DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

The Company was party to natural gas derivative contracts outstanding in the following quantities:



	Commodity and Other Energy Management Contracts (in MMBTU)
		Retail Gas
Hedge designation	Gas Distribution	Marketing	Energy Marketing	Total
As of June 30, 2016
Commodity contracts	9,280,000	9,725,000	4,289,500	23,294,500
Energy management contracts (a)	—	—	40,639,577	40,639,577
Total (a)	9,280,000	9,725,000	44,929,077	63,934,077

As of December 31, 2015
Commodity contracts	7,530,000	7,869,000	3,973,500	19,372,500
Energy management contracts (b)	—	—	38,857,480	38,857,480
Total (b)	7,530,000	7,869,000	42,830,980	58,229,980

(a) Includes an aggregate 1,350,060 MMBTU related to basis swap contracts in Energy Marketing.

(b) Includes an aggregate 1,842,048 MMBTU related to basis swap contracts in Energy Marketing.

The aggregate notional amounts of the interest rate swaps were as follows:



Interest Rate Swaps
	The Company				Consolidated SCE&G
Millions of dollars	June 30, 2016		December 31, 2015		June 30, 2016		December 31, 2015
Designated as hedging instruments	$	115.6	$	120.0	$	36.4	$	36.4
Not designated as hedging instruments	1,285.0		1,235.0		1,285.0		1,235.0

The following table shows the fair value and balance sheet location of derivative instruments. Although derivatives subject to master netting arrangements are netted on the Consolidated Balance Sheet, the fair values presented below are shown gross and cash collateral on the derivatives has not been netted against the fair values shown.



Fair Values of Derivative Instruments
		The Company				Consolidated SCE&G
Millions of dollars	Balance Sheet Location	Asset		Liability		Asset		Liability
As of June 30, 2016
Designated as hedging instruments
Interest rate contracts
	Derivative financial instruments			$	4			$	1
	Other deferred credits and other liabilities			38				14
Commodity contracts
	Other current assets	$	5
Total		$	5	$	42	—		$	15

Not designated as hedging instruments
Interest rate contracts
	Derivative financial instruments			$	45			$	45
	Other deferred credits and other liabilities			150				150
Commodity contracts
	Other current assets	$	4
Energy management contracts
	Other current assets	5		1
	Other deferred debits and other assets	3
	Derivative financial instruments	1		5
	Other deferred credits and other liabilities			3
Total		$	13	$	204	—		$	195

As of December 31, 2015
Designated as hedging instruments
Interest rate contracts
	Derivative financial instruments			$	4			$	1
	Other deferred credits and other liabilities			28				9
Commodity contracts
	Other current assets			1
	Derivative financial instruments			4
Total		—		$	37	—		$	10

Not designated as hedging instruments
Interest rate contracts
	Other current assets	$	10			$	10
	Other deferred debits and other assets	5				5
	Derivative financial instruments			$	33			$	33
	Other deferred credits and other liabilities			22				22
Commodity contracts
	Other current assets	1
Energy management contracts
	Other current assets	11		2
	Other deferred debits and other assets	3
	Derivative financial instruments			9
	Other deferred credits and other liabilities			3
Total		$	30	$	69	$	15	$	55

Derivatives in Cash Flow Hedging Relationships



The Company and Consolidated SCE&G:
	Gain (Loss) Deferred in Regulatory Accounts						Loss Reclassified from Deferred Accounts into Income
	Gain (Loss) Deferred in Regulatory Accounts						Loss Reclassified from Deferred Accounts into Income
	(Effective Portion)						(Effective Portion)
Millions of dollars	2016			2015		Location	2016			2015
Three Months Ended June 30,
Interest rate contracts	$	(2	)	$	2	Interest expense	—			$	(1	)
Six Months Ended June 30,
Interest rate contracts	$	(5	)	—		Interest expense	$	(1	)	$	(1	)



