UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
Form U-13-60
ANNUAL REPORT
For the Period
Beginning April 1, 2000 and Ending December 31, 2000
TO THE
U. S. SECURITIES AND EXCHANGE COMMISSION
OF
SCANA Services, Inc.
--------------------------------------------------------------------------------
(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:
Mark R. Cannon
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.
--------------------------------------------------------------------------------
----------------------------------------------------------------------------------------
LISTING OF SCHEDULES AND ANALYSIS OF ACCOUNT
Page
Number
---------------------------------------------------------------- --------
-----------------------
Schedule or Account
Description of Schedules and Accounts Number
--------------------------------------------------------- -----------------------
COMPARATIVE BALANCE SHEET Schedule I 7
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 23
ANALYSIS OF BILLING - NONASSOCIATE COMPANIES Account 458 24
ANALYSIS OF CHARGES FOR SERVICE - ASSOCIATE AND
NONASSOCIATE COMPANIES Schedule XVI 25
SCHEDULE OF EXPENSE BY DEPARTMENT OR SERVICE FUNCTION Schedule XVII 27
DEPARTMENTAL ANALYSIS OF SALARIES Account 920 31
OUTSIDE SERVICES EMPLOYED Account 923 32
EMPLOYEE PENSIONS AND BENEFITS Account 926 34
GENERAL ADVERTISING EXPENSES Account 930.1 35
MISCELLANEOUS GENERAL EXPENSES Account 930.2 36
RENTS Account 931 37
TAXES OTHER THAN INCOME TAXES Account 408 38
DONATIONS Account 426.1 39
OTHER DEDUCTIONS Account 426.5 41
NOTES TO STATEMENT OF INCOME Schedule XVIII 42
---------------------------------------------------------------- -------------------------
------------------------------------------------------------------------
LISTING OF INSTRUCTIONAL FILING REQUIREMENTS -----------
Page
Number
------------------------------------------------------------------------
Description of Reports or Statements
------------------------------------------------------------
ORGANIZATION CHART 43
METHODS OF ALLOCATION 43
ANNUAL STATEMENT OF COMPENSATION FOR USE
OF CAPITAL BILLED 50
--------------------------------------------------------------------------------
ANNUAL REPORT OF SCANA Services, Inc.
------------------------------------------------------------------------------------------------------------------------
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) $14,729 $-
107 Construction work in progress (Schedule II) 19,005 -
---------------- ------------------------------------------------------- -------------------- ------------- ------------
Total Property 33,734 -
---------------- ------------------------------------------------------- -------------------- ------------- ------------
108 Less accumulated provision for depreciation
and amortization of service company property (Schedule III) 3,659 -
---------------- ------------------------------------------------------- -------------------- ------------- ------------
Net Service Company Property 30,075 -
---------------- ------------------------------------------------------- -------------------- ------------- ------------
INVESTMENTS
123 Investments in associate companies (Schedule IV) - -
124 Other investments (Schedule IV) - -
---------------- ------------------------------------------------------- -------------------- ------------- ------------
Total Investments - -
---------------- ------------------------------------------------------- -------------------- ------------- ------------
CURRENT AND ACCRUED ASSETS
131 Cash 8,694 -
134 Special deposits - -
135 Working funds 133 -
136 Temporary cash investments (Schedule IV) - -
141 Notes receivable - -
143 Accounts receivable 520 -
144 Accumulated provision for uncollectible accounts - -
146 Accounts receivable from associate companies (Schedule V) 3,934 -
152 Fuel stock expenses undistributed (Schedule VI) - -
154 Materials and supplies 76 -
163 Stores expense undistributed (Schedule VII) - -
165 Prepayments 1,705 -
174 Miscellaneous current and accrued assets (Schedule VIII) 3,694 -
---------------- ------------------------------------------------------- -------------------- ------------- ------------
Total Current and Accrued Assets 18,756 -
---------------- ------------------------------------------------------- -------------------- ------------- ------------
DEFERRED DEBITS
181 Unamortized debt expense - -
184 Clearing accounts 1,665 -
186 Miscellaneous deferred debits (Schedule IX) - -
188 Research, development or demonstration expenditures (Schedule X) - -
190 Accumulated deferred income taxes - -
---------------- ------------------------------------------------------- -------------------- ------------- ------------
Total Deferred Debits 1,665 -
---------------- ------------------------------------------------------- -------------------- ------------- ------------
TOTAL ASSETS AND OTHER DEBITS $50,496 $-
================ ======================================================= ==================== ============= ============
ANNUAL REPORT OF SCANA Services, Inc.
