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)
Hedge designation	Gas Distribution	Gas Marketing	Total
As of December 31, 2016
Commodity	4,510,000	11,947,000	16,457,000
Energy Management (a)	—	67,447,223	67,447,223
Total (a)	4,510,000	79,394,223	83,904,223

As of December 31, 2015
Commodity	7,530,000	11,842,500	19,372,500
Energy Management (a)	—	38,857,480	38,857,480
Total (a)	7,530,000	50,699,980	58,229,980

(a) Includes amounts related to basis swap contracts totaling 730,721 MMBTU in 2016 and 1,842,048 MMBTU in 2015.

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



	The Company				Consolidated SCE&G
Millions of dollars	December 31, 2016		December 31, 2015		December 31, 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 December 31, 2016
Designated as hedging instruments
Interest rate contracts
	Derivative financial instruments			$	4			$	1
	Other deferred credits and other liabilities			24				8
Commodity contracts
	Prepayments	$	5
	Other current assets	1
Total		$	6	$	28	—		$	9

Not designated as hedging instruments
Interest rate contracts
	Other deferred debits and other assets	$	71			$	71
	Derivative financial instruments			$	27			$	27
	Other deferred credits and other liabilities			3				3
Commodity contracts
	Other current assets	3
Energy management contracts
	Prepayments	6		2
	Other current assets	2		1
	Other deferred debits and other assets	2
	Derivative financial instruments			4
	Other deferred credits and other liabilities			2
Total		$	84	$	39	$	71	$	30

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

The effect of derivative instruments on the consolidated statements of income is as follows:



The Company and Consolidated SCE&G:	Loss Deferred in Regulatory Accounts			Loss Reclassified from Deferred Accounts into Income (Effective Portion)
Millions of dollars	(Effective Portion)			Location	Amount
Year Ended December 31, 2016
Interest rate contracts	—			Interest expense	$	(2	)
Year Ended December 31, 2015
Interest rate contracts	$	(3	)	Interest expense	$	(3	)
Year Ended December 31, 2014
Interest rate contracts	$	(9	)	Interest expense	$	(3	)



The Company:	Gain or (Loss) Recognized in OCI, net of tax			Gain (Loss) Reclassified from AOCI into Income, net of tax (Effective Portion)
Millions of dollars	(Effective Portion)			Location	Amount
Year Ended December 31, 2016
Interest rate contracts	$	(1	)	Interest expense	$	(7	)
Commodity contracts	5			Gas purchased for resale	(6		)
Total	$	4			$	(13	)
Year Ended December 31, 2015
Interest rate contracts	$	(2	)	Interest expense	$	(7	)
Commodity contracts	(10		)	Gas purchased for resale	(15		)
Total	$	(12	)		$	(22	)
Year Ended December 31, 2014
Interest rate contracts	$	(6	)	Interest expense	$	(7	)
Commodity contracts	(8		)	Gas purchased for resale	4
Total	$	(14	)		$	(3	)

Derivatives Not Designated as Hedging Instruments



The Company and Consolidated SCE&G:	Loss Deferred in Regulatory Accounts			Gain (Loss) Reclassified from Deferred Accounts into Income
Millions of dollars	Loss Deferred in Regulatory Accounts			Location	Amount
Year Ended December 31, 2016
Interest rate contracts	$	(34	)	Interest Expense	$	(2	)
Year Ended December 31, 2015
Interest rate contracts	$	(69	)	Other income	$	5
Year Ended December 31, 2014
Interest rate contracts	$	(352	)	Other income	$	64



Derivative Contracts with Credit Contingent Features
	The Company				Consolidated SCE&G
Millions of dollars	December 31, 2016		December 31, 2015		December 31, 2016		December 31, 2015
in Net Liability Position
Aggregate fair value of derivatives in net liability position	$	50.3	$	95.2	$	30.3	$	57.0
Fair value of collateral already posted	29.2		50.4		9.2		13.4
Additional cash collateral or letters of credit in the event credit-risk-related contingent features were triggered	21.1		44.8		21.1		43.6

in Net Asset Position
Aggregate fair value of derivatives in net asset position	$	62.9	$	7.3	$	62.0	$	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	62.9		7.3		62.0		7.3

Information related to the offsetting 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 December 31, 2016
Gross Amounts of Recognized Assets	$	71		$	9	$	10		$	90		$	71
Gross Amounts Offset in Statement of Financial Position						(4		)	(4		)
Net Amounts Presented in Statement of Financial Position	71			9		6			86			71
Gross Amounts Not Offset - Financial Instruments	(9		)						(9		)	(9		)
Gross Amounts Not Offset - Cash Collateral Received
Net Amount	$	62		$	9	$	6		$	77		$	62
Balance sheet location
Prepayments									$	9
Other current assets									5
Other deferred debits and other assets									72			$	71
Total									$	86		$	71

