-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, gSahF+cPcCr4WpnIEhFhe3b9bvG5aZpg6IGmJhImmC/xWP9Dozk3st+X8NsYOX1y 4qGEITMLHu4y+v0QyKIyMg== 0000091882-94-000009.txt : 19941116 0000091882-94-000009.hdr.sgml : 19941116 ACCESSION NUMBER: 0000091882-94-000009 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 19940930 FILED AS OF DATE: 19941114 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: SOUTH CAROLINA ELECTRIC & GAS CO CENTRAL INDEX KEY: 0000091882 STANDARD INDUSTRIAL CLASSIFICATION: 4931 IRS NUMBER: 570248695 STATE OF INCORPORATION: SC FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-03375 FILM NUMBER: 94559249 BUSINESS ADDRESS: STREET 1: 1426 MAIN ST CITY: COLUMBIA STATE: SC ZIP: 29201 BUSINESS PHONE: 8037483000 MAIL ADDRESS: STREET 1: MAIL CODE 073 CITY: COLUMBIA STATE: SC ZIP: 29218 10-Q 1 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q (Mark One) X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 1994 OR TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 1-3375 South Carolina Electric & Gas Company (Exact name of registrant as specified in its charter) South Carolina 57-0248695 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 1426 Main Street, Columbia, South Carolina 29201 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (803) 748-3000 Former name, former address and former fiscal year, if changed since last report. Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X . No . APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS: Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Section 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. Yes . No . APPLICABLE ONLY TO CORPORATE ISSUERS: Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. As of October 31, 1994, there were issued and outstanding 40,296,147 shares of the registrant's common stock $4.50 par value, all of which were held, beneficially and of record, by SCANA Corporation. 1 SOUTH CAROLINA ELECTRIC & GAS COMPANY INDEX PART I. FINANCIAL INFORMATION Page Item 1. Financial Statements Consolidated Balance Sheets as of September 30, 1994 and December 31, 1993......................................... 3 Consolidated Statements of Income and Retained Earnings for the Periods Ended September 30, 1994 and 1993............. 5 Consolidated Statements of Cash Flows for the Periods Ended September 30, 1994 and 1993............................. 6 Notes to Consolidated Financial Statements...................... 7 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations........................ 9 PART II. OTHER INFORMATION Item 1. Legal Proceedings.......................................... 12 Item 6. Exhibits and Reports on Form 8-K........................... 12 Signatures............................................................. 13 Exhibit Index.......................................................... 14 2 PART I FINANCIAL INFORMATION SOUTH CAROLINA ELECTRIC & GAS COMPANY CONSOLIDATED BALANCE SHEETS As of September 30, 1994 and December 31, 1993 (Unaudited) September 30, December 31, 1994 1993 (Thousands of Dollars) ASSETS Utility Plant: Electric............................................. $3,093,756 $3,067,881 Gas.................................................. 296,807 272,506 Transit.............................................. 3,573 3,769 Common............................................... 76,340 72,804 Total.............................................. 3,470,476 3,416,960 Less accumulated depreciation and amortization....... 1,166,214 1,097,531 Total.............................................. 2,304,262 2,319,429 Construction work in progress........................ 580,687 338,677 Nuclear fuel, net of accumulated amortization........ 40,356 29,087 Utility Plant, Net............................... 2,925,305 2,687,193 Nonutility property and investments (net of accumulated depreciation)............................ 12,475 12,709 Current Assets: Cash and temporary cash investments.................. - 193 Receivables - customer and other..................... 128,542 119,296 Receivables - affiliated companies................... 23,959 244 Inventories (at average cost): Fuel............................................... 23,564 31,192 Materials and supplies............................. 43,432 43,372 Prepayments.......................................... 12,248 10,089 Accumulated deferred income taxes.................... 8,301 9,015 Total Current Assets............................. 240,046 213,401 Deferred Debits: Unamortized debt expense............................. 