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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
(Mark One)
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1994
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
Commission file number 1-8809
SCANA Corporation
(Exact name of registrant as specified in its charter)
South Carolina 57-0784499
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1426 Main Street, Columbia, South Carolina 29201
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 803) 748-3000
Former name, former address and former fiscal year, if changed since
last report.
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the Securities
Exchange Act of 1934 during the preceding 12 months (or for such shorter
period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days. Yes
X . No .
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS:
Indicate by check mark whether the registrant has filed all
documents and reports required to be filed by Section 12, 13 or 15(d) of
the Securities Exchange Act of 1934 subsequent to the distribution of
securities under a plan confirmed by a court.
Yes . No .
APPLICABLE ONLY TO CORPORATE ISSUERS:
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date.
47,514,354 Common Shares, without par value, as of July 31, 1994
1
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SCANA CORPORATION
INDEX
PART I. FINANCIAL INFORMATION Page
Item 1. Financial Statements
Consolidated Balance Sheets as of June 30, 1994 and
December 31, 1993........................................ 3
Consolidated Statements of Income and Retained Earnings
for the Periods Ended June 30, 1994 and 1993............. 5
Consolidated Statements of Cash Flows for the Periods
Ended June 30, 1994 and 1993............................. 6
Notes to Consolidated Financial Statements............... 7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations...................... 9
PART II. OTHER INFORMATION
Item 1. Legal Proceedings........................................ 13
Item 6. Exhibits and Reports on Form 8-K......................... 13
Signatures........................................................ 14
Exhibit Index..................................................... 15
2
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<TABLE>
PART I
FINANCIAL INFORMATION
SCANA CORPORATION
CONSOLIDATED BALANCE SHEETS
As of June 30, 1994 and December 31, 1993
(Unaudited)
<S> <C> <C> <S><C>
June 30, December 31,
1994 1993
ASSETS (Thousands of Dollars)
Utility Plant:
Electric................................................... $3,339,896 $3,328,915
Gas........................................................ 454,004 451,493
Transit.................................................... 3,774 3,769
Common..................................................... 75,983 72,804
Total.................................................... 3,873,657 3,856,981
Less accumulated depreciation and amortization............. 1,305,819 1,259,689
Total.................................................... 2,567,838 2,597,292
Construction work in progress.............................. 482,381 349,530
Nuclear fuel, net of accumulated amortization.............. 31,541 29,087
Acquisition adjustment-gas, net of accumulated
amortization............................................. 27,668 28,166
Utility Plant, Net.................................... 3,109,428 3,004,075
Nonutility Property and Investments (net of accumulated
depreciation and depletion)................................ 363,849 393,728
Current Assets:
Cash and temporary cash investments........................ 18,910 20,766
Receivables................................................ 169,073 174,121
Inventories (at average cost):
Fuel..................................................... 52,574 62,977
Materials and supplies................................... 47,786 46,890
Prepayments................................................ 19,562 21,826
Accumulated deferred income taxes.......................... 398 8,607
Total Current Assets.................................. 308,303 335,187
Deferred Debits:
Unamortized debt expense................................... 12,633 13,076
Unamortized deferred return on plant investment............ 12,737 14,860
Nuclear plant decommissioning fund......................... 27,743 25,103
Other...................................................... 289,330 254,497
Total Deferred Debits................................. 342,443 307,536
Total....................................... $4,124,023 $4,040,526
See notes to consolidated financial statements.
