UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
Form U-13-60
ANNUAL REPORT
For the Period
Beginning January 1, 2002 and Ending December 31, 2002
TO THE
U.S. SECURITIES AND EXCHANGE COMMISSION
OF
SCANA Services, Inc.
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(Exact Name of Reporting Company)
A Subsidiary Service Company
Date of Incorporation: December 15, 1999
State or Sovereign Power under which Incorporated or Organized: South Carolina
Location of Principal Executive Offices of Reporting Company:
1426 Main Street
Columbia, South Carolina 29201
Name, title and address of officer
to whom correspondence concerning this
report should be addressed:
James E. Swan, IV
Controller
1426 Main Street
Columbia, SC 29201
Name of Principal Holding Company Whose Subsidiaries are served by Reporting
Company:
SCANA Corporation
INSTRUCTIONS FOR USE OF FORM U-13-60
1. TIME OF FILING. Rule 94 provides that on or before the first day of May
in each calendar year, each mutual service company and each subsidiary
service company as to which the Commission shall have made a favorable
finding pursuant to Rule 88, and every service company whose
application for approval or declaration pursuant to Rule 88 is pending
shall file with the Commission an annual report on Form U-13-60 and in
accordance with the Instructions for that form.
2. NUMBER OF COPIES. Each annual report shall be filed in duplicate. The
company should prepare and retain at least one extra copy for itself in
case correspondence with reference to the report become necessary.
3. PERIOD COVERED BY REPORT. The first report filed by any company shall
cover the period from the date of Uniform System of Accounts was
required to be made effective as to that company under Rules 82 and 93
to the end of that calendar year. Subsequent reports should cover a
calendar year.
4. REPORT FORMAT. Reports shall be submitted on the forms prepared by the
Commission. If the space provided on any sheet of such form is
inadequate, additional sheets may be inserted of the same size as a
sheet of the form or folded to each size.
5. MONEY AMOUNTS DISPLAYED. All money amounts required to be shown in
financial statements may be expressed in whole dollars, in thousands of
dollars or in hundred thousands of dollars, as appropriate and subject
to provisions of Regulation S-X (Section 210.3-01(b)).
6. DEFICITS DISPLAYED. Deficits and other like entries shall be indicated
by the use of either brackets or a parenthesis with corresponding
reference in footnotes. (Regulation S-X, Section 210.3-01(c)).
7. MAJOR AMENDMENTS OR CORRECTIONS. Any company desiring to amend or
correct a major omission or error in a report after it has been filed
with the Commission shall submit an amended report including only those
pages, schedules, and entries that are to be amended or corrected. A
cover letter shall be submitted requesting the Commission to
incorporate the amended report changes and shall be signed by a duly
authorized officer of the company.
8. DEFINITIONS. Definitions contained in Instruction 01-8 to the Uniform
System of Accounts for Mutual Service Companies and Subsidiary Service
Companies, Public Utility Holding Company Act of 1935, as amended
February 2, 1979 shall be applicable to words or terms used
specifically within this Form U-13-60.
9. ORGANIZATION CHART. The service company shall submit with each annual
report a copy of its current organization chart.
10. METHODS OF ALLOCATION. The service company shall submit with each
annual report a listing of the currently effective methods of
allocation being used by the service company and on file with the
Securities and Exchange Commission pursuant to the Public Utility
Holding Company Act of 1935.
11. ANNUAL STATEMENT OF COMPENSATION FOR USE OF CAPITAL BILLED. The service
company shall submit with each annual report a copy of the annual
statement supplied to each associate company in support of the amount
of compensation for use of capital billed during the calendar year.
12. ELECTRONIC FILERS. Electronic filers are subject to Regulation S-T and
the EDGAR Filer Manual. Any rule or instruction therein shall be
controlling unless otherwise specifically provided in rules or
instructions pertaining to the submission format documents.
Data that appears in tabular or columnar format shall be
marked as prescribed in the EDGAR Filer Manual.
Signatures shall be in typed form rather than manual format.
See rule 13 of Regulation S-T.
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LISTING OF SCHEDULES AND ANALYSIS OF ACCOUNT
Page
Number
---------------------------------------------------
-----------------------
Schedule or Account
Description of Schedules and Accounts Number
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COMPARATIVE BALANCE SHEET Schedule I 6
SERVICE COMPANY PROPERTY Schedule II 8
ACCUMULATED PROVISION FOR DEPRECIATION
AND AMORTIZATION OF SERVICE COMPANY PROPERTY Schedule III 10
INVESTMENTS Schedule IV 11
ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES Schedule V 12
FUEL STOCK EXPENSES UNDISTRIBUTED Schedule VI 13
STORES EXPENSE UNDISTRIBUTED Schedule VII 14
MISCELLANEOUS CURRENT AND ACCRUED ASSETS Schedule VIII 15
MISCELLANEOUS DEFERRED DEBITS Schedule IX 16
RESEARCH, DEVELOPMENT OR DEMONSTRATION EXPENDITURES Schedule X 17
PROPRIETARY CAPITAL Schedule XI 18
LONG-TERM DEBT Schedule XII 19
CURRENT AND ACCRUED LIABILITIES Schedule XIII 20
NOTES TO FINANCIAL STATEMENTS Schedule XIV 21
COMPARATIVE INCOME STATEMENT Schedule XV 22
ANALYSIS OF BILLING -ASSOCIATE COMPANIES Account 457 24
ANALYSIS OF BILLING - NONASSOCIATE COMPANIES Account 458 25
ANALYSIS OF CHARGES FOR SERVICE - ASSOCIATE AND
NONASSOCIATE COMPANIES Schedule XVI 26
SCHEDULE OF EXPENSE BY DEPARTMENT OR SERVICE FUNCTION Schedule XVII 28
DEPARTMENTAL ANALYSIS OF SALARIES Account 920 32
OUTSIDE SERVICES EMPLOYED Account 923 33
EMPLOYEE PENSIONS AND BENEFITS Account 926 35
GENERAL ADVERTISING EXPENSES Account 930.1 36
MISCELLANEOUS GENERAL EXPENSES Account 930.2 38
RENTS Account 931 39
TAXES OTHER THAN INCOME TAXES Account 408 40
DONATIONS Account 426.1 41
OTHER DEDUCTIONS Account 426.5 43
NOTES TO STATEMENT OF INCOME Schedule XVIII 44
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LISTING OF INSTRUCTIONAL FILING REQUIREMENTS ----------
Page
Number
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Description of Reports or Statements
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ORGANIZATION CHART 45
METHODS OF ALLOCATION 45
ANNUAL STATEMENT OF COMPENSATION FOR USE
OF CAPITAL BILLED 52
ANNUAL REPORT OF SCANA Services, Inc.
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SCHEDULE I - COMPARATIVE BALANCE SHEET
Give balance sheet of the Company as of December 31 of the current and prior year
---------------- ---------------------------------------------------------------------------- --------------------------
ACCOUNT ASSETS AND OTHER DEBITS (Dollars in Thousands) AS OF DECEMBER 31
---------------- ---------------------------------------------------------------------------- --------------------------
CURRENT PRIOR
------------- ------------
SERVICE COMPANY PROPERTY
101 Service company property (Schedule II) $35,282 $24,190
107 Construction work in progress (Schedule II) 14,173 16,886
---------------- ------------------------------------------------------- -------------------- ------------- ------------
Total Property 49,455 41,076
---------------- ------------------------------------------------------- -------------------- ------------- ------------
108 Less accumulated provision for depreciation
and amortization of service company property (Schedule III) (7,997) (4,983)
---------------- ------------------------------------------------------- -------------------- ------------- ------------
Net Service Company Property 41,458 36,093
---------------- ------------------------------------------------------- -------------------- ------------- ------------
INVESTMENTS
123 Investments in associate companies (Schedule IV) - -
124 Other investments (Schedule IV) - -
---------------- ------------------------------------------------------- -------------------- ------------- ------------
Total Investments - -
---------------- ------------------------------------------------------- -------------------- ------------- ------------
CURRENT AND ACCRUED ASSETS
131 Cash 93 11,541
134 Special deposits 52 28
135 Working funds 102 118
136 Temporary cash investments (Schedule IV) - -
141 Notes receivable - -
143 Accounts receivable 321 148
144 Accumulated provision for uncollectible accounts - -
146 Accounts receivable from associate companies (Schedule V) 46,171 57,972
152 Fuel stock expenses undistributed (Schedule VI) - -
154 Materials and supplies 63 70
163 Stores expense undistributed (Schedule VII) - 2
165 Prepayments 2,152 2,338
174 Miscellaneous current and accrued assets (Schedule VIII) - -
---------------- ------------------------------------------------------- -------------------- ------------- ------------
Total Current and Accrued Assets 48,954 72,217
---------------- ------------------------------------------------------- -------------------- ------------- ------------
DEFERRED DEBITS
181 Unamortized debt expense - -
184 Clearing accounts 381 1,926
186 Miscellaneous deferred debits (Schedule IX) 1,854 2,742
188 Research, development or demonstration expenditures (Schedule X) - -
190 Accumulated deferred income taxes - -
---------------- ------------------------------------------------------- -------------------- ------------- ------------
Total Deferred Debits 2,235 4,668
---------------- ------------------------------------------------------- -------------------- ------------- ------------
TOTAL ASSETS AND OTHER DEBITS $92,647 $112,978
================ ======================================================= ==================== ============= ============
ANNUAL REPORT OF SCANA Services, Inc.
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SCHEDULE I - COMPARATIVE BALANCE SHEET
Give balance sheet of the Company as of December 31 of the current and prior year
----------------- ------------------------------------------------------------------------------------ ---------------------------
ACCOUNT LIABILITIES AND PROPRIETARY CAPITAL (Dollars in Thousands) AS OF DECEMBER 31
----------------- ------------------------------------------------------------------------------------ ---------------------------
CURRENT PRIOR
-------------- ------------
PROPRIETARY CAPITAL
201 Common stock issued (Schedule XI) $1 $1
211 Miscellaneous paid-in-capital (Schedule XI) 5,465 5,465
215 Appropriated retained earnings (Schedule XI) - -
216 Unappropriated retained earnings (Schedule XI) - -
----------------- ---------------------------------------------------------------- ------------------- -------------- ------------
Total Proprietary Capital 5,466 5,466
----------------- ---------------------------------------------------------------- ------------------- -------------- ------------
LONG-TERM DEBT
223 Advances from associate companies (Schedule XII) - -
224 Other long-term debt (Schedule XII) 3,274 3,451
225 Unamortized premium on long-term debt - -
226 Unamortized discount on long-term debt-debit - -
----------------- ---------------------------------------------------------------- ------------------- -------------- ------------
Total Long-term Debt 3,274 3,451
----------------- ---------------------------------------------------------------- ------------------- -------------- ------------
CURRENT AND ACCRUED LIABILITIES
228 Accrued provision injuries and damages 193 121
231 Notes payable - -
232 Accounts payable 20,452 10,618
233 Notes payable to associate companies (Schedule XIII) - -
234 Accounts payable to associate companies (Schedule XIII) 42,630 85,640
236 Taxes accrued 251 (85)
237 Interest accrued - -
238 Dividends declared - -
241 Tax collections payable 224 130
242 Miscellaneous current and accrued liabilities (Schedule XIII) 2,747 2,531
----------------- ---------------------------------------------------------------- ------------------- -------------- ------------
Total Current and Accrued Liabilities 66,497 98,955
----------------- ---------------------------------------------------------------- ------------------- -------------- ------------
DEFERRED CREDITS
253 Other deferred credits 12,980 3,389
255 Accumulated deferred investment tax credits - -
----------------- ---------------------------------------------------------------- ------------------- -------------- ------------
Total Deferred Credits 12,980 3,389
----------------- ---------------------------------------------------------------- ------------------- --------------
------------
282 ACCUMULATED DEFERRED INCOME TAXES 4,430 1,717
------------------- -------------- ------------
----------------- ----------------------------------------------------------------
TOTAL LIABILITIES AND PROPRIETARY CAPITAL $92,647 $112,978
================= ================================================================ =================== ============== ============
ANNUAL REPORT OF SCANA Services, Inc.
For the Year Ended December 31, 2002
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SCHEDULE II - SERVICE COMPANY PROPERTY
--------------------------------------------------- ------------ ---------------- ----------------- -------------- ---------------
BALANCE AT NCE AT
BEGINNING RETIREMENT OTHER SE OF
DESCRIPTION (Dollars in Thousands) OF YEAR ADDITIONS OR SALES CHANGES(1) EAR
--------- ----------------------------------------------------------- -------------- ----------------- -------------- ------------
SERVICE COMPANY
PROPERTY
Account
301 ORGANIZATION - - - - -
303 MISCELLANEOUS INTANGIBLE PLANT $7,201 $5,027 - $(192) $12,036
304 LAND AND LAND RIGHTS - - - - -
305 STRUCTURES AND IMPROVEMENTS 159 77 - - 236
306 LEASEHOLD IMPROVEMENTS 2,451 958 - (81) 3,328
307 EQUIPMENT (2) 7,132 1,276 $1,150 - 7,258
308 OFFICE FURNITURE AND EQUIPMENT 988 358 - (18) 1,328
309 AUTOMOBILES, OTHER VEHICLES
AND RELATED GARAGE EQUIPMENT 92 - 92 - -
310 AIRCRAFT AND AIRPORT EQUIPMENT 1,810 3,434 - - 5,244
311 OTHER SERVICE COMPANY PROPERTY (3) 4,357 1,672 177 - 5,852
--------- ----------------------------------------------------------- -------------- ----------------- -------------- ------------
SUB-TOTAL 24,190 12,802 1,419 (291) 35,282
--------- ----------------------------------------------------------- -------------- ----------------- -------------- ------------
107 CONSTRUCTION WORK IN PROGRESS (4) 16,886 20,991 12,803 (10,901) 14,173
--------- ----------------------------------------------------------- -------------- ----------------- -------------- ------------
TOTAL $41,076 $33,793 $14,222 $(11,192) $49,455
--------- ----------------------------------------------------------- -------------- ----------------- -------------- ------------
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(1) PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
The $10,901 reduction in Construction Work in Progress represents transfers of
assets/projects managed by SCANA Services, Inc. for the benefit of other
business units to those business units which are receiving the benefit of those
assets.
