AFFILIATED TRANSACTIONS - SCEG

12 Months Ended

Dec. 31, 2011

AFFILIATED TRANSACTIONS

11.          AFFILIATED TRANSACTIONS

The Company received cash distributions from equity-method investees of $5.5 million in 2011, $4.8 million in 2010 and $3.3 million in 2009. The Company made investments in equity-method investees of $13.6 million in 2011, $5.1 million in 2010 and $1.6 million in 2009.

SCE&G owns 40% of Canadys Refined Coal, LLC and 10% of Cope Refined Coal, LLC, both involved in the manufacturing and selling of refined coal to reduce emissions. SCE&G’s receivables from these affiliates were $8.5 million at December 31, 2011 and insignificant at December 31, 2010.  SCE&G’s payables to these affiliates were $8.6 million at December 31, 2011 and insignificant at December 31, 2010. SCE&G accounts for these investments using the equity method. SCE&G’s total purchases were $123.8 million in 2011 and $97.3 million in 2010. SCE&G’s total sales were $123.3 million in 2011 and $96.9 million in 2010.

SOUTH CAROLINA ELECTRIC AND GAS COMPANY

AFFILIATED TRANSACTIONS

11.AFFILIATED TRANSACTIONS

CGT transports natural gas to SCE&G to serve retail gas customers and certain electric generation requirements.  Such purchases totaled approximately $30.8 million in 2011, $32.0 million in 2010 and $30.4 million in 2009.  SCE&G had approximately $2.5 million and $2.1 million payable to CGT for transportation services at December 31, 2011 and December 31, 2010, 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 $187.4 million in 2011, $182.5 million in 2010 and $160.8 million in 2009. SCE&G’s payables to SEMI for such purposes were $13.2 million and $16.1 million as of December 31, 2011 and 2010, respectively.

SCE&G owns 40% of Canadys Refined Coal, LLC and 10% of Cope Refined Coal, LLC, both involved in the manufacturing and selling of refined coal to reduce emissions. SCE&G accounts for these investments using the equity method. SCE&G’s receivables from these affiliates were $8.5 million at December 31, 2011 and insignificant at December 31, 2010.  SCE&G’s payables to these affiliates were $8.6 million at December 31, 2011 and insignificant at December 31, 2010.  SCE&G’s total purchases were $123.8 million in 2011 and $97.3 million in 2010. SCE&G’s total sales were $123.3 million in 2011 and $96.9 million in 2010.

Consolidated SCE&G participates in a utility money pool. Money pool borrowings and investments bear interest at short-term market rates. Consolidated SCE&G’s interest income and expense from money pool transactions was not significant for any period presented. At December 31, 2011 and 2010, Consolidated SCE&G had outstanding money pool borrowings due to an affiliate of $58.5 million and $71.0 million, respectively.

An affiliate processes and pays invoices for Consolidated SCE&G and is reimbursed by them. Consolidated SCE&G owed $43.0 million and $39.8 million to the affiliate at December 31, 2011 and 2010, respectively, for invoices paid by the affiliate on behalf of Consolidated SCE&G.