3
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SCANA CORPORATION
CONSOLIDATED BALANCE SHEETS
As of June 30, 1994 and December 31, 1993
(Unaudited)
<S> <C> <S> <C> <C> <C>
June 30, December 31,
1994 1993
(Thousands of Dollars)
CAPITALIZATION AND LIABILITIES
Stockholders' Investment:
Common Equity:
Common stock (Without par value)......................... $ 856,145 $ 826,665
Retained earnings........................................ 519,233 506,380
Total Common Equity..................................... 1,375,378 1,333,045
Preferred stock (Not subject to purchase or sinking funds). 26,027 26,027
Total Stockholders' Investment........................... 1,401,405 1,359,072
Preferred stock, net (Subject to purchase or sinking funds).. 50,856 52,840
Long-term debt, net.......................................... 1,462,367 1,424,399
Total Capitalization.................................. 2,914,628 2,836,311
Current Liabilities:
Short-term borrowings...................................... 33,520 43,019
Current portion of long-term debt.......................... 85,663 34,322
Current portion of preferred stock......................... 2,486 2,504
Accounts payable........................................... 83,272 129,495
Estimated rate refunds and related interest................ 1,871 2,509
Customer deposits.......................................... 13,457 13,498
Taxes accrued.............................................. 27,499 50,063
Interest accrued........................................... 21,508 21,784
Dividends declared......................................... 35,039 33,637
Other...................................................... 21,989 12,649
Total Current Liabilities............................. 326,304 343,480
Deferred Credits:
Accumulated deferred income taxes.......................... 570,719 568,172
Accumulated deferred investment tax credits................ 93,158 94,981
Accumulated reserve for nuclear plant decommissioning...... 27,743 25,103
Other...................................................... 191,471 172,479
Total Deferred Credits................................ 883,091 860,735
Total....................................... $4,124,023 $4,040,526
See notes to consolidated financial statements.
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SCANA CORPORATION
CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS
For the Periods Ended June 30, 1994 and 1993
(Unaudited)
<S> <C> <C> <S> <C> <C> <S> <C>
Three Months Ended Six Months Ended
June 30, June 30,
1994 1993 1994 1993
(Thousands of Dollars, Except Per Share Amounts)
OPERATING REVENUES:
Electric............................. $225,188 $213,879 $460,046 $421,434
Gas.................................. 69,910 65,475 181,339 178,971
Transit.............................. 948 1,028 1,969 1,816
Total Operating Revenues........ 296,046 280,382 643,354 602,221
OPERATING EXPENSES:
Fuel used in electric generation..... 54,312 57,270 111,296 108,673
Purchased power...................... 5,012 2,651 9,798 5,428
Gas purchased for resale............. 46,158 43,953 114,907 112,537
Other operation...................... 57,859 54,418 112,713 104,686
Maintenance.......................... 17,735 16,789 33,221 33,283
Depreciation and amortization........ 29,806 28,156 59,544 56,374
Income taxes......................... 15,962 12,463 44,053 33,559
Other taxes.......................... 19,154 19,312 38,377 38,597
Total Operating Expenses........ 245,998 235,012 523,909 493,137
OPERATING INCOME....................... 50,048 45,370 119,445 109,084
OTHER INCOME:
Allowance for equity funds used
during construction................ 1,959 2,774 4,069 5,446
Other income, net of income taxes.... 4,819 5,108 11,159 10,746
Total Other Income............ 6,778 7,882 15,228 16,192
INCOME BEFORE INTEREST CHARGES AND
PREFERRED STOCK DIVIDENDS............ 56,826 53,252 134,673 125,276
INTEREST CHARGES (CREDITS):
Interest expense..................... 27,946 26,441 55,810 53,833
Allowance for borrowed funds used
during construction................ (1,749) (1,662) (3,429) (3,706)
Total Interest Charges, Net..... 26,197 24,779 52,381 50,127
INCOME BEFORE PREFERRED STOCK CASH
DIVIDENDS OF SUBSIDIARY.............. 30,629 28,473 82,292 75,149
PREFERRED STOCK CASH DIVIDENDS OF
SUBSIDIARY (At stated rates)......... (1,462) (1,564) (3,001) (3,131)
NET INCOME............................. 29,167 26,909 79,291 72,018
RETAINED EARNINGS AT BEGINNING
OF PERIOD............................ 523,402 477,692 506,380 462,893
COMMON STOCK CASH DIVIDENDS DECLARED... (33,336) (30,514) (66,438) (60,824)
RETAINED EARNINGS AT END OF PERIOD..... $519,233 $474,087 $519,233 $474,087
NET INCOME............................. $ 29,167 $ 26,909 $ 79,291 $ 72,018
WEIGHTED AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING (THOUSANDS)....... 47,182 44,430 47,015 44,272
EARNINGS PER WEIGHTED AVERAGE SHARE
OF COMMON STOCK...................... $ 0.62 $ 0.61 $ 1.69 $ 1.63
CASH DIVIDENDS DECLARED PER SHARE OF
COMMON STOCK......................... $ 0.705 $ 0.685 $ 1.41 $ 1.37
See notes to consolidated financial statements.
