<TABLE>
SCANA CORPORATION
PROFORMA CONDENSED BALANCE SHEET
AS OF SEPTEMBER 30, 2000
(unaudited)
(Dollars in millions)
<CAPTION>
Maximum Additional
SCANA SCANA Financing Financing Pro Forma
w/o PSNC PSNC Per 10-Q Adjustments Pro Forma Adjustments as adjusted
-------- -------- ----------- ----------- --------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C> <C>
Assets
Utility Plant, Net $3,899 $981 $4,880 $4,880 $4,880
-------- -------- ----------- ---------- ------- ------------ ----------
Nonutility Property and Investments
(net of accumulated depreciation) 822 33 $855 855 855
-------- -------- ----------- ---------- ------- ------------ ----------
Current Assets:
Cash and temporary cash investments 130 12 142 888(5) 1,030 499(9) 1,529
Other current assets 525 106 631 631 631
-------- -------- ----------- ---------- ------- ------------ ----------
Total Current Assets 655 118 773 888 1,661 499 2,160
Deferred Debits 597 23 620 47(5) 667 16(9) 683
-------- -------- ----------- ---------- ------- ------------ ----------
Total $5,973 $1,155 $7,128 $935 $8,063 $515 $8,578
======== ======== =========== ========== ======= ============ ==========
Capitalization and Liabilities
Stockholders' Investment:
Common stock, shares issued $542 $705 $1,247 $1,247 200(9) $1,447
and outstanding; Retained Earnings 824 (3) 821 821 821
----------- ---------- ------- ------------ ----------
Common Equity $2,068 $0 $2,068 $200 $2,268
Preferred Stock (Not subject to 106 0 106 106 106
sinking fund requirements) -------- -------- ----------- ---------- ------- ------------ ----------
Total Stockholders' Investment 1,472 702 2,174 0 2,174 200 2,374
-------- -------- ----------- ---------- ------- ------------ ----------
Preferred Stock (Subject to
sinking fund requirements) 11 0 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 0 50 50 50
Long-Term Debt, net 2,709 151 2,860 935(5) 3,795 315(9) 4,110
-------- -------- ----------- ---------- ------- ------------ ----------
Total Capitalization 4,242 853 5,095 935 6,030 515 6,545
-------- -------- ----------- ---------- ------- ------------ ----------
Current Liabilities 512 198 710 710 710
Deferred Credits 1,219 104 1,323 1,323 1,323
-------- -------- ----------- ---------- ------- ------------ ----------
Total $5,973 $1,155 $7,128 $935 $8,063 $515 $8,578
======== ======== =========== ========== ======= ============ ==========
</TABLE>
<TABLE>
SCANA CORPORATION
PRO FORMA CONDENSED STATEMENT OF INCOME
TWELVE MONTHS ENDED September 30, 2000
(unaudited)
(Dollars in millions, except per share amounts)
<CAPTION>
SCANA PSNC SCANA Annualize Pro Forma Maximum Additional
3 months 3 months 9 months Merger 12 months Financing Financing Pro Forma
end 12/31/99 end 12/31/99 end 9/30/00 effects end 9/30/00 Adjustments Adjustments as adjusted
-------------------------------------------------------------------------------------------------
Increase Increase Increase
(Decrease) (Decrease) (Decrease)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Operating Revenues................ $ 539 $ 81 $ 2,300 $2,920 $2,920
-------- -------- -------- ------ -------- -------- ---------- ----------
Operating Expenses:
Operating Expenses.............. 436 61 1,721 4(1) 2,222 2,222
Depreciation and amortization... 42 7 162 0(3) 211 5(6) 2(10) 218
-------- -------- -------- ------ -------- -------- ---------- ----------
Total Operating Expenses 478 68 1,883 4 2,433 5 2 2,440
Operating Income.................. 61 13 417 (4) 487 (5) (2) 480
Other Income...................... 62 1 29 92 92
-------- -------- -------- ------ -------- -------- ---------- ----------
Income Before Interest Charges,
