<TABLE>
<CAPTION>
SCANA CORPORATION
PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
AS OF June 30, 2000
(unaudited)
(Dollars in millions)
Currently
Authorized
Maximum Additional Pro Forma
SCANA Financing Pro Forma Financing As Further
Per 10-Q Adjustments As Adjusted Adjustments Adjusted
--------- ------------- ------------ ------------ -----------
<S> <C> <C> <C> <C> <C>
Assets
Utility Plant, Net $4,862 $4,862 $4,862
--------- ------------- ------------ ------------ -----------
Nonutility Property and Investments (net of
accumulated depreciation) $876 876 876
--------- ------------- ------------ ------------ -----------
Current Assets:
Cash and temporary cash investments 75 1194 (5) 498 (9)
6 (17) 1,275 143 (13)
75 (18) 1,991
Other current assets 601 601 601
--------- ------------- ------------ ------------ -----------
Total Current Assets 676 1200 1,876 716 2,592
Deferred Debits 597 41 (5) 638 17 (9) 662
7 (13)
--------- ------------- ------------ ------------ -----------
Total $7,011 $1,241 $8,252 $740 $8,992
========= ============= ============ ============ ===========
Capitalization and Liabilities
Stockholders' Investment:
Common stock, shares issued and outstanding; $1,267 412 (5) $1,679 172 (9) $1,851
Retained Earnings 792 792 792
--------- ------------- ------------ ------------ -----------
Common Equity $2,059 $412 $2,471 $172 $2,643
Preferred Stock (Not subject to sinking
fund requirements) 106 106 106
--------- ------------- ------------ ------------ -----------
Total Stockholders' Investment 2,165 412 2,577 172 2,749
--------- ------------- ------------ ------------ -----------
Preferred Stock (Subject to sinking fund requirements) 11 11 11
SCE&G - Obligated Manditorily 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 50
Long-Term Debt, net 2,562 823 (5) 3,385 343 (9) 3,878
150 (13)
--------- ------------- ------------ ------------ -----------
Total Capitalization 4,788 1,235 6,023 665 6,688
--------- ------------- ------------ ------------ -----------
Current Liabilities 904 6 (17) 910 75 (18) 985
Deferred Credits 1,319 1,319 1,319
--------- ------------- ------------ ------------ -----------
Total $7,011 $1,241 $8,252 $740 $8,992
========= ============= ============ ============ ===========
Common Equity as a percent of Consolidated Capitalization 43% 41% 40%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
SCANA CORPORATION
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF INCOME
TWELVE MONTHS ENDED June 30, 2000
(unaudited)
(Dollars in millions, except per share amounts) Currently
Authorized
SCANA PSNC SCANA Annualize Pro Forma Maximum
6 months 6 months 6 months Merger 12 months Financing
end 12/31/99 end 12/31/99 end 6/30/00 effects end 6/30/00 Adjustments
------------- ------------- ------------ ----------- ------------ -------------
<S> <C> <C> <C> <C> <C> <C> <C>
Operating Revenues....................... $ 1,097 $ 118 $ 1,484 $2,699
------------- ------------- ------------ ----------- ------------ -------------
Operating Expenses:
Operating Expenses..................... 817 94 1,104 7 (1) 2,022
Depreciation and amortization.......... 85 14 108 0 (3) 207 4 (6)
------------- ------------- ------------ ----------- ------------ -------------
Total Operating Expenses 902 108 1,212 7 2,229 4
Operating Income......................... 195 10 272 (7) 470 (4)
Other Income............................. 75 3 18 96
------------- ------------- ------------ ----------- ------------ -------------
Income Before Interest Charges,
Income Taxes and Preferred Stock
Dividends.............................. 270 13 290 (7) 566 (4)
Interest Charges, Net.................... 73 10 109 26 (2) 218 62 (7)
------------- ------------- ------------ ----------- ------------ -------------
Income Before Income Taxes and
Preferred Stock Dividends 197 3 181 (33) 348 (66)
Income Taxes 74 2 72 (10)(4) 138 (26)(8)
------------- ------------- ------------ ----------- ------------ -------------
Income Before Preferred Dividend
Requirements on Mandatorily
Redeemable Preferred Securities......... 123 1 109 (23) 210 (40)
Preferred Dividend Requirement of SCE&G -
Obligated Mandatorily Redeemable
Preferred Securities.................... 2 2 4
------------- ------------- ------------ ----------- ------------ -------------
Income Before Preferred Stock
Cash Dividends of Subsidiary............. 121 1 107 (23) 206 (40)
Preferred Stock Cash Dividends
of Subsidiary (At Stated Rates).......... 3 4 7
------------- ------------- ------------ ----------- ------------ -------------
Income Before Cumulative Effect
of Accounting Change 118 1 103 (23) 199 (40)
Cumulative Effect of Accounting Change 0 29 29
------------- ------------- ------------ ----------- ------------ -------------
Net Income.................... $ 118 $ 1 $ 132 $ (23) $ 228 $ (40)
============= ============= ============ =========== ============ =============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
SCANA CORPORATION
PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF INCOME
TWELVE MONTHS ENDED June 30, 2000
(unaudited)
(Dollars in millions, except per share amounts)
(continued)
Additional Pro Forma
Pro Forma Financing As Further
As Adjusted Adjustments Adjusted
------------- ------------- ------------
<S> <C> <C> <C>