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SCANA CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Periods Ended June 30, 1994 and 1993
(Unaudited)
<S> <C> <C> <C>
Six Months Ended
June 30,
1994 1993
(Thousands of Dollars)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income............................................ $ 79,291 $ 72,018
Adjustments to reconcile net income to net cash
provided from operating activities:
Depreciation, depletion and amortization............ 92,626 75,227
Amortization of nuclear fuel........................ 8,885 6,920
Deferred income taxes, net.......................... 10,293 34,689
Deferred investment tax credits, net................ (1,823) (1,829)
Net regulatory asset-adoption of SFAS No. 109....... (1,132) (11,834)
Dividends declared on preferred stock of subsidiary. 3,001 3,131
Equity (earnings) losses of investees............... (173) (107)
Nuclear refueling accrual........................... 3,763 (9,143)
Allowance for funds used during construction........ (7,498) (9,152)
Over (under) collections, fuel adjustment clause.... (1,020) (790)
Changes in certain current assets and liabilities:
(Increase) decrease in receivables................. 5,048 (18,796)
(Increase) decrease in inventories................. 9,507 11,479
Increase (decrease) in accounts payable............ (46,223) (20,183)
Increase (decrease) in estimated rate refunds
and related interest............................. (638) (15,011)
Increase (decrease) in taxes accrued............... (22,564) (24,931)
Increase (decrease) in interest accrued ........... (276) (219)
Other, net.......................................... 6,408 (7,841)
Net Cash Provided From Operating Activities............. 137,475 83,628
CASH FLOWS FROM INVESTING ACTIVITIES:
Utility property additions and construction
expenditures........................................ (172,146) (135,111)
Acquisition of oil and gas producing properties....... - (122,621)
Increase in other property and investments............ (63,610) (36,685)
Sale of assets of subsidiary.......................... 48,365 -
Principal noncash item:
Allowance for funds used during construction........ 7,498 9,152
Net Cash Used For Investing Activities.................. (179,893) (285,265)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds:
Issuance of other long-term debt.................... 99,000 -
Issuance of First Mortgage Bonds.................... - 100,000
Issuance of notes and loans......................... 60,000 63,085
Issuance of common stock............................ 31,245 27,808
Repayments:
First and Refunding Mortgage Bonds.................. - (47,965)
Redemption of bank note............................. (64,000) (64,887)
Other long-term debt................................ (13,128) (141)
Preferred stock..................................... (2,002) (1,991)
Dividend payments:
Common stock........................................ (65,036) (59,731)
Preferred stock of subsidiary....................... (3,061) (3,169)
Short-term borrowings, net............................ (9,499) 189,898
Fuel financings, net.................................. 7,043 (3,855)
Net Cash Provided From Financing Activities............. 40,562 199,052
NET INCREASE (DECREASE) IN CASH AND
TEMPORARY CASH INVESTMENTS............................ (1,856) (2,585)
CASH AND TEMPORARY CASH INVESTMENTS AT JANUARY 1........ 20,766 32,050
CASH AND TEMPORARY CASH INVESTMENTS AT JUNE 30.......... $ 18,910 $ 29,465
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for - Interest (includes capitalized
interest of $3,429 and $3,706)....... $ 55,266 $ 53,548
- Income taxes.......................... 38,728 25,536
See notes to consolidated financial statements.
</TABLE>
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SCANA CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
June 30, 1994
(Unaudited)
The following notes should be read in conjunction with the
Notes to Consolidated Financial Statements appearing in the
Company's Annual Report on Form 10-K for the year ended December
31, 1993. These are interim financial statements and, because of
temperature variations between seasons of the year, the amounts
reported in the Consolidated Statements of Income are not
necessarily indicative of amounts expected for the year. In the
opinion of management, the information furnished herein reflects
all adjustments, all of a normal recurring nature, which are
necessary for a fair statement of the results for the interim
periods reported.
