferred income taxes, net | (14 | ) | 76 | |||||
Depreciation and amortization | 221 | 236 | ||||||
Amortization of nuclear fuel | 41 | 31 | ||||||
Allowance for equity funds used during construction | (18 | ) | (22 | ) | ||||
Carrying cost recovery | (9 | ) | (7 | ) | ||||
Changes in certain assets and liabilities: | ||||||||
Receivables | 46 | (34 | ) | |||||
Inventories | (15 | ) | (36 | ) | ||||
Prepayments | 63 | (24 | ) | |||||
Regulatory assets | 90 | (170 | ) | |||||
Regulatory liabilities | 6 | (130 | ) | |||||
Accounts payable | (21 | ) | 11 | |||||
Taxes accrued | 109 | (70 | ) | |||||
Pension and other post retirement benefits | (2 | ) | (12 | ) | ||||
Derivative financial instruments | (100 | ) | 103 | |||||
Other assets | 58 | 27 | ||||||
Other liabilities | (61 | ) | 58 | |||||
Net Cash Provided From Operating Activities | 802 | 424 | ||||||
Cash Flows From Investing Activities: | ||||||||
Property additions and construction expenditures | (748 | ) | (678 | ) | ||||
Proceeds from investments (including derivative collateral returned) | 768 | 163 | ||||||
Purchase of investments (including derivative collateral posted) | (776 | ) | (202 | ) | ||||
Payments upon interest rate derivative contract settlement | (152 | ) | (34 | ) | ||||
Proceeds upon interest rate derivative contract settlement | 10 | — | ||||||
Proceeds from investment in affiliate | 80 | — | ||||||
Net Cash Used For Investing Activities | (818 | ) | (751 | ) | ||||
Cash Flows From Financing Activities: | ||||||||
Proceeds from issuance of long-term debt | 491 | 294 | ||||||
Repayment of long-term debt | (10 | ) | (12 | ) | ||||
Dividends | (214 | ) | (190 | ) | ||||
Contributions from parent | 200 | 85 | ||||||
Return of capital to parent | (4 | ) | (3 | ) | ||||
Short-term borrowings –affiliate, net | (42 | ) | (7 | ) | ||||
Short-term borrowings, net | (475 | ) | 110 | |||||
Net Cash Provided From (Used For) Financing Activities | (54 | ) | 277 | |||||
Net Decrease In Cash and Cash Equivalents | (70 | ) | (50 | ) | ||||
Cash and Cash Equivalents, January 1 | 100 | 92 | ||||||
Cash and Cash Equivalents, September 30 | $ | 30 | $ | 42 | ||||
Supplemental Cash Flow Information: | ||||||||
Cash paid for– Interest (net of capitalized interest of $11 and $11) | $ | 169 | $ | 162 | ||||
– Income taxes paid | 89 | 143 | ||||||
– Income taxes received | (84 | ) | — | |||||
Noncash Investing and Financing Activities: | ||||||||
Accrued construction expenditures | 76 | 94 | ||||||
Capital leases | 5 | 4 |
1. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
2. | RATE AND OTHER REGULATORY MATTERS |
Year | Effective | Amount | ||||
2015 | First billing cycle of May | $ | 32.0 | million | ||
2014 | First billing cycle of May | $ | 15.4 | million | ||
2013 | First billing cycle of May | $ | 16.9 | million |
Year | Action | Amount | ||||||
2015 | 2.6 | % | Increase | $ | 64.5 | million | ||
2014 | 2.8 | % | Increase | $ | 66.2 | million | ||
2013 | 2.9 | % | Increase | $ | 67.2 | million |
Year | Action | Amount | ||||||
2015 | No change | - | ||||||
2014 | 0.6 | % | Decrease | $ | 2.6 | million | ||
2013 | No change | - |
Millions of dollars | September 30, 2015 | December 31, 2014 | ||||||
Regulatory Assets: | ||||||||
Accumulated deferred income taxes | $ | 278 | $ | 278 | ||||
Under collections – electric fuel adjustment clause | — | 20 | ||||||
Environmental remediation costs | 35 | 36 | ||||||
AROs and related funding | 356 | 347 | ||||||
Franchise agreements | 23 | 26 | ||||||
Deferred employee benefit plan costs | 296 | 310 | ||||||
Planned major maintenance | — | 2 | ||||||
Deferred losses on interest rate derivatives | 538 | 453 | ||||||
Deferred pollution control costs | 35 | 36 | ||||||
Unrecovered plant | 128 | 137 | ||||||
DSM Programs | 59 | 56 | ||||||
Carrying costs on deferred tax assets related to nuclear construction | 15 | 9 | ||||||
Other | 45 | 35 | ||||||
Total Regulatory Assets | $ | 1,808 | $ | 1,745 |
Regulatory Liabilities: | ||||||||
Accumulated deferred income taxes | $ | 16 | $ | 17 | ||||
Asset removal costs | 520 | 505 | ||||||
Storm damage reserve | 6 | 6 | ||||||
Deferred gains on interest rate derivatives | 87 | 82 | ||||||
Planned major maintenance | 12 | — | ||||||
Total Regulatory Liabilities | $ | 641 | $ | 610 |
3. | EQUITY |
Common Stock | Retained | Accumulated Other Comprehensive | Noncontrolling | Total | |||||||||||||||||||
Millions | Shares | Amount | Earnings | Income (Loss) | Interest | Equity | |||||||||||||||||
Balance at January 1, 2015 | 40 | $ | 2,560 | $ | 2,077 | $ | (3 | ) | $ | 123 | $ | 4,757 | |||||||||||
Earnings available to common shareholder | 394 | 11 | 405 | ||||||||||||||||||||
Deferred cost of employee benefit plans | — | — | |||||||||||||||||||||
Total Comprehensive Income | 394 | — | 11 | 405 | |||||||||||||||||||
Capital contributions from parent | 196 | 196 | |||||||||||||||||||||
Cash dividend declared | (205 | ) | (5 | ) | (210 | ) | |||||||||||||||||
Balance at September 30, 2015 | 40 | $ | 2,756 | $ | 2,266 | $ | (3 | ) | $ | 129 | $ | 5,148 | |||||||||||
Balance at January 1, 2014 | 40 | $ | 2,479 | $ | 1,896 | $ | (3 | ) | $ | 117 | $ | 4,489 | |||||||||||
Earnings available to common shareholder | 374 | 9 | 383 | ||||||||||||||||||||
Deferred cost of employee benefit plans | — | — | |||||||||||||||||||||
Total Comprehensive Income | 374 | — | 9 | 383 | |||||||||||||||||||
Capital contributions from parent | 82 | 82 | |||||||||||||||||||||
Cash dividend declared | (192 | ) | (5 | ) | (197 | ) | |||||||||||||||||
Balance at September 30, 2014 | 40 | $ | 2,561 | $ | 2,078 | $ | (3 | ) | $ | 121 | $ | 4,757 |
Millions of dollars | September 30, 2015 | December 31, 2014 | ||||||
Lines of credit: | ||||||||
Total committed long-term | $ | 1,400 | $ | 1,400 | ||||
Outstanding commercial paper (270 or fewer days) | $ | 234 | $ | 709 | ||||
Weighted average interest rate | 0.44 | % | 0.52 | % | ||||
Letters of credit supported by LOC | $ | 0.3 | $ | 0.3 | ||||
Available | $ | 1,166 | $ | 691 |
5. | INCOME TAXES |
6. | DERIVATIVE FINANCIAL INSTRUMENTS |
Fair Values of Derivative Instruments | |||||||||||
Fair Value | |||||||||||
Millions of dollars | Balance Sheet Location | Asset | Liability | ||||||||
As of September 30, 2015 | |||||||||||
Designated as hedging instruments | |||||||||||
Interest rate contracts | Derivative financial instruments | $ | 1 | ||||||||
Other deferred credits and other liabilities | 10 | ||||||||||
Total | $ | 11 | |||||||||
Not designated as hedging instruments | |||||||||||
Interest rate contracts | Derivative financial instruments | — | $ | 107 | |||||||
Other deferred debits and other assets | $ | 6 | |||||||||
Other deferred credits and other liabilities | — | 60 | |||||||||
Total | $ | 6 | $ | 167 | |||||||
As of December 31, 2014 | |||||||||||
Designated as hedging instruments | |||||||||||
Interest rate contracts | Derivative financial instruments | $ | 1 | ||||||||
Other deferred credits and other liabilities | 8 | ||||||||||
Total | $ | 9 | |||||||||
Not designated as hedging instruments | |||||||||||
Interest rate contracts | Derivative financial instruments | $ | 207 | ||||||||
Other deferred credits and other liabilities | 17 | ||||||||||
Total | $ | 224 |
Loss Deferred in Regulatory Accounts | Loss Reclassified from Deferred Accounts into Income | |||||||||||||||||
(Effective Portion) | (Effective Portion) | |||||||||||||||||
Millions of dollars | 2015 | 2014 | Location | 2015 | 2014 | |||||||||||||
Three Months Ended September 30, | ||||||||||||||||||
Interest rate contracts | $ | (3 | ) | $ | (1 | ) | Interest expense | $ | (1 | ) | $ | (1 | ) | |||||
Nine Months Ended September 30, | ||||||||||||||||||
Interest rate contracts | $ | (3 | ) | $ | (5 | ) | Interest expense | $ | (2 | ) | $ | (2 | ) |
Loss Deferred in Regulatory Accounts | Gain Reclassified from Deferred Accounts into Income | |||||||||||||||||
Millions of dollars | 2015 | 2014 | Location | 2015 | 2014 | |||||||||||||
Three Months Ended September 30, | ||||||||||||||||||
Interest rate contracts | $ | (116 | ) | $ | (35 | ) | Other income | — | $ | 5 | ||||||||
Nine Months Ended September 30, | ||||||||||||||||||
Interest rate contracts | $ | (79 | ) | $ | (220 | ) | Other income | $ | 5 | $ | 60 |
Gross Amounts of Recognized Assets | Gross Amounts Offset in the Statement of Financial Position | Net Amounts Presented in the Statement of Financial Position | Gross Amounts Not Offset in the Statement of Financial Position | Net Amount | |||||||||||||||||
Millions of dollars | Financial Instruments | Cash Collateral Received | |||||||||||||||||||
As of September 30, 2015 | |||||||||||||||||||||
Interest rate contracts | $ | 6 | — | $ | 6 | $ | (3 | ) | — | $ | 3 | ||||||||||
Balance Sheet Location | Other deferred debits and other assets | $ | 6 |
Gross Amounts of Recognized Liabilities | Gross Amounts Offset in the Statement of Financial Position | Net Amounts Presented in the Statement of Financial Position | Gross Amounts Not Offset in the Statement of Financial Position | Net Amount | ||||||||||||||||||
Millions of dollars | Financial Instruments | Cash Collateral Posted | ||||||||||||||||||||
As of September 30, 2015 | ||||||||||||||||||||||
Interest rate contracts | $ | 178 | — | $ | 178 | $ | (3 | ) | $ | (109 | ) | $ | 66 | |||||||||
Balance Sheet Location | Derivative financial instruments | $ | 108 | |||||||||||||||||||
Other deferred credits and other liabilities | 70 | |||||||||||||||||||||
Total | $ | 178 |
As of December 31, 2014 | |||||||||||||||||||||
