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Utility Plant and Nonutility Property
12 Months Ended
Dec. 31, 2021
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, 2021 and 2020 were as follows:

 

At December 31,

 

2021

 

 

2020

 

(millions)

 

 

 

 

 

 

 

 

Gross utility plant:

 

 

 

 

 

 

 

 

Generation

 

$

6,053

 

 

$

5,921

 

Transmission

 

 

2,037

 

 

 

1,963

 

Distribution

 

 

5,191

 

 

 

4,909

 

Storage

 

 

76

 

 

 

74

 

General and other

 

 

601

 

 

 

563

 

Intangible

 

 

242

 

 

 

250

 

Construction work in progress

 

 

481

 

 

 

460

 

Nuclear fuel

 

 

603

 

 

 

575

 

Total gross utility plant

 

$

15,284

 

 

$

14,715

 

Gross nonutility property

 

$

44

 

 

$

45

 

 

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, net of impairment charges, 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,

 

2021

 

2020

 

 

Summer Unit 1

 

Summer Unit 1

Percent owned

 

66.7%

 

66.7%

Plant in service

 

$

1.6

 

billion

 

$

1.6

 

billion

Accumulated depreciation

 

$

725

 

million

 

$

702

 

million

Construction work in progress

 

$

76

 

million

 

$

62

 

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 $32 million at December 31, 2021 and $28 million at December 31, 2020.

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 expense, net in DESC’s Consolidated Statements of Comprehensive Income (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.