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
A. Principles of Consolidation:
The accounts of the Company and its wholly owned subsidiaries
are consolidated in the accompanying Consolidated Financial
Statements. Certain investments are reported using the equity
method of accounting. Significant intercompany balances and
transactions have been eliminated in consolidation.
B. Sale of Assets:
In January 1994 the Company signed an agreement to sell in 1994
substantially all of the real estate assets of SCANA
Development Corporation (SDC) to Liberty Properties Group,
Inc. of Greenville, South Carolina for $91.5 million. On
March 4, 1994 the Company and Liberty amended the agreement
regarding the sale. Under the terms of the amended agreement
certain projects currently under construction were excluded
from the transaction and the sales price was reduced to $49.6
million. The primary components of the transaction were
closed on May 27, 1994. Certain other assets of SDC are being
sold to other parties.
C. Classification of Short-term Obligations:
On July 21, 1994 SCE&G issued $100 million of First Mortgage
Bonds, 7.70% series due July 15, 2004 to repay short-term
borrowings in a like amount. Accordingly, short-term
borrowings in the amount of $99 million are included in "Long-
term debt, net."
D. Reclassifications:
Certain amounts from prior periods have been reclassified to
conform with the 1994 presentation.
2.RATE MATTERS:
With respect to rate matters at June 30, 1994, reference is
made to Note 2 of Notes to Consolidated Financial Statements
in the Company's Annual Report on Form 10-K for the year ended
December 31, 1993. No changes have occurred with respect to
those matters as reported therein except as shown below.
On May 18, 1994 the Federal Energy Regulatory Commission (FERC)
ordered SCE&G to refund certain amounts to its wholesale
customers. The refund was ordered because the retail rate on
which wholesale rates were based had been reduced and refunds
had been made to retail customers in response to an order of
the South Carolina Public Service Commission (PSC) issued on
January 19, 1993. SCE&G refunded $1.1 million, including
interest, to its wholesale customers on July 28, 1994.
In June 1994 SCE&G placed into effect the second phase of the
retail electric rate increase approved by the PSC on June 7,
1993. The new rates will produce an increase in electric
operating revenue of $18.5 million annually, based on a test
year.
7
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On June 6, 1994 the PSC issued an order denying SCE&G's request
that the $.40 fare for low income riders of SCE&G's transit
system be eliminated. SCE&G has appealed the PSC's order to
the South Carolina Circuit Court.
3.RETAINED EARNINGS:
The Restated Articles of Incorporation of the Company do not
limit the dividends that may be payable on its common stock.
However, the Restated Articles of Incorporation of SCE&G and
the Indenture underlying certain of its bond issues contain
provisions that may limit the payment of cash dividends on
common stock. In addition, with respect to hydroelectric
projects, the Federal Power Act may require the appropriation
of a portion of the earnings therefrom. At June 30, 1994
approximately $10.7 million of retained earnings were
restricted as to payment of cash dividends on common stock.
4.COMMITMENTS AND CONTINGENCIES:
With respect to commitments at June 30, 1994, reference is made
to Note 10 of Notes to Consolidated Financial Statements
appearing in the Company's Annual Report on Form 10-K for the
year ended December 31, 1993. No significant changes have
occurred with respect to those matters as reported therein.
A. Nuclear Insurance
The Price-Anderson Indemnification Act, which deals with public
liability for a nuclear incident, currently establishes the
liability limit for third-party claims associated with any
nuclear incident at $9.4 billion. Each reactor licensee is
currently liable for up to $79.3 million per reactor owned for
each nuclear incident occurring at any reactor in the United
States, provided that not more than $10 million of the
liability per reactor would be assessed per year. SCE&G's
maximum assessment, based on its two-thirds ownership of
Summer Station, would be approximately $52.9 million per
incident but not more than $6.7 million per year. SCE&G
currently maintains policies (for itself and on behalf of the
PSA) with Nuclear Electric Insurance Limited (NEIL) and
American Nuclear Insurers (ANI) providing combined property and
decontamination insurance coverage of $1.4 billion for any
losses in excess of $500 million pursuant to existing primary
coverages (with ANI) on Summer Station. SCE&G pays annual
premiums and, in addition, could be assessed a retroactive
premium not to exceed 7 1/2 times its annual premium in the
event of property damage loss to any nuclear generating
facilities covered by NEIL. Based on the current annual
premium, this retroactive premium would not exceed
approximately $8.1 million.