Interest rate contracts | $ | 233 | — | $ | 233 | — | $ | (107 | ) | $ | 126 | ||||||||||
Balance Sheet Location | Derivative financial instruments | $ | 208 | ||||||||||||||||||
Other deferred credits and other liabilities | 25 | ||||||||||||||||||||
Total | $ | 233 |
7. | FAIR VALUE MEASUREMENTS, INCLUDING DERIVATIVES |
Millions of dollars | September 30, 2015 | December 31, 2014 | |||||||
Assets - | Interest rate contracts | $ | 6 | — | |||||
Liabilities - | Interest rate contracts | 178 | $ | 233 |
September 30, 2015 | December 31, 2014 | |||||||||||||||
Millions of dollars | Carrying Amount | Estimated Fair Value | Carrying Amount | Estimated Fair Value | ||||||||||||
Long-term debt | $ | 4,801.0 | $ | 5,277.6 | $ | 4,308.6 | $ | 5,070.9 |
8. | EMPLOYEE BENEFIT PLANS |
Pension Benefits | Other Postretirement Benefits | |||||||||||||||
Millions of dollars | 2015 | 2014 | 2015 | 2014 | ||||||||||||
Three months ended September 30, | ||||||||||||||||
Service cost | $ | 5.3 | $ | 4.0 | $ | 1.0 | $ | 0.7 | ||||||||
Interest cost | 8.1 | 8.4 | 2.2 | 2.3 | ||||||||||||
Expected return on assets | (13.0 | ) | (13.9 | ) | — | — | ||||||||||
Prior service cost amortization | 0.8 | 0.9 | 0.1 | — | ||||||||||||
Amortization of actuarial losses (gains) | 2.7 | 0.8 | 0.3 | (0.2 | ) | |||||||||||
Net periodic benefit cost | $ | 3.9 | $ | 0.2 | $ | 3.6 | $ | 2.8 |
Nine months ended September 30, | ||||||||||||||||
Service cost | $ | 14.5 | $ | 12.0 | $ | 3.2 | $ | 2.7 | ||||||||
Interest cost | 24.1 | 25.6 | 6.8 | 7.1 | ||||||||||||
Expected return on assets | (39.1 | ) | (42.2 | ) | — | — | ||||||||||
Prior service cost amortization | 2.5 | 2.6 | 0.2 | 0.2 | ||||||||||||
Amortization of actuarial losses | 8.6 | 3.0 | 1.2 | — | ||||||||||||
Net periodic benefit cost | $ | 10.6 | $ | 1.0 | $ | 11.4 | $ | 10.0 |
9. | COMMITMENTS AND CONTINGENCIES |
Millions of dollars | September 30, 2015 | December 31, 2014 | ||||||
Beginning balance | $ | 536 | $ | 547 | ||||
Liabilities incurred | — | 3 | ||||||
Liabilities settled | (15 | ) | (6 | ) | ||||
Accretion expense | 18 | 25 | ||||||
Revisions in estimated cash flows | (79 | ) | (33 | ) | ||||
Ending balance | $ | 460 | $ | 536 |
10. | AFFILIATED TRANSACTIONS |
11. | SEGMENT OF BUSINESS INFORMATION |
Millions of dollars | External Revenue | Operating Income | Earnings Available to Common Shareholder | |||||||||
Three Months Ended September 30, 2015 | ||||||||||||
Electric Operations | $ | 743 | $ | 313 | n/a | |||||||
Gas Distribution | 63 | (6 | ) | n/a | ||||||||
Adjustments/Eliminations | — | — | $ | 164 | ||||||||
Consolidated Total | $ | 806 | $ | 307 | $ | 164 |
Nine Months Ended September 30, 2015 | ||||||||||||
Electric Operations | $ | 2,013 | $ | 728 | n/a | |||||||
Gas Distribution | 275 | 35 | n/a | |||||||||
Adjustments/Eliminations | — | — | $ | 394 | ||||||||
Consolidated Total | $ | 2,288 | $ | 763 | $ | 394 |
Three Months Ended September 30, 2014 | ||||||||||||
Electric Operations | $ | 740 | $ | 274 | n/a | |||||||
Gas Distribution | 72 | (2 | ) | n/a | ||||||||
Adjustments/Eliminations | — | — | $ | 154 | ||||||||
Consolidated Total | $ | 812 | $ | 272 | $ | 154 |
Nine Months Ended September 30, 2014 | ||||||||||||
Electric Operations | $ | 2,032 | $ | 616 | n/a | |||||||
Gas Distribution | 337 | 40 | n/a | |||||||||
Adjustments/Eliminations | — | — | $ | 374 | ||||||||
Consolidated Total | $ | 2,369 | $ | 656 | $ | 374 |
Segment Assets | September 30, 2015 | December 31, 2014 | ||||||
Electric Operations | $ | 10,531 | $ | 10,182 | ||||
Gas Distribution | 749 | 721 | ||||||
Adjustments/Eliminations | 3,032 | 3,204 | ||||||
Consolidated Total | $ | 14,312 | $ | 14,107 |
ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Third Quarter | Year to Date | |||||||||||||||||||||
Millions of dollars | 2015 | Change | 2014 | 2015 | Change | 2014 | ||||||||||||||||
Net income | $ | 167.4 | 6.7 | % | $ | 156.9 | $ | 404.6 | 5.8 | % | $ | 382.5 |
Declaration Date | Amount | Quarter Ended | Payment Date | |||
February 20, 2015 | $70.7 million | March 31, 2015 | April 1, 2015 | |||
April 30, 2015 | $69.7 million | June 30, 2015 | July 1, 2015 | |||
July 30, 2015 | $70.5 million | September 30, 2015 | October 1, 2015 | |||
October 29, 2015 | $74.5 million | December 31, 2015 | January 1, 2016 |
Third Quarter | Year to Date | |||||||||||||||||||||
Millions of dollars | 2015 | Change | 2014 | 2015 | Change | 2014 | ||||||||||||||||
Operating revenues | $ | 743.6 | 0.4 | % | $ | 740.4 | $ | 2,012.7 | (1.0 | )% | $ | 2,032.7 | ||||||||||
Less: Fuel used in generation | 186.7 | (12.5 | )% | 213.3 | 524.8 | (18.0 | )% | 639.9 | ||||||||||||||
Purchased power | 14.0 | 6.9 | % | 13.1 | 38.3 | (29.6 | )% | 54.4 | ||||||||||||||
Margin | 542.9 | 5.6 | % | 514.0 | 1,449.6 | 8.3 | % | 1,338.4 | ||||||||||||||
Other operation and maintenance expenses | 129.4 | 8.3 | % | 119.5 | 376.6 | 3.0 | % | 365.7 | ||||||||||||||
Depreciation and amortization | 52.6 | (27.2 | )% | 72.3 | 199.8 | (7.6 | )% | 216.2 | ||||||||||||||
Other taxes | 48.1 | 1.5 | % | 47.4 | 144.9 | 3.0 | % | 140.7 | ||||||||||||||
Operating Income | $ | 312.8 | 13.8 | % | $ | 274.8 | $ | 728.3 | 18.3 | % | $ | 615.8 |
Third Quarter | Year to Date | |||||||||||||||||
Classification | 2015 | Change | 2014 | 2015 | Change | 2014 | ||||||||||||
Residential | 2,426 | 4.8 | % | 2,315 | 6,425 | 0.9 | % | 6,370 | ||||||||||
Commercial | 2,143 | 2.0 | % | 2,100 | 5,754 | 1.4 | % | 5,676 | ||||||||||
Industrial | 1,660 | (0.5 | )% | 1,668 | 4,726 | 1.4 | % | 4,662 | ||||||||||
Other | 165 | (2.9 | )% | 170 | 458 | (0.2 | )% | 459 | ||||||||||
Total Retail Sales | 6,394 | 2.3 | % | 6,253 | 17,363 | 1.1 | % | 17,167 | ||||||||||
Wholesale | 266 | 3.1 | % | 258 | 749 | 1.6 | % | 737 | ||||||||||
Total Sales | 6,660 | 2.3 | % | 6,511 | 18,112 | 1.2 | % | 17,904 |
Third Quarter | Year to Date | |||||||||||||||||||||
Millions of dollars | 2015 | Change | 2014 | 2015 | Change | 2014 | ||||||||||||||||
Operating revenues | $ | 62.7 | (12.7 | )% | $ | 71.8 | $ | 274.8 | (18.4 | )% | 336.7 | |||||||||||
Less: Gas purchased for resale | 36.7 | (19.2 | )% | 45.4 | 150.8 | (28.2 | )% | 210.1 | ||||||||||||||
Margin | 26.0 | (1.5 | )% | 26.4 | 124.0 | (2.1 | )% | 126.6 | ||||||||||||||
Other operation and maintenance expenses | 18.5 | 13.5 | % | 16.3 | 51.1 | 2.8 | % | 49.7 | ||||||||||||||
Depreciation and amortization | 6.7 | 3.1 | % | 6.5 | 20.0 | 4.2 | % | 19.2 | ||||||||||||||
Other taxes | 6.1 | 3.4 | % | 5.9 | 18.5 | 5.1 | % | 17.6 | ||||||||||||||
Operating Income (Loss) | $ | (5.3 | ) | 130.4 | % | $ | (2.3 | ) | $ | 34.4 | (14.2 | )% | $ | 40.1 |
Third Quarter | Year to Date | |||||||||||||||||
Classification (in thousands) | 2015 | Change | 2014 | 2015 | Change | 2014 | ||||||||||||
Residential | 695 | 1.3 | % | 686 | 9,320 | (9.2 | )% | 10,266 | ||||||||||
Commercial | 2,302 | (2.3 | )% | 2,355 | 9,513 | (6.2 | )% | 10,138 | ||||||||||
Industrial | 4,468 | — | % | 4,467 | 13,336 | (2.5 | )% | 13,681 | ||||||||||
Transportation | 1,138 | (0.6 | )% | 1,145 | 3,486 | 15.9 | % | 3,009 | ||||||||||
Total | 8,603 | (0.6 | )% | 8,653 | 35,655 | (3.9 | )% | 37,094 |
Third Quarter | Year to Date | |||||||||||||||||||||
Millions of dollars | 2015 | Change | 2014 | 2015 | Change | 2014 | ||||||||||||||||
Other operation and maintenance | $ | 147.9 | 8.8 | % | $ | 135.9 | $ | 427.7 | 3.0 | % | $ | 415.3 | ||||||||||
Depreciation and amortization | 59.3 | (24.7 | )% | 78.8 | 219.8 | (7.0 | )% | 236.4 | ||||||||||||||
Other taxes | 54.2 | 1.7 | % | 53.3 | 163.4 | 3.3 | % | 158.2 |
Third Quarter | Year to Date | |||||||||||||||||||||
Millions of dollars | 2015 | Change | 2014 | 2015 | Change | 2014 | ||||||||||||||||
Other income | $ | 6.2 | (32.6 | )% | $ | 9.2 | $ | 24.0 | (66.3 | )% | $ | 71.3 | ||||||||||
Other expense | (6.7 | ) | (2.9 | )% | (6.9 | ) | (20.9 | ) | 11.8 | % | (18.7 | ) | ||||||||||
AFC - equity funds | 7.4 | (22.1 | )% | 9.5 | 18.4 | (17.1 | )% | 22.2 |
ITEM 4. | CONTROLS AND PROCEDURES |
Issuer Purchases of Equity Securities | ||||||||||||
(a) | (b) | (c) | (d) | |||||||||
Period | Total number of shares (or units) purchased | Average price paid per share (or unit) | Total number of shares (or units) purchased as part of publicly announced plans or programs | Maximum number (or approximate dollar value) of shares (or units) that may yet be purchased under the plans or programs | ||||||||
July 1-31 | 303,960 | $ | 52.49 | 303,960 | ||||||||
August 1-31 | 84,191 | $ | 55.39 | 84,191 | ||||||||
September 1-30 | 88,042 | $ | 52.41 | 88,042 | ||||||||
Total | 476,193 | 476,193 | * |
ITEM 6. | EXHIBITS |
SCANA CORPORATION |
SOUTH CAROLINA ELECTRIC & GAS COMPANY |
(Registrants) |
By: | /s/James E. Swan, IV | |
Date: November 6, 2015 | James E. Swan, IV | |
Controller | ||
(Principal accounting officer) |
Applicable to Form 10-Q of | |||
Exhibit No. | SCANA | SCE&G | Description |
3.01 | X | Restated Articles of Incorporation of SCANA, as adopted on April 26, 1989 (Filed as Exhibit 3-A to Registration Statement No. 33-49145 and incorporated by reference herein) | |
3.02 | X | Articles of Amendment dated April 27, 1995 (Filed as Exhibit 4-B to Registration Statement No. 33-62421 and incorporated by reference herein) | |
3.03 | X | Articles of Amendment effective April 25, 2011 (Filed as Exhibit 4.03 to Registration Statement No. 333-174796 and incorporated by reference herein) | |
3.04 | X | Restated Articles of Incorporation of SCE&G, as adopted on December 30, 2009 (Filed as Exhibit 1 to Form 8-A (File Number 000-53860) and incorporated by reference herein) | |
