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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 March 31, 1998
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.
107,220,913 Common Shares, without par value, as of March 31, 1998
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SCANA CORPORATION
INDEX
PART I. FINANCIAL INFORMATION Page
Item 1. Financial Statements
Consolidated Balance Sheets as of March 31, 1998
and December 31, 1997..................................... 3
Consolidated Statements of Income and Retained Earnings
for the Periods Ended March 31, 1998 and 1997............. 5
Consolidated Statements of Cash Flows for the Periods
Ended March 31, 1998 and 1997............................. 6
Notes to Consolidated Financial Statements................ 7
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations....................... 11
Item 3. Quantitative and Qualitative Disclosure About Market Risk. 18
PART II. OTHER INFORMATION
Item 1. Legal Proceedings......................................... 18
Item 6. Exhibits and Reports on Form 8-K.......................... 18
Signatures......................................................... 19
Exhibit Index...................................................... 20
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<TABLE>
PART I
FINANCIAL INFORMATION
Item 1. Financial Statements.
SCANA CORPORATION
CONSOLIDATED BALANCE SHEETS
As of March 31, 1998 and December 31, 1997
(Unaudited)
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March 31, December 31,
1998 1997
(Millions of Dollars)
ASSETS
Utility Plant:
Electric................................................... $4,293 $4,292
Gas........................................................ 580 580
Other...................................................... 84 84
Total.................................................... 4,957 4,956
Less accumulated depreciation and amortization............. 1,645 1,619
Total.................................................... 3,312 3,337
Construction work in progress.............................. 287 234
Nuclear fuel, net of accumulated amortization.............. 49 53
Acquisition adjustment-gas, net of accumulated
amortization............................................. 24 24
Utility Plant, Net.................................... 3,672 3,648
Nonutility Property and Investments, net of
accumulated depreciation................................... 418 364
Current Assets:
Cash and temporary cash investments........................ 50 60
Receivables................................................ 258 248
Inventories (at average cost):
Fuel..................................................... 47 51
Materials and supplies................................... 52 52
Prepayments................................................ 20 16
Deferred income taxes...................................... 23 25
Total Current Assets.................................. 450 452
Deferred Debits:
Emission allowances........................................ 31 31
Environmental.............................................. 29 32
Nuclear plant decommissioning fund......................... 51 49
Pension asset, net......................................... 83 82
Other...................................................... 280 274
Total Deferred Debits................................. 474 468
Total....................................... $5,014 $4,932
See notes to consolidated financial statements.
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SCANA CORPORATION
CONSOLIDATED BALANCE SHEETS
As of March 31, 1998 and December 31, 1997
<S> <C> <C> <C>
(Unaudited)
March 31, December 31,
1998 1997
(Millions of Dollars)
CAPITALIZATION AND LIABILITIES
Stockholders' Investment:
Common equity............................................... $1,838 $1,788
Preferred stock (not subject to purchase or sinking funds).. 106 106
Total Stockholders' Investment............................ 1,944 1,894
Preferred stock, net (subject to purchase or sinking funds)... 12 12
SCE&G Obligated Mandatorily Redeemable Preferred
Securities of SCE&G's Subsidiary Trust, SCE&G Trust I,
holding solely $50 million, principal amount of the 7.55%
Junior Subordinated Debentures of SCE&G, due 2027........ 50 50
Long-term debt, net.......................................... 1,565 1,566
Total Capitalization.................................. 3,571 3,522
Current Liabilities:
Short-term borrowings...................................... 58 59
Current portion of long-term debt.......................... 73 73
Accounts payable........................................... 146 131
Customer deposits.......................................... 18 18
Taxes accrued.............................................. 25 59
Interest accrued........................................... 32 26
Dividends declared......................................... 44 43
Other...................................................... 19 14
Total Current Liabilities............................. 415 423
Deferred Credits:
Deferred income taxes...................................... 652 612
Deferred investment tax credits............................ 97 98
Reserve for nuclear plant decommissioning.................. 51 49
Postretirement benefits.................................... 64 61
Other...................................................... 164 167
Total Deferred Credits................................ 1,028 987
Total....................................... $5,014 $4,932
See notes to consolidated financial statements.