SCHEDULE II - CONTINUED
--------------------------------------------------------------------------------
(2)SUBACCOUNTS ARE REQUIRED FOR EACH CLASS OF EQUIPMENT OWNED. THE SERVICE
COMPANY SHALL PROVIDE A LISTING BY SUBACCOUNT OF EQUIPMENT ADDITIONS DURING THE
YEAR AND THE BALANCE AT THE CLOSE OF THE YEAR:
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BALANCE
AT CLOSE
SUBACCOUNT DESCRIPTION (Dollars in Thousands) ADDITIONS OF YEAR
----------------------------------------------- ------------ --------------
EDP Equipment $1,064 $6,851
Office Data Handling Equipment 212 407
---------- ---------
TOTAL $1,276 $7,258
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(3)DESCRIBE OTHER SERVICE COMPANY PROPERTY:
Capitalized computer leases of $3,274, communication equipment of $1,448
and office furniture and equipment of $1,130.
------------------------------------------------------------------------- ----
(4)DESCRIBE CONSTRUCTION WORK IN PROGRESS:
Primarily data processing systems
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ANNUAL REPORT OF SCANA Services, Inc.
For the Year Ended December 31, 2002
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SCHEDULE III
ACCUMULATED PROVISION FOR DEPRECIATION AND AMORTIZATION OF SERVICE COMPANY PROPERTY
----------------------------------------------------------------------------------------------------------------------------------
--------------------------------------------- ---------- ----------------- ------------- --------------- -------------------------
BALANCE AT ADDITIONS BALANCE AT
-------------------------------- -------------------
BEGINNING CHARGED TO OTHER CHANGES CLOSE OF
DESCRIPTION (Dollars in Thousands) OF YEAR ACCOUNT 403 (2) RETIREMENTS ADD (DEDUCT)(1) YEAR
--------- ------------------------------------------------------ -------------------------------- --------------------------------
Account
301 ORGANIZATION - - - - -
303 MISCELLANEOUS INTANGIBLE PLANT $1,070 $1,915 - $(39) $2,946
304 LAND AND LAND RIGHTS - - - - -
305 STRUCTURES AND IMPROVEMENTS 44 6 - - 50
306 LEASEHOLD IMPROVEMENTS 675 86 - - 761
307 EQUIPMENT 2,526 1,782 $1,150 - 3,158
308 OFFICE FURNITURE AND FIXTURES 320 126 - - 446
309 AUTOMOBILES, OTHER VEHICLES
AND RELATED GARAGE EQUIPMENT 53 5 91 33 -
310 AIRCRAFT AND AIRPORT EQUIPMENT 268 159 - - 427
311 OTHER SERVICE COMPANY PROPERTY 27 182 - - 209
--------- ------------------------------------------------------ -------------------------------- --------------------------------
TOTAL $4,983 $4,261 $1,241 $(6) $7,997
--------- ------------------------------------------------------ -------------------------------- --------------------------------
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(1)PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
None considered material
(2) Depreciation Expense is charged to account 414 per FERC guidelines.
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ANNUAL REPORT OF SCANA Services, Inc.
For the Year Ended December 31, 2002
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SCHEDULE IV - INVESTMENTS
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INSTRUCTIONS: Complete the following schedule concerning investments. Under
Account 124, "Other Investments", state each investment separately, with
description, including, the the name of issuing company, number of shares or
principal amount, etc.
Under Account 136, "Temporary Cash Investments", list each investment
separately.
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BALANCE AT BALANCE
BEGINNING AT CLOSE
DESCRIPTION (Dollars in Thousands) OF YEAR OF YEAR
-------------------------------------------------- ------------------ ---------
ACCOUNT 123 - INVESTMENT IN ASSOCIATE COMPANIES $- $-
ACCOUNT 124 - OTHER INVESTMENTS - -
ACCOUNT 136 - TEMPORARY CASH INVESTMENTS - -
TOTAL $- $-
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ANNUAL REPORT OF SCANA Services, Inc.
For the Year Ended December 31, 2002
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SCHEDULE V - ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
INSTRUCTIONS: Complete the following schedule listing accounts receivable from
each associate company. Where the service company has provided accommodation or
convenience payments for associate companies, a separate listing of total
payments for each associate company by subaccount should be provided.
--------------------------------------------------------------------------------
BALANCE AT BALANCE
BEGINNING AT CLOSE
DESCRIPTION (Dollars in Thousands) OF YEAR OF YEAR
------------------------------------------------------------------- ------------
ACCOUNT 146 - ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES
ServiceCare, Inc. $230 $534
SCANA Propane Gas, Inc. - -
SCANA Energy Marketing, Inc. 6,664 3,623
Primesouth Inc. 330 300
SCANA Petroleum Resources 1 -
SCANA Development Corporation 12 8
South Carolina Pipeline Corporation 504 1,577
SCANA Communications, Inc. 200 254
SCANA Resources, Inc. - -
Public Service Company of North Carolina, Incorporated 7,103 7,690
South Carolina Electric & Gas Company 42,928 32,185
------- -----------
TOTAL $57,972 $46,171
----------------------------------------------------- --------------- ----------
TOTAL
ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS: PAYMENTS
----------
South Carolina Pipeline Corporation $4
SCANA Energy Marketing 4
---------
TOTAL PAYMENTS $8
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ANNUAL REPORT OF SCANA Services, Inc.
For the Year Ended December 31, 2002
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SCHEDULE VI - FUEL STOCK EXPENSES UNDISTRIBUTED
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
INSTRUCTIONS: Report the amount of labor and expenses incurred with respect to
fuel stock expenses during the year and indicate amount attributable to each
associate company. Under the section headed "Summary" listed below give an
overall report of the fuel functions performed by the service company.
--------------------------------------------------------------------------------
DESCRIPTION (Dollars in Thousands) LABOR EXPENSES TOTAL
--------------------------------------------------------------------------------
ACCOUNT 152 - FUEL STOCK EXPENSES UNDISTRIBUTED $- $- $-
--------------- --------------- --------
TOTAL $- $- $-
--------------------------------------- --------------- ---------------
SUMMARY:
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ANNUAL REPORT OF SCANA Services, Inc.
For the Year Ended December 31, 2002
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SCHEDULE VII - STORES EXPENSE UNDISTRIBUTED
-------------------------------------------------------------------------------
-------------------------------------------------------------------------------
INSTRUCTIONS: Report the amount of labor and expenses incurred with respect to
stores expense during the year and indicate amount attributable to each
associate company.
--------------------------------------------------------------------------------
DESCRIPTION (Dollars in Thousands) LABOR EXPENSES TOTAL
---------------------------------------- ---------------------------------------
ACCOUNT 163 - STORES EXPENSE UNDISTRIBUTED $- $- $-
South Carolina Electric and Gas
--------------- --------------- -------------
TOTAL $- $- $-
---------------------------------- --------------- --------------- -------------
ANNUAL REPORT OF SCANA Services, Inc.
For the Year Ended December 31, 2002
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SCHEDULE VIII
MISCELLANEOUS CURRENT AND ACCRUED ASSETS
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
INSTRUCTIONS: Provide detail of items in this account. Items less than $10,000
may be grouped, showing the number of items in each group.
--------------------------------------------------------------------------------
BALANCE AT BALANCE
BEGINNING AT CLOSE
DESCRIPTION (Dollars In Thousands) OF YEAR OF YEAR
--------------------------------------------------------------------- ----------
$- $-
ACCOUNT 174 - MISCELLANEOUS CURRENT AND
ACCRUED ASSETS
-------------------- --------------
TOTAL $- $-
-------------------------------------------- -------------------- --------------
ANNUAL REPORT OF SCANA Services, Inc.
For the Year Ended December 31, 2002
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SCHEDULE IX
MISCELLANEOUS DEFERRED DEBITS
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
INSTRUCTIONS: Provide detail of items in this account. Items less than $10,000
may be grouped by class showing the number of items in each class.
--------------------------------------------------------------------------------
BALANCE AT BALANCE
BEGINNING AT CLOSE
DESCRIPTION (Dollars in Thousands) OF YEAR OF YEAR
-------------------------------------------------- ----------------- -----------
ACCOUNT 186 - MISCELLANEOUS DEFERRED DEBITS
Other work in progress $1,690 $795
Prepaid software 512 1,110
Unbilled clearing 535 (51)
Other (1 item) 5 -
------------ --------------
TOTAL $2,742 $1,854
-------------------------------------------------- ------------ --------------
ANNUAL REPORT OF SCANA Services, Inc.
For the Year Ended December 31, 2002
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SCHEDULE X
RESEARCH, DEVELOPMENT OR DEMONSTRATION EXPENDITURES
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
INSTRUCTIONS: Provide a description of each material research, development, or
demonstration project which incurred costs by the service corporation during the
year.
--------------------------------------------------------------------------------
DESCRIPTION (Dollars in Thousands) AMOUNT
------------------------------------------------------------------ -------------
ACCOUNT 188 - RESEARCH, DEVELOPMENT, OR DEMONSTRATION EXPENDITURES $-
---------------
TOTAL $-
--------------------------------------------------------------------------------
ANNUAL REPORT OF SCANA Services, Inc.
For the Year Ended December 31, 2002
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SCHEDULE XI - PROPRIETARY CAPITAL
------------------------------------------------------------------------------------------------------------------------------------
NUMBER OF PAR OR STATED OUTSTANDING
ACCOUNT SHARES VALUE CLOSE OF PERIOD
---------------------------------
NUMBER CLASS OF STOCK AUTHORIZED PER SHARE NO. OF SHARES TOTAL AMOUNT
----------------------------------------------------- ---------------------- --------------------- ---------------- ----------------
201 COMMON STOCK ISSUED 1,000 No Par 1,000 $1,000
----------------------------------------------------- ---------------------- --------------------- ---------------- ----------------
INSTRUCTIONS: Classify amounts in each account with brief explanation, disclosing the general nature of transactions which
gave rise to the reported amounts.
--------------------------------------------------------------------------------------------------------------------------------
DESCRIPTION (Dollars in AMOUNT
Thousands)
---------------------------------------------------------------------------- --------------------- -------------------------------
ACCOUNT 211 - MISCELLANEOUS PAID-IN CAPITAL
Capitalization of company $5,465
ACCOUNT 215 - APPROPRIATED RETAINED EARNINGS -
----------------
TOTAL $5,465
------------------------------ ---------------------- ---------------------- --------------------- -------------------------------
INSTRUCTIONS: Give particulars concerning net income or (loss) during the
year, distinguishing between compensation for the use of capital owed or net
loss remaining from servicing nonassociates per the General Instructions of the
Uniform System of Accounts. For dividends paid during the year in cash or
otherwise, provide rate percentage, amount of dividend, date declared and date
paid.
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BALANCE AT NET INCOME BALANCE AT
BEGINNING OR DIVIDENDS CLOSE
DESCRIPTION OF YEAR (LOSS) PAID OF YEAR
--------------------------------------------------------------------------------
ACCOUNT 216 --
UNAPPROPRIATED
RETAINED EARNINGS
-------------------------------------------------------
TOTAL $- $- $- $-
--------------------------------------------------------------------------------
ANNUAL REPORT OF SCANA Services, Inc.
For the Year Ended December 31,
2002
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SCHEDULE XII - LONG-TERM DEBT
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
INSTRUCTIONS: Advances from associate companies should be reported separately
for advances on notes, and advances on open account. Names of associate
companies from which advances were received shall be shown under the class and
series of obligation column. For Account 224 - Other long-term debt provide the
name of the creditor company or organization, terms of the obligation, date of
maturity, interest rate, and the amount authorized and outstanding.
(Dollars in Thousands)
----------------------- ------------------------------------------------------------------ -----------------------------------------
TERMS OF OBLIG BALANCE AT BALANCE
NAME OF CLASS & SERIES DATE OF INTEREST AMOUNT BEGINNING AT CLOSE OF
CREDITOR OF OBLIGATION MATURITY RATE AUTHORIZED OF YEAR ADDITIONS DEDUCTIONS (1) YEAR
------------------------------------------------------------------ -----------------------------
-----------------------
ACCOUNT 223- ADVANCES FROM
ASSOCIATE COMPANIES:
ACCOUNT 224 - OTHER LONG-
TERM DEBT:
O/E Systems, Inc. master lease of from 6 to ranging - $3,451 $1,447 $1,624 $3,274
computer equipment 36 months from 2.7%
to 3.1%
------------ ------------------------- ----------- ----------- -----------
TOTAL $3,451 $1,447 $1,624 $3,274
------------------ ---------------------- ------------ ------------------------- ----------- ----------- -----------
(1) GIVE AN EXPLANATION OF DEDUCTIONS:
Amortization of capital lease obligations in accordance with the capital lease
accounting instructions prescribed in the Federal Energy Regulatory
Commission Uniform System of Accounts.
--------------------------------------------------------------------------------
ANNUAL REPORT OF SCANA Services, Inc.
For the Year Ended December 31, 2002
--------------------------------------------------------------------------------
SCHEDULE XIII - CURRENT AND ACCRUED LIABILITIES
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
INSTRUCTIONS: Provide balance of notes and accounts payable to each associate
company. Give description and amount of miscellaneous current and accrued
liabilities. Items less than $10,000 may be grouped, showing the number of items
in each group.