11,200 11,060 Unamortized deferred return on plant investment...... 11,676 14,860 Nuclear plant decommissioning fund................... 29,063 25,103 Other................................................ 238,757 225,613 Total Deferred Debits............................ 290,696 276,636 Total................................. $3,468,522 $3,189,939 See notes to consolidated financial statements. 3 SOUTH CAROLINA ELECTRIC & GAS COMPANY CONSOLIDATED BALANCE SHEETS As of September 30, 1994 and December 31, 1993 (Unaudited) September 30, December 31, 1994 1993 (Thousands of Dollars) CAPITALIZATION AND LIABILITIES Stockholders' Investment: Common Equity: Common stock ($4.50 par value)...................... $ 181,333 $ 181,333 Premium on common stock and other paid-in capital... 625,799 583,785 Capital stock expense (debit)....................... (5,452) (5,497) Retained earnings................................... 327,843 291,713 Total Common Equity............................... 1,129,523 1,051,334 Preferred stock (Not subject to purchase or sinking funds).............................................. 26,027 26,027 Total Stockholders' Investment.................... 1,155,550 1,077,361 Preferred stock, net (Subject to purchase or sinking funds)........................................ 49,894 52,840 Long-term debt, net..................................... 1,204,362 1,097,043 Total Capitalization............................ 2,409,806 2,227,244 Current Liabilities: Short-term borrowings................................. 39,500 1,011 Current portion of long-term debt..................... 16,647 13,719 Current portion of preferred stock.................... 2,486 2,504 Accounts payable...................................... 65,171 68,182 Accounts payable - affiliated companies............... 22,753 28,630 Estimated rate refunds and related interest........... - 2,509 Customer deposits..................................... 12,431 12,207 Taxes accrued......................................... 62,553 39,965 Interest accrued...................................... 21,811 17,764 Dividends declared.................................... 30,497 29,982 Other................................................. 15,889 10,042 Total Current Liabilities....................... 289,738 226,515 Deferred Credits: Accumulated deferred income taxes..................... 491,887 480,808 Accumulated deferred investment tax credits........... 82,348 84,447 Accumulated reserve for nuclear plant decommissioning. 29,063 25,103 Other................................................. 165,680 145,822 Total Deferred Credits.......................... 768,978 736,180 Total ................................. $3,468,522 $3,189,939 See notes to consolidated financial statements. 4 SOUTH CAROLINA ELECTRIC & GAS COMPANY CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS For the Periods Ended September 30, 1994 and 1993 (Unaudited) Three Months Ended Nine Months Ended September 30, September 30, 1994 1993 1994 1993 (Thousands of Dollars) OPERATING REVENUES: Electric.......................... $294,404 $304,140 $754,512 $725,857 Gas............................... 31,650 24,517 145,928 124,711 Transit........................... 1,012 1,016 2,981 2,832 Total Operating Revenues..... 327,066 329,673 903,421 853,400 OPERATING EXPENSES: Fuel used in electric generation.. 48,270 50,041 136,203 126,954 Purchased power (including affiliated purchases)........... 32,982 32,905 83,273 85,364 Gas purchased from affiliate for resale...................... 22,926 17,205 91,326 75,421 Other operation................... 52,087 54,120 157,435 151,635 Maintenance....................... 15,876 15,022 45,574 45,976 Depreciation and amortization..... 26,705 26,339 80,147 76,914 Income taxes...................... 30,788 37,126 70,712 65,402 Other taxes....................... 18,299 17,552 52,782 52,163 Total Operating Expenses..... 247,933 250,310 717,452 679,829 OPERATING INCOME.................... 79,133 79,363 185,969 173,571 OTHER INCOME: Allowance for equity funds used during construction............. 1,435 1,428 5,419 6,179 Other income (loss),net of income taxes.................... (302) 607 (559) 113 Total Other Income........... 1,133 2,035 4,860 6,292 INCOME BEFORE INTEREST CHARGES...... 80,266 81,398 190,829 179,863 INTEREST CHARGES (CREDITS): Interest expense.................. 24,057 21,488 68,227 65,039 Allowance for borrowed funds used during construction........ (1,410) (1,122) (4,711) (4,354) Total Interest Charges, Net.. 22,647 20,366 63,516 60,685 NET INCOME.......................... 57,619 61,032 127,313 119,178 Preferred Stock Cash Dividends (at stated rates)................. (1,482) (1,548) (4,483) (4,678) Earnings Available for Common Stock. 56,137 59,484 122,830 114,500 Retained Earnings at Beginning of Period......................... 300,706 262,778 291,713 262,262 Common Stock Cash Dividends Declared.......................... (29,000) (27,400) (86,700) (81,900) Retained Earnings at End of Period.. $327,843 $294,862 $327,843 $294,862 See notes to consolidated financial statements. 5 SOUTH CAROLINA ELECTRIC & GAS COMPANY CONSOLIDATED STATEMENTS OF CASH FLOWS For the Periods Ended September 30, 1994 and 1993 (Unaudited) Nine Months Ended September 30, 1994 1993 (Thousands of Dollars) CASH FLOWS FROM OPERATING ACTIVITIES: Net income........................................... $127,313 $119,178 Adjustments to reconcile net income to net cash provided from operating activities: Depreciation and amortization...................... 80,261 77,026 Amortization of nuclear fuel....................... 12,863 12,689 Deferred income taxes, net......................... 11,124 44,210 Deferred investment tax credits, net............... (2,099) (2,434) Net regulatory asset-adoption of SFAS No. 109...... (1,509) (41,132) Nuclear refueling accrual.......................... 3,148 (7,537) Allowance for funds used during construction....... (10,130) (10,533) Over (under) collections, fuel adjustment clause... (7,804) (11,119) Changes in certain current assets and liabilities: (Increase) decrease in receivables................ (32,961) (24,138) (Increase) decrease in inventories................ 7,568 12,447 Increase (decrease) in accounts payable........... (7,329) (28,334) Increase (decrease) in estimated rate refunds and related interest............................ (2,509) (14,928) Increase (decrease) in taxes accrued.............. 22,588 26,050 Increase (decrease) in interest accrued........... 4,047 (9,917) Other, net......................................... 22,922 (17,516) Net Cash Provided From Operating Activities............ 227,493 124,012 CASH FLOWS FROM INVESTING ACTIVITIES: Utility property additions and construction expenditures....................................... (333,361) (192,537) Increase in other property and investments........... (224) (114) Principal noncash items: Allowance for funds used during construction....... 10,130 10,533 Transfer of assets from SCANA...................... 6,285 - Net Cash Used For Investing Activities................. (317,170) (182,118) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds: Issuance of First Mortgage Bonds................... 100,000 500,000 Equity contribution from parent.................... 35,774 50,939 Repayments: First and Refunding Mortgage Bonds................. - (430,000) Pollution Control Bonds............................ (100) - Other long-term debt............................... (998) (120) Preferred stock.................................... (2,964) (2,905) Dividend payments: Common stock....................................... (86,100) (81,241) Preferred stock.................................... (4,568) (4,727) Short-term borrowings, net........................... 38,489 46,285 Fuel financings, net................................. 11,510 (17,214) Advances - affiliated companies, net................. (1,559) (2,557) Net Cash Provided From Financing Activities............ 89,484 58,460 NET INCREASE (DECREASE) IN CASH AND TEMPORARY CASH INVESTMENTS........................... (193) 354 CASH AND TEMPORARY CASH INVESTMENTS AT JANUARY 1....... 193 24,302 CASH AND TEMPORARY CASH INVESTMENTS AT SEPTEMBER 30.... $ - $ 24,656 SUPPLEMENTAL CASH FLOW INFORMATION: Cash paid for - Interest (includes capitalized interest of $4,711 and $4,354)...... $ 62,922 $ 74,016 - Income taxes......................... 37,959 31,062 See notes to consolidated financial statements.