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SCANA CORPORATION
CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS
For the Periods Ended March 31, 1998 and 1997
(Unaudited)
<S> <C> <C> <C>
Three Months Ended
March 31,
1998 1997
(Millions of Dollars, Except Per Share Amounts)
OPERATING REVENUES:
Electric........................................ $269 $253
Gas............................................. 137 132
Total Operating Revenues.................... 406 385
OPERATING EXPENSES:
Fuel used in electric generation................ 59 54
Purchased power................................. 2 1
Gas purchased for resale........................ 83 83
Other operation................................. 60 56
Maintenance..................................... 19 15
Depreciation and amortization................... 30 38
Income taxes.................................... 36 31
Other taxes..................................... 26 26
Total Operating Expenses.................... 315 304
OPERATING INCOME.................................. 91 81
OTHER INCOME:
Allowance for equity funds used
during construction........................... 2 2
Other income, net of income taxes............... 3 6
Total Other Income.......................... 5 8
INCOME BEFORE INTEREST CHARGES AND
PREFERRED STOCK DIVIDENDS....................... 96 89
INTEREST CHARGES (CREDITS):
Interest expense................................ 31 33
Allowance for borrowed funds used
during construction........................... (2) (2)
Total Interest Charges, Net................. 29 31
INCOME BEFORE PREFERRED DIVIDEND REQUIREMENTS
ON MANDATORILY REDEEMABLE PREFERRED
SECURITIES 67 58
PREFERRED DIVIDEND REQUIREMENT OF SCE&G
- OBLIGATED MANDATORILY REDEEMABLE
PREFERRED SECURITIES 1 -
INCOME BEFORE PREFERRED STOCK CASH
DIVIDENDS OF SUBSIDIARY......................... 66 58
PREFERRED STOCK CASH DIVIDENDS OF
SUBSIDIARY (At stated rates).................... (2) (1)
NET INCOME........................................ 64 57
RETAINED EARNINGS AT BEGINNING OF PERIOD.......... 617 558
COMMON STOCK CASH DIVIDENDS DECLARED.............. (41) (40)
RETAINED EARNINGS AT END OF PERIOD................ $640 $575
NET INCOME........................................ $ 64 $ 57
WEIGHTED AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING (MILLIONS)................... 107.3 106.6
EARNINGS PER WEIGHTED AVERAGE SHARE
OF COMMON STOCK................................. $.60 $.54
CASH DIVIDENDS DECLARED PER SHARE OF
COMMON STOCK................................... $.3850 $.3775
See notes to consolidated financial statements.
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SCANA CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Periods Ended March 31, 1998 and 1997
(Unaudited)
<S> <C> <C> <C>
Three Months Ended
March 31,
1998 1997
(Millions of Dollars)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income............................................ $ 64 $ 57
Adjustments to reconcile net income to net cash
provided from operating activities:
Depreciation, depletion and amortization............ 32 45
Amortization of nuclear fuel........................ 41 6
Deferred income taxes, net.......................... 23 11
Pension asset....................................... (1) (4)
Postretirement benefits............................. 3 3
Allowance for funds used during construction........ (4) (4)
Over (under) collections, fuel adjustment clauses... 16 17
Changes in certain current assets and liabilities:
(Increase) decrease in receivables................. (10) 29
(Increase) decrease in inventories................. 4 14
Increase (decrease) in accounts payable............ 15 (46)
Increase (decrease) in taxes accrued............... (34) (35)
Other, net.......................................... (17) 8
Net Cash Provided From Operating Activities............. 132 101
CASH FLOWS FROM INVESTING ACTIVITIES:
Utility property additions and construction
expenditures, net of AFC............................ (87) (41)
Increase in other property and investments............ (7) (12)
Sale of subsidiary assets............................. - 8
Net Cash Used For Investing Activities.................. (94) (45)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds:
Issuance of notes and loans......................... 60 25
Issuance of common stock............................ - 14
Repayments:
Notes and loans..................................... (60) -
Other long-term debt................................ - (3)
Preferred stock..................................... - (2)
Repurchase of common stock.......................... (3) -
Dividend payments:
Common stock........................................ (40) (39)
Preferred stock of subsidiary....................... (2) (1)
Short-term borrowings, net............................ (1) (9)
Fuel and emission allowance financings, net........... (2) 3
Net Cash Used For Financing Activities.................. (48) (12)
NET INCREASE (DECREASE) IN CASH AND TEMPORARY
CASH INVESTMENTS........................................ (10) 44
CASH AND TEMPORARY CASH INVESTMENTS AT JANUARY 1........ 60 17
CASH AND TEMPORARY CASH INVESTMENTS AT MARCH 31......... $ 50 $ 61
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for - Interest (includes capitalized
interest of $2 for 1998 and 1997).... $ 24 $ 26
- Income taxes.......................... (3) 2
Noncash investing activities
- Unrealized gain (loss) on securities
available for sale (net of tax)....... 31 (13)
See notes to consolidated financial statements.
</TABLE>
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SCANA CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
March 31, 1998
(Unaudited)
The following notes should be read in conjunction with the
Notes to Consolidated Financial Statements appearing in SCANA
Corporation's (the Company) Annual Report on Form 10-K for the year
ended December 31, 1997. 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 except
as described in Note 2, which are necessary for a fair statement of
the results for the interim periods reported.
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
A. Basis of Accounting
The Company accounts for its regulated utility operations,
assets and liabilities in accordance with the provisions of
Statement of Financial Accounting Standards No. 71 (SFAS 71).
The accounting standard requires cost-based rate-regulated
utilities to recognize in their financial statements revenues
and expenses in different time periods than do enterprises that
are not rate-regulated. As a result the Company has recorded,
as of March 31, 1998, approximately $242 million and $74
million of regulatory assets and liabilities, respectively,
including amounts recorded for deferred income tax assets
and liabilities of approximately $123 million and $58
million, respectively. The electric and gas regulatory assets
of approximately $80 million and $35 million, respectively
(excluding deferred income tax assets) are being recovered
through rates, and the Public Service Commission of South
Carolina (PSC) has approved accelerated recovery of
approximately $37 million of these assets. In the future, as
a result of deregulation or other changes in the regulatory
environment, the Company may no longer meet the criteria for
continued application of SFAS 71 and could be required to write
off its regulatory assets and liabilities. Such an event could
have a material adverse effect on the Company's results of
operations in the period the write-off is recorded, but it is
not expected that cash flows or financial position would be
materially affected.