--------------------------------------------------------------------------------
BALANCE AT BALANCE
BEGINNING AT CLOSE
DESCRIPTION (Dollars in Thousands) OF YEAR OF YEAR
------------------------------------------------------------------- ------------
ACCOUNT 233 - NOTES PAYABLE TO ASSOCIATE COMPANIES
------------------ ---------------
TOTAL $- $-
-------------------------------------------- ------------------ ---------------
ACCOUNT 234 - ACCOUNTS PAYABLE TO ASSOCIATE COMPANIES
SCANA Corporation $85,640 $42,630
------------------ ---------------
TOTAL $85,640 $42,630
-------------------------------------------- ------------------ ---------------
ACCOUNT 242 - MISCELLANEOUS CURRENT AND
ACCRUED LIABILITIES
Accrued payroll $2,531 $2,747
------------------ ---------------
TOTAL $2,531 $2,747
--------------------------------------------- ------------------ ---------------
ANNUAL REPORT OF SCANA Services, Inc.
For the Year Ended December 31, 2002
--------------------------------------------------------------------------------
SCHEDULE XIV
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
INSTRUCTIONS: The space below is provided for important notes regarding the
financial statements or any account thereof. Furnish particulars as to any
significant contingent assets or liabilities existing at the end of the year.
Notes relating to financial statements shown elsewhere in this report may be
indicated here by reference.
--------------------------------------------------------------------------------
1. SCANA Services, Inc. was established to provide certain administrative
and service functions for the SCANA system companies. Initial
capitalization
was provided by SCANA Corporation through the purchase of SCANA
Services, Inc.'s common stock and the transfers of certain
assets from
SCANA system companies to SCANA Services, Inc.
2. The financial statements are presented using the accrual method of
accounting.
3. Provisions for depreciation and amortization are recorded using the
straight- line method and are based on the estimated service lives of the
various classes of property.
4. The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities at
the date of the financial statements and the reported amount of revenues
and expenses during the reporting period. Actual results could differ from
those estimates.
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ANNUAL REPORT OF SCANA Services, Inc.
For the Year Ended December 31, 2002
--------------------------------------------------------------------------------
SCHEDULE XV
STATEMENT OF INCOME
----------- ---------------------------------------------------- -----------
ACCOUNT DESCRIPTION (Dollars in Thousands) CURRENT YEAR PRIOR YEAR
----------- ---------------------------------------------------- -----------
INCOME
415 Revenue from merchandise $8 $175
417.0 Other nonutility revenue 3,381 12,648
418.0 Non operating rent 281 205
419.0 Interest & dividends 8 5
419.1 AFUDC - -
421 Miscellaneous income or loss 3,210 4,166
453 Sales of water - -
454 Rent from electric property 220 223
456 Other electric revenue 255 375
457 Services rendered to associate companies 233,973 222,464
493 Rent from gas property 75 7
----------- ------------
Total Income 241,411 240,268
------------- ------------
EXPENSE
350 Superintendence operations 16 26
351 Superintendence maint 9 7
370 Administrative and general 3 10
408 Taxes other than income taxes 7,710 6,449
409 Income taxes (2,713) (1,607)
410 Provision for deferred income taxes 2,713 1,607
414 Depreciation and amortization expense 4,824 1,698
416 Expense from merchandise 1,796 2,318
417.1 Other nonutility expenses 3,736 11,092
426.1 Donations 1,618 2,355
426.2 Life insurance (2,961) (1,110)
426.3 Penalties 6 -
426.4 Civic, politic and related accounts 1,219 1,181
426.5 Other deductions 3,904 3,640
430 Interest on debt to associate companies 2,990 1,733
431 Other interest expense 555 661
432 AFUDC (386) (469)
500 Operation supervision and engineering steam 4 -
501 Fuel handling expense - 78
502 Operation steam power 1 -
506 Operation misc steam 876 576
510 Maint supervision and engineering 40 51
511 Maint structures steam - 2
512 Maint boiler plant steam 7 19
513 Maint electric plant steam 3 5
514 Maint Misc steam plant 19 -
517 Operation supervision and engineering nuclear 246 234
519 Operation coolants and water 36 79
520 Operation steam expenses nuclear 233 73
524 Operation misc nuclear 2,549 1,832
530 Maint reactor plant equipment - 29
532 Maint misc nuclear 194 273
537 Operation expenses hydro 26 28
539 Operation misc hydraulic pwr gen 86 66
543 Maint reservoirs dams 1 2
544 Maint electric plant hydro 142 -
545 Maint misc hydro plant 7 -
546 Operation supervision and engineering 9 6
549 Operation misc other power generation 25 14
552 Maint structures other power - 2
556 System control and load 121 122
560 Operation supervision and engineering 5 11
561 Operation load dispatching transmission 29 35
562 Operation station expenses transmission 85 84
563 Operation OH line expenses transmission 1 1
566 Operation misc transmission 364 375
567 Oper rents Transmission 186 -
568 Maint supervision and engineering 8 10
569 Maint structures transmission 36 22
570 Maint station equipment transmission 161 90
571 Maint overhead lines transmission 2 2
573 Maint misc transmission 34 35
580 Distribution operation supervision and engineering 8 10
581 Distribution operation load dispatch 1 3
582 Distribution operation station expenses 100 91
583 Distribution operation remove and reset 1 1
585 Distribution operation street light and sign 9 87
586 Distribution operation meter expenses 12 484
587 Distribution operation customer install - 1
588 Distribution operation misc distribution 1,087 693
592 Distribution maint of station equipment 55 29
593 Distribution maint of OH Lines 204 100
594 Distribution maint underground lines 30 30
595 Distribution maint line transformer - 2
596 Distribution maint street light and signal 17 20
597 Distribution maint meters 1 -
598 Distribution maint misc distribution plant 1 11
717 Operation liquid petroleum gas 3 -
735 Environmental amortization and misc 168 219
851 System control and load dispatch 252 129
853 Compressor station labor and expenses - 4
856 Mains expense - 5
857 Meas and reg station - 1
861 Maint supervision and engineering - 11
870 Supervision and engineering natural gas distribution 1 1
874 Mains and services natural gas distribution 6 43
878 Meter and house regulator 8 240
879 Customer installation 1 13
880 Other expenses natural gas 349 294
887 Maint mains natural gas distribution - 2
893 Maint meters/house regtr natural gas distribution 12 -
901 Supervision customer accounting 2,517 3,258
902 Meter reading 1,021 7,178
903 Customer records and collections 36,797 36,256
905 Miscellaneous customer accounts 1,433 1,410
907 Supervision customer service 292 312
908 Customer assistance 1,536 2,118
909 Informational and instructional advertising 37 30
910 Miscellaneous customer service 270 1,198
911 Supervision sales activities 699 680
912 Demonstrating and selling 5,502 5,581
913 Advertising 105 141
916 Miscellaneous sales 640 1,083
920 Salaries and wages * 51,301 39,469
921 Office supplies and expenses 46,834 46,997
923 Outside services employed 22,449 21,444
925 Injuries and damages 2,419 1,586
926 Employee pensions and benefits 15,827 18,123
928 Regulatory commission expense 1,499 787
929 Duplicate charges-credit - (13)
930.1 General advertising expenses 611 808
930.2 Miscellaneous general expenses 7,284 6,914
931 Rents 6,520 6,278
932 Maintenance of structures and equipment - 345
935 Maintenance of general plant 2,917 2,014
------- --------
Total Expense 241,411 240,268
--------------------- --------
-------------------- -----
Net Income or (Loss) $- $-
--------------- ----------------------------------------- ---------------------
*Salary and wage amounts are charged to Account 920 and other expense
accounts, as appropriate per the Federal Energy Regulatory Commission Uniform
System of Accounts.
-------------------------------------------------------------------------------
ANNUAL REPORT OF SCANA Services, Inc.
For the Year Ended December 31, 2002
--------------------------------------------------------------------------------------------------------------
ANALYSIS OF BILLING
ASSOCIATE COMPANIES
ACCOUNT 457
--------------------------------------------------------------------------------------------------------------
DIRECT INDIRECT COMPENSATION TOTAL
COSTS COSTS FOR USE AMOUNT
NAME OF ASSOCIATE COMPANY CHARGED CHARGED OF CAPITAL BILLED
-------------- -------------- --------------------
(Dollars in Thousands) 457-1 457-2 457-3
------------------------------------------- -------------- -------------- -------------------- ---------------
South Carolina Electric & Gas Company $124,723 $32,776 $- $157,499
South Carolina Fuel Company, Inc. 14 - - 14
South Carolina Pipeline Corporation 6,636 3,231 - 9,867
Public Service Company of North Carolina,
Incorporated 23,797 8,853 - 32,650
SCANA Communications, Inc. 887 256 - 1,143
SCANA Energy Marketing, Inc. 20,757 5,311 - 26,068
ServiceCare, Inc. 1,000 333 - 1,333
SCANA Resources, Inc. 225 - - 225
SCANA Development Corporation 13 - - 13
SCANA Petroleum Resources, Inc. 12 - - 12
South Carolina Generating Company, Inc. 712 1,420 - 2,132
Primesouth Inc. 1,478 979 - 2,457
SCANA Holding 379 181 - 560
-------------- -------------- -------------------- ---------------
TOTAL $180,633 $53,340 $- $233,973
-------------- -------------- -------------------- ---------------
-------------- -------------- -------------------- ---------------
------------------------------------------- -------------- -------------- -------------------- ---------------
ANNUAL REPORT OF SCANA Services, Inc.
For the Year Ended December 31, 2002
--------------------------------------------------------------------------------
ANALYSIS OF BILLING
NONASSOCIATE COMPANIES
ACCOUNT 458
-------------------------------------------------------------------------------
NAME OF DIRECT INDIRECT COMPENSATION EXCESS TOTAL
NONASSOCIATE COST COST FOR USE TOTAL OR AMOUNT
COMPANY CHARGED CHARGED OF CAPITAL COST DEFICIENCY BILLED
--------------------------------- --------------
458-1 458-2 458-3 458-4
-------------------------------------------------------------------------------
-------------------------------------------------------------------------
TOTAL $- $- $- $- $- $- ------
-------------------------------------------------------------------------
INSTRUCTION: Provide a brief description of the services rendered to each
nonassociate company.
--------------------------------------------------------------------------------
ANNUAL REPORT OF SCANA Services, Inc.