6 SOUTH CAROLINA ELECTRIC & GAS COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS September 30, 1994 (Unaudited) The following notes should be read in conjunction with the Notes to Consolidated Financial Statements appearing in the Company's Annual Report on Form 10-K for the year ended December 31, 1993. These are interim financial statements and, because of temperature variations between seasons of the year, the amounts reported in the Consolidated Statements of Income are not necessarily indicative of amounts expected for the year. In the opinion of management, the information furnished herein reflects all adjustments, all of a normal recurring nature, which are necessary for a fair statement of the results for the interim periods reported. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES: A. Principles of Consolidation: The Company, a public utility, is a South Carolina corporation organized in 1924 and a wholly owned subsidiary of SCANA Corporation (SCANA), a South Carolina holding company. The accompanying Consolidated Financial Statements include the accounts of the Company and South Carolina Fuel Company, Inc. (Fuel Company), an affiliate. Intercompany balances and transactions between the Company and Fuel Company have been eliminated in consolidation. The assets of the former Peoples Natural Gas Company of South Carolina, which were owned by SCANA and operated by the Company, were transferred to the Company on January 1, 1994. The transaction did not have a significant impact on the Company's financial position or results of operations. The Company has entered into agreements with certain affiliates to purchase gas for resale to its distribution customers and to purchase electric energy. The Company purchases all of its natural gas requirements from South Carolina Pipeline Corporation. The Company purchases all of the electric generation of Williams Station, which is owned by South Carolina Generating Company, Inc., under a unit power sales agreement. Such unit power purchases are included in "Purchased power." B. Reclassifications: Certain amounts from prior periods have been reclassified to conform with the 1994 presentation. 2. RATE MATTERS: With respect to rate matters at September 30, 1994, reference is made to Note 2 of Notes to Consolidated Financial Statements in the Company's Annual Report on Form 10-K for the year ended December 31, 1993. No changes have occurred with respect to those matters as reported therein except as shown below. On May 18, 1994 the Federal Energy Regulatory Commission (FERC) ordered the Company to refund certain amounts to its wholesale customers. The refund was ordered because the retail rate on which wholesale rates were based had been reduced and refunds had been made to retail customers in response to an order of the South Carolina Public Service Commission (PSC) issued on January 19, 1993. The Company refunded $1.1 million, including interest, to its wholesale customers on July 28, 1994. In June 1994 the Company placed into effect the second phase of the retail electric rate increase approved by the PSC on June 7, 1993. The new rates will produce an increase in electric operating revenue of $18.5 million annually, based on a test year. On June 6, 1994 the PSC issued an order denying the Company's request that the $.40 fare for low income riders of the Company's transit system be eliminated. The Company has appealed the PSC's order to the South Carolina Circuit Court. 7 On October 27, 1994 the PSC issued an order approving the Company's request to recover through a billing surcharge to its gas customers the costs of environmental cleanup at the sites of former manufactured gas plants. The billing surcharge, which goes into effect with the first billing cycle in November 1994, provides for the recovery of approximately $16.2 million representing substantially all site assessment and cleanup costs for the Company's gas operations that had previously been deferred (see Note 4B). 3. RETAINED EARNINGS: The Restated Articles of Incorporation of the Company and the Indenture underlying certain of its bond issues contain provisions that may limit the payment of cash dividends on common stock. In addition, with respect to hydroelectric projects, the Federal Power Act may require the appropriation of a portion of the earnings therefrom. At September 30, 1994 approximately $12.5 million of retained earnings were restricted as to payment of dividends on common stock. 