B. Comprehensive Income
The Company has adopted the provisions of Statement of
Financial Accounting Standards No. 130, Reporting Comprehensive
Income, which is effective for fiscal years beginning after
December 15, 1997. The statement requires the disclosure of
the components of comprehensive income for each period for
which consolidated statements of income and retained earnings
are presented. Comprehensive income includes net income and
all other changes in equity except those resulting from
investments by and distribution to stockholders.
Comprehensive income of the Company totaling $94.5 million and
$43.9 million for the three months ended March 31, 1998 and
1997, respectively, includes net income and unrealized
gains/losses on securities available for sale.
C. Reclassifications
Certain amounts from prior periods have been reclassified to
conform with the 1998 presentation.
2. RATE MATTERS
On January 9, 1996 the PSC issued an order granting South
Carolina Electric & Gas Company (SCE&G) an increase in retail
electric rates of 7.34%, which was designed to produce
additional revenues, based on a test year, of approximately
$67.5 million annually. The increase was implemented in two
phases. The first phase, an increase in revenues of
approximately $59.5 million annually, or 6.47%, commenced in
January 1996. The second phase, an increase in revenues of
approximately $8.0 million annually, or .87%, was implemented
in January 1997. The PSC authorized a return on common equity
of 12.0%. The PSC also approved establishment of a Storm
Damage Reserve Account capped at $50 million to be collected
through rates over a ten-year period. Additionally, the PSC
approved accelerated recovery of a significant portion of
SCE&G's electric regulatory assets (excluding deferred income
tax assets) and the remaining transition obligation for
postretirement benefits other than pensions, changing the
amortization periods to allow recovery by the end of the
year 2000. SCE&G's request to shift, for ratemaking
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purposes, approximately $257 million of depreciation
reserves from transmission and distributionassets to
nuclear production assets was also approved. The Consumer
Advocate and two other intervenors appealed certain issues in
the order to the South Carolina Circuit Court, which affirmed
the PSC's decisions, and, subsequently, to the South Carolina
Supreme Court. In March 1998, SCE&G, the PSC and the Consumer
Advocate and one of the other intervenors reached an agreement
that provided for the reversal of the shift in depreciation
reserves and the dismissal of the appeal of all other issues.
The PSC also authorized the Company to adjust depreciation
rates that had been approved in the 1996 rate order for its
electric transmission, distribution and nuclear production
properties to eliminate the effect of the depreciation reserve
shift and to retroactively apply such depreciation rates to
February 1996. As a result, a one-time reduction in
depreciation expense of $5.5 million after taxes was recorded
in March 1998. The agreement does not affect retail electric
rates. The remaining intervenor continues to contest
establishment of the Storm Damage Reserve Account and the
authorized return on common equity. The Supreme Court heard
the case in April 1998 and is expected to issue a ruling by
July 1998. While the outcome of this proceeding is uncertain,
the Company does not believe that any significant adverse
change in the rate order is likely. The Federal Energy
Regulatory Commission (FERC) had previously rejected the
transfer of depreciation reserves for rates subject to its
jurisdiction.
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 its First and Refunding Mortgage Bonds
contain provisions that, under certain circumstances, could
limit the payment of cash dividends on its common stock. In
addition, with respect to hydroelectric projects, the Federal
Power Act requires the appropriation of a portion of certain
earnings therefrom. At March 31, 1998 approximately $21.8
million of retained earnings were restricted by this
requirement as to payment of cash dividends on SCE&G's common
stock.
4. INVESTMENTS IN EQUITY SECURITIES:
SCANA Communications, Inc. (SCI) owns approximately 4.5
million common shares, representing approximately 17% of
Powertel, Inc. (Powertel), common stock and 100,000 non-voting
series B and 50,000 non-voting series D convertible preferred
shares of Powertel, a publicly-traded telecommunications
company which owns and operates personal communications
services (PCS) systems in several major markets in the
Southeast. The costs of such investments are approximately
$66.7 million, $75.1 million and $22.5 million,
respectively. Common shares were initially recorded at $14.85
per share. Preferred series B shares are convertible in March
2002 at a conversion price of $16.50 per common share or
approximately 4.5 million common shares. Preferred series D
shares are convertible in March 2002 at a conversion price of
$12.75 per common share or approximately 1.7 million common
shares. Powertel common stock, which trades on NASDAQ, closed
at $21 19/32 on March 31, 1998, resulting in a pre-tax
unrealized holding gain of $30.3 million. The after-tax
amount of such gain is included in the balance sheet as a
component of "Common Equity." The market value of the
convertible preferred shares of Powertel is not readily
determinable. However, on an as converted basis, the market
value of the underlying common shares for the preferred shares
was approximately $136.3 million at March 31, 1998,
resulting in an unrecorded pre-tax holding gain of $38.7
million.
SCI owns 774,616 common shares and 645,153 series A
convertible preferred shares of ITC Holding Company, Inc.
(ITC), an affiliate of Powertel. The costs of these
investments are approximately $7.1 million and $8.9 million,
respectively. The market value of these investments is not
readily determinable.
