XML 78 R14.htm IDEA: XBRL DOCUMENT v3.10.0.1
COMMON EQUITY
12 Months Ended
Dec. 31, 2018
Schedule of Capitalization, Equity [Line Items]  
Stockholders' Equity Note Disclosure [Text Block]
COMMON EQUITY
  
Authorized shares of SCANA common stock were 200 million as of December 31, 2018 and 2017. Authorized shares of SCE&G common stock were 50 million as of December 31, 2018 and 2017. Authorized shares of SCE&G preferred stock were 20 million, of which 1,000 shares, no par value, were held by SCANA as of December 31, 2018 and 2017. As disclosed in Note 1, effective January 1, 2019, all common stock of SCANA is held by Dominion Energy.

In 2018, SCANA made equity contributions to GENCO and Fuel Company totaling approximately $23 million and $1 million, respectively.

In February 2019, SCANA received an equity contribution of $675 million from Dominion Energy, and SCANA made an equity contribution to SCE&G of $675 million. SCE&G used the funds from this equity contribution to reduce long-term debt. See Note 5.

SCANA’s articles of incorporation do not limit the dividends that may be paid on its common stock, and the articles of incorporation of each of SCANA's subsidiaries contain no such limitations on their respective common stock.

SCE&G’s bond indenture under which it issues First Mortgage Bonds contains provisions that could limit the payment of cash dividends on its common stock. SCE&G's bond indenture permits the payment of dividends on SCE&G's common stock only either (1) out of its Surplus (as defined in the bond indenture) or (2) in case there is no Surplus, out of its net profits for the fiscal year in which the dividend is declared and/or the preceding fiscal year. In addition, the Federal Power Act requires the appropriation of a portion of certain earnings from hydroelectric projects. At December 31, 2018 and 2017, retained earnings of approximately $115.0 million and $93.9 million, respectively, were restricted by this requirement as to payment of cash dividends on SCE&G’s common stock.
Pursuant to the Merger Approval Order, the amount of any SCE&G dividends paid must be reasonable and consistent with the long-term payout ratio of the electric utility industry and gas distribution industry. There is no specific restriction on the payment of dividends by SCE&G.

PSNC Energy’s note purchase and debenture purchase agreements contain provisions that could limit the payment of cash distributions, including dividends, on PSNC Energy's common stock. These agreements generally limit the sum of distributions to an amount that does not exceed $30 million plus 85% of Consolidated Net Income (as therein defined) accumulated after December 31, 2008 plus the net proceeds of issuances by PSNC Energy of equity or convertible debt securities (as therein defined). As of December 31, 2018, this limitation would permit PSNC Energy to pay cash distributions in excess of $100 million.

The NCUC, in its order approving the SCANA Combination, limited cumulative dividends payable to Dominion Energy by PSNC Energy to (i) the amount of retained earnings at closing of the SCANA Combination plus (ii) any future earnings recorded by PSNC Energy after such date. In addition, notice to the NCUC is required if payment of dividends causes the equity component of PSNC Energy’s capital structure to fall below 45%.
SCE&G  
Schedule of Capitalization, Equity [Line Items]  
Stockholders' Equity Note Disclosure [Text Block]
.                                      COMMON EQUITY
  
Authorized shares of SCANA common stock were 200 million as of December 31, 2018 and 2017. Authorized shares of SCE&G common stock were 50 million as of December 31, 2018 and 2017. Authorized shares of SCE&G preferred stock were 20 million, of which 1,000 shares, no par value, were held by SCANA as of December 31, 2018 and 2017. As disclosed in Note 1, effective January 1, 2019, all common stock of SCANA is held by Dominion Energy.

In 2018, SCANA made equity contributions to GENCO and Fuel Company totaling approximately $23 million and $1 million, respectively.

In February 2019, SCANA received an equity contribution of $675 million from Dominion Energy, and SCANA made an equity contribution to SCE&G of $675 million. SCE&G used the funds from this equity contribution to reduce long-term debt. See Note 5.

SCANA’s articles of incorporation do not limit the dividends that may be paid on its common stock, and the articles of incorporation of each of SCANA's subsidiaries contain no such limitations on their respective common stock.

SCE&G’s bond indenture under which it issues First Mortgage Bonds contains provisions that could limit the payment of cash dividends on its common stock. SCE&G's bond indenture permits the payment of dividends on SCE&G's common stock only either (1) out of its Surplus (as defined in the bond indenture) or (2) in case there is no Surplus, out of its net profits for the fiscal year in which the dividend is declared and/or the preceding fiscal year. In addition, the Federal Power Act requires the appropriation of a portion of certain earnings from hydroelectric projects. At December 31, 2018 and 2017, retained earnings of approximately $115.0 million and $93.9 million, respectively, were restricted by this requirement as to payment of cash dividends on SCE&G’s common stock.
Pursuant to the Merger Approval Order, the amount of any SCE&G dividends paid must be reasonable and consistent with the long-term payout ratio of the electric utility industry and gas distribution industry. There is no specific restriction on the payment of dividends by SCE&G.

PSNC Energy’s note purchase and debenture purchase agreements contain provisions that could limit the payment of cash distributions, including dividends, on PSNC Energy's common stock. These agreements generally limit the sum of distributions to an amount that does not exceed $30 million plus 85% of Consolidated Net Income (as therein defined) accumulated after December 31, 2008 plus the net proceeds of issuances by PSNC Energy of equity or convertible debt securities (as therein defined). As of December 31, 2018, this limitation would permit PSNC Energy to pay cash distributions in excess of $100 million.

The NCUC, in its order approving the SCANA Combination, limited cumulative dividends payable to Dominion Energy by PSNC Energy to (i) the amount of retained earnings at closing of the SCANA Combination plus (ii) any future earnings recorded by PSNC Energy after such date. In addition, notice to the NCUC is required if payment of dividends causes the equity component of PSNC Energy’s capital structure to fall below 45%.