Income Taxes and Preferred
Stock Dividends................. 123 14 446 (4) 579 (5) (2) 572
Interest Charges, Net............. 37 5 167 13(2) 222 70(7) 24(11) 316
-------- -------- -------- ------ -------- -------- ---------- ----------
Income Before Income Taxes
and Preferred Stock Dividends 86 9 279 (17) 357 (75) (26) 256
Income Taxes 32 4 108 (5)(4) 139 (29)(8) (10)(12) 100
-------- -------- -------- ------ -------- -------- ---------- ----------
Income Before Preferred Dividend
Requirements on Mandatorily
Redeemable Preferred Securities. 54 5 171 (12) 218 (46) (16) 156
Preferred Dividend Requirement
of SCE&G - Obligated Mandatorily
Redeemable Preferred Securities. 1 0 3 4 0 4
--------- -------- -------- ------ -------- - --------- ---------- ----------
Income Before Preferred Stock
Cash Dividends of Subsidiary.... 53 5 168 (12) 214 (46) (16) 152
Preferred Stock Cash Dividends
of Subsidiary (At Stated Rates). 2 0 6 8 0 8
-------- -------- -------- ------ -------- -------- ---------- ----------
Income Before Cumulative
Effect of Accounting Change 51 5 162 (12) 206 (46) (16) 144
Cumulative Effect of
Accounting Change 0 0 29 29 0 29
-------- -------- -------- ------ -------- -------- ---------- ----------
Net Income........................ $ 51 $ 5 $ 191 $ (12) $ 235 $ (46) $ (16) $ 173
======== ======== ======== ====== ======== ======== ========== ==========
Weighted Average Common
Shares Outstanding (millions)... 104.3 104.3 104.3 104.3
Basic and Diluted Earnings Per
Share Before Cumulative
Effect of Accounting Change..... $ 1.97 $ (0.44) $ (0.15) $ 1.37
Cumulative Effect of Accounting
Change $ 0.28 $ - $ - $ 0.28
Basic and Diluted Earnings
Per Share....................... $ 2.25 $ (0.44) $ (0.15) $ 1.66
</TABLE>
NOTES TO PRO FORMA CONDENSED
FINANCIAL STATEMENTS
These Pro Forma Condensed Financial Statements are presented for the
purpose of (a) providing a Statement of Income on a twelve month basis as
of September 30, 2000 as if SCANA's acquisition of PSNC was effective
October 1, 1999; (b) providing the adjustments that would be required if
the current financing authority authorized by the Commission 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 below assume that all future financings are in the
form of long-term debt.
1. To amortize the PSNC acquisition adjustment for the 3 months October 1,
1999 through December 31, 1999.
2. To record interest expense on merger debt of $700 million for the 3 months
October 1, 1999 through December 31, 1999 at a rate of 7.3%.
3. To amortize debt issue costs of $0.9 million for the 3 months October 1,
1999 through December 31, 1999.
4. To record the tax effect of Notes 2 and 3 at an assumed effective rate of
39%.
Note 2. Tax effect of $12,775,000 = $4,982,250
Note 3. Tax effect of $75,000 = $29,250
5. To record increased debt of $935 million to reflect the maximum amount
originally authorized by the PUCHA 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
Debt issued for other purposes 300 million
Remaining financing authority $ 935 million
6. To amortize debt issue costs of $46.75 million over a 10 year period.
7. To record interest expense on increased debt ($935 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%.
Note 6. Tax effect of $4,675,000 = $1,823,250
Note 7. Tax effect of $70,125,000 = $27,348,750
9. To record increased common stock of $200 million and debt of $315 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 $15.75 million over a 10 year period.
11. To record interest expense on increase debt ($315 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%.
Note 10. Tax effect of $1,575,000 = $614,250
Note 11. Tax effect of $23,625,000 = $9,213,750
