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Utility Plant and Nonutility Property
12 Months Ended
Dec. 31, 2019
Utility Plant And Non Utility Property [Abstract]  
Utility Plant and Nonutility Property

15.  UTILITY PLANT AND NONUTILITY PROPERTY

Major classes of utility plant and other property and their respective balances at December 31, 2019 and 2018 were as follows:

 

At December 31,

 

2019

 

 

2018

 

(millions)

 

 

 

 

 

 

 

 

Gross utility plant:

 

 

 

 

 

 

 

 

Generation

 

$

5,765

 

 

$

5,751

 

Transmission

 

 

1,905

 

 

 

1,758

 

Distribution

 

 

4,685

 

 

 

4,456

 

Storage

 

 

73

 

 

 

74

 

General and other

 

 

549

 

 

 

535

 

Intangible

 

 

231

 

 

 

229

 

Construction work in progress

 

 

339

 

 

 

350

 

Nuclear fuel

 

 

608

 

 

 

611

 

Total gross utility plant

 

$

14,155

 

 

$

13,764

 

Gross nonutility property

 

$

75

 

 

$

73

 

 

Jointly Owned Utility Plant

DESC jointly owns and is the operator of Summer. Each joint owner provides its own financing and shares the direct expenses and generation output in proportion to its ownership. DESC’s share of the direct expenses of Summer is included in the corresponding operating expenses on its income statement. The units associated with the NND Project have been reclassified from construction work in progress to a regulatory asset as a result of the decision to stop their construction. See additional discussion at Note 3. In May 2019, DESC and Santee Cooper entered into an agreement in which DESC agreed to purchase 11.7% of Santee Cooper’s ownership interest in the NND Project nuclear fuel, which will be used at Summer, for $8 million to true up the ownership percentage from the 55% ownership percentage that was applicable for the NND Project to the 66.7% ownership percentage applicable for Summer.

 

At December 31,

 

2019

 

2018

 

 

Summer Unit 1

 

Summer Unit 1

Percent owned

 

66.7%

 

66.7%

Plant in service

 

$

1.4

 

billion

 

$

1.5

 

billion

Accumulated depreciation

 

$

684

 

million

 

$

644

 

million

Construction work in progress

 

$

79

 

million

 

$

128

 

million

 

Included within other receivables on the balance sheet were amounts due to DESC from Santee Cooper for its share of direct expenses. These amounts totaled $50 million at December 31, 2019 and $46 million at December 31, 2018.

Sale of Warranty Service Contract Assets

In May 2019, DESC entered into an agreement to sell certain warranty service contract assets for total consideration of $7 million. The transaction closed in August 2019, resulting in a $7 million ($5 million after-tax) gain recorded in other income (expense), net in DESC’s Consolidated Statements of Comprehensive Loss. Pursuant to the agreement, upon closing DESC entered into a service agreement with the buyer under which the buyer will compensate DESC in connection with the right to use DESC’s brand in marketing materials and other services over a ten-year term.