----------------------------------------------------------------------------------------------------------------------------------
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
211 Miscellaneous paid-in-capital (Schedule XI) 35,950 -
215 Appropriated retained earnings (Schedule XI) - -
216 Unappropriated retained earnings (Schedule XI) - -
----------------- ---------------------------------------------------------------- ------------------- -------------- ------------
Total Proprietary Capital 35,951 -
----------------- ---------------------------------------------------------------- ------------------- -------------- ------------
LONG-TERM DEBT
223 Advances from associate companies (Schedule XII) - -
224 Other long-term debt (Schedule XII) 1,239 -
225 Unamortized premium on long-term debt - -
226 Unamortized discount on long-term debt-debit - -
----------------- ---------------------------------------------------------------- ------------------- -------------- ------------
Total Long-term Debt 1,239 -
----------------- ---------------------------------------------------------------- ------------------- -------------- ------------
CURRENT AND ACCRUED LIABILITIES
231 Notes payable - -
232 Accounts payable 7,749 -
233 Notes payable to associate companies (Schedule XIII) - -
234 Accounts payable to associate companies (Schedule XIII) - -
236 Taxes accrued 16 -
237 Interest accrued - -
238 Dividends declared - -
241 Tax collections payable - -
242 Miscellaneous current and accrued liabilities (Schedule XIII) 1,812 -
----------------- ---------------------------------------------------------------- ------------------- -------------- ------------
Total Current and Accrued Liabilities 9,577 -
----------------- ---------------------------------------------------------------- ------------------- -------------- ------------
DEFERRED CREDITS
253 Other deferred credits 3,563 -
255 Accumulated deferred investment tax credits - -
----------------- ---------------------------------------------------------------- ------------------- -------------- ------------
Total Deferred Credits 3,563 -
----------------- ---------------------------------------------------------------- ------------------- --------------
------------
282 ACCUMULATED DEFERRED INCOME TAXES 166 -
------------------- -------------- ------------
----------------- ----------------------------------------------------------------
TOTAL LIABILITIES AND PROPRIETARY CAPITAL $50,496 $-
================= ================================================================ =================== ============== ============
ANNUAL REPORT OF SCANA Services, Inc.
For the Year Ended December 31, 2000
------------------------------------------------------------------------------------------------------------------------------------
SCHEDULE II - SERVICE COMPANY PROPERTY
--------------------------------------------------- ------------------ ------------- ----------------- -------------- --------------
BALANCE AT BALANCE AT
BEGINNING RETIREMENT OTHER CLOSE OF
DESCRIPTION (Dollars in Thousands) OF YEAR ADDITIONS OR SALES CHANGES(1) YEAR
--------- ----------------------------------------------- ----------------------------- ----------------- --------------------------
SERVICE COMPANY
PROPERTY
Account
301 ORGANIZATION $- $- $- $- $-
303 MISCELLANEOUS INTANGIBLE PLANT - 4,826 - 1,071 5,897
304 LAND AND LAND RIGHTS - - - - -
305 STRUCTURES AND IMPROVEMENTS - - - 146 146
306 LEASEHOLD IMPROVEMENTS - 2,451 - - 2,451
307 EQUIPMENT (2) - 509 - 1,678 2,187
308 OFFICE FURNITURE AND EQUIPMENT - 538 - 294 832
309 AUTOMOBILES, OTHER VEHICLES
AND RELATED GARAGE EQUIPMENT - - - 92 92
310 AIRCRAFT AND AIRPORT EQUIPMENT - - - 1,810 1,810
311 OTHER SERVICE COMPANY PROPERTY (3) - 1,280 8 42 1,314
--------- ----------------------------------------------- ------- -------------- ----------------- -------------- -----------------
SUB-TOTAL - 9,604 8 5,133 14,729
--------- ----------------------------------------------- ------- -------------- ----------------- -------------- -----------------
107 CONSTRUCTION WORK IN PROGRESS (4) - 19,005 - - 19,005
--------- ----------------------------------------------- ------- -------------- ----------------- -------------- -----------------
TOTAL $- $28,609 $8 $5,133 $33,734