3.05 | X | By-Laws of SCANA as amended and restated as of February 19, 2009 (Filed as Exhibit 4.04 to Registration Statement No. 333-174796 and incorporated by reference herein) | |
3.06 | X | By-Laws of SCE&G as revised and amended on February 22, 2001 (Filed as Exhibit 3.05 to Registration Statement No. 333-65460 and incorporated by reference herein) | |
10.01 | X | Form of Indemnification Agreement (Filed as Exhibit 10.01 to Form 10-Q for the period ended June 30, 2012 and incorporated by reference herein) | |
10.02 | X | General Release and Severance Agreement between SCANA and George J. Bullwinkel, Jr. (Filed as Exhibit 10.02 to Form 10-Q for the quarter ended March 31, 2015 and incorporated by reference herein) | |
10.03 | X | Independent Contractor Agreement between SCANA Services, Inc. and George J. Bullwinkel, Jr. (Filed as Exhibit 10.03 to Form 10-Q for the quarter ended March 31, 2015 and incorporated by reference herein) | |
10.04 | X | SCANA Long-Term Equity Compensation Plan effective February 19, 2015 (Filed as Exhibit 4.05 to Registration Statement No. 333-204218 and incorporated as reference herein) | |
10.05 | X | X | Amendment to EPC Contract dated October 27, 2015 (Filed herewith) |
12.01 | X | X | Statement Re Computation of Ratios (Filed herewith) |
31.01 | X | Certification of Principal Executive Officer Required by Rule 13a-14 (Filed herewith) | |
31.02 | X | Certification of Principal Financial Officer Required by Rule 13a-14 (Filed herewith) | |
31.03 | X | Certification of Principal Executive Officer Required by Rule 13a-14 (Filed herewith) | |
31.04 | X | Certification of Principal Financial Officer Required by Rule 13a-14 (Filed herewith) | |
32.01 | X | Certification of Principal Executive Officer and Principal Financial Officer Pursuant to 18 U.S.C. Section 1350 (Furnished herewith) | |
32.02 | X | Certification of Principal Executive Officer and Principal Financial Officer Pursuant to 18 U.S.C. Section 1350 (Furnished herewith) | |
101. INS* | X | X | XBRL Instance Document |
101. SCH* | X | X | XBRL Taxonomy Extension Schema |
101. CAL* | X | X | XBRL Taxonomy Extension Calculation Linkbase |
101. DEF* | X | X | XBRL Taxonomy Extension Definition Linkbase |
101. LAB* | X | X | XBRL Taxonomy Extension Label Linkbase |
101. PRE* | X | X | XBRL Taxonomy Extension Presentation Linkbase |
d. | For the next one hundred fifty-one (151) to seven hundred thirty (730) days: $500,000/day; and |
a. | After the deposit is made, Owners will not be obligated to pay to Contractor the disputed portion of any invoiced amounts submitted by Contractor to Owners. |
b. | The Parties shall revise the dispute resolution procedures in Article 27 of the EPC Agreement to eliminate the requirement or ability to institute litigation during the course of the Project absent a suspension or termination of the EPC Agreement. |
c. | The Parties shall establish a DRB process for the interim, non-final resolution of disputes, as described more fully in paragraph 16 below and Exhibit E. |
d. | Owner agrees to make payment to Contractor within thirty (30) days of any award entered in favor of Contractor by the DRB. |
e. | At Project completion, the deposit amount of $75,000,000 shall be credited against Owner’s final milestone payment owed Contractor. |
a. | Contractor shall carefully consider all matters raised by the consultant, however the consultant shall have no authority to direct the Work of Contactor. |
b. | Contractor agrees to provide the consultant with access to relevant documents reasonably requested by the consultant, provided such documents are necessary for the consultant to complete its work for Owners. |
c. | For relevant documents provided under subparagraph (b) above, Contractor may provide confidential and proprietary documents in redacted form, including redaction of any pricing information. Contractor will provide unredacted documents to the consultant, provided Contractor determines in its reasonable discretion that it is given suitable protections from Owners and/or the consultant against misuse or further disclosure of such documents. |
By: | /s/Kevin B. Marsh |
Name: | Kevin B. Marsh |
Title: | Chairman & CEO |
WESTINGHOUSE ELECTRIC COMPANY LLC | STONE & WEBSTER, INC. | ||
By: | /s/Danny Roderick | By: | |
Name: | Danny Roderick | Name: | |
Title: | President & Chief Executive Officer | Title: |
Exhibit A | |||
Count | Issue | Issue Description | Deliverable |
29 | CAS and PRS Support | Primarily due to delayed design completion, the simulators delivered by the Consortium (intended to be PRSs) to the Owner do not have the functionality to support being certified by the Nuclear Regulatory Commission. As a result, the Owner has had to pursue the CAS alternative due primarily to repeated delays in ISV testing by the Consortium, which have most recently impacted the completion of ISV testing in time to support the Owner NRC exams that had been scheduled to occur in May 2015. This issue puts at risk the Owner’s ability to train and certify operators in time to support Units 2 and 3 fuel loads. | (1) At no additional cost to Owner, Westinghouse to provide a Commission Approved Simulator to include: All fixes as identified to support a successful CAS implementation (fixes delivered, support to install, and fixes to fixes as necessary); End state deliverable is a simulator ready and capable of conducting license operator exams (2) If CAS is unsuccessful, at no additional cost to Owner, WEC to provide: All ISV/HEDs (Priority 1 and 2 ) fixed and included in a baseline 7+ simulator capable of closing the ISV ITAAC by June 2017; The HFE/ISV ITAAC should be closed such that we can answer the question in the NRC Inspection Procedure IP41502 for PRS “Is the ISV ITAAC closed?” Yes; The simulator must be delivered to site by June 2017; Success will be measured by successful completion of Inspection Procedure 41502 by NRC Region II resulting in us having a PRS (3) If CAS is successful, at no additional cost to Owner, Westinghouse to provide: All ISV/HEDs (Priority 1 and 2 ) fixed and included in a baseline 8 simulator capable of closing the ISV ITAAC by Mar 2018; The HFE/ISV ITAAC should be closed such that we can answer the question in the NRC Inspection Procedure IP41502 for PRS “Is the ISV ITAAC closed?” Yes; The simulator must be delivered to site by March 2018; Success will be measured by successful completion of Inspection Procedure 41502 by NRC Region II resulting in us having a PRS. (4) Commercially, CAS, CAS fixes and BL7+ ITAAC closure (if necessary) is all part of completion of ISV and delivery of a BL7 simulator and as such is already a paid for deliverable. As part of that, the BL8 Fuel Load baseline should be considered the deliverable for CO #19. |
30 | Design Basis Assessments (5 included in the scope) | Licensing and Regulatory compliance reviews of high risk portions of the AP1000 design is to uncover License and Regulatory noncompliance issues prior to Construction to preclude delays to Project completion similar to those encountered during construction of the Nuclear Island basemat in 2012. The results of these reviews have uncovered License noncompliance issues including Tier 1 and Tier 2* issues and successfully mitigated them through a Licensing or design change without adverse impact to the Project schedules. It is likely that these items would not have been uncovered prior to Construction without the undertaking of these reviews. It is also likely that, if these items were uncovered after Construction had commenced, work delays of multiple months would have been experienced while the issues were resolved. Westinghouse contends that the AP1000 design is consistent with all requirements of the Licensing Basis and that assessments are unnecessary. Westinghouse has charged the Owners for support necessary to perform the assessments citing that no assessments were necessary. SCE&G believes that the value of the assessments to the Projects and to Westinghouse have been demonstrated. In addition to the benefits of reduced schedule and regulatory risk mentioned above, Westinghouse receives the benefit of independent assessment of key areas of the AP1000s unique design. | SCE&G requests that Westinghouse move forward with assessments (five additional assessments are desired) and cover their internal costs such that each Party participating in the review is responsible for its own cost. In this manner, each Party shares in the costs and benefits through reduced Project schedule risk and reduced regulatory risk. |
