AFFILIATED TRANSACTIONS - SCEG (SCEG)

3 Months Ended

Mar. 31, 2014

SCEG

AFFILIATED TRANSACTIONS

AFFILIATED TRANSACTIONS

CGT transports natural gas to SCE&G to serve retail gas customers and certain electric generation requirements.  Such purchases totaled approximately $5.5 million and $8.4 million for the three months ended March 31, 2014 and 2013, respectively.  SCE&G had approximately $3.3 million and $3.3 million payable to CGT for transportation services at March 31, 2014 and December 31, 2013, respectively. SCE&G had approximately $2.5 million and1.3 million receivable from CGT for transportation services at March 31, 2014 and December 31, 2013, respectively.

SCE&G purchases natural gas and related pipeline capacity from SEMI to serve its retail gas customers and certain electric generation requirements.  Such purchases totaled approximately $53.4 million and $42.1 million for the three months ended March 30, 2014 and 2013, respectively.  SCE&G’s payables to SEMI for such purposes were $17.2 million and $12.5 million as of March 31, 2014 and December 31, 2013, respectively.

SCE&G owns 40% of Canadys Refined Coal, LLC, which is involved in the manufacturing and sale of refined coal to reduce emissions. SCE&G accounts for this investment using the equity method.  SCE&G’s receivable from this affiliate was $4.4 million at March 31, 2014 and $18.0 million at December 31, 2013.  SCE&G’s payable to this affiliate was $4.4 million at March 31, 2014 and $18.0 million at December 31, 2013.  SCE&G’s total purchases from this affiliate were $39.2 million and $14.3 million for the three months ended March 31, 2014 and 2013, respectively.  SCE&G’s total sales to this affiliate were $39.0 million and $14.3 million for the three months ended March 31, 2014 and 2013, respectively.

SCANA Services provides the following services to Consolidated SCE&G, which are rendered at direct or allocated cost: information systems services, customer services, marketing and sales, human resources, corporate compliance, purchasing, financial services, risk management, public affairs, legal services, investor relations, gas supply and capacity management, strategic planning, general administrative services, and retirement benefits. In addition, SCANA Services processes and pays invoices for Consolidated SCE&G and is reimbursed. Costs for these services were $76.2 million and $78.6 million for the three months ended March 31, 2014 and 2013, respectively. Consolidated SCE&G's payables to SCANA Services for these services were $45.6 million and $49.1 million at March 31, 2014 and December 31, 2013, respectively.

Money pool borrowings from an affiliate are described in Note 4.