4. COMMITMENTS AND CONTINGENCIES: With respect to commitments at September 30, 1994, reference is made to Note 10 of Notes to Consolidated Financial Statements appearing in the Company's Annual Report on Form 10-K for the year ended December 31, 1993. No significant changes have occurred with respect to those matters as reported therein. Contingencies at September 30, 1994 are as follows: A. Nuclear Insurance The Price-Anderson Indemnification Act, which deals with the Company's public liability for a nuclear incident, currently establishes the liability limit for third-party claims associated with any nuclear incident at $9.4 billion. Each reactor licensee is currently liable for up to $79.3 million per reactor owned for each nuclear incident occurring at any reactor in the United States, provided that not more than $10 million of the liability per reactor would be assessed per year. The Company's maximum assessment, based on its two-thirds ownership of Summer Station, would not exceed approximately $52.9 million per incident but not more than $6.7 million per year. The Company currently maintains policies (for itself and on behalf of the PSA) with Nuclear Electric Insurance Limited (NEIL) and American Nuclear Insurers (ANI) providing combined property and decontamination insurance coverage of $1.4 billion for any losses in excess of $500 million pursuant to existing primary coverages (with ANI) on Summer Station. The Company pays annual premiums and, in addition, could be assessed a retroactive premium not to exceed 7 1/2 times its annual premium in the event of property damage loss to any nuclear generating facilities covered by NEIL. Based on the current annual premium, this retroactive premium would not exceed approximately $8.1 million. To the extent that insurable claims for property damage, decontamination, repair and replacement and other costs and expenses arising from a nuclear incident at Summer Station exceed the policy limits of insurance, or to the extent such insurance becomes unavailable in the future, and to the extent that the Company's rates would not recover the cost of any purchased replacement power, the Company will retain the risk of loss as a self-insurer. The Company has no reason to anticipate a serious nuclear incident at Summer Station. If such an incident were to occur, it could have a materially adverse impact on the Company's financial position. B. Environmental The Company has an environmental assessment program to identify and assess current and former operations sites that could require environmental cleanup. As site assessments are initiated, an estimate is made of the amount of expenditures, if any, necessary to investigate and clean up each site. These estimates are refined as additional information becomes available; therefore actual expenditures could significantly differ from the original estimates. Amounts estimated and accrued to date for site assessment and cleanup relate primarily to regulated operations; such amounts have been deferred (approximately $20.8 million) and are being amortized and recovered through rates over a ten-year period (see Note 2). 8 SOUTH CAROLINA ELECTRIC & GAS COMPANY MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Material Changes in Capital Resources and Liquidity From December 31, 1993 to September 30, 1994 Liquidity and Capital Resources The cash requirements of the Company arise primarily from its operational needs and construction program. The ability of the Company to replace existing plant investment, as well as to expand to meet future demands for electricity and gas, will depend upon its ability to attract the necessary financial capital on reasonable terms. The Company recovers the costs of providing services through rates charged to customers. Rates for regulated services are based on historical costs. As customer growth and inflation occur and the Company expands its construction program it is necessary to seek increases in rates. As a result the Company's future financial position and results of operations will be impacted by its ability to obtain adequate and timely rate relief. The following table summarizes how the Company generated funds for its utility property additions and construction expenditures during the nine months ended September 30, 1994 and 1993: Nine Months Ended September 30, 1994 1993 (Thousands of Dollars) Net cash provided from operating activities $227,493 $124,012 Net cash provided from financing activities 89,484 58,460 Cash and temporary cash investments available at the beginning of the period 193 24,302 Net cash available for utility property additions and construction expenditures $317,170 $206,774 Funds used for utility property additions and construction expenditures, net of noncash allowance for funds used during construction $323,231 $182,004 On July 21, 1994 the Company issued $100 million of First Mortgage Bonds, 7.70% series due July 15, 2004 to repay short-term borrowings in a like amount. On November 3, 1994 the Company issued $30 million of Pollution Control Facilities