31 | WEC home office and site licensing efforts | For Contractor initiated Design Changes, processing Contractor’s desired changes to the design and licensing basis is resource intensive. The Contractor has initiated and processed thousands of DCPs and hundreds of LCPs. Changes are made at the request of the Contractor for convenience or in order to address challenges within the Contractor’s original design that was purchased by the Owner under the EPC Agreement. The Owner has incurred considerable cost to process Contractor’s desired changes to the VCS 2/3 licensing basis. Such changes are made for the Contractor’s convenience. The EPC did not account for the changes to the licensing basis requested by the Contractor. The EPC was based on Owner purchase of a design from the Contractor and the Owner has incurred costs to allocate resources and obtain additional contract assistance in order to support Contractor requested changes. In addition, Contractor has requested reimbursement of expenses for implementing changes to the extent that work relates to site-specific Tier 1, Tier 2*, COL, or Tech Spec requirements. An example is the EP ITAAC Table 7.5-1 and 7.5-201 in COL Appendix C. These tables were cited by the NRC as an EP ITAAC to show required plant equipment to support EP. This equipment was also described in the DCD and if changed by the Contractor requires a site specific supporting change to the COL. | Subject to Paragraph 15 of the October 2105 Amendment, Westinghouse should be responsible for its costs incurred to make changes to the Owner’s Current Licensing Basis (CLB), attributable to its DCPs and LCPs. This includes efforts to resolve Owner comments prior to incorporation of change into the VCS 2/3 CLB, whether made on a draft or final revision of the proposed change package. It is reasonable to expect that some changes may require multiple comment review cycles due complexity and number of parties involved. Westinghouse should also be responsible for its costs incurred for implementing changes to the extent that work relates to site-specific Tier 1, Tier 2*, COL or Tech Spec requirements. The Owner will be responsible for Owner-directed changes. |
32 | WEC’s position on CB&I Service claim against WEC for CV costs (delay and other) | CB&I Services (WEC’s subcontractor) Containment Vessel safety-related Work was delayed from January 19, 2011 through July 31, 2011. WEC invoiced the Owner $1,405,811.35 (Target Price). CB&I Services’ work was delayed due to CB&I Services’ ineffective QA program; Westinghouse and its subcontractors are required to have a QA program that meets the requirements of the EPC Agreement. The Owner should not be liable for any charges associated with a delay period during which CB&I Services had to take actions necessary to meet its contractual QA program obligations. | WEC should retract this invoice as no longer owed by the Owner. Whatever settlement WEC reached with CB&I Services associated with this delay should remain between WEC and its subcontractor. No further invoices will be issued to Owner related to the costs for schedule delay impacts on the CV unless related to a Change under Article 9 of the EPC Agreement. |
33 | Secondary Lab and Sampling Room in Turbine Building | Per Exhibit A of the EPC Agreement, the Turbine Building is to be provided as a complete structure and finishes inclusive of all equipment, components and commodities. Consortium's position is that they are entitled to a Change Order for the completion of Secondary Chemistry Laboratory including utilities (e.g. gas lines, water lines, faucets, drain lines, electrical outlets) and fixtures (e.g. sampling panels, fume hood, sinks, high purity water treatment unit) to be located in the laboratory that interface with multiple plant systems including the Main AC power System, Waste Water System, Potable Water System, Demineralized Water System, and the Turbine Building Ventilation System. | The Consortium should supply the secondary chemistry lab furnished to the scope of supply outlined in the attachment titled “Secondary Chemistry Lab Scope of Supply” attached to SCE&G letter NND-15-0085 dated February 4, 2015. |
34 | Site inspections and Vendor Inspections by NRC | For site inspections performed by the NRC, because the Contractor is responsible for design, construction, and testing of the AP1000 and maintains responsibility for the Facility Information during construction, the Contractor is obligated to provide knowledgeable personnel to support NRC inspections associated with design, construction and testing. These personnel may include subject matter experts whose work location is off site. From time to time, certain inspections may be generic in nature or rely solely on software/services. For these inspections it may be most effective, for all parties, to execute the inspection at the specific Contractor work location. This location may be off site at a contractor facility. For inspections performed by the NRC at Contractor's vendor facilities, it is the Owner’s reasonable expectation that the Contractor and Contractor’s vendors retain responsibility of Vendor inspection support. There has been no Change in Law since agreement of EPC. In fact, the NRC specifically identified their intended vendor inspection activities to include ITAAC on 6/27/2007 through SECY-07-0105. The inspections performed at vendors assure compliance with Appendix B and 10CFR21 as required by procurement documents. These inspections are not intended to confirm ITAACs but to ensure the associated QA activities are implemented in accordance with Appendix B. | At no additional cost to Owner, Westinghouse to provide the Owner with all information requested by NRC inspectors and any information requested by the Owner to properly prepare for the inspection, in addition to routine oversight. Westinghouse will need to coordinate with their vendors, as needed, to address NRC questions related to ITAAC associated activities performed by vendors or sub-vendors. For any NRC violations requiring licensee response, related to work activities within Contractor scope, the Contractor will provide information to Owner as requested by Owner to respond and address the violation. Depending on significance, these activities may require additional engineering effort or re-work in the field. For Conditions Adverse to Quality (CAQ) which have been evaluated for 10 CFR 50.55(e) reportability or are associated with an NRC Finding, the Contractor is obligated to provide any Causal Analysis which has been performed for Owner review to support any follow up. The NRC expectation is that in accordance with 10 CFR 52.99, the Owner considers vendor inspection findings during ITAAC closure. As such, the Owner expects Contractor to share information pertaining to vendor/contractor notices of nonconformance identified by NRC and their resolution to support ITAAC closure. It is also reasonable that the Contractor share inspection results with the Owner after inspection exit to ensure the Owner can capture any issues potentially affecting ITAAC into the Corrective Action Program in a timely manner. Finally, the nature of the standard plant design obliges the Contractor to successfully manage NRC vendor inspections to support construction and operation of the first AP 1000 plants. |
35 | ID/labeling of subcomponents | Labeling of the plant is a Consortium (construction) responsibility as outlined in the Agreement, related Project Execution Plans, and other related Project documents. In accordance with Exhibit A.2, titled "Phase II," of the Agreement, the Consortium is to provide the Owner with "one (1) or two (2) complete AP1OOO Nuclear Power Plant Units ...except for those items listed in Table 1 as Owner's Responsibility." This section further describes the AP1000 Nuclear Power Plant Units as the Standard Plant description as described in Revision 16 of the AP1000 Design Control Document (DCD). Section 18.8.4.1.9 of Revision 16 of the AP1000 DCD, titled "Coding and Labeling, states the following as it relates to labeling of components: “Equipment located in the AP1000 has a unique identifier and plant descriptive name. The configuration management system includes the identification of the equipment in the plant. Each component is assigned an identifier during the design process. The identifier is maintained through manufacturing, construction, and operation. The components are labeled according to the assigned identifier. These labels help avoid errors in operating or working on the wrong equipment and in reporting problems or conditions observed in the plant. The labels help reduce the training burden for operating and maintenance personnel. Color, syntax, abbreviations and symbols are consistently applied. The labels are located in an easily visible location on the component and are not hidden by insulation, equipment covers, or surrounding equipment. Labels are fastened to the component to prevent easy detachment of the label." APP-GW-GZP-002, "AP1000 Component Identification Labeling Procedure" contains guidance for Project groups to use in developing and affixing component identification and operator aid labels. This document lays out roles and responsibilities, label content, label material, and label placement. This procedure has been reviewed and endorsed by the Owner as an acceptable method for labeling the AP1000 Plant. Further review of the Project Execution Plans for System Turnover (APP- GW-GBH-350, Rev. 0) indicate that all system tagging labeling installation is a pre-requisite responsibility of Construction prior to turnover to Pre-Operational Testing. This approach is consistent with the expectations of SCE&G for system turnover and collaboration of station personnel in the testing and startup activities. In addition, it is the Owner’s understanding that the current Work In Progress (WIP) MELs exclude the following equipment types and are not anticipated to be numbered or labeled (note: this list is not comprehensive): Subcomponents to skids and packages; Components within I&C and Electrical Cabinets (breakers, switches, and etc.); Fuses (Master Fuse List required per UFSAR); Pipe Hangers/Snubbers; Electrical equipment controls (i.e., solenoid valves for equipment). | Consortium to provide a plan outlining the labeling of the V.C. Summer AP1000 Nuclear Power Plant. At no additional cost to Owner, Consortium to label the V.C. Summer AP1000 Units 2 and 3 in accordance with APP-GW-GZP-002. |