For the Year Ended December 31, 2002
-----------------------------------------------------------------------------------------------------------------------------------
SCHEDULE XVI
ANALYSIS OF CHARGES FOR SERVICE
ASSOCIATE AND NONASSOCIATE COMPANIES
------------------------------------------------------------------------------------------------------------------------------------
ASSOCIATE COMPANY CHARGES NONASSOCIATE COMPANY CHARGES TOTAL CHARGES FOR SERVICE
-------------------------------------------------------- ---------------------
DESCRIPTION OF ITEMS (Dollars in Thousands) RECT INDIRECT DIRECT INDIRECT DIRECT INDIRECT
COST COST TOTAL COST COST TOTAL COST COST TOTAL
----------------------------------------------------------- --------- ----------------------------------- --------------------------
350 SUPERINTENDENCE OPERATIONS $16 - $16 - - - $16 - $16
351 SUPERINTENDENCE MAINT 9 - 9 - - - 9 - 9
370 ADMINISTRATIVE AND GENERAL 3 - 3 - - - 3 - 3
408 TAXES OTHER THAN INCOME TAXES 5,378 $2,332 7,710 - - - 5,378 $2,332 7,710
414 DEPRECIATION AND AMORTIZATION EXPENSE - 4,824 4,824 - - - - 4,824 4,824
416 EXPENSES FROM MERCHANDISE 1,483 312 1,796 - - - 1,483 312 1,796
417.1 OTHER NONUTILITY EXPENSES 3,517 219 3,736 - - - 3,517 219 3,736
426.1 DONATIONS 354 1,264 1,618 - - - 354 1,264 1,618
426.2 LIFE INSURANCE 86 (3,047) 2,961) - - - 86 (3,047) (2,961)
426.3 PENALTIES 6 - 6 - - - 6 - 6
426.4 CIVIC, POLITIC AND RELATED ACCOUNTS 647 572 1,219 - - - 647 572 1,219
426.5 OTHER DEDUCTIONS 2,505 1,399 3,904 - - - 2,505 1,399 3,904
431 OTHER INTEREST EXPENSE 555 - 555 - - - 555 - 555
432 AFUDC - (386) (386) - - - - (386) (386)
500 OPERATION SUPERVISION AND ENGINEERING STEAM 4 - 4 - - - 4 - 4
502 OPERATING STEAM POWER EXPENSES 1 - 1 - - - 1 - 1
506 OPERATION MISC STEAM 876 - 876 - - - 876 - 876
510 MAINT SUPERVISION AND ENGINEERING 40 - 40 - - - 40 - 40
512 MAINT BOILER PLANT STEAM 7 - 7 - - - 7 - 7
513 MAINT ELECTRIC PLANT STEAM 3 - 3 - - - 3 - 3
514 MAINTENANCE MISC STEAM POWER EXPENSES 19 - 19 - - - 19 - 19
517 OPERATION SUPERVISION AND ENGINEERING NUCLEAR 246 - 246 - - - 246 - 246
519 OPERATION COOLANTS AND WATER 36 - 36 - - - 36 - 36
520 OPERATION STEAM EXPENSES NUCLEAR 233 - 233 - - - 233 - 233
524 OPERATION MISC NUCLEAR 2,549 - 2,549 - - - 2,549 - 2,549
532 MAINT MISC NUCLEAR 194 - 194 - - - 194 - 194
537 OPERATION EXPENSES HYDRO 26 - 26 - - - 26 - 26
539 OPERATION MISC HYDRAULIC PWR GEN 86 - 86 - - - 86 - 86
543 MAINT RESERVOIRS DAMS 1 - 1 - - - 1 - 1
544 MAINT ELECTRIC PLANT HYDRO 142 - 142 - - - 142 - 142
545 MAINT MISC HYDRO POWER 7 - 7 - - - 7 - 7
546 OPERATION SUPERVISION AND ENGINEERING 9 - 9 - - - 9 - 9
549 OPERATION MISC OTHER POWER GENERATION 25 - 25 - - - 25 - 25
556 SYSTEM CONTROL AND LOAD 121 - 121 - - - 121 - 121
560 OPERATION SUPERVISION AND ENGINEERING 5 - 5 - - - 5 - 5
561 OPERATION LOAD DISPATCHING TRANSMISSION 29 - 29 - - - 29 - 29
562 OPERATION STATION EXPENSES TRANSMISSION 85 - 85 - - - 85 - 85
563 OPERATION OH LINE EXPENSES TRANSMISSION 1 - 1 - - - 1 - 1
566 OPERATION MISC TRANSMISSION 364 - 364 - - - 364 - 364
567 OPER RENTS TRANS 186 - 186 - - - 186 - 186
568 MAINT SUPERVISION AND ENGINEERING 8 - 8 - - - 8 - 8
569 MAINT STRUCTURES TRANSMISSION 36 - 36 - - - 36 - 36
570 MAINT STATION EQUIPMENT TRANSMISSION 161 - 161 - - - 161 - 161
571 MAINT OVERHEAD LINES TRANSMISSION 2 - 2 - - - 2 - 2
573 MAINT MISC TRANSMISSION 34 - 34 - - - 34 - 34
580 DISTRIBUTION OPER SUPERVISION AND ENGINEERIN 8 - 8 - - - 8 - 8
581 DISTRIBUTION OPER LOAD DISPATCH 1 - 1 - - - 1 - 1
582 DISTRIBUTION OPER STATION EXPENSES 100 - 100 - - - 100 - 100
583 DISTRIBUTION OPER REMOVE AND RESET 1 - 1 - - - 1 - 1
585 DISTRIBUTION OPER STREET LIGHT AND SIGNAL 9 - 9 - - - 9 - 9
586 DISTRIBUTION OPER METER EXPENSES 12 - 12 - - - 12 - 12
588 DISTRIBUTION OPER MISC DISTRIBUTION 1,087 - 1,087 - - - 1,087 - 1,087
592 DISTRIBUTION MAINT OF STATION EQUIPMENT 55 - 55 - - - 55 - 55
593 DISTRIBUTION MAINT OF OH LINES 204 - 204 - - - 204 - 204
594 DISTRIBUTION MAINT UNDERGROUND LINES 30 - 30 - - - 30 - 30
596 DISTRIBUTION MAINT STREET LIGHT AND SIGNAL 17 - 17 - - - 17 - 17
598 DISTRIBUTION MAINT MISC DISTRIBUTION PLANT 1 - 1 - - - 1 - 1
597 DISTRIBUTION MAINT METERS 1 - 1 - - - 1 - 1
717 OPERATION LIQUID PETROLEUM GAS 3 - 3 - - - 3 - 3
735 ENVIRONMENTAL AMORTIZATION AND MISC 168 - 168 - - - 168 - 168
851 SYSTEM CONTROL AND LOAD DISPATCH 252 - 252 - - - 252 - 252
870 SUPERVISION AND ENGINEERING NAT URAL
GAS DISTRIBUTION 1 - 1 - - - 1 - 1
874 MAINS AND SERVICE NATURAL GAS DISTRIBUTION 6 - 6 - - - 6 - 6
878 METER AND HOUSE REGULATOR 8 - 8 - - - 8 - 8
879 CUSTOMER INSTALLATION 1 - 1 - - - 1 - 1
880 OTHER EXPENSES NATURAL GAS 349 - 349 - - - 349 - 349
893 MAINT METRS/HOUSE REGTR NG DIS 12 - 12 - - - 12 - 12
901 SUPERVISION CUSTOMER ACCOUNTING 2,517 - 2,517 - - - 2,517 - 2,517
902 METER READING 1,021 - 1,021 - - - 1,021 - 1,021
903 CUSTOMER RECORDS AND COLLECTIONS 36,778 19 36,797 - - - 36,778 19 36,797
905 MISCELLANEOUS CUSTOMER ACCOUNTS 1,392 42 1,433 - - - 1,392 42 1,433
907 SUPERVISION CUSTOMER SERVICE 292 - 292 - - - 292 - 292
908 CUSTOMER ASSISTANCE 1,536 - 1,536 - - - 1,536 - 1,536
909 INFORMATIONAL AND INSTRUCTIONAL ADVERTISING 37 - 37 - - - 37 - 37
910 MISCELLANEOUS CUSTOMER SERVICE 270 - 270 - - - 270 - 270
911 SUPERVISION SALES ACTIVITIES 699 - 699 - - - 699 - 699
912 DEMONSTRATING AND SELLING 5,479 23 5,502 - - - 5,479 23 5,502
913 ADVERTISING 104 - 105 - - - 104 - 105
916 MISCELLANEOUS SALES 640 - 640 - - - 640 - 640
920 SALARIES AND WAGES 35,803 15,498 51,301 - - - 35,803 15,498 51,301
921 OFFICE SUPPLIES AND EXPENSES 34,822 12,012 46,834 - - - 34,822 12,012 46,834
923 OUTSIDE SERVICES EMPLOYED 17,564 4,886 22,449 - - - 17,564 4,886 22,449
925 INJURIES AND DAMAGES 2,329 90 2,419 - - - 2,329 90 2,419
926 EMPLOYEE PENSIONS AND BENEFITS 12,376 3,451 15,827 - - - 12,376 3,451 15,827
928 REGULATORY COMMISSION EXPENSE 1,473 26 1,499 - - - 1,473 26 1,499
930.1 GENERAL ADVERTISING EXPENSES 472 139 611 - - - 472 139 611
930.2 MISCELLANEOUS GENERAL EXPENSES 3,257 4,027 7,284 - - - 3,257 4,027 7,284
931 RENTS 2,593 3,927 6,520 - - - 2,593 3,927 6,520
935 MAINTENANCE OF GENERAL PLANT 2,665 252 2,917 - - - 2,665 252 2,917
INSTRUCTION: Total cost of service will equal for associate
and nonassociate companies the total amount billed under the
separate analysis of billing schedules.
------- --------- --------------------------- ---------------------------
TOTAL EXPENSES = 186,54 51,881 238,421 - - - 186,540 51,881 238,421
------- --------------------- ----- ------- --------------- ----------- -------
COMPENSATION FOR USE OF EQUITY CAPITAL =
------- --------------------- ----- ------- ------ ----------- ----------- ----
- 2,990 2,990 - - - - 2,990 2,990
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES =
------- --------------------- ----- ------- ------------- --------- ----------
TOTAL COST OF SERVICE = $186,540 $54,871 $241,411 - - - $186,540 $54,871 $241,411
---------------------------------------------------- --------- --------------------- ----- ------- ------------- ----------- -------
ANNUAL REPORT OF SCANA Services, Inc.
For the Year Ended December 31, 2002
------------------------------------------------------------------------------------------------------------------------------------
SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION
BY
DEPARTMENT OR SERVICE FUNCTION
------------------------------------------------------------------------------------------------------------------------------------
-------------------------------------------------------- ---------------------------------------------------------------------------
DEPARTMENT OR SERVICE FUNCTION
---------------------------------------------------------------------------
----------- ----------- ------- ----------- ----------- ------- -----------
DESCRIPTION OF ITEMS TOTAL CUSTOMER EMPLOYEE ENVIRON- EXECUTIVE FINANCIAL GAS INFORMATION INVESTOR LAND &
FACL
(Dollars in Thousands) AMOUNT SERVICES SERVICES MENTAL SERVICES SERVICES SUPPLY SERVICES RELATIONS MGMT
-
-------------------------------------------------------- ----------- --------- ------- ----------- ----------- ------- -------------
-------------------------------------------------------- -------------------------------------- ----------- ------- ---------------
350 SUPERINTENDENCE OPERATIONS $16 - - - - - - - - -
351 SUPERINTENDENCE MAINT 9 - - - - - - - - -
370 ADMINISTRATIVE AND GENERAL 3 - - - - - - - - -
408 TAXES OTHER THAN INCOME TAXES 7,710 $1 - $1 $18 $4 - $35 - $17
414 DEPRECIATION AND AMORTIZATION EXPENSE 4,824 - - - - 4,794 - 30 - -
416 EXPENSES FROM MERCHANDISE 1,796 7 $62 - 40 30 $5 18 $11 3
417.1 OTHER NONUTILITY EXPENSES 3,736 5 - 2 62 74 1 221 213
426.1 DONATIONS 1,618 26 2 - 4 72 - 12 - -
426.2 LIFE INSURANCE (2,961) - - - - (2,963) - - - -
426.4 PENALTIES 6 - 6 - - - - - - -
426.4 CIVIC, POLITIC AND RELATED ACCOUNTS 1,219 - - - - - - - - -
426.5 OTHER DEDUCTIONS 3,904 - 114 27 485 983 1 154 34 499
430 INTEREST ON BEDT TO ASSOC CO 2,990 - - - - 2,990 - - - -
431 OTHER INTEREST EXPENSE 555 - - - - 555 - - - -
432 AFUDC (386) - - - - (386) - - - -
500 OPERATION SUPERVISION AND
ENGINEERING STEAM 4 - - 4 - - - - - -
502 OPERATING STEAM POWER EXPENSES 1 - - - - - - - - -
506 OPERATION MISC STEAM 876 - - 106 - - - 25 - (3)
510 MAINT SUPERVISION AND ENGINEERING 40 - - - - - - - - -
512 MAINT BOILER PLANT STEAM 7 - - - - - - - - -
513 MAINT ELECTRIC PLANT STEAM 3 - - - - - - - - -
514 MAINTENANCE MISC STEAM POWER EXPENSES 19 - - - - - - - - -
517 OPERATION SUPERVISION AND
ENGINEERING NUCLEAR 246 2 - - - - - 45 - -
519 OPERATION COOLANTS AND WATER 36 - - - - - - 1 - -
520 OPERATION STEAM EXPENSES NUCLEAR 233 - - - - - - 55 - -
524 OPERATION MISC NUCLEAR 2,549 - 2 2 - 21 - 1,206 - 1
532 MAINT MISC NUCLEAR 194 - - - - - - 150 - -
537 OPERATION EXPENSES HYDRO 26 - - - - - - - - 13
539 OPERATION MISC HYDRAULIC PWR GEN 86 - - - - - - - - -
543 MAINT RESERVOIRS DAMS 1 - - - - - - - - -
544 MAINT ELECTRIC PLANT HYDRO 142 - - - - - - - - -
545 MAINT MISC HYDRO POWER 7 - - - - - - - - -
546 OPERATION SUPERVISION AND ENGINEERING 9 - - - - - - - - -
549 OPERATION MISC OTHER POWER GENERATION 25 - - 1 - - - - - -
556 SYSTEM CONTROL AND LOAD 121 - - - - 38 - 8 - -
560 OPERATION SUPERVISION AND ENGINEERING 5 - - - - - - 5 - -
561 OPERATION LOAD DISPATCHING TRANSMISSION 29 - - - - - - 6 - -
562 OPERATION STATION EXPENSES TRANSMISSION 85 - - - - - - 85 - -
563 OPERATION OH LINE EXPENSES TRANSMISSION 1 - - - - - - 1 - -
566 OPERATION MISC TRANSMISSION 364 - - - - 6 - 7 - -
567 OPER RENTS TRANS 186 - - - - - - - - -
568 MAINT SUPERVISION AND ENGINEERING 8 - - - - - - 2 - -
569 MAINT STRUCTURES TRANSMISSION 36 - - - - - - - - -
570 MAINT STATION EQUIPMENT TRANSMISSION 161 - - - - - - - - -
571 MAINT OVERHEAD LINES TRANSMISSION 2 - - - - - - 1 - -
573 MAINT MISC TRANSMISSION 34 - - - - - - 34 - -
580 DISTRIBUTION OPER SUPERVISION AND
ENGINEERING 8 - - - - - - - - -
581 DISTRIBUTION OPER LOAD DISPATCH 1 - - - - - - 1 - -
582 DISTRIBUTION OPER STATION EXPENSES 100 - - - - - - 85 - -
583 DISTRIBUTION OPER REMOVE AND RESET 1 - - - - - - - - -
585 DISTRIBUTION OPER STREET LIGHT AND
SIGNAL 9 - - - - - - - - -
586 DISTRIBUTION OPER METER EXPENSES 12 3 - - - - - 4 - -
588 DISTRIBUTION OPER MISC DISTRIBUTION 1,087 - - 1 - 13 - 689 - -
592 DISTRIBUTION MAINT OF STATION EQUIPMENT 55 - - - - - - - - -
593 DISTRIBUTION MAINT OF OH LINES 204 32 - - - - - 30 - -
594 DISTRIBUTION MAINT UNDERGROUND LINES 30 - - - - - - 30 - -
596 DISTRIBUTION MAINT STREET LIGHT AND
SIGNAL 17 - - - - - - - - -
598 DISTRIBUTION MAINT MISC DISTRIBUTION
PLANT 1 - - - - - - - - -
597 DISTRIBUTION MAINT METERS 1 - - - - - - - - -
717 OPERATION LIQUID PETROLEUM GAS 3 - - - - - - - - -
735 ENVIRONMENTAL AMORTIZATION AND MISC 168 - - 2,749 - (2,585) - 2 - -
851 SYSTEM CONTROL AND LOAD DISPATCH 252 - - - - - 241 11 - -
870 SUPERVISION AND ENGINEERING NAT GAS
DISTRIBUTION 1 - - - - - - - - -
874 MAINS AND SERVICE NATURAL GAS
DISTRIBUTION 6 - - - - - - 6 - -
878 METER AND HOUSE REGULATOR 8 1 - - - - - 4 - -
879 CUSTOMER INSTALLATION 1 - - - - - - - - -
880 OTHER EXPENSES NATURAL GAS 349 - - - - 6 - - - -
893 MAINT METRS/HOUSE REGTR NG DIS 12 - - - - - - - -
901 SUPERVISION CUSTOMER ACCOUNTING 2,517 2,251 - - - 10 - 130 - -
902 METER READING 1,021 42 1 - - 226 - 660 - -
903 CUSTOMER RECORDS AND COLLECTIONS 36,797 21,882 107 - - 120 - 13,918 - -
905 MISCELLANEOUS CUSTOMER ACCOUNTS 1,433 1,257 - - - 9 - 1 - -
907 SUPERVISION CUSTOMER SERVICE 292 4 - - - 59 - - - -
908 CUSTOMER ASSISTANCE 1,536 38 - - 509 3 - 3 - -
909 INFORMATIONAL AND INSTRUCTIONAL
ADVERTISING 37 - - - - - - - - -
910 MISCELLANEOUS CUSTOMER SERVICE 270 187 - - - - - - - -
911 SUPERVISION SALES ACTIVITIES 699 - - - - - - 1 - -
912 DEMONSTRATING AND SELLING 5,502 10 - - - 1 72 71 - -
913 ADVERTISING 105 21 - - - - - - - -
916 MISCELLANEOUS SALES 640 - - - - - - 581 - -
920 SALARIES AND WAGES 51,301 730 4,429 781 3,722 23,129 ,400 250 569 1,150
921 OFFICE SUPPLIES AND EXPENSES 46,834 1,421 1,807 552 1,264 7,680 316 18,806 172 1,373
923 OUTSIDE SERVICES EMPLOYED 22,449 4 2,190 259 1,119 2,424 99 19 21 6,048
925 INJURIES AND DAMAGES 2,419 - - - - - - - - -
926 EMPLOYEE PENSIONS AND BENEFITS 15,827 - - - - - - - - -
928 REGULATORY COMMISSION EXPENSE 1,499 - - - 49 101 - - - -
930.1 GENERAL ADVERTISING EXPENSES 611 - 15 - - 3 - - - -
930.2 MISCELLANEOUS GENERAL EXPENSES 7,284 3 22 - 1,000 70 18 1,299 395 -
931 RENTS 6,520 251 729 169 1,696 573 - 220 3 314
935 MAINTENANCE OF GENERAL PLANT 2,917 41 1 382 - 235 - 1,089 - 643
------------------------------------------------------- ----------------------------------- ----------------------------------------
------------------------------------------------------------ ------- ----------- ----- -------- --------- ---- ----------------- ---
INSTRUCTION: Indicate each department or service
function. (see Instruction 01-3 General Structure of Accounting System:
Uniform System Account)
TOTAL EXPENSES = $28,319 $9,487 $5,036 $9,968 $38,295 $2,153 $40,011 $1,205 $10,271 $241,411
------------------------------------------------------ ----------- ----------- ---------- ----------- ------- ---------- -----------
ANNUAL REPORT OF SCANA Services, Inc.