The Company:
	Gain (Loss) Recognized in OCI, net of tax							Loss Reclassified from AOCI into Income, net of tax
	Gain (Loss) Recognized in OCI, net of tax							Loss Reclassified from AOCI into Income, net of tax
	(Effective Portion)							(Effective Portion)
Millions of dollars	2016			2015			Location	2016			2015
Three Months Ended June 30,
Interest rate contracts	$	(2	)	$	2		Interest expense	$	(2	)	$	(2	)
Commodity contracts	4			—			Gas purchased for resale	(1		)	(2		)
Total	$	2		$	2			$	(3	)	$	(4	)

Six Months Ended June 30,
Interest rate contracts	$	(5	)	—			Interest expense	$	(4	)	$	(4	)
Commodity contracts	2			$	(1	)	Gas purchased for resale	(6		)	(9		)
Total	$	(3	)	$	(1	)		$	(10	)	$	(13	)



Derivatives not designated as Hedging Instruments

The Company and Consolidated SCE&G:
	Gain (Loss) Deferred in Regulatory Accounts						Gain Reclassified from Deferred Accounts into Income
Millions of dollars	2016			2015		Location	2016	2015
Three Months Ended June 30,
Interest rate contracts	$	(100	)	$	132	Other income	—	$	1
Six Months Ended June 30,
Interest rate contracts	$	(244	)	$	37	Other income	—	$	5



Derivative Contracts with Credit Contingent Features
	The Company				Consolidated SCE&G
Millions of dollars	June 30, 2016		December 31, 2015		June 30, 2016		December 31, 2015
in Net Liability Position
Aggregate fair value of derivatives in net liability position	$	239.8	$	95.2	$	209.6	$	57.0
Fair value of collateral already posted	150.2		50.4		118.5		13.4
Additional cash collateral or letters of credit in the event credit-risk-related contingent features were triggered	89.6		44.8		91.1		43.6

in Net Asset Position
Aggregate fair value of derivatives in net asset position	—		$	7.3	—		$	7.3
Fair value of collateral already posted	—		—		—		—
Additional cash collateral or letters of credit in the event credit-risk-related contingent features were triggered	—		7.3		—		7.3

Information related to the offsetting of derivative assets follows:



Derivative Assets	The Company											Consolidated SCE&G
Millions of dollars	Interest Rate Contracts			Commodity Contracts		Energy Management Contracts			Total			Interest Rate Contracts
As of June 30, 2016
Gross Amounts of Recognized Assets	—			$	9	$	9		$	18		—
Gross Amounts Offset in Statement of Financial Position	—			—		(2		)	(2		)	—
Net Amounts Presented in Statement of Financial Position	—			9		7			16			—
Gross Amounts Not Offset - Financial Instruments	—			—		—			—			—
Gross Amounts Not Offset - Cash Collateral Received	—			—		—			—			—
Net Amount	—			$	9	$	7		$	16		—
Balance sheet location
Other current assets									$	14		—
Other deferred debits and other assets									2			—
Total									$	16		—

As of December 31, 2015
Gross Amounts of Recognized Assets	$	15		$	1	$	15		$	31		$	15
Gross Amounts Offset in Statement of Financial Position	—			—		(1		)	(1		)	—
Net Amounts Presented in Statement of Financial Position	15			1		14			30			15
Gross Amounts Not Offset - Financial Instruments	(8		)	—		—			(8		)	(8		)
Gross Amounts Not Offset - Cash Collateral Received	—			—		—			—			—
Net Amount	$	7		$	1	$	14		$	22		$	7
Balance sheet location
Other current assets									$	22		$	10
Other deferred debits and other assets									8			5
Total									$	30		$	15

Information related to the offsetting of derivative liabilities follows:



Derivative Liabilities	The Company												Consolidated SCE&G
Millions of dollars	Interest Rate Contracts			Commodity Contracts			Energy Management Contracts			Total			Interest Rate Contracts
As of June 30, 2016
Gross Amounts of Recognized Liabilities	$	237		—			$	9		$	246		$	210
Gross Amounts Offset in Statement of Financial Position	—			—			(2		)	(2		)	—
Net Amounts Presented in Statement of Financial Position	237			—			7			244			210
Gross Amounts Not Offset - Financial Instruments	—			—			—			—			—
Gross Amounts Not Offset - Cash Collateral Posted	(147		)	—			—			(147		)	(118		)
Net Amount	$	90		—			$	7		$	97		$	92
Balance sheet location
Derivative financial instruments										$	54		$	46
Other deferred credits and other liabilities										190			164
Total										$	244		$	210