Revenue Bonds due November 1, 2024. The proceeds from the sale of the bonds will be used to defray the cost of constructing certain facilities for the disposal of solid waste at the Company's Cope Generating Station under construction in Orangeburg County, South Carolina. The Company anticipates that the remainder of its 1994 cash requirements will be met primarily through internally generated funds, sales of additional securities, additional equity contributions from SCANA and the incurrence of additional short-term and long-term indebtedness. The timing and amount of such financings will depend upon market conditions and other factors. The ratio of earnings to fixed charges for the twelve months ended September 30, 1994 was 3.63. The Company expects that it has or can obtain adequate sources of financing to meet its cash requirements for the next twelve months and for the foreseeable future. 9 SOUTH CAROLINA ELECTRIC & GAS COMPANY Results of Operations For the Three and Nine Months Ended September 30, 1994 As Compared to the Corresponding Period in 1993 Earnings and Dividends Net income for the three months ended September 30, 1994 decreased approximately $3.4 million when compared to the corresponding period in 1993 primarily due to decreased electric sales margins in the third quarter of 1994. Net income for the nine months ended September 30, 1994 increased approximately $8.1 million when compared to the corresponding period in 1994 primarily due to an increase in the electric sales margins. AFC is a utility accounting practice whereby a portion of the cost of both equity and borrowed funds used to finance construction (which is shown on the balance sheet as construction work in progress) is capitalized. Both the equity and the debt portions of AFC are noncash items of nonoperating income which have the effect of increasing reported net income. AFC represented approximately 3.2% and 2.6% of income before income taxes for the three months ended September 30, 1994 and 1993, respectively, and approximately 5.1% and 5.7% for the nine months ended September 30, 1994 and 1993, respectively. On August 24, 1994 the Company's Board of Directors authorized the payment of a dividend on common stock of $29,000,000 for the quarter ended September 30, 1994. The dividend was paid on October 1, 1994 to SCANA Corporation, the Company's parent. Sales Margins The changes in the electric sales margins for the three and nine months ended September 30, 1994, when compared to the corresponding periods in 1993, were as follows: Three Months Nine Months Change % Change Change % Change (Millions) (Millions) Electric operating revenues $(9.7) (3.2) $28.6 3.9 Less: Fuel used in electric generation (1.8) (3.5) 9.2 7.3 Purchased power 0.1 0.2 (2.1) (2.4) Margin $(8.0) (3.6) $21.5 4.2 The electric sales margin decreased for the three months ended September 30, 1994 compared to the corresponding period in 1993 as a result of decreased residential and commercial kilowatt hour sales due to milder weather in 1994. The electric sales margin increased for the nine months' comparison primarily as a result of increased retail electric rates, increased industrial sales and a general improvement in the economy. 10 The changes in the gas sales margins for the three and nine months ended September 30, 1994, when compared to the corresponding periods in 1993, were as follows: Three Months Nine Months Change % Change Change % Change (Millions) (Millions) Gas operating revenues $7.1 29.1 $21.2 17.0 Less: Gas purchased for resale 5.7 33.3 15.9 21.1 Margin $1.4 19.3 $ 5.3 10.8 The increases in the gas sales margins for the three and nine months reflect increases in interruptible industrial sales and the transfer of the operations of the former Peoples Natural Gas Company of South Carolina from SCANA Corporation to the Company in January 1994. Other Operating Expenses Increases (decreases) in other operating expenses, including taxes, for the three and nine months ended September 30, 1994 compared to the corresponding periods in 1993 are presented in the following table: Three Months Nine Months Change % Change Change % Change (Millions) (Millions) Other operation and maintenance $(1.2) (1.7) $ 5.4 2.7 Depreciation and amortization 0.4 1.4 3.2 4.2 Income taxes (6.3) (17.1) 5.3 8.1 Other taxes 0.7 4.3 0.6 1.2 Total $(6.4) (4.3) $14.5 3.7 While the increase in other operation and maintenance expenses for the nine months ended September 30, 1994 is primarily due to increases in employee benefit-related expenses, the decrease for the three months' comparison results from a reduction in other employee-related expenses. The depreciation and amortization increases for the three and nine months reflect additions to plant in service. The decrease in income tax expense for the three months' comparison corresponds to the decrease in income for the third quarter. The increase for the nine months' comparison reflects the increase in operating income. 