For the Year Ended December 31, 2002
------------------------------------------------------------------------------------------------------------------------------------
SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION
BY
DEPARTMENT OR SERVICE FUNCTION
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------ ---------- ------------------------------------------------------------------------
DEPARTMENT OR SERVICE FUNCTION
------------------------------------------------------------------------
------- ------------- -------------- ------------ ---------------- -----
DESCRIPTION OF ITEMS TOTAL MARKETING OPERATIONAL OVER- PRO- PUBLIC STRATEGIC
(Dollars in Thousands) AMOUNT LEGAL & SALES SUPPORT HEAD CUREMENT AFFAIRS REGULATORY PLANNING
-
------------------------------------------------ ---------- ------- ------------- -------------- ------------ ---------------- -----
------------------------------------------------ ---------- ------- ------------- -------------- ------------ ---------------- -----
350 SUPERINTENDENCE OPERATIONS $16 - - $16 - - - - -
351 SUPERINTENDENCE MAINT 9 - - 9 - - - - -
370 ADMINISTRATIVE AND GENERAL 3 - - 3 - - - - -
408 TAXES OTHER THAN INCOME TAXES 7,710 $1 $51 - $7,561 - $18 - $1
414 DEPRECIATION AND AMORTIZATION EXPENSE 4,824 - - - - - - - -
416 EXPENSES FROM MERCHANDISE 1,796 51 1,476 53 - - 35 $1 24
417.1 OTHER NONUTILITY EXPENSES 3,736 82 3,001 8 - - 63 - 5
426.1 DONATIONS 1,618 - 1 2 - - 1,499 - -
426.2 LIFE INSURANCE (2,961) - 1 - - - - - -
426.5 PENALTIES 6 - - - - - - - -
426.4 CIVIC, POLITIC AND RELATED ACCOUNTS 1,219 - - - - - 1,218 - -
426.5 OTHER DEDUCTIONS 3,904 282 749 27 - 21 - 2 16
430 INTEREST ON BEDT TO ASSOC CO 2,990 - - - - - - - -
431 OTHER INTEREST EXPENSE 555 - - - - - - - -
432 AFUDC (386) - - - - - - - -
500 OPERATION SUPERVISION AND ENGINEERING
STEAM 4 - - - - - - - -
502 OPERATING STEAM POWER EXPENSES 1 - - 1 - - - - -
506 OPERATION MISC STEAM 876 2 - 745 - 2 - - -
510 MAINT SUPERVISION AND ENGINEERING 40 - - - - - - - 40
512 MAINT BOILER PLANT STEAM 7 - - 7 - - - - -
513 MAINT ELECTRIC PLANT STEAM 3 - - 3 - - - - -
514 MAINTENANCE MISC STEAM POWER EXPENSES 19 - - 19 - - - - -
517 OPERATION SUPERVISION AND ENGINEERING
NUCLEAR 246 - - 179 - 20 - - -
519 OPERATION COOLANTS AND WATER 36 - - 35 - - - - -
520 OPERATION STEAM EXPENSES NUCLEAR 233 - - 178 - - - - -
524 OPERATION MISC NUCLEAR 2,549 - - 1,313 - 4 - - -
532 MAINT MISC NUCLEAR 194 - - 44 - - - - -
537 OPERATION EXPENSES HYDRO 26 - - 12 - - - - -
539 OPERATION MISC HYDRAULIC PWR GEN 86 - - 86 - - - - -
543 MAINT RESERVOIRS DAMS 1 - - 1 - - - - -
544 MAINT ELECTRIC PLANT HYDRO 142 - - 142 - - - - -
545 MAINT MISC HYDRO POWER 7 - - 7 - - - - -
546 OPERATION SUPERVISION AND ENGINEERING 9 - - 9 - - - - -
549 OPERATION MISC OTHER POWER GENERATION 25 - - 24 - - - - -
556 SYSTEM CONTROL AND LOAD 121 - - 75 - - - - -
560 OPERATION SUPERVISION AND ENGINEERING 5 - - - - - - - -
561 OPERATION LOAD DISPATCHING TRANSMISSION 29 - - 23 - - - - -
562 OPERATION STATION EXPENSES TRANSMISSION 85 - - - - - - - -
563 OPERATION OH LINE EXPENSES TRANSMISSION 1 - - - - - - - -
566 OPERATION MISC TRANSMISSION 364 - 1 350 - - - - -
567 OPER RENTS TRANS 186 - 186 - - - - - -
568 MAINT SUPERVISION AND ENGINEERING 8 - - 6 - - - - -
569 MAINT STRUCTURES TRANSMISSION 36 - - 36 - - - - -
570 MAINT STATION EQUIPMENT TRANSMISSION 161 - - 161 - - - - -
571 MAINT OVERHEAD LINES TRANSMISSION 2 - - 1 - - - - -
573 MAINT MISC TRANSMISSION 34 - - - - - - - -
580 DISTRIBUTION OPER SUPERVISION AND
ENGINEERING 8 - - 8 - - - - -
581 DISTRIBUTION OPER LOAD DISPATCH 1 - - - - - - - -
582 DISTRIBUTION OPER STATION EXPENSES 100 - - 15 - - - - -
583 DISTRIBUTION OPER REMOVE AND RESET 1 - - 1 - - - - -
585 DISTRIBUTION OPER STREET LIGHT AND
SIGNAL 9 - - 9 - - - - -
586 DISTRIBUTION OPER METER EXPENSES 12 - - 4 - - - - -
588 DISTRIBUTION OPER MISC DISTRIBUTION 1,087 - - 385 - - - - -
592 DISTRIBUTION MAINT OF STATION EQUIPMENT 55 - - 55 - - - - -
593 DISTRIBUTION MAINT OF OH LINES 204 - 4 39 - - - - -
594 DISTRIBUTION MAINT UNDERGROUND LINES 30 - - - - - - - -
596 DISTRIBUTION MAINT STREET LIGHT AND
SIGNAL 17 - - 17 - - - - -
598 DISTRIBUTION MAINT MISC DISTRIBUTION
PLANT 1 - - 1 - - - - -
597 DISTRIBUTION MAINT METERS 1 - - 1 - - - - -
717 OPERATION LIQUID PETROLEUM GAS 3 - - 3 - - - - -
735 ENVIRONMENTAL AMORTIZATION AND MISC 168 3 - - - - - - -
851 SYSTEM CONTROL AND LOAD DISPATCH 252 - - - - - - - -
870 SUPERVISION AND ENGINEERING NAT URAL
GAS DISTRIBUTION 1 - - 1 - - - - -
874 MAINS AND SERVICE NATURAL GAS
DISTRIBUTION 6 - (1) 1 - - - - -
878 METER AND HOUSE REGULATOR 8 - - 4 - - - - -
879 CUSTOMER INSTALLATION 1 - 1 1 - - - - -
880 OTHER EXPENSES NATURAL GAS 349 - - 342 - - - - -
893 MAINT METRS/HOUSE REGTR NG DIS 12 - - 12 - - - - -
901 SUPERVISION CUSTOMER ACCOUNTING 2,517 - 60 67 - - - - -
902 METER READING 1,021 - 1 91 - - - - -
903 CUSTOMER RECORDS AND COLLECTIONS 36,797 - 106 663 - - - - -
905 MISCELLANEOUS CUSTOMER ACCOUNTS 1,433 - 9 63 - 94 - - -
907 SUPERVISION CUSTOMER SERVICE 292 - 219 4 - 6 - - -
908 CUSTOMER ASSISTANCE 1,536 - 909 74 - - 1 - -
909 INFORMATIONAL AND INSTRUCTIONAL
ADVERTISING 37 - 34 8 - - (5) - -
910 MISCELLANEOUS CUSTOMER SERVICE 270 - - 79 - - 4 - -
911 SUPERVISION SALES ACTIVITIES 699 - 698 - - - - - -
912 DEMONSTRATING AND SELLING 5,502 2 5,344 - - 3 - - -
913 ADVERTISING 105 - 86 - - - (2) - -
916 MISCELLANEOUS SALES 640 3 33 - - 23 - -
920 SALARIES AND WAGES 51,301 5,603 1,842 1,025 - 2,146 2,767 673 1,083
921 OFFICE SUPPLIES AND EXPENSES 46,834 1,975 387 7,820 - 325 2,396 170 371
923 OUTSIDE SERVICES EMPLOYED 22,449 9,833 14 85 - 53 190 43 47
925 INJURIES AND DAMAGES 2,419 2,419 - - - - - - -
926 EMPLOYEE PENSIONS AND BENEFITS 15,827 - - - 15,827 - - - -
928 REGULATORY COMMISSION EXPENSE 1,499 637 16 - - - - 664 32
930.1 GENERAL ADVERTISING EXPENSES 611 - 579 7 - - 6 - -
930.2 MISCELLANEOUS GENERAL EXPENSES 7,284 1,410 1,013 20 - 585 6 2 1,442
931 RENTS 6,520 651 405 531 - 28 594 124 233
935 MAINTENANCE OF GENERAL PLANT 2,917 1 - 524 - - - - -
------------------------------------------------------ ---------- ----- ---------- ---------- ---------- ---------- ----------
------------------------------------------------------ ---------- ----- ---------- ---------- ------------ ---------------- ---
INSTRUCTION: Indicate each department or service function.
(see Instruction 01-3 General Structure of Accounting
System: Uniform System Account)
TOTAL EXPENSES = $241,411 $22,955 $17,225 $15,535 $23,388 $3,291 $9,299 $1,679 $3,294
--------------------------------------------------------------- ---------- -------- --------- -------------- ------------ ----------
ANNUAL REPORT OF SCANA Services, Inc.
For the Year Ended December 31, 2002
-----------------------------------------------------------------------------------------------------------------------------------
DEPARTMENTAL ANALYSIS OF SALARIES
ACCOUNT 920
---------------------------------------------
------------------------------------------------------------------------------ ------
NAME OF DEPARTMENT DEPARTMENTAL SALARY EXPENSE NUMBER
----------------------------------------------------------------------------
INCLUDED IN AMOUNTS BILLED TO PERSONNEL
----------------------------------------------------- ------------
Indicate each department or service TOTAL PARENT OTHER NON END OF
function.