--------- ----------------------------------------------- ------- -------------- ----------------- -------------- -----------------
-----------------------------------------------------------------------------------------------------------------------------------
(1) PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
Transfers of assets from other system companies upon the formation of the
service company
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:
--------------------------------------------------------------------------------
BALANCE
AT CLOSE
SUBACCOUNT DESCRIPTION (Dollars in Thousands) ADDITIONS OF YEAR
-------------------------------------------------------------- -----------------
EDP Equipment $508 $2,114
Office Data Handling Equipment 1 73
------------- -----------
TOTAL $509 $2,187
------------------------------------------------ -------------------------
(3)DESCRIBE OTHER SERVICE COMPANY PROPERTY:
Capitalized computer leases
------------------------------------------------------------------------- ------
(4)DESCRIBE CONSTRUCTION WORK IN PROGRESS:
Data processing systems
------------------------------------------------------------------------- ------
ANNUAL REPORT OF SCANA Services, Inc.
For the Year Ended December 31, 2000
------------------------------------------------------------------------------------------------------------------------------
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 RETIREMENTS ADD (DEDUCT)(1) YEAR
--------- ------------------------------------------------------------------------------------------- -----------
Account
301 ORGANIZATION $- $- $- $- $-
303 MISCELLANEOUS INTANGIBLE PLANT - - - 1,032 1,032
304 LAND AND LAND RIGHTS - - - - -
305 STRUCTURES AND IMPROVEMENTS - - - 65 65
306 LEASEHOLD IMPROVEMENTS - - - - -
307 EQUIPMENT - - 7 2,134 2,127
308 OFFICE FURNITURE AND FIXTURES - - - 224 224
309 AUTOMOBILES, OTHER VEHICLES
AND RELATED GARAGE EQUIPMENT - - - 50 50
310 AIRCRAFT AND AIRPORT EQUIPMENT - - - 160 160
311 OTHER SERVICE COMPANY PROPERTY - - - 1 1
--------- ------------------------------------------------------------------------------------------- -----------
$- $- $7 $3,666 $3,659
--------- ------------------------------------------------------------------------------------------- -----------
----------------------------------------------------------------------------------------------------------------
(1)PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
$1,410 of the change is for current year additions charged to clearing accounts
and other expense accounts as appropriate per the Uniform System of Accounts.
$2,249 of the change is from transfers of asset balances from other system
companies upon the formation of the service company.
--------------------------------------------------------------------------------
ANNUAL REPORT OF SCANA Services, Inc.
For the Year Ended December 31, 2000
--------------------------------------------------------------------------------
SCHEDULE IV - INVESTMENTS
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
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.
--------------------------------------------------------------------------------
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 $- $-
------------------------------------------- ------------------
ANNUAL REPORT OF SCANA Services, Inc.
For the Year Ended December 31, 2000
--------------------------------------------------------------------------------
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. $- $ 421
SCANA Propane Gas, Inc. - 5
SCANA Energy Marketing, Inc. - 1,430
Primesouth Inc. - 289
SCANA Development Corporation - 3
South Carolina Pipeline Corporation - 273
SCANA Communications, Inc. - 174
SCANA Resources, Inc. - 7
Public Service Company of North Carolina, Incorporated - 1,332
-------------- ----------
TOTAL $- $3,934
---------------------------------------------------------------------------- ---
TOTAL
ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS: PAYMENTS
------------
SCANA Energy Marketing, Inc. $1,792
South Carolina Pipeline Corporation 2
Public Service Company of North Carolina, Incorporated 66
-------------
TOTAL PAYMENTS $1,860
------------------------------------------------------------------ -------------
ANNUAL REPORT OF SCANA Services, Inc.