11 SOUTH CAROLINA ELECTRIC & GAS COMPANY Part II OTHER INFORMATION Item 1. Legal Proceedings For information regarding legal proceedings see Note 2 "Rate Matters" and Note 4 "Commitments and Contingencies" of Notes to Consolidated Financial Statements. Items 2, 3, 4 and 5 are not applicable. Item 6. Exhibits and Reports on Form 8-K A. Exhibits Exhibits filed with this Quarterly Report on Form 10-Q are listed in the following Exhibit Index. Certain of such exhibits which have heretofore been filed with the Securities and Exchange Commission and which are designated by reference to their exhibit numbers in prior filings are hereby incorporated herein by reference and made a part hereof. B. Reports on Form 8-K The Company filed a report on Form 8-K on July 15, 1994 in response to Item 5, "Other Events" regarding the change in identity of an expert referred to in the Prospectus included in Registration No. 33-49421. 12 SOUTH CAROLINA ELECTRIC & GAS COMPANY SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. SOUTH CAROLINA ELECTRIC & GAS COMPANY (Registrant) November 11, 1994 By: s/Jimmy E. Addison Jimmy E. Addison Vice President and Controller (Principal Accounting Officer) 13 EX-1 2 SOUTH CAROLINA ELECTRIC & GAS COMPANY Sequentially EXHIBIT INDEX Numbered Number Pages 2. Plan of Acquisition, Reorganization, Arrangement, Liquidation or Succession Plan of Exchange of South Carolina Electric & Gas Company and SCANA Corporation (Exhibit 2 to Registration No. 33-49421).................................. # 3. Articles of Incorporation and By-Laws A. Restated Articles of Incorporation of the Company as adopted on June 9, 1994 (Exhibit 3-B to Form 10-Q for the quarter ended June 30, 1993, File No. 1-3375)........................... # B. Copy of By-Laws of the Company as revised and amended thru December 15, 1993 (Exhibit 3-AZ to Form 10-K for the year ended December 31, 1993, File No. 1-3375).......................................... # 4. Instruments Defining the Rights of Security Holders, Including Indentures A. Indenture dated as of January 1, 1945, from the South Carolina Power Company (the "Power Company") to Central Hanover Bank and Trust Company, as Trustee, as supplemented by three Supplemental Indentures dated respectively as of May 1, 1946, May 1, 1947 and July 1, 1949 (Exhibit 2-B to Registration No. 2-26459).................................. # B. Fourth Supplemental Indenture dated as of April 1, 1950, to Indenture referred to in Exhibit 4A, pursuant to which the Company assumed said Indenture (Exhibit 2-C to Registration No. 2-26459)........ # C. Fifth through Fifty-second Supplemental Indentures to Indenture referred to in Exhibit 4A dated as of the dates indicated below and filed as exhibits to the Registration Statements and 1934 Act reports whose file numbers are set forth below................................................ # December 1, 1950 Exhibit 2-D to Registration No. 2-26459 July 1, 1951 Exhibit 2-E to Registration No. 2-26459 June 1, 1953 Exhibit 2-F to Registration No. 2-26459 June 1, 1955 Exhibit 2-G to Registration No. 2-26459 November 1, 1957 Exhibit 2-H to Registration No. 2-26459 September 1, 1958 Exhibit 2-I to Registration No. 2-26459 September 1, 1960 Exhibit 2-J to Registration No. 2-26459 June 1, 1961 Exhibit 2-K to Registration No. 2-26459 December 1, 1965 Exhibit 2-L to Registration No. 2-26459 June 1, 1966 Exhibit 2-M to Registration No. 2-26459 June 1, 1967 Exhibit 2-N to Registration No. 2-29693 September 1, 1968 Exhibit 4-O to Registration No. 2-31569 June 1, 1969 Exhibit 4-C to Registration No. 33-38580 December 1, 1969 Exhibit 4-Q to Registration No. 2-35388 June 1, 1970 Exhibit 4-R to Registration No. 2-37363 March 1, 1971 Exhibit 2-B-17 to Registration No. 2-40324 January 1, 1972 Exhibit 4-C to Registration No. 33-38580 July 1, 1974 Exhibit 2-A-19 to Registration No. 2-51291 May 1, 1975 Exhibit 4-C to Registration No. 33-38580 July 1, 1975 Exhibit 2-B-21 to Registration No. 2-53908 February 1, 1976 Exhibit 2-B-22 to Registration No. 2-55304 December 1, 1976 Exhibit 2-B-23 to Registration No. 2-57936 March 1, 1977 Exhibit 2-B-24 to Registration No. 2-58662 # Incorporated herein by reference as indicated. 