36 | FPOT/F3POT | The Owner’s position is that the Consortium is responsible for all testing in accordance with Article 11 of the EPC Agreement. This testing includes the First Plant Only Test (FPOT) and the First Three Plants Only (F3POT). The Owner acknowledges that the Consortium made an effort to take credit for the China FPOT and F3POT and results, but that the NRC was not supportive of this approach. As a result, the Consortium has incorporated the FPOT and F3POT into the testing program and schedule to be performed on site for the Units. The Owner agrees with including this testing in the T&M scope of work in the EPC Agreement, but does not agree that this testing is outside the EPC Agreement scope and warrants a change order. The Consortium and Owner positions are included in VSP_VSG_002399 and NND-13-0486, respectively. | The Consortium to perform the FPOT and F3POT as part of the testing program in accordance with Article 11 of the EPC Agreement. |
37 | Timely access to vendor technical manuals. | The Owner needs information turnover to develop the programs, processes and procedures to operate the plant. Furthermore, the Owner needs those documents produced and delivered in a timely fashion to facilitate the proper level of Owner review and acceptance. To date, the flow of engineering information not directly used to build the plant, i.e. placed in ShawDocs, has been insufficient. The EPC references in a number of locations that the Consortium will provide various documentation to the Owner prior to system turnover. Section A.2 states that “Documentation to be provided by the Contractor to the Owner as developed for the Facility as listed in Table. 2” and section 3.3.3 states “Contractor shall provide to Owner the necessary inputs, test procedures, technical manuals, and other Documentation related to forgoing tests.” The Owner interprets these statements to mean that as the documents are developed to a revision 0 product, they will be made available to the owner via ShawDocs or CAPA. | As the documents are developed (revision 0), at no additional cost to Owner, Westinghouse to make those documents available for Owner review. For example, if the RCS system design is complete, those documents, to include vendor technical manuals, should all be available for owner review and acceptance, well before the system testing has begun. This process should begin immediately. |
38 | BEACON | The WEC AP1000 reactor Standard Plant design contains a core power distribution measurement system designated as the Incore Instrumentation System (IIS). The AP1000 has been designed to use the BEACON system as part of its required control system. BEACON is an advanced core monitoring and support package. According to DCD Revision 16, this online core monitoring system provides the operator with the current allowable operating space, detailed current power distribution information, thermal margin assessment and operational recommendations to manage and maintain required thermal margins. It is understood that the AP1000 Standard Plant initial startup cannot occur without BEACON hardware and software and, as the AP1000 is designed, it cannot be operated without BEACON. In addition, per the Agreement, WEC is obligated to provide to Owner an AP1000 Standard Plant as described in DCD Revision 16. For the IIS, the system is to be supplied complete and inclusive of all equipment, components and commodities including any specialty handling tools and equipment as described in the DCD. | WEC to provide BEACON-DMM hardware and software to support fuel load, startup testing and operations as part of the EPC Agreement and without additional charge to the Owner. |
39 | Shield Building Door, Annex, Auxiliary Building, Aircraft Impact Assessment. | The Consortium sent to Owner Notice of Change letters (VSP_VSG_003096 and VSP_VSG_003450) claiming that a new NRC Rule entitled “Consideration of Aircraft Impact for New Nuclear Power Reactors” (the AIA Rule) impacts other structures in the Nuclear Island. Specifically, the Consortium claims that it is required to make changes to the Annex and Auxiliary Buildings’ wall design, as well as Annex and Auxiliary and Shield Building doors to comply with the NRC Rule. The Consortium further claims that this scope of work is outside that of the EPC Agreement and warrants a change order. The Owner has taken exception to the Consortium claim in NND-15-0007 and NND-15-0323 based on the availability and knowledge of the draft AIA Rule prior to execution of the EPC Agreement and the comprehensive Agreement between the Consortium and the Owner executed on July 11, 2012 and resolving all issues associated with the AIA Rule impact. | Consortium to implement the necessary design and construction changes to the Shield Building Door and Annex and Auxiliary Buildings impacted by the AIA Rule in accordance with the EPC Agreement and July 11, 2012 Agreement |
40 | Loss of Large Areas of the Plant due to Explosions or Fire Testing | On March 27, 2009, the NRC amended 10 CFR Part 50 and 10 CFR Part 52 with new requirements to address loss of large areas (LOLAs) of the plant due to explosions or fires from a Beyond Design Basis Event. The NRC issued Interim Staff Guidance DCD/COL-ISG-016 to assist new applicants or holders of COLs to address the LOLA requirements. These requirements were not included in DCD Revision 16, which is the design basis for the Agreement (Reference 1). In Reference 2, Owner notified the NRC that changes would be made to a future revision of the V.C. Summer Units 2 & 3 COLA in accordance with 10 CFR 52.80(d) and 10 CFR 50.54(hh)(2) to address LOLA. Owner provided the NRC with a Mitigative Strategies Description (MSD), which described the preoperational testing required to provide a reasonable confirmation of adequate spent fuel pool spray coverage. These requirements were incorporated into Owner’s COL Section 2.D.(12).(e).8 as a license condition. The Consortium has offered to perform this work for SCE&G as a change order. | Consortium to perform the testing and other work required to meet Owner’s LOLA obligations under the COL Section 2.D.(12).(e).8 as a license condition at no additional cost to Owner. |
41 | Pre-Service Testing Program Development, Pre-Service Test Conduct, ITP | The Owner and Consortium have a difference of opinion on the Initial Test Program scope as related to the following items referenced in VSP_VSG_003669: 1. Pre-service testing, including baseline in-service testing 2. Initial core load and post core load vessel assembly 3. Any spent fuel pool spray flow and makeup testing required to support the Loss of Large Area (LOLA) Mitigation Strategy Document (reference item 40 on Commercial List) 4. Cooling Towers testing 5. Preoperational testing for: a. Storm Drains; b. Site-specific Seismic Monitoring System; c. Offsite AC Power Systems; d. Raw Water System; e. Sanitary Drain System; f. Fire Brigade Support Equipment; g. Portable Personnel Monitors and Radiation Survey Instruments; h. Physical Security Plan equipment implied in UFSAR Section 14.4.5; and, i. External/Offsite Communications The Consortiums position is that these items are not included in the EPC Agreement scope. The Owner’s position is that the items above are in the EPC Agreement ITP scope. Additional ITP expectations include the following: 1. All FPOT and F3POT testing and associated activities to include test specification and procedure development, material/equipment procurement, test planning, test scheduling, test performance, data analysis and generation of final test report. Reference item 36 on Commercial List. 2. All testing associated with “site specific” systems listed in EPC Agreement Exhibit A, Table 1. Activities to include test specification and procedure development, material and equipment procurement, test planning, test scheduling, test performance, data analysis and generation of test report. 3. ASME Pre-service Test Plan development and implementation as noted in the first section above based on the current revision of the ASME-OM document. 4. Steam Generator Moisture Carryover Test procedure development, material and equipment procurement, test planning, test scheduling, test performance, data analysis and generation of test report. Reference item 45 on Commercial List 5. Large Area Testing. Reference item 40 on Commercial List. | Consortium to include all of these items in the ITP at no additional cost to Owner. |
42 | Procedure revisions from Technical Specification Upgrade (Owner, WEC 50/50) | This issue deals with LAR 13-037 (Technical Specification Upgrade) and the Owner’s position that the technical specifications as written were not usable and would not allow the Owner to successfully operate the plants (reference NND-14-0479). Technical specification examples were given in NND-14-0479 relating to the Steam Generator Isolation Valves flow path, Reactor Coolant Pump minimum flow parameters and the Radioactive Effluent Control Program. | Contractor to provide a proposal to APOG for the requested scope per letter dated October 7, 2015 from APOG with subject: APOG-2015-007 Request for Quote - Technical Specifications Upgrade Impacts. Scope will be performed in accordance with and under the terms of an APOG purchase order. In the event the work is not performed through APOG, Westinghouse to provide technical specifications that are technically accurate and easily understandable and Contractor to complete items #1-5 in VSP_VSG_002989. |