For the Year Ended December 31, 2000
--------------------------------------------------------------------------------
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:
----------------------------------------------------------------------- -------
ANNUAL REPORT OF SCANA Services, Inc.
For the Year Ended December 31, 2000
-------------------------------------------------------------------------------
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 $- $- $-
--------------- -------------------------
TOTAL $- $- $-
-------------------------------------- --------------- -------------------------
ANNUAL REPORT OF SCANA Services, Inc.
For the Year Ended December 31, 2000
--------------------------------------------------------------------------------
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
Other work in progress $- $1,467
Prepaid software - 443
Unbilled clearing - 1,780
Other (2 items) - 4
-------------------- --------------
TOTAL $- $3,694
--------------------------------------- -------------------- --------------
ANNUAL REPORT OF SCANA Services, Inc.
For the Year Ended December 31, 2000
--------------------------------------------------------------------------------
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 $- $-
-------------------- --------------
TOTAL $- $-
------------------------------------- -------------------- --------------
ANNUAL REPORT OF SCANA Services, Inc.
For the Year Ended December 31, 2000
--------------------------------------------------------------------------------
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, 2000
-----------------------------------------------------------------------------------------------------------------
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
Initial capitalization of company $24,393
Supplemental capital contributions 11,557
ACCOUNT 215 - APPROPRIATED RETAINED EARNINGS $-
---------
TOTAL $35,950
------------------------------ ---------------------- ---------------------- ------------------ ----------------
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.
--------------------------------------------------------------------------------
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, 2000
--------------------------------------------------------------------------------
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
NAME OF CLASS & SERIES DATE OF INTEREST AMOUNT
CREDITOR OF OBLIGATION MATURITY RATE AUTHORIZED
--------------------------------------------------------
-----------------------
ACCOUNT 223- ADVANCES FROM
ASSOCIATE COMPANIES:
ACCOUNT 224 - OTHER LONG-
TERM DEBT:
O/E Systems, Inc. master lease of from 6 to ranging -
computer equipment 36 months from 2.7%
to 3.1%
--------------- -------------
TOTAL
----------------------- -------------------------- --------------- -------------
(1) GIVE AN EXPLANATION OF DEDUCTIONS:
Principal payments on capitalized lease.
--------------------------------------------------------------------------------
--------------------- --------------- -------------------- -----------------
BALANCE AT BALANCE
BEGINNING AT CLOSE OF
OF YEAR ADDITIONS DEDUCTIONS (1) YEAR
--------------------- --------------- --------------------
-----------------
$- $1,401 $162 $1,239
--------------------- --------------- -------------------- -----------------
$- $1,401 $162 $1,239
--------------------- --------------- -------------------- -----------------
----------------------------------------------------------------------------
ANNUAL REPORT OF SCANA Services, Inc.
For the Year Ended December 31, 2000
--------------------------------------------------------------------------------
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
---------------------------
TOTAL $- $-
-------------------------------------------------- ---------------------------
ACCOUNT 242 - MISCELLANEOUS CURRENT AND
ACCRUED LIABILITIES
Accrued payroll $- $1,812
---------------------------
TOTAL $- $1,812
-------------------------------------------------- ---------------------------
ANNUAL REPORT OF SCANA Services, Inc.
For the Year Ended December 31, 2000
--------------------------------------------------------------------------------
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 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 effect the reported amounts of assets and liabilities at the
date of the financial statements and the reported amounts of revenues and
expenses during the reporting period. Actual results could differ from those
estimates.
--------------------------------------------------------------------------- -
ANNUAL REPORT OF SCANA Services, Inc.