As of December 31, 2015
Gross Amounts of Recognized Liabilities	$	87		$	5		$	15		$	107		$	65
Gross Amounts Offset in Statement of Financial Position	—			—			(1		)	(1		)	—
Net Amounts Presented in Statement of Financial Position	87			5			14			106			65
Gross Amounts Not Offset - Financial Instruments	(8		)	—			—			(8		)	(8		)
Gross Amounts Not Offset - Cash Collateral Posted	(36		)	(5		)	(9		)	(50		)	(13		)
Net Amount	$	43		$	—		$	5		$	48		$	44
Balance sheet location
Other current assets										$	3		—
Derivative financial instruments										50			$	34
Other deferred credits and other liabilities										53			31
Total										$	106		$	65

The aggregate notional amounts of the interest rate swaps were as follows:



Interest Rate Swaps
	The Company				Consolidated SCE&G
Millions of dollars	June 30, 2016		December 31, 2015		June 30, 2016		December 31, 2015
Designated as hedging instruments	$	115.6	$	120.0	$	36.4	$	36.4
Not designated as hedging instruments	1,285.0		1,235.0		1,285.0		1,235.0



Fair Values of Derivative Instruments
		The Company				Consolidated SCE&G
Millions of dollars	Balance Sheet Location	Asset		Liability		Asset		Liability
As of June 30, 2016
Designated as hedging instruments
Interest rate contracts
	Derivative financial instruments			$	4			$	1
	Other deferred credits and other liabilities			38				14
Commodity contracts
	Other current assets	$	5
Total		$	5	$	42	—		$	15

Not designated as hedging instruments
Interest rate contracts
	Derivative financial instruments			$	45			$	45
	Other deferred credits and other liabilities			150				150
Commodity contracts
	Other current assets	$	4
Energy management contracts
	Other current assets	5		1
	Other deferred debits and other assets	3
	Derivative financial instruments	1		5
	Other deferred credits and other liabilities			3
Total		$	13	$	204	—		$	195

As of December 31, 2015
Designated as hedging instruments
Interest rate contracts
	Derivative financial instruments			$	4			$	1
	Other deferred credits and other liabilities			28				9
Commodity contracts
	Other current assets			1
	Derivative financial instruments			4
Total		—		$	37	—		$	10

Not designated as hedging instruments
Interest rate contracts
	Other current assets	$	10			$	10
	Other deferred debits and other assets	5				5
	Derivative financial instruments			$	33			$	33
	Other deferred credits and other liabilities			22				22
Commodity contracts
	Other current assets	1
Energy management contracts
	Other current assets	11		2
	Other deferred debits and other assets	3
	Derivative financial instruments			9
	Other deferred credits and other liabilities			3
Total		$	30	$	69	$	15	$	55

Derivatives in Cash Flow Hedging Relationships



The Company and Consolidated SCE&G:
	Gain (Loss) Deferred in Regulatory Accounts						Loss Reclassified from Deferred Accounts into Income
	Gain (Loss) Deferred in Regulatory Accounts						Loss Reclassified from Deferred Accounts into Income
	(Effective Portion)						(Effective Portion)
Millions of dollars	2016			2015		Location	2016			2015
Three Months Ended June 30,
Interest rate contracts	$	(2	)	$	2	Interest expense	—			$	(1	)
Six Months Ended June 30,
Interest rate contracts	$	(5	)	—		Interest expense	$	(1	)	$	(1	)



Derivatives not designated as Hedging Instruments

The Company and Consolidated SCE&G:
	Gain (Loss) Deferred in Regulatory Accounts						Gain Reclassified from Deferred Accounts into Income
Millions of dollars	2016			2015		Location	2016	2015
Three Months Ended June 30,
Interest rate contracts	$	(100	)	$	132	Other income	—	$	1
Six Months Ended June 30,
Interest rate contracts	$	(244	)	$	37	Other income	—	$	5