Operating Revenues....................... $2,699 $2,699
------------- ------------- ------------
Operating Expenses:
Operating Expenses..................... 2,022 2,022
Depreciation and amortization.......... 211 2 (10)
1 (14) 214
------------- ------------- ------------
Total Operating Expenses 2,233 3 2,236
Operating Income......................... 466 (3) 463
Other Income............................. 96 96
------------- ------------- ------------
Income Before Interest Charges,
Income Taxes and Preferred Stock
Dividends.............................. 562 (3) 559
Interest Charges, Net.................... 280 26 (11)
11 (15)
6 (19) 323
------------- ------------- ------------
Income Before Income Taxes and
Preferred Stock Dividends 282 (46) 236
Income Taxes 112 (11)(12)
(5)(16)
(2)(20) 94
------------- ------------- ------------
Income Before Preferred Dividend
Requirements on Mandatorily
Redeemable Preferred Securities......... 170 (28) 142
Preferred Dividend Requirement of SCE&G -
Obligated Mandatorily Redeemable
Preferred Securities.................... 4 4
------------- ------------- ------------
Income Before Preferred Stock
Cash Dividends of Subsidiary............. 166 (28) 138
Preferred Stock Cash Dividends
of Subsidiary (At Stated Rates).......... 7 7
------------- ------------- ------------
Income Before Cumulative Effect
of Accounting Change 159 (28) 131
Cumulative Effect of Accounting Change 29 29
------------- ------------- ------------
Net Income.................... $ 188 $ (28) $ 160
============= ============= ============
</TABLE>
<PAGE>
NOTES TO PRO FORMA CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
These Pro Forma Condensed Consolidated Financial Statements are presented
for the purpose of (a) providing a Statement of Income for the twelve
months ended June 30, 2000 as if SCANA's acquisition of PSNC was effective
July 1, 1999; (b) providing the adjustments that would be required if the
Commission's current financing authority were fully utilized; and (c)
providing the adjustments required if the current request for increased
financing authority were granted and subsequently fully utilized. The
entries described below assume that two-thirds of such future financings,
except the PSNC commercial paper and the PSNC medium-term notes, are in the
form of debt and one-third are in equity.
1. To amortize the PSNC acquisition adjustment for the 6 months July 1 through
December 31, 1999.
2. To record interest expense on merger debt of $700 million for the 6 months
July 1 through December 31, 1999 at a rate of 7.3%.
3. To amortize debt issue costs of $0.9 million for the 6 months July 1
through December 31, 1999.
4. To record the tax effect of Notes 2 and 3 at an assumed effective rate of
39%.
5. To record increased debt of $823 million and equity of $412 million to
reflect the maximum amount originally authorized by the PUHCA order of
February 2000 (computed as follows), assuming issue costs of 5%.
Current financing authority $ 1,935 million
Debt issued to finance acquisition (700)million
---------------
Remaining financing authority $ 1,235 million
===============
6. To amortize debt issue costs of $41.2 million over a 10 year period.
7. To record interest expense on increased debt ($823 million) at an assumed
rate of 7.50%.
8. To record the tax effect of Notes 6 and 7 at an assumed effective rate of
39%.
9. To record increased debt of $343 million and equity of $172 million to
reflect authorization requested in this U-1 (computed as follows), assuming
issue costs of 5%.
Current financing authority $ 1,935 million
Additional authority requested 515 million
---------------
Authority if request approved $ 2,450 million
===============
10. To amortize debt issue costs of $17.2 million over a 10 year period.
11. To record interest expense on increase debt ($343 million) at an assumed
rate of 7.50%.
12. To record the tax effect of Notes 10 and 11 at an assumed effective rate of
39%.
13. To record increased debt of $150 million to reflect issuance of medium term
notes by Public Service Company of North Carolina, Incorporated, assuming
5% debt issue costs.
14. To amortize debt issue costs of $7.5 million over a 10 year period.
15. To record interest expense on increased debt ($150 million) at an assumed
rate of 7.5%.
16. To record tax effect of Notes 14 and 15 at an assumed effective rate of
39%.
17. To record issuance of commercial paper by PSNC to reflect the maximum
amount originally authorized by the PUCHA order of February 2000 (computed
as follows):
Current commercial paper authority $125 million
Amount issued to pay off an equal
amount of short-term bank loans (119)million
------------
Remaining commercial paper authorized $6 million
============
(The effects of this additional borrowing on the Pro Forma Condensed
Consolidated Statement of Income would round to zero.)
18. To record increased commercial paper of $75 million to reflect
authorization requested in this U-1 for PSNC.
Current financing authority $ 125 million
Additional authority requested 75 million
-------------
Authority if request approved $ 200 million
=============
19. To record interest expense on increased commercial paper ($75 million) at
an assumed rate of 7.5%.
20 To record tax effect of Note 19 at an assumed effective rate of 39%.