43 | Providing As-Built Drawings | EPC Table 2-1 makes reference to As-Built and As-Designed separately from each other. Consortium members have verbally communicated that they interpret As-Built to be the As-Designed document combined with the associated change documentation. This is not consistent with SCE&G’s understanding of the term As-Built. WEC procedure APP-GW-GAP-615, Appendix F5 states - To pass release for the core load and turnover to the Owner, the design shall: The design input document shall have no open items or unincorporated changes; Design output documents shall be complete, numeric, and consistently relate to the design input document. A numeric revision, verified compliance document is required and shall demonstrate that the design output documents have met all design input requirements. Design output shall have considered and reconciled the impact from as built and as-tested conditions that may impact core load. NRC Inspection Manual, Inspection Procedure 65001, “Inspections of Inspections, Tests, Analyses and Acceptance Criteria (ITAAC) Related Work”, Attachment 65001.A, requires the following: 02.04 Review As-Built Deviations / Non-Conformances: a. Review a sample of documents that were used to identify differences between the as-designed and as-built SSCs to determine if: i. The difference, if not corrected to comply with the as-designed conditions, was properly documented and incorporated in the final as-built drawings. | To preclude any discussion or confusion regarding what may or may not impact core load, at no additional cost to Owner, WEC to turn over to SCE&G all documents as described in EPC Table 2-1, in an as-built state, with all changes and dimensional discrepancies incorporated into the document. Owner understands the engineering backlog on change paper is growing and immediate actions are required to be able to deliver “clean paper”. Owner understands that additional changes may occur after Turnover and is prepared to address processes to handle these changes. |
44 | Operating Procedure Configuration Control (Owner to incorporate All post-Baseline 7 Design Changes) | Westinghouse continues to make design changes to the Facility that effect standard operating procedures delivered to the Owner. Identification of the affected procedures is essential to ensure that the operating plant procedures are consistent with the plant design as required. | At no additional cost to Owner, Westinghouse to identify the impact of all design changes on operating procedures and provide this information to Owner. |
45 | Steam Generator Moisture Carryover Test | Refer to item 41 on Commercial List. | Refer to item 41 on Commercial List. |
47 | Communication System and BIS Power Allocation | For the Communication System issue, the initial Consortium design did not take into account the site layout of the plants sold to SCE&G. Designs were for a single unit and ended at the security fencing. The Consortium's initial position was that their responsibility for wireless and wired phones, paging system, radios and networking systems ends at the “fence line.” SCE&G contends that the Consortium is responsible to extend these systems to the site specific areas like RWS intake structure, CWS cooling towers, and OWS facility. For the BIS Power Allocation issue, power allocated for Communications is not sufficient for SCE&G needs (e.g. powering phones, cameras, etc.). Per design documents, 48.6kW total power was allocated for both BIS and EFS networks. EFS would be allocated 35kW with the remaining 13.6kW allocated for BIS. SCE&G determined that the BIS power use was 38.4kW versus the 13.6kW allotted in the design. | For the Communication System issue, Consortium letter VSG_VSP_002475 dated October 9, 2013 established an acceptable DOR addressing the majority of the issues and site layout change order 26 resolved the remaining issues. For the BIS Power Allocation issue, Consortium to work with Owner to achieve adequate BIS power to support SCE&G communication needs at no additional cost to Owner. |
49 | Site Security System Backup Power | AP1000 Design Change Proposal APP-GW-GEE-2710 “Annex Building Security Features Update” identifies the back-up duration for the security system to be less than that identified in APP-GW-GLR-066 “AP1000 Safeguards Threat Assessment” and section 3.6.9 of NUREG-1793, “Final Safety Evaluation Report Related to Certification of the AP1000 Standard Design.” The Owner does not accept this reduction in back-up power reduction as referenced in NND-14-0689. | Westinghouse to provide the required back-up power duration. The Owner is willing to consider the reduced back-up power duration contingent upon WEC’s integration of the Plant Security Systems (SES) for Units 2 and 3 (Reference NND-14-0689). |
50 | OWS Security Plan | The Offsite Water System (OWS) Treatment Facility includes security and fencing plans that have been discussed with the Consortium and incorporated in the pricing for the latest draft Change Order 17 dated May 10, 2015. Correspondence relating to the OWS Security Plan includes VSP_VSG_001469, NND-11-0444, VSP_VSG_001605 and NND-12-0034. Incremental OWS security plan costs required to meet Owner corporate standards became a commercial issue, specifically the security and fencing requirements and the fire alarm system and fire detection system. Other OWS commercial issues included in the draft CO 17 are the numbering and tagging of equipment and coatings and pipe color requirements. It is noted that the primary OWS change reflected in the draft CO 17 is the addition of the reverse osmosis system to remove bromides from the water. The Owner and Consortium negotiated a “no EPC Agreement price increase” change order for CO 17 which included the OWS security and fencing plans as well as the other items referenced herein. The draft CO 17 also includes other commercial items agreed upon by the Owner and Consortium. | That the Consortium complete the installation of the OWS security, fencing and other items above to the satisfaction of the Owner. CO 17 is addressed in Commercial List item #70. |
55 | PEB Design Change | The Consortium and SCE&G could not initially come to agreement on the design requirements of the Plant Entry Building. | This issue was resolved with the issue of change order 26. |
57 | Fire Alarm monitoring | Due to the delay in the project schedule, the Owner is concerned about the increasing value of inventory in the onsite warehouses 20A, 20B and 57 in relation to the insurability of the warehouses and their content under the Owner’s Builder’s Risk Policy. Owner has elected to implement enhancements to the fire alarm monitoring for these warehouses, which includes monitoring of sprinkler system water flow switches in the three warehouses and interconnecting the new system to the existing yard fire alarm system. On October 7, 2015, the Consortium provided to the Owner a draft CO for Owner’s review and comment. | The Consortium to install new local fire alarm control panels in Warehouses 20A and 57; the flow switches will be monitored locally at each of these 2 warehouses. A new main fire alarm panel will be installed in Warehouse 20B. This new main fire alarm panel will monitor the Warehouses 20A and 57. The new main fire alarm panel will be network connected to the existing Siemens fire alarm system using single mode fiber optic connections. Spare fibers which run between the buildings shall be assigned for this purpose. All alarms from the new warehouse fire detection system will be monitored by the existing system’s main fire alarm panel located in the main plant entry guard shack. Physical connection with the existing system’s network shall be made at the YFS fire pump house. The new fire detection system for the three warehouses will be designed as a Class B system; Class A monitoring is not required to satisfy the requirements of the authority having jurisdiction codes for these warehouses. |
60 | Laurens Piping Quality Issues | CB&I Laurens issued a self-imposed Stop Ship on March 12 following a CB&I Power Audit (V2015-035), which included two Level 1 findings and three Level 2 findings. Most of the issues were repeat Findings from previous Audits/Surveillances performed by CB&I Power. CB&I Laurens issued a Stop Work Order (SWO) on all Safety Related (SR) ASME Section III piping on March 17. The issuance of this SWO was during the March NRC inspection which found many similar issues documented in the CB&I Audit (V2015-035). The major issues being addressed by the SWO are CGD and Qualification of Vendors, Internal and External Audit Programs, Document Control, and Corrective Action Program. During CB&I Power Surveillance 2015-172, which occurred in August 2015, the surveillance team discovered that issues with CGD and Qualification of Vendors had not been fully addressed by CB&I Laurens. This was also noted as an indicator that the corrective actions with the CAP had not been fully effective. July 2015, CB&I Site QC inspection of pipe spools not signed off by Laurens ANI resulted in an approximate reject rate of 65%. These were due to minimum wall violations, dimensional issues, and misfabrications. These results have raised questions on inspection methodologies between Summer, Laurens, Vogtle, and Source Inspection. An additional CBI Laurens self-imposed SWO was put in place on 10/09/15 regarding the incorrect VALVES being place in a pipe spool. The preliminary investigation determined that this does not affect Section III Safety Related pipe spools and has only effected a single spool. However, this investigation is only preliminary and a full Extent of Condition has not been performed. In addition to the Laurens SWO CBI Power has issued QRL restrictions for shipping of Laurens ASME SR spools unless they are released (after enhanced inspection) by the CB&I site QA Directors. Currently Pipe Spools have only been released in phases 1-3 of a 4 phase SWO. No spools will be released to phase 4 until completion of First Article Survey(FAS) by CB&I Power. Once all Spools are completed through Phase 4, the SWO will be lifted. | 1. Completion of Corrective Actions associated with stop work /stop ship and lifting of restrictions. 2. Agreement on inspection methodologies between Vogtle, Summer, Laurens, and Source Inspection. 3. Completion of Enhanced Inspections on post SWO pipe spools performed by VC Summer QC. 4. Sustainable Improvements in programmatic systems reported from Audit/Surveillance results performed by CB&I Power. |