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SCI owns 1,777,919 common shares and 1,480,771 shares of
series A preferred stock of ITC Delta^Com, Inc. (ITCD), a
Georgia-based telecommunications company and an affiliate of
Powertel. The costs of such investments are approximately
$9.0 million and $11.2 million, respectively. Preferred
series A shares are convertible in March 2002 into 1,480,771
shares of ITCD common stock. ITCD common stock, which
began trading on NASDAQ on October 24, 1997, closed at $32 1/8
per share on March 31, 1998, resulting in a pre-tax unrealized
holding gain of $48.1 million. The after-tax amount of such
gain is included in the balance sheet as a component of "Common
Equity." The market value of series A preferred stock of ITCD
is not readily determinable. However, on an as converted basis
the market value of the underlying common stock for the series
A preferred stock was approximately $47.6 million at March 31,
1998 resulting in an unrecorded pre-tax holding gain of $36.3
million.
SCI owns 71,050 units of Knology Holdings, Inc. (Knology), also
an affiliate of ITC. Each unit consists of one 11.875% Senior
Discount Note due 2007 and one Warrant entitling the holder to
purchase .003734 shares of preferred stock of Knology. The
cost of this investment was approximately $40 million. In
addition to the acquisition of the Knology units, SCI invested
$5.3 million to purchase 3,639 shares of preferred stock of
Knology and Knology has agreed to issue to SCI warrants to
purchase 753 shares of preferred stock at $1,500 per share.
5. CONTINGENCIES:
With respect to commitments at March 31, 1998, reference is
made to Note 10 to Consolidated Financial Statements appearing
in the Company's Annual Report on Form 10-K for the year
ended December 31, 1997. Contingencies at March 31, 1998 are
as follows:
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 $8.9 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 V.
C. Summer Nuclear Station (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 $2.0 billion for any
losses at Summer Station. SCE&G pays annual premiums and, in
addition, could be assessed a retroactive premium not to exceed
five times its annual premium in the event of property damage
loss to any nuclear generating facility covered under the NEIL
program. Based on the current annual premium, this retroactive
premium assessment would not exceed $5.1 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 material adverse impact on the
Company's results of operations, cash flows and financial
position.
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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 differ
significantly from the original estimates. Amounts estimated
and accrued to date for site assessment and cleanup relate
primarily to regulated operations; such amounts are deferred
(approximately $29 million) and are being amortized and
recovered through rates over a five-year period for electric
operations and an eight-year period for gas operations. The
deferral includes the costs estimated to be associated with the
matters discussed below.
In September 1992, the Environmental Protection Agency
(EPA) notified SCE&G, the City of Charleston and the
Charleston Housing Authority of their potential liability
for the investigation and cleanup of the Calhoun Park area
site in Charleston, South Carolina. This site encompasses
approximately 30 acres and includes properties which were
locations for industrial operations, including a wood
preserving (creosote) plant, one of SCE&G's decommissioned
manufactured gas plants, properties owned by the National
Park Service and the City of Charleston and private
properties. The site has not been placed on the
National Priorities List, but may be added before
cleanup is initiated. The Potentially Responsible
Parties (PRPs) have agreed with the EPA to
participate in an innovative approach to site
investigation and cleanup called "Superfund Accelerated
Cleanup Model," allowing the pre-cleanup site
investigation process to be compressed significantly. The
PRPs have negotiated an administrative order by consent
for the conduct of a Remedial Investigation/Feasibility
Study and a corresponding Scope of Work. Field work began
in November 1993 and the EPA conditionally approved a
Remedial Investigation Report in March 1997. Although
SCE&G is continuing to investigate cost-effective clean-up
methodologies, further work is pending EPA approval of the
final draft of the Remedial Investigation Report.
In October 1996 the City of Charleston and SCE&G settled
all environmental claims the City may have had against
SCE&G involving the Calhoun Park area for a payment
of $26 million over four years (1996-1999) by SCE&G to
the City. SCE&G is recovering the amount of the
settlement, which does not encompass site assessment and
cleanup costs, through rates in the same manner as other
amounts accrued for site assessments and cleanup as
discussed above. As part of the environmental settlement,
SCE&G has agreed to construct a 1,100 space parking
garage on the Calhoun Park site and to transfer the
facility to the City in exchange for a 20-year municipal
bond backed by revenues from the parking garage and a
mortgage on the parking garage. Construction is expected
to begin in 1998. The total amount of the bond is not to
exceed $16.9 million, the maximum expected project cost.
SCE&G owns three other decommissioned manufactured gas
plant sites which contain residues of by-product
chemicals. SCE&G is investigating the sites to monitor
the nature and extent of the residual contamination.
C. SCANA Communications, Inc. Matters
SCI, as a result of an internal audit, informed the Federal
Communications Commission (FCC) that it violated certain
licensing requirements in establishing and operating an 800 Mhz
radio system in South Carolina for public safety and utility
use. As a result, SCI has returned to the FCC several licenses
obtained in violation of FCC rules and the FCC is conducting
an investigation of the system. The Company does not believe
that the resolution of this issue will have a material impact
on results of operations, cash flows or financial position.
10
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Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations.