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 December 31, 2016
Gross Amounts of Recognized Liabilities	$	58			$	9		$	67		$	39
Gross Amounts Offset in Statement of Financial Position					(3		)	(3		)
Net Amounts Presented in Statement of Financial Position	58			—	6			64			39
Gross Amounts Not Offset - Financial Instruments	(9		)					(9		)	(9		)
Gross Amounts Not Offset - Cash Collateral Posted	(29		)					(29		)	(9		)
Net Amount	$	20		—	$	6		$	26		$	21
Balance sheet location
Derivative financial instruments								$	35		$	28
Other deferred credits and other liabilities								29			11
Total								$	64		$	39



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:



	The Company				Consolidated SCE&G
Millions of dollars	December 31, 2016		December 31, 2015		December 31, 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 December 31, 2016
Designated as hedging instruments
Interest rate contracts
	Derivative financial instruments			$	4			$	1
	Other deferred credits and other liabilities			24				8
Commodity contracts
	Prepayments	$	5
	Other current assets	1
Total		$	6	$	28	—		$	9

Not designated as hedging instruments
Interest rate contracts
	Other deferred debits and other assets	$	71			$	71
	Derivative financial instruments			$	27			$	27
	Other deferred credits and other liabilities			3				3
Commodity contracts
	Other current assets	3
Energy management contracts
	Prepayments	6		2
	Other current assets	2		1
	Other deferred debits and other assets	2
	Derivative financial instruments			4
	Other deferred credits and other liabilities			2
Total		$	84	$	39	$	71	$	30

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

The effect of derivative instruments on the consolidated statements of income is as follows:



The Company and Consolidated SCE&G:	Loss Deferred in Regulatory Accounts			Loss Reclassified from Deferred Accounts into Income (Effective Portion)
Millions of dollars	(Effective Portion)			Location	Amount
Year Ended December 31, 2016
Interest rate contracts	—			Interest expense	$	(2	)
Year Ended December 31, 2015
Interest rate contracts	$	(3	)	Interest expense	$	(3	)
Year Ended December 31, 2014
Interest rate contracts	$	(9	)	Interest expense	$	(3	)

Derivatives Not Designated as Hedging Instruments



The Company and Consolidated SCE&G:	Loss Deferred in Regulatory Accounts			Gain (Loss) Reclassified from Deferred Accounts into Income
Millions of dollars	Loss Deferred in Regulatory Accounts			Location	Amount
Year Ended December 31, 2016
Interest rate contracts	$	(34	)	Interest Expense	$	(2	)
Year Ended December 31, 2015
Interest rate contracts	$	(69	)	Other income	$	5
Year Ended December 31, 2014
Interest rate contracts	$	(352	)	Other income	$	64



Derivative Contracts with Credit Contingent Features
	The Company				Consolidated SCE&G
Millions of dollars	December 31, 2016		December 31, 2015		December 31, 2016		December 31, 2015
in Net Liability Position
Aggregate fair value of derivatives in net liability position	$	50.3	$	95.2	$	30.3	$	57.0
Fair value of collateral already posted	29.2		50.4		9.2		13.4
Additional cash collateral or letters of credit in the event credit-risk-related contingent features were triggered	21.1		44.8		21.1		43.6

in Net Asset Position
Aggregate fair value of derivatives in net asset position	$	62.9	$	7.3	$	62.0	$	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	62.9		7.3		62.0		7.3

Information related to the offsetting 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 December 31, 2016
Gross Amounts of Recognized Assets	$	71		$	9	$	10		$	90		$	71
Gross Amounts Offset in Statement of Financial Position						(4		)	(4		)
Net Amounts Presented in Statement of Financial Position	71			9		6			86			71
Gross Amounts Not Offset - Financial Instruments	(9		)						(9		)	(9		)
Gross Amounts Not Offset - Cash Collateral Received
Net Amount	$	62		$	9	$	6		$	77		$	62
Balance sheet location
Prepayments									$	9
Other current assets									5
Other deferred debits and other assets									72			$	71
Total									$	86		$	71

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 December 31, 2016
Gross Amounts of Recognized Liabilities	$	58			$	9		$	67		$	39
Gross Amounts Offset in Statement of Financial Position					(3		)	(3		)
Net Amounts Presented in Statement of Financial Position	58			—	6			64			39
Gross Amounts Not Offset - Financial Instruments	(9		)					(9		)	(9		)
Gross Amounts Not Offset - Cash Collateral Posted	(29		)					(29		)	(9		)
Net Amount	$	20		—	$	6		$	26		$	21
Balance sheet location
Derivative financial instruments								$	35		$	28
Other deferred credits and other liabilities								29			11
Total								$	64		$	39



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