To the extent that insurable claims for property damage,
decontamination, repair and replacement and other costs and
expenses arising from a nuclear incident at Summer Station
exceed the policy limits of insurance, or to the extent such
insurance becomes unavailable in the future, and to the extent
that SCE&G's rates would not recover the cost of any purchased
replacement power, SCE&G will retain the risk of loss as a
self-insurer. SCE&G has no reason to anticipate a serious
nuclear incident at Summer Station. If such an incident were
to occur, it could have a materially adverse impact on the
Company's financial position.
B. Environmental
The Company has an environmental assessment program to identify
and assess current and former operations sites that could
require environmental cleanup. As site assessments are
initiated, an estimate is made of the amount of expenditures,
if any, necessary to investigate and clean up each site. These
estimates are refined as additional information becomes
available; therefore actual expenditures could significantly
differ from the original estimates. Amounts estimated and
accrued to date for site assessment and cleanup relate
primarily to regulated operations; such amounts have been
deferred (approximately $23.4 million) and are being amortized
and recovered through rates over a ten year period.
8
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SCANA CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Material Changes in Capital Resources and Liquidity
From December 31, 1993 to June 30, 1994
Liquidity and Capital Resources
The cash requirements of the Company arise primarily from
SCE&G's operational needs, the Company's construction program and
the need to fund the activities or investments of the Company's
nonregulated subsidiaries. The ability of the Company's regulated
subsidiaries to replace existing plant investment, as well as to
expand to meet future demands for electricity and gas, will depend
upon their ability to attract the necessary financial capital on
reasonable terms. The Company's regulated subsidiaries recover the
costs of providing services through rates charged to customers.
Rates for regulated services are generally based on historical
costs. As customer growth and inflation occur and the regulated
subsidiaries expand their construction programs, it is necessary to
seek increases in rates. As a result, the Company's future
financial position and results of operations will be affected by
the regulated subsidiaries' ability to obtain adequate and timely
rate relief.
The following table summarizes how the Company generated funds
for its property acquisitions and utility property additions and
construction expenditures during the six months ended June 30, 1994
and 1993:
Six Months Ended
June 30,
1994 1993
(Thousands of Dollars)
Net cash provided from operating activities $137,475 $ 83,628
Net cash provided from financing activities 40,562 199,052
Cash and temporary cash investments available
at the beginning of the period 20,766 32,050
Net cash available for property acquisitions
and utility property additions and
construction expenditures $198,803 $314,730
Funds used for utility property additions
and construction expenditures, net of
noncash allowance for funds used during
construction $164,648 $125,959
Funds used for nonutility property
additions $ 46,737 $155,581
In June 1994 SCE&G placed into effect the second phase of
the retail electric rate increase approved by the South Carolina
Public Service Commission on June 7, 1993.
On July 21, 1994 SCE&G issued $100 million of First Mortgage
Bonds, 7.70% series due July 15, 2004 to repay short-term
borrowings in a like amount. Accordingly, short-term
borrowings in the amount of $99 million are included in
"Long-term debt, net."
MPX Systems, Inc., a wholly owned subsidiary of SCANA,
through a joint venture with ITC Transmission Systems, a Georgia-
based telecommunications holding company, will be constructing a
fiber optic network through Louisiana, Mississippi, Alabama and
Georgia. The network, which will consist of more than 900 miles
of fiber optic lines, is expected to be completed by June 1995 at
a cost of $58 million.
9
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The Company anticipates that the remainder of its 1994 cash
requirements will be met through internally generated funds, the
sales of additional equity securities and medium-term notes and the
incurrence of additional short-term and long-term indebtedness.
The timing and amount of such financing will depend upon market
conditions and other factors.
The ratio of earnings to fixed charges for the twelve months
ended June 30, 1994 was 3.53.
The Company expects that it has or can obtain adequate
sources of financing to meet its cash requirements for the next
twelve months and for the foreseeable future.