SCANA CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
General
Statements included in this discussion and analysis (or
elsewhere in this quarterly report) which are not statements of
historical fact are intended to be, and are hereby identified as,
"forward-looking statements" for purposes of the safe harbor
provided by Section 27A of the Securities Act of 1933, as amended,
and Section 21E of the Securities Exchange Act of 1934, as amended.
Readers are cautioned that any such forward-looking statements are
not guarantees of future performance and involve a number of risks
and uncertainties, and that actual results could differ materially
from those indicated by such forward-looking statements. Important
factors that could cause actual results to differ materially from
those indicated by such forward-looking statements include, but are
not limited to, the following: (1) that the information is of a
preliminary nature and may be subject to further and/or continuing
review and adjustment, (2) changes in the utility regulatory
environment, (3) changes in the economy in areas served by the
Company's subsidiaries, (4) the impact of competition from
other energy suppliers, (5) the management of the Company's
operations (6) growth opportunities for the Company's regulated and
diversified subsidiaries, (7) the results of financing efforts, (8)
changes in the Company's accounting policies, (9) weather
conditions in areas served by the Company's utility subsidiaries,
(10) performance of the telecommunications companies in which the
Company has made significant investments, (11) inflation, (12)
changes in environmental regulations and (13) the other risks and
uncertainties described from time to time in the Company's periodic
reports filed with the Securities and Exchange Commission. The
Company disclaims any obligation to update any forward-looking
statements.
Competition
The electric utility industry has begun a major transition
that could lead to expanded market competition and less regulation.
Deregulation of electric wholesale and retail markets is creating
opportunities to compete for new and existing customers and
markets. As a result, profit margins and asset values of some
utilities could be adversely affected. Legislative initiatives at
the Federal and state levels are being considered and, if enacted,
could mandate market deregulation. The pace of deregulation,
future prices of electricity, and the regulatory actions which may
be taken by the PSC and FERC in response to the changing
environment cannot be predicted. However, the FERC, in issuing
Order 888 in April 1996, accelerated competition among electric
utilities by providing for open access to wholesale transmission
service. Order 888 requires utilities under FERC jurisdiction that
own, control or operate transmission lines to file
nondiscriminatory open access tariffs that offer to others the same
transmission service they provide themselves. The FERC has also
permitted utilities to seek recovery of wholesale stranded costs
from departing customers by direct assignment. Approximately two
percent of the Company's electric revenue is under FERC
jurisdiction for the purpose of setting rates for wholesale
service. Legislation is pending in South Carolina that would
deregulate the state's retail electric market and enable customers
to choose their supplier of electricity. The Company is not able
to predict whether the legislation will be enacted and, if it is,
the conditions it will impose on utilities that currently operate
in the state and future market participants.
The Company is aggressively pursuing actions to position
itself strategically for the transformed environment. To enhance
its flexibility and responsiveness to change, the Company's
electric and gas utility, SCE&G, operates Strategic Business
Units. Maintaining a competitive cost structure is of paramount
importance in the utility's strategic plan. SCE&G has undertaken
a variety of initiatives, including reductions in operation and
maintenance costs and in staffing levels and the accelerated
recovery of SCE&G's electric regulatory assets. SCE&G has also
established open access transmission tariffs and is selling bulk
power to wholesale customers at market-based rates. Significant
new customer and management information systems will be implemented
in 1998. Marketing of services to commercial and industrial
customers has been increased significantly. SCE&G has obtained
long term power supply contracts with a significant portion of its
industrial customers. The Company believes that these actions as
well as numerous others that have been and will be taken
demonstrate its ability and commitment to succeed in the new
operating environment to come.
11
<PAGE>
Regulated public utilities are allowed to record as assets
some costs that would be expensed by other enterprises. If
deregulation or other changes in the regulatory environment occur,
the Company may no longer be eligible to apply this accounting
treatment and may be required to eliminate such regulatory assets
from its balance sheet. Although the potential effects of
deregulation cannot be determined at present, discontinuation of
the accounting treatment could have a material adverse effect on
the Company's results of operations if a write-off is required to
be recorded. It is expected that cash flows and the financial
position of the Company would not be materially affected by the
discontinuation of the accounting treatment. The Company reported
approximately $242 million and $74 million of regulatory assets
and liabilities, respectively, including amounts recorded for
deferred income tax assets and liabilities of approximately $123
million and $58 million, respectively, on its balance sheet at
March 31, 1998.
The Company's generation assets would be exposed to
considerable financial risks in a deregulated electric market. If
market prices for electric generation do not produce adequate
revenue streams and the enabling legislation or regulatory actions
do not provide for recovery of the resulting stranded costs, the
Company could be required to write down its investment in these
assets. The Company cannot predict whether any write-downs will be
necessary and, if they are, the extent to which they would
adversely affect the Company's results of operations in the period
in which they are recorded. As of March 31, 1998, the Company's
net investment in fossil\hydroelectric generation and nuclear
generation assets was $1,160.4 million and $647.7 million,
respectively.
Material Changes in Capital Resources and Liquidity
Since December 31, 1997
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 demand 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 continue their ongoing 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 and other regulatory relief.