67 | Common Q/Ovation MTS | Owner needs to have an Ovation MTS so Owner can train its technicians and engineers on Ovation equipment in the Ovation Maintenance and Ovation Core Team training areas. The Ovation MTS provides an offline environment with a representative sample of system hardware representing the Distributed Control and Information System (DCIS). In the plant, the Ovation platform is used for the Plant Control System, the Data Display and Processing System, and portions of the Operator Interface of the Operations and Control Centers System (collectively DCIS). Owner provided a revised scope of work to Westinghouse on September 9, 2015 and requested an updated cost proposal. [Note: Common Q MTS CO was in August 2015] | Westinghouse to provide the Ovation MTS, to include the hardware, software, documentation and support, as described in the revised scope of work, which was emailed to Westinghouse on September 9, 2015. |
69 | Path forward to execute CO16 | CO#17 provides clarification information for CO#16. If CO #17 is to be executed, the 2 COs need to be executed together. However, the project schedule upon which CO#16 was based no longer reconciles with the current working schedule. | 1. Reach agreement with Consortium on execution of CO #16 and/or CO #17 2. If CO #16 is executed, determine whether schedule language in CO #16 should be modified 3. If schedule language needs to be modified, reach agreement with Consortium on updated language 4. Reach agreement with Consortium on whether Exhibit F schedules should be included in the CO, specific to CO #16. Consortium has proposed not including Exhibit F tables, since the information would be stale at the time of CO execution; instead the impacts of CO #16 to the Exhibit F milestones would be incorporated into an EPC Amendment. 5. Execute alone or simultaneously with CO #17 |
70 | Path forward to execute CO17 | CO#17 provides clarification information for CO#16; If CO #17 is to be executed, the 2 COs need to be executed together. However, the project schedule upon which CO#16 was based no longer reconciles with the current working schedule | 1. Reach agreement with Consortium on execution of CO #16 and/or CO #17 2. If CO #17 executed, reach agreement with Consortium on whether Exhibit F schedules should be included in the CO, specific to CO #17 (Tables F.1.6 (f-h)). Consortium has proposed not including Exhibit F tables, since the information would be stale at the time of CO execution; instead the impacts of CO #17 to the Exhibit F milestones would be incorporated into an EPC Amendment. 3. Owner to transmit agreed-to de-escalation process since it is not included in CO as Owner requested. 4. If executed, execute simultaneously with CO #16 |
77 | TEDV DAQ Funding | Purchase agreement between Westinghouse, Southern and SCE&G is to provide the data acquisition system and capability to support thermal expansion and dynamic evaluation of plant components during testing. | Westinghouse to deliver TEDV DAQ in accordance with purchase agreement. |
96 | Offsite Storage and Lay down – Leases, Equipment, and FNM Per Diem (area 14, Blythewood, Metro) | During Phase I of the EPC Agreement scope of work, the Owner paid the Contractor to develop the requirements for all temporary facilities on the Site, to include warehouses and equipment and material laydown areas. The Contractor developed the requirements, was given unlimited access to the Site and was in control of the Target Price budget for construction of the appropriate facilities. The Contractor now estimates significantly more warehouse facilities and laydown area space than it originally planned. The Owner contends that this additional warehouse and laydown area space is attributed to either inadequate planning on the part of the Contractor or structural module delay. The facilities and laydown area in question at this point are the Blythewood warehouse facility, Metro warehouse facility and laydown area 18. The Blythewood warehouse is being utilized and the lease payments invoiced to the Owner have been disputed. The Metro facility renovation is essentially complete and ready to receive equipment and material. The Contractor will begin invoicing the Owner for the lease and other expenses. The Area 14 laydown area construction has been out for bids by the Contractor who has been having discussions with the Owner on the invoicing process. The Contractor claims entitlement to a change order for these warehouse facilities and laydown area expenses since they are located off-site. The Owner disagrees and is willing to treat these facilities as target scope work under the EPC Agreement with no justification for a change order. Also, the Owner’s position is that CO 8 applies which transferred target dollars to fixed/firm dollars for items such as construction equipment and field non-manual living expenses. | The Contractor invoice the Owner for the Blythewood and Metro warehouses and Area 15 laydown area construction under the Target Price category per the EPC Agreement, applying the CO 8 cost categories to the invoicing. The total costs for these facilities and laydown area will remain in dispute per the EPC Agreement due to the structural module delay with resolution dependent upon senior executive negotiations. |
97 | Warranty impact due to delay and specific warranty claims; and extending warranties based on actual completion dates | The warranty requirements are specified in Article 14 of the EPC Agreement. Specifically, a 24 month warranty period for Equipment begins upon the actual Substantial Completion Dates for Units 2 and 3. The presently approved Guaranteed Substantial Completion Dates for Units 2 and 3 are March 15, 2017 and May 15, 2018, respectively. The Owner’s position is that the 24 month warranty period and other warranty provisions in the EPC Agreement should be effective upon the actual Substantial Completion dates due to the structural module delay impact on the Project Schedule. Also, there are specific warranty claims that the Consortium is responsible for resolving. For example, the Units 2 and 3 Switchyard has experienced component failures, specifically related to capacitors, as noted in Owner correspondence NND-14-0335, NND-14-0337, NND-14-0514 and NND-14-0627. Other components also sustained damages, but were replaced by the Consortium with extended warranties (reference VSP_VSG_002978). The Consortium has been working with the Owner and capacitor manufacturer (ABB/Maxwell) to perform analyses and testing to determine root cause. In the meantime, capacitors have been removed from the Switchyard, which is presently operating at partial capacity due to these capacitor issues. | 1. Consortium extends 24 month warranty provision and other warranty provisions of Article 14 of the EPC Agreement to be effective upon the actual Substantial Completion Dates for Units 2 and 3. 2. Consortium resolves all outstanding warranty claims, to include the Switchyard capacitor failure claim, to the Owner’s satisfaction. This will include component extended warranties as applicable. |
98 | Cyber-Security | The Owner’s position is that the Consortium is committed in the EPC Agreement to provide a cyber security program for VCS Units 2 and 3 that complies with APP-GW- GLR-104, “AP1000 Cyber Security Implementation,” dated May 2007 (also referred to as TR-104). TR-104 is a requirement included in the AP1000 Design Control Document (DCD) Revision 16 which is referenced in the EPC Agreement. The Owner acknowledges that the NRC issued Regulatory Guide (RG) 5.71, “Cyber Security programs for Nuclear Facilities,” subsequent to the execution of the EPC Agreement and that there is a level of incremental scope of work which has not been satisfactorily resolved to the satisfaction of the Owner. The Owner and Consortium agreed to a Phase I Cyber Security CO (#14), which was executed on March 14, 2012 The Owner and Consortium have attempted to negotiate a Phase 2 Cyber Security CO but have been unsuccessful to date. A significant impasse dealt with the Consortium’s refusal to accept project schedule risk and mandate to Owner a release of the Guaranteed Substantial Completion date for Unit 2. A Phase 2 Cyber Security technical scope of work has been agreed upon and is included in the latest draft Cyber Security CO dated February 19, 2015 (VSP_VSG_003270). This technical scope is entitled “Technical Description for Consortium for AP1000 Consortium Cyber Security Scope of Supply.” The Owner and Consortium have discussed scopes of work beyond Phase 2, although no Technical Description for Phase 3 has been defined. For example, in a previous draft Cyber Security CO dated February 28, 2013, Phase 3 scope topics were addressed to include potential warehouse modifications to handle storage and handling of Critical Digital Assets (CDA’s), the training of site personnel to deal with CDA’s and site installation and Field Change Notices associated with hardware and software modification. The Owner and Consortium have also had discussions that Phase 3 work would involve dealing with suppliers of equipment for potential smart equipment upgrades. The Owner is concerned that the negotiations on cyber security have been unnecessarily delayed as evidenced by timelines maintained by the Owner and the Consortium’s decision to hold up work on cyber security and demobilize personnel earlier this year. It is noted that the Owner had authorized dollars for the Consortium to perform cyber security work during the negotiations and had requested that the Consortium continue with the interim funding provided by the Owner. | Subject to Paragraph 4 of the October 2105 Amendment, Consortium to provide a cyber security program in accordance with RG 5.71 and accept schedule risk to meet Guaranteed Substantial Completion Dates agreed to between Owner and Consortium. All phases of the Cyber Security Program are included in this scope, which also includes the Phase 2 technical scope referenced in the draft CO dated February 19, 2015. |