10
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SCANA CORPORATION
Results of Operations
For the Six months Ended June 30, 1994
As Compared to the Corresponding Period in 1993
Earnings and Dividends
Net income for the three and six months ended June 30,
1994 increased approximately $2.3 million and $7.3 million,
respectively, when compared to the corresponding periods in 1993
primarily due to higher electric margins.
Allowance for funds used during construction (AFC) is a
utility accounting practice whereby a portion of the cost of both
equity and borrowed funds used to finance construction (which is
shown on the balance sheet as construction work in progress) is
capitalized. Both the equity and the debt portions of AFC are
noncash items of nonoperating income which have the effect of
increasing reported net income. AFC represented approximately 8%
and 11% of income before income taxes for the three months ended
June 30, 1994 and 1993, respectively, and approximately 6% and 9%
for the six months ended June 30, 1994 and 1993, respectively.
On April 28, 1994 the Company's Board of Directors declared a
quarterly dividend on common stock of 70 1/2 cents per share for
the quarter ended June 30, 1994. The dividend was paid on July 1,
1994 to common stockholders of record on June 10, 1994.
Sales Margins
The changes in the electric sales margin for the three and six
months ended June 30, 1994 when compared to the corresponding
periods in 1993 were as follows:
Three Months Six Months
Change % Change Change % Change
(Millions) (Millions)
Electric operating revenues $11.3 5.3 $38.6 9.2
Less: Fuel used in electric
generation (3.0) (5.2) 2.6 2.4
Purchased power 2.4 89.1 4.4 80.5
Margin $11.9 7.7 $31.6 10.3
The electric sales margins increased for the three and six
months ended June 30, 1994 compared to the corresponding periods in
1993 primarily due to an increase in retail electric rates which
was effective beginning in June 1993 and increases in customer
sales due to customer growth, reflecting a general improvement in
the economy. The second phase of the retail electric rate
increase, which was placed into effect June 1994, also contributed
to the increase in electric sales margins.
11
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The changes in the gas sales margin for the three and six
months ended June 30, 1994 when compared to the corresponding
periods in 1993 were as follows:
Three Months Six Months
Change % Change Change % Change
(Millions) (Millions)
Gas operating revenues $4.4 6.8 $2.4 1.3
Less: Gas purchased for resale 2.2 5.0 2.4 2.1
Margin $2.2 10.4 $ - -
The increase in the gas sales margin for the three months'
comparison reflects increased recoveries under the weather
normalization adjustment due to milder weather during the second
quarter of 1994, in addition to an increase in South Carolina
Pipeline Corporation's interruptible industrial sales due to a
shift of transportation customers to this class and a lower cost of
gas related to these sales. The gas margin remained constant for
the six months' comparison.
Other Operating Expenses
Increases in other operating expenses, including taxes, for
the three and six months ended June 30, 1994 compared to the
corresponding periods in 1993 are presented in the following table:
Three Months Six Months
Change % Change Change % Change
(Millions) (Millions)
Other operation and maintenance $ 4.4 6.2 $ 7.9 5.8
Depreciation and amortization 1.6 5.9 3.2 5.6
Income taxes 3.5 28.1 10.5 31.3
Other taxes (0.1) (0.8) (0.2) (0.6)
Total $ 9.4 7.2 $21.4 8.0
Other operation and maintenance expenses for the three and six
months ended June 30, 1994 increased primarily due to increases in
employee-related expenses, amortization of environmental charges
previously deferred and outage-related expenses at SCE&G's nuclear
generating facility and Williams Station. The depreciation and
amortization increases for the three and six months reflect
additions to plant in service. The increases in income tax expense
for the three and six months' comparisons correspond to the
increases in income and reflect the increase in the corporate
tax rate from 34% to 35% which was recorded in August 1993
and was retroactive to January 1, 1993.
12
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SCANA CORPORATION
Part II
OTHER INFORMATION
Item 1. Legal Proceedings
For information regarding legal proceedings see Note 2
"Rate Matters" and Note 4 "Commitments and Contingencies"
of Notes to Consolidated Financial Statements.
Items 2, 3, 4, and 5 are not applicable.
Item 6. Exhibits and Reports on Form 8-K
A. Exhibits
Exhibits filed with this Quarterly Report on Form 10-Q are
listed in the following Exhibit Index. Certain of such
exhibits which have heretofore been filed with the
Securities and Exchange Commission and which are
designated by reference to their exhibit numbers in prior
filings are hereby incorporated herein by reference and
made a part hereof.