On January 9, 1996 the PSC issued an order granting SCE&G an
increase in retail electric rates of 7.34%, which was designed to
produce additional revenues, based on a test year, of approximately
$67.5 million annually. The increase was implemented in two
phases. The first phase, an increase in revenues of approximately
$59.5 million annually or 6.47%, commenced in January 1996. The
second phase, an increase in revenues of approximately $8.0
million annually, or .87%, was implemented in January 1997. The
PSC authorized a return on common equity of 12.0%. The PSC also
approved establishment of a Storm Damage Reserve Account capped at
$50 million to be collected through rates over a ten-year period.
Additionally, the PSC approved accelerated recovery of a
significant portion of SCE&G's electric regulatory assets
(excluding deferred income tax assets) and the remaining transition
obligation for postretirement benefits other than pensions,
changing the amortization periods to allow recovery by the end of
the year 2000. SCE&G's request to shift, for ratemaking purposes,
approximately $257 million of depreciation reserves from
transmission and distribution assets to nuclear production assets
was also approved. The Consumer Advocate and two other intervenors
appealed certain issues in the order to the South Carolina Circuit
Court, which affirmed the PSC's decisions, and, subsequently, to
the South Carolina Supreme Court. In March 1998, SCE&G, the PSC
and the Consumer Advocate and one of the other intervenors reached
an agreement that provided for the reversal of the shift in
depreciation reserves and the dismissal of the appeal of all other
issues. The PSC also authorized the Company to adjust depreciation
rates that had been approved in the 1996 rate order for its
electric transmission, distribution and nuclear production
properties to eliminate the effect of the depreciation reserve
shift and to retroactively apply such depreciation rates to
February 1996. As a result, a one-time reduction in depreciation
expense of $5.5 million after taxes was recorded in March 1998.
The agreement does not affect retail electric rates. See "Results
of Operations - Earnings and Dividends." The remaining intervenor
continues to contest establishment of the Storm Damage Reserve
Account and the authorized return on common equity. The Supreme
Court heard the case in April 1998 and is expected to issue a
ruling by July 1998. While the outcome of this proceeding is
uncertain, the Company does not believe that any significant
adverse change in the rate order is likely. The FERC had
previously rejected the transfer of depreciation reserves for rates
subject to its jurisdiction.
12
<PAGE>
The following table summarizes how the Company generated funds
for its property acquisitions and utility property additions and
construction expenditures during the three months ended March 31,
1998 and 1997:
Three Months Ended
March 31,
1998 1997
(Millions of Dollars)
Net cash provided from operating activities $132 $101
Net cash used for financing activities (48) (12)
Cash provided from sale of subsidiary assets - 8
Cash and temporary cash investments available
at the beginning of the period 60 17
Net cash available for property acquisitions
and utility property additions and
construction expenditures $144 $114
Funds used for utility property additions
and construction expenditures, net of
noncash allowance for funds used during
construction $ 87 $ 41
Funds used for nonutility property
additions $ 7 $ 12
On January 10, 1997 SCANA closed on unsecured bank loans
totaling $60 million due January 9, 1998, and used the proceeds to
pay off a loan in a like total amount. On January 13, 1998 SCANA
refinanced the loans with $60 million of medium-term notes due
January 13, 2003 at an interest rate of 6.05%.
On August 7, 1996 the City of Charleston executed 30-year
electric and gas franchise agreements with SCE&G. In consideration
for the electric franchise agreement, SCE&G is paying the City $25
million over seven years (1996-2002) and has donated to the City
the existing transit assets in Charleston. The $25 million is
included in electric plant-in-service. In settlement of
environmental claims the City may have had against SCE&G involving
the Calhoun Park area, where SCE&G and its predecessor companies
operated a manufactured gas plant until the 1960's, SCE&G is
paying the City $26 million over a four-year period (1996- 1999).
As part of the environmental settlement, SCE&G has agreed to
construct an 1,100 space parking garage on the Calhoun Park site
and to transfer the facility to the City in exchange for a 20-year
municipal bond backed by revenues from the parking garage and a
mortgage on the parking garage. The total amount of the bond is
not to exceed $16.9 million, the maximum expected project cost.
The Company and Westvaco Corporation have formed a limited
liability company, Cogen South LLC, to build and operate a $170
million cogeneration facility at Westvaco's Kraft Division Paper
Mill in North Charleston, South Carolina. The Company and Westvaco
each own a 50% interest in the LLC. The facility will provide
industrial process steam for the Westvaco paper mill and shaft
horsepower to enable SCE&G to generate up to 99 megawatts of
electricity. Construction financing is being provided to Cogen
South LLC by banks. A $15 million capital contribution to the LLC
by each partner is expected prior to operation of the facility.
Construction of the plant began in September 1996 and it is
expected to be operational in the fall of 1998. In addition to the
cogeneration LLC, Westvaco has entered into a 20-year contract with
SCE&G for all its electricity requirements at the North Charleston
mill at SCE&G's standard industrial rate.
13
<PAGE>
SCI owns approximately 4.5 million common shares,
representing approximately 17% of Powertel common stock and
100,000 non-voting series B and 50,000 non-voting series D
convertible preferred shares of Powertel, a publicly-traded
telecommunications company which owns and operates personal
communications services (PCS) systems in several major markets
in the Southeast. The costs of such investments are
approximately $66.7 million, $75.1 million and $22.5 million,
respectively.
SCI owns 774,616 shares, representing approximately 9.3% of
ITC common stock and 645,153 series A convertible preferred shares
of ITC. The costs of these investments are approximately $7.1
million and $8.9 million, respectively.
