EMPLOYEE BENEFIT PLANS - SCEG

6 Months Ended

Jun. 30, 2011

EMPLOYEE BENEFIT PLANS

8. EMPLOYEE BENEFIT PLANS

Pension and Other Postretirement Benefit Plans

Components of net periodic benefit cost recorded by the Company were as follows:

	Pension Benefits						Other Postretirement Benefits
Millions of dollars	2011			2010			2011		2010
Three months ended June 30,
Service cost	$	4.6		$	4.8		$	1.1	$	1.1
Interest cost	11.1			11.9			3.0		3.2
Expected return on assets	(16.2		)	(16.5		)	-		-
Prior service cost amortization	1.8			1.8			0.3		0.2
Transition obligation amortization	-			-			0.2		0.1
Amortization of actuarial loss	3.0			4.3			0.1		0.1
Net periodic benefit cost	$	4.3		$	6.3		$	4.7	$	4.7
Six months ended June 30,
Service cost	$	9.2		$	9.5		$	2.2	$	2.2
Interest cost	22.2			23.7			6.0		6.2
Expected return on assets	(32.4		)	(32.9		)	-		-
Prior service cost amortization	3.6			3.7			0.6		0.5
Transition obligation amortization	-			-			0.4		0.3
Amortization of actuarial loss	6.0			8.6			0.2		0.2
Net periodic benefit cost	$	8.6		$	12.6		$	9.4	$	9.4

No contribution to the pension trust will be necessary in or for 2011, nor will limitations on benefit payments apply.  Prior to July 15, 2010, the SCPSC allowed SCE&G to defer as a regulatory asset the amount of pension cost exceeding amounts  included in the current rates for SCE&G’s retail electric and gas distribution regulated operations.  In connection with the SCPSC’s July 2010 retail electric rate order and November 2010 natural gas RSA order, SCE&G began deferring all pension expense or income related to retail electric and gas operations as a regulatory asset or liability, as applicable.  Costs totaling $2.3 million and $4.6 million were deferred for the three and six months ended June 30, 2011, respectively.  Costs totaling $5.4 million and $10.7 million were deferred for the corresponding periods in 2010.

SOUTH CAROLINA ELECTRIC AND GAS COMPANY

EMPLOYEE BENEFIT PLANS

8. EMPLOYEE BENEFIT PLANS

Pension and Other Postretirement Benefit Plans

Consolidated SCE&G participates in SCANA’s noncontributory defined benefit pension plan, which covers substantially all regular, full-time employees, and also participates in SCANA’s unfunded postretirement health care and life insurance programs, which provide benefits to active and retired employees.  Components of net periodic benefit cost recorded by Consolidated SCE&G were as follows:

	Pension Benefits						Other Postretirement Benefits
Millions of dollars	2011			2010			2011		2010
Three months ended June 30,
Service cost	$	3.7		$	3.5		$	0.9	$	0.9
Interest cost	9.5			10.2			2.3		2.4
Expected return on assets	(13.7		)	(14.5		)	-		-
Prior service cost amortization	1.5			1.6			0.2		0.2
Amortization of actuarial loss	2.5			4.2			0.1		-
Net periodic benefit cost	$	3.5		$	5.0		$	3.5	$	3.5
Six months ended June 30,
Service cost	$	7.4		$	7.1		$	1.8	$	1.7
Interest cost	18.9			20.4			4.7		4.8
Expected return on assets	(27.5		)	(29.0		)	-		-
Prior service cost amortization	3.0			3.3			0.4		0.4
Amortization of actuarial loss	5.1			8.4			0.1		0.1
Net periodic benefit cost	$	6.9		$	10.2		$	7.0	$	7.0

No contribution to the pension trust will be necessary in or for 2011, nor will limitations on benefit payments apply.  Prior to July 15, 2010, the SCPSC allowed SCE&G to defer as a regulatory asset the amount of pension cost exceeding amounts included in current rates for SCE&G’s retail electric and gas distribution regulated operations.  In connection with the SCPSC’s July 2010 retail electric rate order and November 2010 natural gas RSA order, SCE&G began deferring all pension expense or income related to retail electric and gas operations as a regulatory asset or liability, as applicable.  Costs totaling $2.3 million and $4.6 million were deferred for the three and six months ended June 30, 2011, respectively.  Costs totaling $5.4 million and $10.7 million were deferred for the corresponding periods in 2010.