B. Reports on Form 8-K
None
13
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SCANA CORPORATION
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.
SCANA CORPORATION
(Registrant)
August 11, 1994 By: s/W. B. Timmerman
W. B. Timmerman, Executive Vice
President, Chief Financial
Officer and Controller
(Principal Financial Officer)
14
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SCANA CORPORATION
EXHIBIT INDEX Sequentially
Numbered
Pages
Number
2. Plan of Acquisition, Reorganization, Arrangement,
Liquidation or Succession
Plan of Exchange of South Carolina Electric &
Gas Company and SCANA Corporation (Exhibit
2 to Registration Statement No. 2-93812)................... #
3. Articles of Incorporation and By-Laws
A. Restated Articles of Incorporation of SCANA
Corporation as adopted on April 26, 1989
(Exhibit 3-A to Registration Statement
No. 33-49145)........................................... #
B. Copy of By-Laws of SCANA Corporation as revised
and amended on December 16, 1992 (Exhibit 3-B
to Registration Statement No. 33-49333)................. #
4. Instruments Defining the Rights of Security Holders,
Including Indentures
A. Articles of Exchange of South Carolina
Electric & Gas Company and SCANA Corporation
(Exhibit 4-A to Post-Effective Amendment No. 1
to Registration Statement No. 2-90438).................. #
B. Indenture dated as of November 1, 1989 to
The Bank of New York, Trustee (Exhibit 4-A
to Registration No. 33-32107)........................... #
C. Indenture dated as of January 1, 1945, from
the South Carolina Power Company (the "Power
Company") to Central Hanover Bank and Trust
Company, as Trustee, as supplemented by three
Supplemental Indentures dated respectively as
of May 1, 1946, May 1, 1947 and July 1, 1949
(Exhibit 2-B to Registration No. 2-26459)............... #
D. Fourth Supplemental Indenture dates as of
April 1, 1950, to Indenture referred to in
Exhibit 4C, pursuant to which the Company
assumed said Indenture (Exhibit 2-C to
Registration No. 2-26459)............................... #
E. Fifth through Fifty-second Supplemental
Indenture referred to in Exhibit 4C dated
as of the dates indicated below and filed
as exhibits to the Registration Statements
and 1934 Act reports whose file number are
set forth below......................................... #
December 1, 1950 Exhibit 2-D to Registration No. 2-26459
July 1, 1951 Exhibit 2-E to Registration No. 2-26459
# Incorporated herein by reference as indicated.
15
<PAGE>
SCANA CORPORATION
EXHIBIT INDEX
Sequentially
Numbered
Pages
Number
June 1, 1953 Exhibit 2-F to Registration No. 2-26459
June 1, 1955 Exhibit 2-G to Registration No. 2-26459
November 1, 1957 Exhibit 2-H to Registration No. 2-26459
September 1, 1958 Exhibit 2-I to Registration No. 2-26459
September 1, 1960 Exhibit 2-J to Registration No. 2-26459
June 1, 1961 Exhibit 2-K to Registration No. 2-26459
December 1, 1965 Exhibit 2-L to Registration No. 2-26459
June 1, 1966 Exhibit 2-M to Registration No. 2-26459
June 1, 1967 Exhibit 2-N to Registration No. 2-29693
September 1, 1968 Exhibit 4-O to Registration No. 2-31569
June 1, 1969 Exhibit 4-C to Registration No. 33-38580
December 1, 1969 Exhibit 4-Q to Registration No. 2-35388
June 1, 1970 Exhibit 4-R to Registration No. 2-37363
March 1, 1971 Exhibit 2-B-17 to Registration No. 2-40324
January 1, 1972 Exhibit 4-C to Registration No. 33-38580
July 1, 1974 Exhibit 2-A-19 to Registration No. 2-51291
May 1, 1975 Exhibit 4-C to Registration No. 33-38580
July 1, 1975 Exhibit 2-B-21 to Registration No. 2-53908
February 1, 1976 Exhibit 2-B-22 to Registration No. 2-55304
December 1, 1976 Exhibit 2-B-23 to Registration No. 2-57936