SCI owns approximately 1,777,919 shares, representing
approximately 7.4%, of ITCD common stock, and 1,480,771 shares of
series A preferred stock of ITCD convertible in March 2002 into
1,486,440 shares of ITCD common stock. The costs of such
investments are approximately $9.0 million and $11.2 million,
respectively.
SCI owns 71,050 units of Knology. Each unit consists of one
11.875% Senior Discount Note due 2007 and one Warrant entitling
the holder to purchase .003734 shares of preferred stock of
Knology. The cost of this investment was approximately $40
million. In addition to the acquisition of the Knology units, SCI
invested $5.3 million to purchase 3,639 shares of preferred
stock of Knology and Knology has agreed to issue to SCI warrants to
purchase 753 shares of preferred stock at $1,500 per share.
In September 1996 SCI, as a result of an internal audit,
informed the FCC that it violated certain licensing requirements in
establishing and operating an 800 Mhz radio system in South
Carolina for public safety and utility use. As a result, SCI has
returned to the FCC several licenses obtained in violation of FCC
rules and the FCC is conducting an investigation of the system.
The Company does not believe that the resolution of this issue will
have a material impact on its results of operations, cash flows or
financial position.
The Company anticipates that the remainder of its 1998 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 Company expects that it has or
can obtain adequate sources of financing to meet its projected cash
requirements for the next twelve months and for the foreseeable
future. The ratio of earnings to fixed charges for the twelve
months ended March 31, 1998 was 3.80.
The year 2000 issue could have a material impact on the
operations of the Company if required modifications and conversions
are not made to ensure that all system software and equipment with
embedded processors are date code compliant. The Company has
formed a steering committee to direct the resolution of this major
issue. The steering committee, which reports to the senior
officers of the Company and to the board of directors, is chaired
by the chief financial officer of the Company and is comprised of
officers representing all operational areas. Reporting to the
committee are a group of full time project managers who are
responsible for addressing year 2000 issues and coordinating the
required assessment and remediation efforts.
The Company has completed an initial inventory of impacted
information systems applications, operating software, hardware and
embedded processors. A risk prioritization of these systems was
completed to determine the Company's critical systems. The Company
has begun the assessment process to determine which systems have
year 2000 compliance issues. All required remediation efforts on
critical systems are expected to be completed by mid-1999. The cost
of the project is not expected to have a material impact on the
results of operations, financial position or cash flows of the
Company.
14
<PAGE>
In particular, with regard to the evaluation and remediation
of the year 2000 issue at Summer Station, the Company is closely
cooperating with other utility companies, including utilities in
the southeast, that own nuclear power plants. The utilities are
sharing technical nuclear plant operating and monitoring systems
information to ensure the prompt and effective resolution of the
year 2000 issue.
The Company is communicating with all of its significant
suppliers to determine the extent to which the Company is
vulnerable to those suppliers' failure to remediate their own year
2000 issue. The extent to which significant customers have
resolved the year 2000 issue, and the resulting impact on the
demand for the Company's products, is not determinable. There can
be no guarantee that the systems of other companies on which the
Company's systems rely will be timely converted. A failure to
convert by another company, or a conversion that is incompatible
with the Company's systems, could have a material adverse effect on
the results of operations, financial position or cash flows of the
Company.
15
<PAGE>
SCANA CORPORATION
Results of Operations
For the Three Months ended March 31, 1998
As Compared to the Corresponding Periods in 1997
Earnings and Dividends
Net income for the three months ended March 31, 1998
increased approximately $6.7 million when compared to the
corresponding period in 1997. Higher electric and gas margins were
partially offset by increased operating and maintenance expenses
and lower earnings from non-regulated businesses. Net income for
the current period includes a one-time, after-tax adjustment to
depreciation expense of approximately $5.5 million related to a
change in depreciation rates retroactive to February 1996. This
change in rates is a result of a reversal of a $257 million shift
of depreciation reserves from electric transmission and
distribution assets to nuclear production assets, previously
approved in a PSC rate order in January 1996. See "Liquidity and
Capital Resources."
Comprehensive income includes net income and all other changes
in equity except those resulting from investments by and
distributions to stockholders. Comprehensive income of the Company
totaling $94.5 million and $43.9 million for the three months
ended March 31, 1998 and 1997, respectively, includes net income
and unrealized gains/losses on securities available for sale.
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 4%
of income before income taxes for the three months ended March 31,
1998 and 1997.
On February 17, 1998 the Company's Board of Directors
declared a quarterly dividend on common stock of 38 1/2 cents per
share, for the quarter ended March 31, 1998. The dividend was paid
on April 1, 1998 to common stockholders of record on March 10,
1998.
On April 23, 1998 the Company's Board of Directors declared a
quarterly dividend on common stock of 38 1/2 cents per share for
the quarter ended June 30, 1998. The dividend is payable on July
1, 1998 to common stockholders of record on June 10, 1998.
Sales Margins
The change in the electric sales margin for the three months
ended March 31, 1998, when compared to the corresponding period in
1997, was as follows:
Three Months
Change % Change
(Millions)
Electric operating revenues $16.8 6.6
Less: Fuel used in electric
generation 5.0 9.1
Purchased power 1.0 144.0
Margin $10.8 5.5
The electric sales margin increased for the three months ended
March 31, 1998 when compared to the corresponding period of 1997
primarily as a result of colder weather and customer growth.