Derivative Contracts with Credit Contingent Features
	The Company				Consolidated SCE&G
Millions of dollars	June 30, 2016		December 31, 2015		June 30, 2016		December 31, 2015
in Net Liability Position
Aggregate fair value of derivatives in net liability position	$	239.8	$	95.2	$	209.6	$	57.0
Fair value of collateral already posted	150.2		50.4		118.5		13.4
Additional cash collateral or letters of credit in the event credit-risk-related contingent features were triggered	89.6		44.8		91.1		43.6

in Net Asset Position
Aggregate fair value of derivatives in net asset position	—		$	7.3	—		$	7.3
Fair value of collateral already posted	—		—		—		—
Additional cash collateral or letters of credit in the event credit-risk-related contingent features were triggered	—		7.3		—		7.3

Information related to the offsetting of derivative assets follows:



Derivative Assets	The Company											Consolidated SCE&G
Millions of dollars	Interest Rate Contracts			Commodity Contracts		Energy Management Contracts			Total			Interest Rate Contracts
As of June 30, 2016
Gross Amounts of Recognized Assets	—			$	9	$	9		$	18		—
Gross Amounts Offset in Statement of Financial Position	—			—		(2		)	(2		)	—
Net Amounts Presented in Statement of Financial Position	—			9		7			16			—
Gross Amounts Not Offset - Financial Instruments	—			—		—			—			—
Gross Amounts Not Offset - Cash Collateral Received	—			—		—			—			—
Net Amount	—			$	9	$	7		$	16		—
Balance sheet location
Other current assets									$	14		—
Other deferred debits and other assets									2			—
Total									$	16		—

As of December 31, 2015
Gross Amounts of Recognized Assets	$	15		$	1	$	15		$	31		$	15
Gross Amounts Offset in Statement of Financial Position	—			—		(1		)	(1		)	—
Net Amounts Presented in Statement of Financial Position	15			1		14			30			15
Gross Amounts Not Offset - Financial Instruments	(8		)	—		—			(8		)	(8		)
Gross Amounts Not Offset - Cash Collateral Received	—			—		—			—			—
Net Amount	$	7		$	1	$	14		$	22		$	7
Balance sheet location
Other current assets									$	22		$	10
Other deferred debits and other assets									8			5
Total									$	30		$	15

Information related to the offsetting of derivative liabilities follows:



Derivative Liabilities	The Company												Consolidated SCE&G
Millions of dollars	Interest Rate Contracts			Commodity Contracts			Energy Management Contracts			Total			Interest Rate Contracts
As of June 30, 2016
Gross Amounts of Recognized Liabilities	$	237		—			$	9		$	246		$	210
Gross Amounts Offset in Statement of Financial Position	—			—			(2		)	(2		)	—
Net Amounts Presented in Statement of Financial Position	237			—			7			244			210
Gross Amounts Not Offset - Financial Instruments	—			—			—			—			—
Gross Amounts Not Offset - Cash Collateral Posted	(147		)	—			—			(147		)	(118		)
Net Amount	$	90		—			$	7		$	97		$	92
Balance sheet location
Derivative financial instruments										$	54		$	46
Other deferred credits and other liabilities										190			164
Total										$	244		$	210

As of December 31, 2015
Gross Amounts of Recognized Liabilities	$	87		$	5		$	15		$	107		$	65
Gross Amounts Offset in Statement of Financial Position	—			—			(1		)	(1		)	—
Net Amounts Presented in Statement of Financial Position	87			5			14			106			65
Gross Amounts Not Offset - Financial Instruments	(8		)	—			—			(8		)	(8		)
Gross Amounts Not Offset - Cash Collateral Posted	(36		)	(5		)	(9		)	(50		)	(13		)
Net Amount	$	43		$	—		$	5		$	48		$	44
Balance sheet location
Other current assets										$	3		—
Derivative financial instruments										50			$	34
Other deferred credits and other liabilities										53			31
Total										$	106		$	65