WEC Claim | |||||
Regulatory Delay Claim | $ | 83,518,046 | |||
Payment Entitlement in Dispute | |||||
Capped Esc due to Structural Module Delay | $ | 6,275,414 | |||
Cyber Security | $ | 374,613 | |||
Target Invoice Returns (storage, tents, firm price) | $ | 13,289,433 | |||
Target Invoice Withholding (10%) Due to Delay and | |||||
Performance Inefficiencies | $ | 7,657,127 | |||
Interest Expense on Returned Invoices | $ | 2,133,198 | |||
Total | $ | 29,729,785 | |||
No Dispute, Payments Pending CO Execution | $ | 5,565,845 | |||
HW Escalation Calculation | $ | 5,565,845 | |||
Total | |||||
Timing of Payment in Dispute | |||||
Progress Payments | $ | 99,066,205 | |||
Milestones Not Complete | $ | 11,124,299 | |||
Total | $ | 110,190,504 |
Description | Reference |
Data Turnover and documentation required | |
Containment Debris Margin Increase | NND-11-0166; VSP_VSG_001218 |
Auxiliary Boiler design capability | |
Electromagnetic Capability (EMC) with Protection & Safety Monitoring System (PMS) - | |
American Society of Mechanical Engineers(ASME) Boiler and Pressure Vessel Code Section VIII pressure vessel over pressure protection | NND-15-0460; VSP_VSG_003682 |
Site Layout changes, Phase 3, due to security regulatory changes | |
Onsite automation/I&C Support to Owner during post initial core load | |
Onsite switchyard preoperational test | |
Plant Security System (SES) testing | |
Plant Security System (SES) Unit 2&3 Computer Integration |
By: | |
Name: | |
Title: |
WESTINGHOUSE ELECTRIC COMPANY LLC | |
By: | /s/Danny Roderick |
Name: | Danny Roderick |
Title: | President & Chief Executive Officer |
STONE & WEBSTER, INC. | |
By: | |
Name: | |
Title: |
A. | Resume showing construction experience qualifying the person as a DRB member. |
B. | Resume showing past DRB participation, if any. This resume will each DRB assignment separately, and state the name and location of the project, dates of DRB service, name of owner, name of contractor, contract value, nominating party if applicable, names of the other DRB members, and the number of disputes heard. |
C. | All three members of the DRB are to be neutral and must affirm their neutrality, under oath, once the DRB is fully constituted and before the DRB takes any action. |
D. | Disclosure statement describing past, present, and anticipated relationships or financial ties, including indirect relationships through the nominee’s full-time employer, if any, to the Project, and with the Parties and with all other entities directly and indirectly involved in the EPC Contract. Entities indirectly involved include Fluor, designers, architects, engineers, or other professional service firms or consultants, joint-venture partners, subcontractors of any tier, and suppliers on the Project. The disclosure statement will also disclose close professional or personal relationships with key members of the Parties and these entities. |
E. | Neutrality and disclosure is a continuing obligation of all DRB members throughout the life of the EPC Contract. |
F. | Each member of the DRB shall execute non-disclosure agreements as required by the Parties. |
G. | No DRB member shall be allowed to act as an arbitrator or appear as a witness in any subsequent arbitration or litigation related to or arising out of the EPC Agreement. |
By: | |
Name: | |
Title: |
WESTINGHOUSE ELECTRIC COMPANY LLC | |
By: | |
Name: | |
Title: |
STONE & WEBSTER, INC. | |
By: | |
Name: | |
Title: |
Westinghouse Electric Company LLC | CB&I Stone & Webster, Inc. | |||
By | /s/Danny Roderick | By | ||
Title | President & Chief Executive Officer | Title | ||
Date | October 27, 2015 | Date |
By | /s/Kevin B. Marsh |
Title | Chairman & CEO |
Date | October 27, 2015 |
SCANA: | Nine Months Ended September 30, 2015 | Twelve Months Ended September 30, 2015 | Years ended December 31, | |||||||||||||||||||||
Dollars in Millions | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||||||
Fixed Charges as defined: | ||||||||||||||||||||||||
Interest on debt | $243.9 | $324.5 | $318.2 | $305.9 | $301.3 | $287.0 | $270.4 | |||||||||||||||||
Amortization of debt premium, discount and expense (net) | 3.6 | 7.4 | 9.7 | 5.3 | 4.9 | 4.8 | 5.1 | |||||||||||||||||
Interest component on rentals | 2.8 | 3.9 | 4.1 | 4.9 | 4.9 | 5.2 | 4.6 | |||||||||||||||||
Total Fixed Charges (A) | $250.3 | $335.8 | $332.0 | $316.1 | $311.1 | $297.0 | $280.1 | |||||||||||||||||
Earnings as defined: | ||||||||||||||||||||||||
Pretax income from continuing operations | $997.9 | $1,152.6 | $786.0 | $693.8 | $601.6 | $555.6 | $535.4 | |||||||||||||||||
Total fixed charges above | 250.3 | 335.8 | 332.0 | 316.1 | 311.1 | 297.0 | 280.1 | |||||||||||||||||
Pretax equity in (earnings) losses of investees | 0.5 | 0.0 | (1.4 | ) | (3.2 | ) | (3.3 | ) | (2.9 | ) | (1.1 | ) | ||||||||||||
Cash distributions from equity investees | 3.0 | 6.0 | 7.4 | 9.6 | 3.3 | 3.6 | 4.8 | |||||||||||||||||
Total Earnings (B) | $1,251.7 | $1,494.4 | $1,124.0 | $1016.3 | $912.7 | $853.3 | $819.2 | |||||||||||||||||
Ratio of Earnings to Fixed Charges (B/A) | 5.00 | 4.45 | 3.39 | 3.22 | 2.93 | 2.87 | 2.92 |
SCE&G: | Nine Months Ended September 30, 2015 | Twelve Months Ended September 30, 2015 | Years ended December 31, | |||||||||||||||||||||
Dollars in Millions | 2014 | 2013 | 2012 | 2011 | 2010 | |||||||||||||||||||
Fixed Charges as defined: | ||||||||||||||||||||||||
Interest on debt | $191.6 | $252.2 | $237.6 | $226.4 | $217.4 | $207.8 | $192.4 | |||||||||||||||||
Amortization of debt premium, discount and expense (net) | 2.8 | 3.9 | 4.4 | 4.2 | 3.9 | 3.9 | 4.0 | |||||||||||||||||
Interest component on rentals | 3.1 | 4.2 | 4.0 | 4.5 | 3.2 | 3.6 | 3.1 | |||||||||||||||||
Total Fixed Charges (A) | $197.5 | $260.3 | $246.0 | $235.1 | $224.5 | $215.3 | $199.5 | |||||||||||||||||
Earnings as defined: | ||||||||||||||||||||||||
Pretax income from continuing operations | $600.9 | $715.6 | $676.0 | $579.7 | $509.5 | $456.5 | $433.6 | |||||||||||||||||
Total fixed charges above | 197.5 | 260.3 | 246.0 | 235.1 | 224.5 | 215.3 | 199.5 | |||||||||||||||||
Pretax equity in (earnings) losses of investees | 3.8 | 5.0 | 5.3 | 3.5 | 3.8 | 2.3 | 2.1 | |||||||||||||||||
Total Earnings (B) | $802.2 | $980.9 | $927.3 | $818.3 | $737.8 | $674.1 | $635.2 | |||||||||||||||||
Ratio of Earnings to Fixed Charges (B/A) | 4.06 | 3.77 | 3.77 | 3.48 | 3.29 | 3.13 | 3.18 |
1. | I have reviewed this quarterly report on Form 10-Q of SCANA Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent function): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: November 6, 2015 | |
/s/Kevin B. Marsh | |
Kevin B. Marsh | |
Chairman of the Board, President, Chief Executive Officer and | |
Chief Operating Officer |
1. | I have reviewed this quarterly report on Form 10-Q of SCANA Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent function): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: November 6, 2015 | |
/s/Jimmy E. Addison | |
Jimmy E. Addison | |
Executive Vice President and Chief Financial Officer |
1. | I have reviewed this quarterly report on Form 10-Q of South Carolina Electric & Gas Company; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent function): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: November 6, 2015 | |
/s/Kevin B. Marsh | |
Kevin B. Marsh | |
Chairman of the Board and Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of South Carolina Electric & Gas Company; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent function): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: November 6, 2015 | |
/s/Jimmy E. Addison | |
Jimmy E. Addison | |
Executive Vice President and Chief Financial Officer |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: November 6, 2015 | ||
/s/Kevin B. Marsh | /s/Jimmy E. Addison | |
Kevin B. Marsh | Jimmy E. Addison | |
Chairman of the Board, President, Chief Executive Officer | Executive Vice President and Chief Financial Officer | |
and Chief Operating Officer |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: November 6, 2015 | ||
/s/Kevin B. Marsh | /s/Jimmy E. Addison | |
Kevin B. Marsh | Jimmy E. Addison | |
Chairman of the Board and Chief Executive Officer | Executive Vice President and Chief Financial Officer |
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