16
<PAGE>
The change in the gas sales margin for the three months ended
March 31, 1998, when compared to the corresponding period in 1997,
were as follows:
Three Months
Change % Change
(Millions)
Gas operating revenues $4.7 3.6
Less: Gas purchased for resale 0.2 0.3
Margin $4.5 9.0
The gas sales margin increased for the three months ended
March 31, 1998, when compared to the corresponding period in 1997
primarily as a result of colder weather, increased sales to
industrial interruptible customers attributable to fewer
curtailments and increased negotiated distribution contract
markups.
Other Operating Expenses
Changes in other operating expenses, including taxes, for the
three months ended March 31, 1998, when compared to the
corresponding period in 1997, are presented in the following table:
Three Months
Change % Change
(Millions)
Other operation and maintenance $ 8.0 11.3
Depreciation and amortization (8.4) (22.0)
Income taxes 5.7 18.5
Total $ 5.3 3.3
Other operation and maintenance expenses for the three months
ended March 31, 1998 increased from 1997 levels primarily as a
result of increases in maintenance costs at electric generating
plants and other operating costs. The decrease in depreciation and
amortization expenses for the period reflects the non-recurring
adjustment to depreciation expense discussed under "Earnings and
Dividends." The change in income tax expense reflects changes in
operating income.
Other Income
Other income, net of income taxes, for the three months ended
March 31, 1998 decreased approximately $3.4 million when compared
to the corresponding period of 1997, reflecting the sale of
substantially all the assets of SCANA Petroleum Resources, Inc.,
which had contributed approximately $3.4 million to first quarter
1997 earnings.
17
<PAGE>
Item 3. Quantitative and Qualitative Disclosure About Market
Risk
With regard to the market risk information disclosed in
the Company's Annual Report on Form 10-K at December 31,
1997 there have been no material changes in market risk
exposure related to interest rate risk.
With regard to equity price risk, investments in
telecommunications companies' equity securities are
carried at $284.3 million at March 31, 1998, in
accordance with Statement of Financial Accounting
Standards No. 115. A ten percent decline in market value
would result in a $28.4 million reduction in fair value
and a corresponding adjustment, net of tax effect, to the
related equity account for unrealized gains.
PART II
OTHER INFORMATION
Item 1. Legal Proceedings
For information regarding legal proceedings see Note 2
"Rate Matters," appearing in the Company's Annual Report
on Form 10-K for the year ended December 31, 1997, Note 2
"Rate Matters" and Note 4 "Contingencies" of Notes to
Consolidated Financial Statements appearing in this
Quarterly Report on Form 10-Q.
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
18
<PAGE>
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)
May 14, 1998 By: s/K. B. Marsh
K. B. Marsh, Senior Vice President,
Chief Financial Officer and
Controller
(Principal financial officer)
19
<PAGE>
SCANA CORPORATION
EXHIBIT INDEX Sequentially
Numbered
Pages
Number
2. Plan of Acquisition, Reorganization, Arrangement,
Liquidation or Succession
Not Applicable
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. Articles of Amendment dated April 27, 1995
(Exhibit 4-B to Registration Statement No.
33-62421)............................................... #
C. Copy of By-Laws of SCANA Corporation as revised
and amended on December 17, 1997 (Exhibit 3-C to
Form 10-K for the year ended December 31, 1997)......... #
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 dated 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
Indentures 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 numbers are
set forth below......................................... #
# Incorporated herein by reference as indicated.
20
<PAGE>
SCANA CORPORATION
EXHIBIT INDEX
Number
December 1, 1950 Exhibit 2-D to Registration No. 2-26459
July 1, 1951 Exhibit 2-E to Registration No. 2-26459
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
# Incorporated herein by reference as indicated.
21
<PAGE>
SCANA CORPORATION
EXHIBIT INDEX
Sequentially
Numbered
Pages
Number
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-D to Registration No. 33-57955
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-F 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-F dated as of June 15, 1993
(Filed as Exhibit 4-G to Registration Statement
No. 33-57955)........................................... #
I. Trust Agreement for SCE&G Trust I (Filed as
Exhibit 4-I to Form 10-K for the year ended
December 31, 1997)...................................... #
J. Certificate of Trust for SCE&G Trust I (Filed as
Exhibit 4-J to Form 10-K for the year ended
December 31, 1997)...................................... #
K. Junior Subordinated Indenture for SCE&G Trust I
(Filed as Exhibit 4-K to Form 10-K for the year
ended December 31, 1997)................................ #
L. Guarantee Agreement for SCE&G Trust I
(Filed as Exhibit 4-L to Form 10-K for the year
ended December 31, 1997)................................ #
M. Amended & Restated Trust Agreement for SCE&G
Trust I (Filed as Exhibit 4-M to Form 10-K for the year
ended December 31, 1997)................................ #
10. Material Contracts
Not Applicable
11. Statement Re Computation of Per Share Earnings
Not Applicable
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 (Filed herewith)
99. Additional Exhibits
Not Applicable
# Incorporated herein by reference as indicated.
22
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