(Dollars in Thousands) AMOUNT COMPANY ASSOCIATES ASSOCIATES YEAR
--------------------------------------------- --------------- ------------------ ------------------------------------ -------------
Customer Services $730 $- $730 $- 426
Employee Services 4,430 - 4,430 - 114
Environmental 781 - 781 - 24
Executive Services 3,722 - 3,722 - 26
Financial Services 23,129 - 23,129 - 193
Gas Supply 1,400 - 1,400 - 22
Information Services 250 - 250 - 432
Investor Relations 569 - 569 - 13
Land and Facilities Management 1,151 - 1,151 - 82
Legal 5,603 - 5,603 - 94
Marketing & Sales 1,842 - 1,842 - 96
Operational Support 1,025 - 1,025 - 14
Procurement 2,146 - 2,146 - 60
Public Affairs 2,767 - 2,767 - 41
Regulatory 673 - 673 - 16
Strategic Planning 1,083 - 1,083 - 18
---------
--------- --------------------------------- -------------------------- --------------
TOTAL $51,301 $- $51,301 $- 1,671
--------------------------------------------- --------- --------------------------------- -------------------------- --------------
ANNUAL REPORT OF SCANA Services, Inc.
For the Year Ended December 31, 2002
--------------------------------------------------------------------------------
OUTSIDE SERVICES EMPLOYED
ACCOUNT 923
--------------------------------------------------------------------------------
INSTRUCTIONS: Provide a breakdown by subaccount of outside services employed. If
the aggregate amounts paid to any one payee and included within one subaccount
is less than $25,000, only the aggregate number and amount of all such payments
included within the subaccount need be shown. Provide a subtotal for each type
of service.
--------------------------------------------------------------------------------
RELATIONSHIP
----------------------
"A" = ASSOCIATE
FROM WHOM PURCHASED ADDRESS "NA" = NON ASSOCIATE AMOUNT
(in Thousands)
--------------------------------------------------------------------------------
Accounting & Auditing Services:
Deloitte & Touche NA 1,338
Ernst & Young NA 66
------
1,404
------
------
Banking Services and Maintenance:
Bank of America NA 338
Branch Banking & Trust NA 84
J P Morgan Chase Bank NA 170
National Bank of SC NA 87
Selkirk Financial Technologies NA 74
The Bank of New York NA 71
Wachovia NA 384
------
------
1,208
------
------
Payroll and Benefits Administration &
Maintenance:
ADP, Inc. NA 63
Towers Perrin NA 557
------
620
------
------
Construction Management & Oversight
------
------
Armor Group NA 51
------
Consulting:
Beaver & Associates NA 44
Cambridge Energy Research Associates NA 43
Corporate Executive Board NA 51
Hewitt Associates LLC NA 298
McAlister Communications NA 55
Mercer Human Resource Consulting NA 235
PricewaterhouseCoopers NA 51
Rawle Mrudy Associates Inc NA 30
SC Pipeline Co. A 43
The Norton Group NA 84
Transchannel NA 64
Van Rickland Clary, CDP NA 52
------
------
1,050
------
------
Employment Services:
Adecco Employment Services NA 137
Melissa Hubbard NA 45
Mind Your Businesses NA 36
------
------
218
------
------
Engineering Services:
------
------
Withers & Ravenel NA 124
------
Insurance Services:
Key Risk Management Services, Inc. NA 50
South Carolina Second Injury Fund NA 592
South Carolina Workers' Comp NA 57
----------
----------
699
----------
----------
Legal Services:
A. H. Gibbes NA 126
Alala Mullen Holland & Cooper PA NA 83
Barnes Alford Stork & Johnson NA 36
Belton T. Zeigler NA 50
Cameron McKenna LLP NA 1,204
Carter Ledyard & Milburn NA 110
Crim & Bassler LLP NA 41
Ellzey & Brooks, LLC NA 95
Harris Beach LLP NA 36
Haynsworth Baldwin Johnson & Greaves NA 135
Haynsworth Sinkler Boyd, PA NA 274
Hobbs & Associates, Inc. NA 260
Hunton & Williams NA 40
Inglesby NA 39
J. A. Wright & Associates. Inc. NA 614
Joe Tanner & Associates, Inc NA 47
Jones Day Reavis, & Pogue NA 448
Kilpatrick Stockton LLP NA 280
King and Spaulding NA 545
LeBoeuf, Lamb, Greene & Macrae NA 85
McDermott, Will & Emery NA 440
McNair Law Firm NA 373
Moore and Van Allen NA 431
Navigant Consulting Inc NA 50
Nelson Mullins Riley & Scarborough NA 371
New Energy Associates, LLC NA 87
Nexsen Pruet Jacobs & Pollard NA 277
Ogletree, Deakins, Nash, Smoak & Stewart,PC NA 443
Patricia T Smith NA 241
Pennington & Lott LLP NA 55
Person & Craver LLP NA 27
Richardson, Plowden, Carpenter & Robinson, PA NA 33
Smith, Galloway, Lyndall & Fuchs, LLP NA 479
Stacey M Jenkins PA NA 143
Turner Padgett Graham & Laney NA 45
Willoughby & Hoefer PA NA 124
Winston & Strawn NA 49
----------
----------
8,216
----------
Rating Services:
Fitch, Inc. NA 40
Moody's Investor NA 153
Standard & Poor NA 188
----------
----------
381
----------
Security Services:
Coastal Burglar Alarm NA 35
Coastal International NA 5,953
MS Joint Venture NA 65
Nuclear Security Services Corp NA 27
Shred First LLC NA 28
----------
----------
6,108
----------
Training Services:
----------
----------
Edge Training Systems NA 61
----------
----------
----------
----------
All Others less than $25,000 ( 465 Items) NA 2,309
----------
----------
---------------------------------------------------- ------------------------
----------
TOTAL $22,449
---------------------------------------------------- --------------.----------
ANNUAL REPORT OF SCANA Services, Inc.
For the Year Ended December 31, 2002
-------------------------------------------------------------------------
EMPLOYEE PENSIONS AND BENEFITS
ACCOUNT 926
-------------------------------------------------------------------------
INSTRUCTIONS: Provide a listing of each pension plan and benefit program
provided by the service company. Such listing should be limited to $25,000.
-------------------------------------------------------------------------
DESCRIPTION AMOUNT (in Thousands)
---------------------------------------------- --------------------------
Pension Plan $1,442
Key Employee Retention Program (1)
Group Insurance 9,734
Stock Purchase Plan 3,264
Disability 930
Education and Tuition Assistance 114
Recreational Clubs 130
Employee Assistance Program 27
Parking 103
Service Awards 44
Others 40
----------------
TOTAL $15,827
----------------------------------------------- -------------------------
ANNUAL REPORT OF SCANA Services, Inc.
For the Year Ended December 31, 2002
--------------------------------------------------------------------------------
GENERAL ADVERTISING EXPENSES
ACCOUNT 930.1
--------------------------------------------------------------------------------
INSTRUCTIONS: Provide a listing of the amount included in Account 930.1,
"General Advertising Expenses", classifying the items according to the nature of
the advertising and as defined in the account definition. If a particular class
includes an amount in excess of $3,000 applicable to a single payee, show
separately the name of the payee and the aggregate amount applicable thereto.
--------------------------------------------------------------------------------
DESCRIPTION NAME OF PAYEE AMOUNT
(in Thousands)
-----------------
Advertising Company Retainers Chernoff/Silver $30
Other 2
-----
-----
32
-----
-----
Brand Advertising McRae Communications, Inc. 38
Wallace State Printing Company 13
-----
-----
51
-----
-----
Directory Memberships Atlantic Publication Group 3
Directory Assistance, Inc 6
-----
-----
9
-----
-----
Event Sponsorship/Expo Marketing Clear Channel 4
Columbiana Center 5
Ocain Advertising 5
Home Builders Association
of Greater Cola 11
Others - Net 7
-----
-----
32
-----
-----
-----
-----
Job Advertisements TMP Worldwide 32
-----
-----
-----
-----
Media Campaign Chernoff/Silver 178
-----
-----
Minority Advertising Black Pages USA 38
Minority Business News 7
-----
-----
45
-----
-----
Newspaper Advertising Chernoff/Silver 12
Wray Ward Laseter Advertising, LLC 15
Others - Net 2
-----
-----
29
-----
-----
Print Media Advertising Augusta Magazine 4
Berry Network, Inc. 12
Capital City/Lake Murray Country 6
Chernoff/Silver 18
Crow International 15
Kiplingers Personal Finance 8
S.C. Homes & Gardens 16
Wray Ward Laseter Advertising, LLC 4
Others - Net 7
-----
-----
90
-----
-----
-----
-----
Project Management Wray Ward Laseter Advertising, LLC 25
-----
-----
TV Advertising Chernoff/Silver 4
McRae Communications, Inc 11
WIS TV 23
-----
-----
38
----
----
Weatherline Service Advertising Clear Channel 3
Weatherline Inc. 14
-----
-----
17
-----
-----
-----
-----
Web Media Advertising Net - Others 5
-----
-----
-----
-----
Other Net - Others 28
-----
-----
----------------------------------------------------------------------- ------
TOTAL $611
----------------------------------------------------------------------- ------
ANNUAL REPORT OF SCANA Services, Inc.
For the Year Ended December 31, 2002
-----------------------------------------------------------------------------
MISCELLANEOUS GENERAL EXPENSES
ACCOUNT 930.2
-----------------------------------------------------------------------------
INSTRUCTIONS: Provide a listing of the amount included in Account 930.2,
"Miscellaneous General Expenses", classifying such expenses according to
their nature. Payments and expenses permitted by Section 321 (b) (2) of the
Federal Election Campaign Act, as amended by Public Law 94-283 in 1976 (2
U.S.C. Section 441 (b) (2)) shall be separately classified.
----------------------------------------------------------------------------
DESCRIPTION AMOUNT (in Thousands)
----------------------------------------------------- ----------------------
Industry association dues $2,508
Board of Directors expenses 889
Computer resource usage expenses 1,247
Travel expenses (including meals) 149
Postage 308
Computer Hardware/Software Maintenance 446
Office of Corporate Secretary 237
Telephone Resource Usage 60
Shareholders expenses 266
Land/Building/Equipment Rentals 184
Miscellaneous Employee Expenses 21
Marketing research/Information 884
Liability insurance 11
Miscellaneous supplies 36
Other miscellaneous expenses 38
------------------------------------------------------------ ------------
TOTAL $7,284
------------------------------------------------------------ ------------
ANNUAL REPORT OF SCANA Services, Inc.
For the Year Ended December 31, 2002
Note: Rent amounts are charged to Account 931 and other expense accounts,
as appropriate per the Federal Energy Regulatory Commission Uniform System of
Accounts.
--------------------------------------------------------------------------------
RENTS
ACCOUNT 931
-------------------------------------------------------------------------------
INSTRUCTIONS: Provide a listing of the amount included in Account
931, "Rents", classifying such expenses by major groupings of
property, as defined in the account definition of the Uniform
System of Accounts.
-------------------------------------------------------------------------------
TYPE OF PROPERTY AMOUNT (in Thousands)
--------------------------------------------------------------------
Office space $5,102
Use of Subsidiary ownedAssets 243
Computer equipment 1,138
Other equipment rent 37
------------
TOTAL $6,520
------------------------------------ ------------
ANNUAL REPORT OF SCANA Services, Inc.
For the Year Ended December 31, 2002
-------------------------------------------------------------------------
TAXES OTHER THAN INCOME TAXES
ACCOUNT 408
-------------------------------------------------------------------------
INSTRUCTIONS: Provide an analysis of Account 408, "Taxes Other Than Income
Taxes". Separate the analysis into two groups: (1) other than U. S. Government
taxes, and (2) U. S. Government taxes. Specify each of the various kinds of
taxes and show the amounts thereof. Provide a subtotal for each class of tax.
-------------------------------------------------------------------------
KIND OF TAX AMOUNT (in Thousands)
----------------------------------------------- -------------------------
Other than U. S. Government Taxes:
Business License Fees/Prop Tax $1,302
State Income Taxes Withholdings 1,001
State Unemployment Tax 86
--------
--------
2,389
--------
--------
U. S. Government Taxes:
Social Security and Medicare Tax 2,785
Federal Income Tax Withholdings 2,513
Federal Unemployment Tax 23
--------
--------
5,321
--------
--------
--------------
TOTAL $7,710
----------------------------------------------------- --------------
ANNUAL REPORT OF SCANA Services, Inc.
For the Year Ended December 31, 2002
--------------------------------------------------------------------------------
DONATIONS
ACCOUNT 426.1
--------------------------------------------------------------------------------
INSTRUCTIONS: Provide a listing of the amount included in Account 426.1,
"Donations", classifying such expenses by its purpose. The aggregate number and
amount of all items of less than $3,000 may be shown in lieu of details.