March 1, 1977 Exhibit 2-B-24 to Registration No. 2-58662
May 1, 1977 Exhibit 4-C to Registration No. 33-38580
February 1, 1978 Exhibit 4-C to Registration No. 33-38580
June 1, 1978 Exhibit 2-A-3 to Registration No. 2-61653
April 1, 1979 Exhibit 4-C to Registration No. 33-38580
June 1, 1979 Exhibit 4-C to Registration No. 33-38580
April 1, 1980 Exhibit 4-C to Registration No. 33-38580
June 1, 1980 Exhibit 4-C to Registration No. 33-38580
December 1, 1980 Exhibit 4-C to Registration No. 33-38580
April 1, 1981 Exhibit 4-D to Registration No. 33-49421
June 1, 1981 Exhibit 4-D to Registration No. 2-73321
March 1, 1982 Exhibit 4-D to Registration No. 33-49421
April 15, 1982 Exhibit 4-D to Registration No. 33-49421
May 1, 1982 Exhibit 4-D to Registration No. 33-49421
December 1, 1984 Exhibit 4-D to Registration No. 33-49421
December 1, 1985 Exhibit 4-D to Registration No. 33-49421
June 1, 1986 Exhibit 4-D to Registration No. 33-49421
February 1, 1987 Exhibit 4-D to Registration No. 33-49421
September 1, 1987 Exhibit 4-D to Registration No. 33-49421
January 1, 1989 Exhibit 4-D to Registration No. 33-49421
January 1, 1991 Exhibit 4-D to Registration No. 33-49421
February 1, 1991 Exhibit 4-D to Registration No. 33-49421
July 15, 1991 Exhibit 4-D to Registration No. 33-49421
August 15, 1991 Exhibit 4-D to Registration No. 33-49421
April 1, 1993 Exhibit 4-E to Registration No. 33-49421
July 1, 1993 Exhibit 4-F to Form 10-Q for the quarter
ended June 30, 1993, File No. 1-3375
# Incorporated herein by reference as indicated.
16
<PAGE>
SCANA CORPORATION
EXHIBIT INDEX
Sequentially
Numbered
Pages
Number
F. Indenture dated as of April 1, 1993 from
South Carolina Electric & Gas Company to
NationsBank of Georgia, National Association
(Filed as Exhibit 4-F to Registration Statement
No. 33-49421)........................................... #
G. First Supplemental Indenture to Indenture
referred to in Exhibit 4-G dated as of June 1, 1993
(Filed as Exhibit 4-G to Registration Statement
No. 33-49421)........................................... #
H. Second Supplemental Indenture to Indenture
referred to in Exhibit 4-G dated as of June 15, 1993
(Filed as Exhibit 4-G to Form 10-Q for the
quarter ended June 30, 1993, File No. 1-3375)........... #
10. Material Contracts
Not Applicable
11. Statement Re Computation of Per Share Earnings
Not Applicable
12. Statement Re Computation of Ratios (Filed herewith)........ 18
15. Letter Re Unaudited Interim Financial Information
Not Applicable
18. Letter Re Change in Accounting Principles
Not Applicable
19. Report Furnished to Security Holders
Not Applicable
22. Published Report Regarding Matters Submitted to
Vote of Security Holders
Not Applicable
23. Consents of Experts and Counsel
Not Applicable
24. Power of Attorney
Not Applicable
27. Financial Data Schedule
Not Applicable
99. Additional Exhibits
Not Applicable
17
<PAGE>
Exhibit 12
SCANA CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
For the Twelve Months Ended June 30, 1994
(Thousands of Dollars)
Twelve Months
Ended
June 30, 1994
Fixed Charges as defined:
Interest on long-term debt.............. $100,775
Amortization of debt premium, discount
and expense (net)...................... 2,323
Other interest expense.................. 6,246
Interest component of rentals........... 2,896
Total Fixed Charges (A)............. $112,240
Earnings, as defined:
Income.................................. $181,341
Income taxes............................ 102,259
Total fixed charges above............... 112,240
Total Earnings (B).................. $395,840
Ratio of Earnings to fixed charges (B/A).. 3.53
18
