Affiliated and Related Party Transactions

12 Months Ended

Dec. 31, 2020

Affiliated and Related Party Transactions

16. AFFILIATED AND RELATED PARTY TRANSACTIONS

DESC owns 40% of Canadys Refined Coal, LLC, which is involved in the manufacturing and sale of refined coal to reduce emissions at certain of DESC’s generating facilities. DESC accounts for this investment using the equity method. Purchases and sales of the related coal are recorded as other income (expense), net in the Consolidated Statements of Comprehensive Income (Loss).

DESC purchases natural gas and related pipeline capacity from SEMI to service its retail gas customers and to satisfy certain electric generation requirements. These purchases are included within gas purchased for resale or fuel used in electric generation, as applicable in the Consolidated Statements of Comprehensive Income (Loss).

DESS, on behalf of itself and its parent company, provided the following services to DESC through December 2020, which were rendered at direct or allocated cost: information systems, telecommunications, customer support, marketing and sales, human resources, corporate compliance, purchasing, financial, risk management, public affairs, legal, investor relations, gas supply and capacity management, strategic planning, general administrative, and retirement benefits. In addition, DESS processed and paid invoices for DESC and was reimbursed. Effective January 2021, DES provides to DESC the services previously provided by DESS. Costs for these services include amounts capitalized. Amounts expensed are primarily recorded in other operations and maintenance – affiliated suppliers and other income (expense), net in the Consolidated Statements of Comprehensive Income (Loss).

Year Ended December 31,	2020		2019		2018
(millions)
Purchases of coal from affiliate	$	—	$	121	$	150
Sales of coal to affiliate		—		120		149
Purchases of fuel used in electric generation from affiliate		—		43		139
Direct and allocated costs from DESS⁽¹⁾		294		297		283
Operating Revenues – Electric from sales to affiliate		4		4		5
Operating Revenues – Gas from sales to affiliate		1		1		1
Operating Expenses – Other taxes from affiliate		9		6		6
Purchases of electricity from solar affiliates		12		8	N/A
Demand and transportation charges from DECG - Fuel used in electric generation		16		19	N/A
Demand and transportation charges from DECG - Gas purchased for resale		36		44	N/A

(1) Includes capitalized expenditures of $81 million, $53 million and $41 million for the years ended December 31, 2020, 2019 and 2018, respectively.

At December 31,	2020		2019
(millions)
Receivable from Canadys Refined Coal, LLC	$	—	$	2
Payable to Canadys Refined Coal, LLC		—		2
Payable to DESS		59		76
Payable to Public Service Company of North Carolina, Incorporated		5		8
Payable to solar affiliates		1		—
Receivable from DECG		—		1
Payable to DECG		—		5

Borrowings from an affiliate are described in Note 6. Certain disclosures regarding DESC’s participation in SCANA's noncontributory defined benefit pension plan and unfunded postretirement health care and life insurance programs are included in Note 11.