Long-Term and Short-Term Debt

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Long-Term and Short-Term Debt

6.  LONG-TERM AND SHORT-TERM DEBT

Long-term debt by type with related weighted-average coupon rates and maturities at December 31, 2021 and 2020 is as follows:

At December 31,	2021 Weighted- average Coupon(1)			2021			2020
(millions, except percentages)
DESC:
First Mortgage Bonds, 2.30% to 6.625%, due 2021 to 2065		5.09	%	$	3,634		$	3,267
Tax-Exempt Financings:(2)
Variable rate due 2038		0.14	%		35			35
3.625% and 4.00%, due 2028 and 2033		3.90	%		54			54
Other		3.65	%		1			1
GENCO:
Tax-Exempt Financing, variable rate due 2038		0.14	%		33			33
Affiliated note, 3.05% due 2024		3.05	%		230			230
Total principal					3,987			3,620
Securities due within one year					—			(33	)
Unamortized discount, premium and debt issuance costs, net					(33	)		(30	)
Finance leases					10			15
Total long-term debt				$	3,964		$	3,572

(1) Represents weighted-average coupon rates for debt outstanding as of December 31, 2021.

(2) Industrial revenue bonds totaling $68 million are secured by letters of credit that expire, subject to renewal, in the fourth quarter of 2022.

Based on stated maturity dates rather than early redemption dates that could be elected by instrument holders, the scheduled principal payments of long-term debt at December 31, 2021, were as follows:

(millions, except percentages)	2022		2023		2024			2025		2026		Thereafter			Total
First Mortgage Bonds	$	—	$	—	$	—		$	—	$	—	$	3,634		$	3,634
Tax-Exempt Financings		—		—		—			—		—		122			122
Other		—		—		230			—		—		1			231
Total	$	—	$	—	$	230		$	—	$	—	$	3,757		$	3,987
Weighted-average coupon						3.05	%						4.99	%

Substantially all of DESC’s electric utility plant is pledged as collateral in connection with long-term debt.

DESC is subject to a bond indenture dated April 1, 1993 (Mortgage) covering substantially all of its electric properties under which all of its first mortgage bonds (Bonds) have been issued. Bonds may be issued under the Mortgage in an aggregate principal amount not exceeding the sum of (1) 70% of Unfunded Net Property Additions (as therein defined), (2) the aggregate principal amount of retired Bonds and (3) cash deposited with the trustee. Bonds, other than certain Bonds issued on the basis of retired Bonds, may be issued under the Mortgage only if Adjusted Net Earnings (as therein defined) for 12 consecutive months out of the 18 months immediately preceding the month of issuance are at least twice the annual interest requirements on all outstanding Bonds and Bonds to be issued (Bond Ratio). For the year ended December 31, 2021, the Bond Ratio was approximately 6.

Long-Term Debt – Affiliate

In May 2019, GENCO issued a $230 million 3.05% promissory note due to Dominion Energy that matures in May 2024. The issuance by GENCO was approved by the South Carolina Commission. Proceeds from the issuance were used to redeem GENCO’s 5.49% senior secured notes due in 2024 at the remaining principal outstanding of $33 million plus accrued interest, repay money pool borrowings and to return $20 million of contributed equity capital to SCANA.

Short-Term Debt

DESC's short-term financing is supported through its access as co-borrower to Dominion Energy’s $6.0 billion joint revolving credit facility, which can be used for working capital, as support for the combined commercial paper programs of DESC, Dominion Energy, Virginia Power and Questar Gas, and for other general corporate purposes.

DESC's share of commercial paper and letters of credit outstanding under its joint credit facility with Dominion Energy, were as follows:

(millions)	Facility Limit		Outstanding Commercial Paper		Outstanding Letters of Credit
At December 31, 2021
Joint revolving credit facility(1)	$	1,000	$	—	$	—
At December 31, 2020
Joint revolving credit facility(1)	$	1,000	$	—	$	—

(1) A maximum of $1.0 billion of the facility is available to DESC, assuming adequate capacity is available after giving effect to uses by co-borrowers Dominion Energy, Virginia Power and Questar Gas. A sub-limit for DESC is set within the facility limit but can be changed at the option of the co-borrowers multiple times per year. At December 31, 2021, the sub-limit for DESC was $500 million. If DESC has liquidity needs in excess of its sub-limit, the sub-limit may be changed or such needs may be satisfied through short-term borrowings from DESC's parent or from Dominion Energy. This credit facility matures in June 2026, with the potential to be extended by the borrowers to June 2028. The credit facility can be used to support bank borrowings and the issuance of commercial paper, as well as to support up to $1.0 billion (or the sub-limit, whichever is less) of letters of credit.  

In January 2021, DESC and GENCO applied to FERC for a two-year short-term borrowing authorization. In March 2021, FERC granted DESC authority through March 2023 to issue short-term indebtedness (pursuant to Section 204 of the Federal Power Act) in amounts not to exceed $2.2 billion outstanding with maturity dates of one year or less. In addition, in March 2021, FERC granted GENCO authority through March 2023 to issue short-term indebtedness not to exceed $200 million outstanding with maturity dates of one year or less.

DESC is obligated with respect to an aggregate of $68 million of industrial revenue bonds which are secured by letters of credit. These letters of credit expire, subject to renewal, in the fourth quarter of 2022.

DESC has FERC approval to enter into an inter-company credit agreement with Dominion Energy under which DESC may have short-term borrowings outstanding up to $900 million. At December 31, 2021 and 2020, DESC had borrowings outstanding under this credit agreement totaling $415 million and $149 million, respectively, which are recorded in affiliated and related party payables in DESC’s Consolidated Balance Sheets. For the twelve months ended December 31, 2021 and 2020, DESC recorded interest charges of less than $1 million and $7 million, respectively.

Fuel Company and GENCO participated in a SCANA utility money pool until January 2021, when that utility money pool was closed. Money pool borrowings and investments bore interest at short-term market rates. For the years ended December 31, 2021 and 2020, DESC recorded interest income from money pool transactions of less than $1 million and $2 million, respectively, and for the same periods DESC recorded interest expense from money pool transactions of less than $1 million and $2 million, respectively. At December 31, 2020, DESC had outstanding money pool borrowings due to an affiliate of $206 million and investments due from an affiliate of $15 million. On its Consolidated Balance Sheets, DESC includes money pool borrowings within affiliated and related party payables and money pool investments within affiliated and related party receivables.