--------------------------------------------------------------------------------
NAME OF RECIPIENT PURPOSE OF DONATION AMOUNT
(in Thousands)
------------------------------------- --------------------------------- --------
Aiken Center for the Arts Corporate Contribution 5
Aiken/Barnwell/Lexington CAC, Inc Corporate Contribution 18
Alzheimer's Association Corporate Contribution 5
American Cancer Society Corporate Contribution 3
American Heart Association Corporate Contribution 12
Beaufort County United Way Corporate Contribution 16
Beaufort Memorial Hospital Foundation Corporate Contribution 13
Benedict College Corporate Contribution 8
Boy Scouts of America Corporate Contribution 8
Boys & Girls Club of the Midlands, Inc. Corporate Contribution 3
Brevard Music Center Corporate Contribution 5
Brookgreen Gardens Corporate Contribution 5
Carolinas Minority Supplier Development
Councils, Inc. Corporate Contribution 3
Celebrate Freedom Foundation Corporate Contribution 8
Charleston County Corporate Contribution 18
Charleston Metro Chamber of Commerce Corporate Contribution 8
Charleston Stage Company, Inc. Corporate Contribution 7
Children's Chance Corporate Contribution 3
Christ Central Ministry, Inc. Corporate Contribution 3
City of Charleston Corporate Contribution 18
City of Columbia Corporate Contribution 11
City of North Charleston Corporate Contribution 5
Clemson University Foundation Corporate Contribution 106
Cold War Submararine Memorial Foundation Corporate Contribution 5
Columbia Chamber of Commerce Corporate Contribution 11
Columbia City Ballet Corporate Contribution 10
Columbia Jewish Community Center Corporate Contribution 10
Columbia Urban League, Inc. Corporate Contribution 18
Communities in Schools SC Inc. Corporate Contribution 8
Cultural Council of Richland &
Lexington Counties Corporate Contribution 25
East Coop Family YMCA Corporate Contribution 10
Edventure Inc. Corporate Contribution 20
Erskine College Corporate Contribution 10
First Steps Corporate Contribution 100
Francis Marion University Corporate Contribution 10
Friends of the Hunley Inc Corporate Contribution 33
Friends of the Sumter County Library Corporate Contribution 8
Geiger Bros Corporate Contribution 5
Georgetown County United Way Corporate Contribution 3
Greater Beaufort Chamber of Commerce Corporate Contribution 4
Greater Charleston Naval Base Memorial Corporate Contribution 6
Greater Summerville-Dorchester Counties
Chamber of Commerce Corporate Contribution 8
Hartsville Family YMCA-Darlington Ext Corporate Contribution 5
Healthy Learners Corporate Contribution 5
IEEE Corporate Contribution 54
Independent Colleges and Universities Corporate Contribution 16
Junior Achievement of Central SC Corporate Contribution 21
Juvenile Diabetes Foundation Corporate Contribution 3
March of Dimes Corporate Contribution 5
Morris College Corporate Contribution 3
NAACP Corporate Contribution 4
Newberry College Corporate Contribution 3
Orangeburg Calhoun Tech Foundation Corporate Contribution 6
Palmetto Health Alliance Corporate Contribution 25
Part-Time Players Corporate Contribution 25
Ronald McDonald Corporate Contribution 5
SC Attorney General's Father of
the Year Award Corporate Contribution 4
Sand River Woman's Club Corporate Contribution 4
SC State University Corporate Contribution 7
SCE&G Employee Good Neighbor Fund Corporate Contribution 20
South Carolina Philharmonic Corporate Contribution 10
South Carolina Chamber of Commerce Corporate Contribution 93
South Carolina Aquarium Corporate Contribution 21
South Carolina Stars, Inc. Corporate Contribution 5
South Carolina Law Enforcement Division Corporate Contribution 5
South Carolina Waterfowl Association Corporate Contribution 10
Special Olympics Corporate Contribution 5
Spoleto Festival USA Corporate Contribution 15
Sumter County Museum Corporate Contribution 5
The Community Foundation Corporate Contribution 10
The Nurturing Center Inc. Corporate Contribution 5
Town of Johnston Corporate Contribution 5
Town of Kingstree Corporate Contribution 20
Town of St. Matthews Corporate Contribution 3
Trident United Way Corporate Contribution 79
United Way Corporate Contribution 134
University of South Carolina
Business Partnership Association Corporate Contribution 135
USC Educational Foundation Corporate Contribution 15
VWF Post 6740 Corporate Contribution 10
Others less than $3,000 (353 items) Corporate Contribution 223
------------------------------------------- --------------------- --------------
TOTAL $1,618
---------------------------------------------------------------------- ---------
ANNUAL REPORT OF SCANA Services, Inc.
For the Year Ended December 31, 2002
--------------------------------------------------------------------------------
OTHER DEDUCTIONS
ACCOUNT 426.5
--------------------------------------------------------------------------------
INSTRUCTIONS: Provide a listing of the amount included in Account 426.5, "Other
Deductions", classifying such expenses according to their nature.
--------------------------------------------------------------------------------
DESCRIPTION NAME OF PAYEE AMOUNT (in Thousands)
--------------------------------------------------------------------------------
Miscellaneous non-operating labor and benefits $1,453
Dues and memberships 114
Event Sponsorship 15
Facility maintenance 48
Utilities 83
Supplies 52
Leases & Rentals 184
Keyman Retention 838
Vehicle/Aircraft expenses 61
Travel and meal expenses 36
Legal 139
Printing 15
Computer resources 120
Temporary Employee Labor 40
Consulting 47
Contributions and Donations 42
Other 617
-------------------------------------------------------------- ------------
TOTAL $3,904
-------------------------------------------------------------- ------------
ANNUAL REPORT OF SCANA Services, Inc.
For the Year Ended December 31, 2002
-------------------------------------------------------------------------------
SCHEDULE XVIII
NOTES TO STATEMENT OF INCOME
-------------------------------------------------------------------------------
INSTRUCTIONS: The space below is provided for important notes regarding the
statement of income or any account thereof. Furnish particulars as to any
significant increases and services rendered or expenses incurred during the
year. Notes relating to financial statements shown elsewhere in this report may
be indicated here by reference.
-------------------------------------------------------------------------------
See Notes to Financial Statements on page 21.
--------------------------------------------------------- ---------------------
ANNUAL REPORT OF SCANA Services, Inc.
Organization Chart
President and Chief Operating Officer
Senior Vice President and Chief Financial Officer
Senior Vice President, General Counsel and Assistant Secretary
Senior Vice President, Natural Gas Asset Management and Procurement
Executive for South Carolina Retail Utility Operations
Executive for Pipeline Operations and Communications Operations
Senior Vice President for Human Resources
Officer for Corporate Compliance and Internal Auditing
Senior Vice President for Governmental Affairs and Economic Development
Senior Vice President for Nuclear Operations
Senior Vice President for Pipeline Operations
Vice President for Finance
Secretary
Treasurer
Controller
Risk Management Officer
ANNUAL REPORT OF SCANA Services, Inc.
Methods of Allocation
Form of Service Agreement
This Service Agreement (this "Agreement") is entered into as of the ____
day of __________, by and between [insert name of subsidiary], a __________
corporation (the "Company") and SCANA Services, Inc., a South Carolina
corporation ("SCANA Services").
WHEREAS, SCANA Services is a direct or indirect wholly owned subsidiary
of SCANA Corporation;
WHEREAS, SCANA Services has been formed for the purpose of providing
administrative, management and other services to subsidiaries of SCANA
Corporation; and
WHEREAS, the Company believes that it is in the interest of the Company to
provide for an arrangement whereby the Company may, from time to time and at the
option of the Company, agree to purchase such administrative, management and
other services from SCANA Services;
NOW, THEREFORE, in consideration of the mutual covenants contained herein
and other valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto, intending to be legally bound, hereby
agree as follows:
I. SERVICES. SCANA Services supplies, or will supply, certain
administrative, management or other services to Company similar to those
supplied to other subsidiaries of SCANA Corporation. Such services are and will
be provided to the Company only at the request of the Company. Exhibit I hereto
lists and describes all of the services that are available from SCANA Services.
II. PERSONNEL. SCANA Services provides and will provide such services by
utilizing the services of their executives, accountants, financial advisers,
technical advisers, attorneys and other persons with the necessary
qualifications.
If necessary, SCANA Services, after consultation with the Company, may also
arrange for the services of nonaffiliated experts, consultants and attorneys in
connection with the performance of any of the services supplied under this
Agreement.
III. COMPENSATION AND ALLOCATION. As and to the extent required by law,
SCANA Services provides and will provide such services at cost. Exhibit I hereof
contains rules for determining and allocating such costs.
IV. [TO BE INCLUDED IN CONTRACT WITH PSNC ONLY] NORTH CAROLINA PROVISIONS.
(A) PSNC hereby agrees that:
(1) it will not incur a charge hereunder except in accordance with North
Carolina law and the rules, regulations and orders of the North Carolina
Utilities Commission (the "NCUC") promulgated thereunder;
(2) it will not seek to reflect in rates any cost incurred hereunder to the
extent disallowed by the NCUC; and
(3) it will not incur a charge hereunder except for charges determined in
accordance with Rules 90 and 91 of the Act.
(B) PSNC and SCANA Services acknowledge that as a result of the agreements
contained in Sections IV(A)(1) and (A)(3), PSNC will not accept services from
SCANA Services if the cost to be charged for such service, as calculated
pursuant to Rules 90 and 91 of the Act, differs from the amount of charges PSNC
is permitted to incur under North Carolina law and the rules, regulations and
orders of the NCUC promulgated thereunder.
V. TERMINATION AND MODIFICATION. The Company may terminate this Agreement
by providing 60 days written notice of such termination to SCANA Services. SCANA
Services may terminate this Agreement by providing 60 days written notice of
such termination to the Company.
This Agreement is subject to termination or modification at any time to the
extent its performance may conflict with the provisions of the Public Utility
Holding Company Act of 1935, as amended, or with any rule, regulation or order
of the Securities and Exchange Commission adopted before or after the making of
this Agreement. This Agreement shall be subject to the approval of any state
commission or other state regulatory body whose approval is, by the laws of said
state, a legal prerequisite to the execution and delivery or the performance of
this Agreement [For contract with PSNC only: and any subsequent modifications
thereof].
VI. SERVICE REQUESTS. The Company and SCANA Services will prepare a Service
Request on or before _____________ of each year listing services to be provided
to the Company by SCANA Services and any special arrangements related to the
provision of such services for the coming year, based on services provided
during the past year. The Company and SCANA Services may supplement the Service
Request during the year to reflect any additional or special services that the
Company wishes to obtain from SCANA Services, and the arrangements relating
thereto.
VII. BILLING AND PAYMENT. Unless otherwise set forth in a Service Request,
payment for services provided by SCANA Services shall be by making remittance of
the amount billed or by making appropriate accounting entries on the books of
the Company and SCANA Services. Billing will be made on a monthly basis, with
the bill to be rendered by the 25th of the month, and remittance or accounting
entries completed within 30 days of billing.
VIII. NOTICE. Where written notice is required by this Agreement, all
notices, consents, certificates, or other communications hereunder shall be in
writing and shall be deemed given when mailed by United States registered or
certified mail, postage prepaid, return receipt requested, addressed as follows:
1. To the Company:
====================
====================
2. To SCANA Services:
====================
====================
IX. GOVERNING LAW. This Agreement shall be governed by and construed in
accordance with the laws of the State of South Carolina, without regard to their
conflict of laws provisions.
X. MODIFICATION. No amendment, change or modification of this Agreement
shall be valid, unless made in writing and signed by all parties hereto.
XI. ENTIRE AGREEMENT. This Agreement, together with its exhibits,
constitutes the entire understanding and agreement of the parties with respect
to its subject matter, and effective upon the execution of this Agreement by the
respective parties hereof and thereto, any and all prior agreements,
understandings or representations with respect to this subject matter are hereby
terminated and canceled in their entirety and are of no further force or effect.
XII. WAIVER. No waiver by any party hereto of a breach of any provision of
this Agreement shall constitute a waiver of any preceding or succeeding breach
of the same or any other provision hereof.
XIII. ASSIGNMENT. This Agreement shall inure to the benefit and shall be
binding upon the parties and their respective successors and assigns. No
assignment of this Agreement or any party's rights, interests or obligations
hereunder may be made without the other party's consent, which shall not be
unreasonably withheld, delayed or conditioned.
XIV. SEVERABILITY. If any provision or provisions of this Agreement shall
be held by a court of competent jurisdiction to be invalid, illegal, or
unenforceable, the validity, legality, and enforceability of the remaining
provisions shall in no way be affected or impaired thereby.
IN WITNESS WHEREOF, the parties have caused this Agreement to be duly
executed as of this ________ day of _________.
SCANA SERVICES, INC.
By: _____________________________
Name:
Title:
[Subsidiary]
By:
Name:
Title:
EXHIBIT I
Description of Services, Cost Accumulation, Assignment and
Allocation Methodologies for
SCANA Service Company
This document sets forth the methodologies used to accumulate the costs of
services performed by SCANA Services, Inc. ("SCANA Services") and to assign or
allocate such costs to other subsidiaries and business units within SCANA
Corporation ("Client Entities").
Cost of Services Performed
SCANA Services maintains an accounting system that enables costs to be
identified by Cost Center, Account Number or Project, Activity, Resource, and
Event ("Account Codes"). The primary inputs to the accounting system are time
records of hours worked by SCANA Services employees, accounts payable
transactions and journal entries. Charges for labor are made at the employees'
effective hourly rate, including the cost of pensions, other employee benefits
and payroll taxes. To the extent practicable, costs of services are directly
assigned to the applicable Account Codes. The full cost of providing services
also includes certain indirect costs, e.g., departmental overheads,
administrative and general costs, and taxes. Indirect costs are associated with
the services performed in proportion to the directly assigned costs of the
services or other relevant cost allocators.
Cost Assignment and Allocation
SCANA Services costs will be directly assigned, distributed or allocated to
Client Entities in the manner prescribed below.
1. Costs accumulated in Account Codes for services specifically
performed for a single Client Entity will be directly assigned or charged to
such Client Entity.
2. Costs accumulated in Account Codes for services specifically
performed for two or more Client Entities will be distributed among and charged
to such Client Entities using methods determined on a case-by-case basis
consistent with the nature of the work performed and based on one of the
allocation methods described below.
3. Costs accumulated in Account Codes for services of a general
nature which are applicable to all Client Entities or to a class or classes of
Client Entities will be allocated among and charged to such Client Entities by
application of one or more of the allocation methods described below.
Allocation Methods
The following methods will be applied, as indicated in the Description
of Services section that follows, to allocate costs for services of a general
nature.
1. Information Systems Chargeback Rates - Rates for services,
including but not limited to Software, Consulting, Mainframe, Midtier and
Network Connectivity Services, are based on the costs of labor, materials and
Information Services overheads related to the provision of each service. Such
rates are applied based on the specific equipment employed and the measured
usage of services by Client Entities. These rates will be determined annually
based on actual experience and may be adjusted for any known and reasonably
quantifiable events, or at such time as may be required due to significant
changes.