14 SOUTH CAROLINA ELECTRIC & GAS COMPANY Sequentially EXHIBIT INDEX Numbered Number Pages 4. (Continued) May 1, 1977 Exhibit 4-C to Registration No. 33-38580 February 1, 1978 Exhibit 4-C to Registration No. 33-38580 June 1, 1978 Exhibit 2-A-3 to Registration No. 2-61653 April 1, 1979 Exhibit 4-C to Registration No. 33-38580 June 1, 1979 Exhibit 4-C to Registration No. 33-38580 April 1, 1980 Exhibit 4-C to Registration No. 33-38580 June 1, 1980 Exhibit 4-C to Registration No. 33-38580 December 1, 1980 Exhibit 4-C to Registration No. 33-38580 April 1, 1981 Exhibit 4-D to Registration No. 33-49421 June 1, 1981 Exhibit 4-D to Registration No. 2-73321 March 1, 1982 Exhibit 4-D to Registration No. 33-49421 April 15, 1982 Exhibit 4-D to Registration No. 33-49421 May 1, 1982 Exhibit 4-D to Registration No. 33-49421 December 1, 1984 Exhibit 4-D to Registration No. 33-49421 December 1, 1985 Exhibit 4-D to Registration No. 33-49421 June 1, 1986 Exhibit 4-D to Registration No. 33-49421 February 1, 1987 Exhibit 4-D to Registration No. 33-49421 September 1, 1987 Exhibit 4-D to Registration No. 33-49421 January 1, 1989 Exhibit 4-D to Registration No. 33-49421 January 1, 1991 Exhibit 4-D to Registration No. 33-49421 February 1, 1991 Exhibit 4-D to Registration No. 33-49421 July 15, 1991 Exhibit 4-D to Registration No. 33-49421 August 15, 1991 Exhibit 4-D to Registration No. 33-49421 April 1, 1993 Exhibit 4-E to Registration No. 33-49421 July 1, 1993 Exhibit 4-F to Form 10-Q for the quarter ended June 30, 1993, File No. 1-3375 D. Indenture dated as of April 1, 1993 from South Carolina Electric & Gas Company to NationsBank of Georgia, National Association (Filed as Exhibit 4-F to Registration Statement No. 33-49421)...................................... # E. First Supplemental Indenture to Indenture referred to in 4-E dated as of June 1, 1993 (Filed as Exhibit 4-G to Registration Statement No. 33-49421)...................... # F. Second Supplemental Indenture to Indenture referred to in 4-E dated as of June 15, 1993 (Filed as Exhibit 4-G to Form 10-Q for the quarter ended June 30, 1993, File No. 1-3375).................................................. # 10. Material Contracts Not Applicable 11. Statement Re Computation of Per Share Earnings Not Applicable 12. Statement re Computation of Ratios (Filed herewith)............ 17 15. Letter Re Unaudited Interim Financial Information Not Applicable 18. Letter Re Change in Accounting Principles Not Applicable 19. Report Furnished to Security Holders Not Applicable 22. Published Report Regarding Matters Submitted to Vote of Security Holders Not Applicable # Incorporated herein by reference as indicated. 15 SOUTH CAROLINA ELECTRIC & GAS COMPANY Exhibit Index (Continued) Number 23. Consents of Experts and Counsel Not Applicable 24. Power of Attorney Not Applicable 27. Financial Data Schedule Not Applicable 99. Additional Exhibits Not Applicable 16 EX-27 3
UT THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE CONSOLIDATED BALANCE SHEET AS OF SEPTEMBER 30, 1994 AND THE CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS AND OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1994 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 9-MOS DEC-31-1993 SEP-30-1994 PER-BOOK 2,925,305 12,475 240,046 290,696 0 3,468,522 181,333 620,347 327,843 1,129,523 49,894 26,027 1,204,362 39,500 0 0 16,647 2,486 0 0 1,000,000 3,468,522 903,421 70,712 646,740 717,452 185,969 4,860 190,829 63,516 127,313 4,483 122,830 86,700 0 227,493 0 0
EX-2 4 Exhibit 12 SOUTH CAROLINA ELECTRIC & GAS COMPANY COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES For the Twelve Months Ended September 30, 1994 (Thousands of Dollars) Twelve Months Ended September 30, 1994 Fixed Charges as defined: Interest on long-term debt.............. $ 81,516 Amortization of debt premium, discount and expense (net)...................... 1,975 Interest on debt to affiliate........... 219 Other interest expense.................. 4,700 Interest component of rentals........... 2,814 Total Fixed Charges (A)............. $ 91,224 Earnings, as defined: Income.................................. $154,102 Income taxes............................ 85,770 Total fixed charges above............... 91,224 Total Earnings (B).................. $331,096 Ratio of Earnings to fixed charges (B/A).. 3.63 17 -----END PRIVACY-ENHANCED MESSAGE-----