2. Margin Revenue Ratio - "Margin" is equal to the excess of sales
revenues over the applicable cost of sales, i.e., cost of fuel for generation
and gas for resale. The numerator is equal to margin revenues for a specific
Client Entity and the denominator is equal to the combined margin revenues of
all the applicable Client Entities. This ratio will be evaluated annually based
on actual results of operations for the previous calendar year and may be
adjusted for any known and reasonably quantifiable events, or at such time,
based on results of operations for a subsequent twelve-month period, as may be
required due to significant changes.
3. Number of Customers Ratio - A ratio based on the number of retail
electric and/or gas customers. This ratio will be determined annually based on
the actual number of customers at the end of the previous calendar year and may
be adjusted for any known and reasonably quantifiable events, or at such time as
may be required due to significant changes.
4. Number of Employees Ratio - A ratio based on the number of
employees benefiting from the performance of a service. This ratio will be
determined annually based on actual counts of applicable employees at the end of
the previous calendar year and may be adjusted for any known and reasonably
quantifiable events, or at such time as may be required due to significant
changes.
5. Three-Factor Formula - This formula will be determined annually
based on the average of gross property (original cost of plant in service,
excluding depreciation), payroll charges (salaries and wages, including
overtime, shift premium and holiday pay, but not including pension, benefit and
company-paid payroll taxes) and gross revenues during the previous calendar year
and may be adjusted for any known and reasonably quantifiable events, or at such
time as may be required due to significant changes.
6. Modified Three-Factor Method - a ratio for the allocation of
non-directly assigned corporate governance costs. The Modified Three-Factor
Method provides for an allocation of cost to the parent company; the
Three-Factor Method does not. The formula will be determined annually based on
the average of gross property (original cost of plant in service, excluding
depreciation), payroll charges (salaries and wages, including overtime, shift
premium and holiday pay, but not including pension, benefit and company paid
payroll taxes) and gross revenues during the previous calendar year. For the
purpose of the Modified Three-Factor Method, the dividends resulting from
operations of the subsidiaries are used as a proxy for revenues for the parent
company.
7. Telecommunications Chargeback Rates - Rates for use of
telecommunications services other than those encompassed by Information Systems
Chargeback Rates are based on the costs of labor, materials, outside services
and Telecommunications overheads. Such rates are applied based on the specific
equipment employment and the measured usage of services by Client Entities.
These rates will be determined annually based on actual experience and may be
adjusted for any known and reasonably quantifiable events, or at such time as
may be required due to significant changes.
8. Gas Sales Ratio - A ratio based on the actual number of dekatherms
of natural gas sold by the applicable gas distribution or marketing operations.
This ratio will be determined annually based on actual results of operations for
the previous calendar year and may be adjusted for any known and reasonably
quantifiable events, or at such time, based on results of operations for a
subsequent twelve-month period, as may be required due to significant changes.
Description of Services
A description of each of the services performed by SCANA Services, which
may be modified from time to time, is presented below. As discussed above, where
identifiable, costs will be directly assigned or distributed to Client Entities.
For costs accumulated in Account Codes which are for services of a general
nature that cannot be directly assigned or distributed, the method or methods of
allocation are also set forth. Substitution or changes may be made in the
methods of allocation hereinafter specified, as may be appropriate, and will be
provided to state regulatory agencies and to each affected Client Entity.
1. Information Systems Services - Provides electronic data processing
services. Costs of a general nature are allocated using the Information Systems
Chargeback Rates.
2. Customer Services - Provides billing, mailing, remittance
processing, call center and customer communication services for electric and gas
customers. Costs of a general nature are allocated using the Margin Revenue
Ratio.
3. Marketing and Sales - Establishing strategies, provides oversight
for marketing, sales and branding of utility and related services and conducts
marketing and sales programs. Costs of a general nature are allocated using the
Number of Customers Ratio.
4. Employee Services - Includes Human Resources which establishes and
administers policies and oversees compliance with regulations in the areas of
employment, compensation and benefits, processes payroll and administers
corporate training. Also includes employee communications, facilities management
and mail services. Costs of a general nature are allocated using the Number of
Employees Ratio or the Modified Three-Factor Method as appropriate.
5. Corporate Compliance - Oversees compliance with all laws,
regulations and policies applicable to all of SCANA Corporation's businesses and
directs compliance training. Costs of general nature are allocated using the
Modified Three-Factor Method.
6. Purchasing - Provides procurement services. Costs of a general
nature are allocated using the Three-Factor Formula.
7. Financial Services - Provides treasury, accounting, tax, financial
planning, rate and auditing services. Costs of a general nature are allocated
using the Three-Factor Formula or the Modified Three-Factor Method as
appropriate.
8. Risk Management - Provides insurance, claims, security,
environmental and safety services. Costs of a general nature are allocated using
the Three-Factor Formula or the Modified Three-Factor Method as appropriate.
9. Public Affairs - Maintains relationships with government policy
makers, conducts lobbying activities and provides community relations functions.
Costs of a general nature are allocated using the Three-Factor Formula or the
Modified Three-Factor Method as appropriate.
10. Legal Services - Provides various legal services and general
legal oversight; handles claims. Costs of a general nature are allocated using
the Modified Three-Factor Formula.
11. Investor Relations - Maintains relationships with the financial
community and provides shareholder services. Costs of a general nature are
allocated using the Modified Three-Factor Formula.
12. Telecommunications - Provides telecommunications services,
primarily the use of telephone equipment. Costs are allocated using the
Telecommunications Chargeback Rates.
13. Gas Supply and Capacity Management - Provides gas supply and
capacity management services. Costs of a general nature are allocated using the
Gas Sales Ratio.
14. Strategic Planning - Develops corporate strategies and business
plans. Costs of a general nature are allocated using the Modified Three-Factor
Formula.
15. Executive - Provides executive and general administrative
services. Costs of a general nature are allocated using the Modified
Three-Factor Formula.
EXHIBIT II
FORM OF INITIAL SERVICE REQUEST
The undersigned requests all of the services listed in Exhibit I from SCANA
Service Company, except for
_______________________________________. The services requested hereunder shall
commence on _____________ and be provided through
----------------.
[Subsidiary]
By: ______________________________
Name:
Title:
EXHIBIT C-2
SCANA Service Company
Policies and Procedures
SCANA Service Company ("SCANA Service") will provide administrative,
management and other services to the subsidiaries and business units within
SCANA Corporation ("Client Entities") in accordance with the terms of Service
Agreements. SCANA Service will provide the necessary accounting and procedural
infrastructure to support the administration of the Service Agreements in
accordance with the rules and regulations of the Securities and Exchange
Commission ("SEC") as promulgated in the Public Utility Holding Company Act of
1935 (the "1935 Act").
Service Requests and Agreements
SCANA Service and each Client Entity will enter into a Service Agreement
that will set forth, in general terms, the services to be performed by each
organization in SCANA Service directly for or on behalf of each Client Entity.
Pursuant to the Service Agreement, SCANA Service and each Client Entity will
prepare Service Request forms designed to provide guidance as to the service
expectations of the parties thereto. The Service Request forms will be reviewed
annually, or more often if necessary. The Service Agreements will be approved by
authorized representatives of SCANA Service and the management of each Client
Entity.
Service Requests will typically contain the following information:
1. Type and Scope of Services
2. Any Cost Parameters
3. Payment Terms
4. Applicable Contingencies
Accounting System
SCANA Service will maintain an accounting system that provides the ability
to assign costs to the category of service to which they relate. The system also
enables the costs of services to be charged directly to the Client Entity for
which they were performed or, when appropriate, accumulated in such a manner
that they can be distributed or allocated to two or more Client Entities using
an approved methodology. The system will also generate all necessary Client
Entity billing information.
The system is based on the use of codes to assign charges to the applicable
Cost Center, Account Number or Project, Activity, Resource, and Event ("Account
Codes"). The Account Numbers conform to the System of Accounts for Mutual
Service Companies prescribed by the 1935 Act, as modified to include additional
account numbers from the Federal Energy Regulatory Commission's Uniform System
of Accounts to provide for the accumulation of costs of certain utility
operating activities. The Account Codes facilitate the tracking of the cost of
each service by its component costs, such as labor, materials and outside
services, and provide the ability to break the costs of services down by amounts
directly charged to specific Client Entities and amounts allocated.
Labor and labor-related costs will likely be the most significant costs
that the SCANA Service incurs. Accordingly, SCANA Service will maintain a
time-entry subsystem that enables SCANA Service employees to accurately assign
hours worked to the appropriate Account Codes. All SCANA Service employees will
prepare standard timesheets or similar records that indicate the purpose of each
hour worked. The employee's supervisor will approve timesheets. Information from
the timesheets will be entered into the time-entry subsystem no later than the
last pay period to which it relates. Charges for labor will be made at each
employee's effective hourly rate and will include the cost of pensions, other
employee benefits and payroll taxes.
An initial training session for employees will occur in the beginning of
March and will be conducted by accounting professionals to ensure understanding
of the new coding procedures. All employees (both from SCANA Service and Client
Entities) who code time and expenses will be included in this training. Ongoing
support and follow-up will be provided through the same accounting professionals
conducting the initial training. Moreover, additional training will be provided
during the May time frame to ensure understanding of coding impact upon the
system's financial statements as well as to provide instruction regarding the
proper analysis of charges.
All other accounting subsystems, including accounts payable processing,
will be designed to support the use of the necessary Account Codes. In all
cases, the SCANA Service will retain the applicable underlying source documents
that indicate the nature and purpose of the costs incurred.
To the extent practicable, SCANA Service employees will assign costs
directly to the Account Codes associated with the services rendered. However,
the full cost of providing services also includes certain indirect costs, e.g.,
departmental overheads, administrative and general costs, and taxes, which
cannot be associated with specific services. Indirect costs will be associated
with the services performed in proportion to the directly assigned costs of the
services or other relevant cost allocators.
SCANA Service costs will be directly charged, distributed or allocated to
Client Entities in the manner prescribed below.
1. Costs accumulated in Account Codes for services specifically performed
for a single Client Entity will be directly charged to such Client Entity.
2. Costs accumulated in Account Codes for services specifically performed
for two or more Client Entities will be distributed to such Client Entities
using methods determined on a case-by-case basis consistent with the nature of
the work performed and based on one of the approved allocation methods.
3. Costs accumulated in Account Codes for services of a general nature
which are applicable to all Client Entities or to a class or classes of Client
Entities will be allocated to such Client Entities by application of one or more
approved allocation methods.
Billing
Monthly, SCANA Service will prepare and submit a bill to each Client Entity
for services rendered. At a minimum, the bill will itemize the cost of each
service charged to the Client Entity. The bill will be rendered by the 25th of
the following month with payment due 30 days thereafter.
The management of each Client Entity is responsible for reviewing the bill
from SCANA Service to determine the accuracy and appropriateness of the charges.
The accounting system contains the detailed transactions supporting the
services billed. Using the system, SCANA Service will assist the Client
Entities, as necessary, with the review and validation of charges. Any
adjustments required will be made in the subsequent month. SCANA Service will
put in place processes and applicable systems designed to provide information to
Client Entities regarding services provided and related costs. The information
should enable the Client Entities to determine if they have been billed
consistent with the terms of the Service Agreements.
Accounting Department Responsibilities
The SCANA Service Accounting Department will be responsible for
administering, monitoring and maintaining the processes by which SCANA Service
costs are accumulated and billed to client entities. In connection with this
responsibility, the Accounting Department will:
1. Coordinate the preparation of Service Requests
2. Control the establishment and use of SCANA Service Account Codes
3. Review and evaluate the reasonableness of monthly bills to each Client
Entity
4. Assist Client Entities with the review and validation of charges
The Accounting Department will update all allocations used by the SCANA
Service annually, or more often as conditions warrant, and maintain all
documentation supporting the calculations. The Accounting Department will ensure
the allocation methods are appropriate for the type of cost incurred, have been
approved by the SEC and are consistent with applicable orders of state utility
commissions.
Dispute Resolution
In the event disputes arise between the SCANA Service and the Client Entity
over amounts billed, the Accounting Department and representatives of the Client
Entity will attempt to resolve the issues. If necessary, the Chief Financial
Officer will mediate. Unresolved disputes will be referred to Senior Management
for final disposition.
Internal Review
The Audit Services Department will conduct periodic audits of the SCANA
Service administration and accounting processes. The audits will include
examinations of Service Agreements, accounting systems, source documents,
allocation methods and billings to determine if services are authorized and
properly accounted for. In addition, Service Request and Agreement policies,
operating procedures and controls will be evaluated annually.
Evaluation and Measurement
In order to encourage the efficient and cost competitive provision of
services, SCANA Service will establish appropriate benchmarking measures and a
customer review process. The customer review process will allow for input from
the Client Entities as to the volume and value of the products and services
provided by SCANA Service. This review will be part of the annual budget
development process and the completion of the Service Requests and Agreements.
ANNUAL REPORT OF SCANA Services, Inc.
Annual Statement of Compensation for Use of Capital Billed
NA
ANNUAL REPORT OF SCANA Services, Inc.
Signature Clause
Pursuant to the requirements of the Public Utility Holding Company Act of 1935
and the rules and regulations of the Securities and Exchange Commission issued
thereunder, the undersigned company has duly caused this report to be signed on
its behalf by the undersigned officer thereunto duly authorized.
SCANA Services, Inc.
(Name of Reporting Company)
By: s/James E. Swan, IV
--------------------------------------
(Signature of Signing Officer)
Controller
(Printed Name and Title of Signing Officer)
Date: April 28, 2003
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