For the Year Ended December 31, 2000
--------------------------------------------------------------------------
SCHEDULE XV
STATEMENT OF INCOME
--------------------------------------------------------------------------------
ACCOUNT DESCRIPTION (Dollars in Thousands) CURRENT YEAR PRIOR YEAR
--------------------------------------------------------------------------------
INCOME
457 Services rendered to associate companies $154,015 $-
458 Services rendered to nonassociate companies - -
421 Miscellaneous income or loss (946) -
---------------------
Total Income 153,069 -
--------------------- -------
EXPENSE
901 Supervision customer accounting 1,881 $-
902 Meter reading 3,018 -
903 Customer records and collections 21,817 -
905 Miscellaneous customer accounts 901 -
907 Supervision customer service 174 -
908 Customer assistance 1,552 -
909 Informational and instructional advertising 11 -
910 Miscellaneous customer service 451 -
911 Supervision sales activities 536 -
912 Demonstrating and selling 3,778 -
913 Advertising 84 -
916 Miscellaneous sales 623 -
920 Salaries and wages 34,506 -
921 Office supplies and expenses 27,082 -
922 Administrative expense transferred - credit - -
923 Outside services employed 15,808 -
924 Property insurance 1 -
925 Injuries and damages 2,669 -
926 Employee pensions and benefits 13,281 -
927 Franchise requirements - -
928 Regulatory commission expense 532 -
929 Duplicate charges-credit (7) -
930.1 General advertising expenses 1,323 -
930.2 Miscellaneous general expenses 3,658 -
931 Rents 8,253 -
932 Maintenance of structures and equipment 418 -
935 Maintenance of general plant 2,544 -
403 Depreciation and amortization expense - -
408 Taxes other than income taxes 4,520 -
409 Income taxes (81) -
410 Provision for deferred income taxes 81 -
411 Provision for deferred income taxes - credit - -
411.5 Investment tax credit - -
426.1 Donations 1,359 -
426.2 Life insurance (1,420) -
426.4 Civic, politic and related accounts 989 -
426.5 Other deductions 2,577 -
427 Interest on long-term debt - -
430 Interest on debt to associate companies - -
431 Other interest expense 150 -
-------------- --------------
Total Expense 153,069 -
--------------------- --------
--------------------- --------
Net Income or (Loss) $- $-
----------------------------------------------- --------------------- ----------
--------------- -------------------------------------- --------------------- ---
ANNUAL REPORT OF SCANA Services, Inc.
For the Year Ended December 31, 2000
----------------------------------------------------------------------------------------------------
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 $76,863 $34,759 $- $111,622
South Carolina Fuel Company, Inc. 100 - - 100
South Carolina Pipeline Corporation 1,088 3,167 - 4,255
Public Service Company of North Carolina,
Incorporated 15,722 4,790 - 20,512
SCANA Communications, Inc. 962 138 - 1,100
SCANA Energy Marketing, Inc. 11,924 1,700 - 13,624
ServiceCare, Inc. 1,132 158 - 1,290
SCANA Resources, Inc. 323 - - 323
SCANA Development Corporation 40 8 - 48
SCANA Petroleum Resources, Inc. 5 5 - 10
SCANA Propane Services, Inc. 1 - - 1
SCANA Propane Gas, Inc. 5 - - 5
SCANA Corporation 28,306 (28,306) - -
South Carolina Generating Company, Inc. - 702 - 702
Primesouth Inc. - 423 - 423
-------------- -------------- -------------------- ---------------
TOTAL $136,471 $17,544 $- $154,015
------------------------- -------------- -------------- -------------------- ---------------
ANNUAL REPORT OF SCANA Services, Inc.
For the Year Ended December 31, 2000
--------------------------------------------------------------------------------
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, 2000
------------------------------------------------------------------------------------------------------------------------------------
SCHEDULE XVI
ANALYSIS OF CHARGES FOR SERVICE
ASSOCIATE AND NONASSOCIATE COMPANIES
------------------------------------------------------------------------------------------------------------------------------------
ASSOCIATE COMPANY NONASSOCIATE COMPANY TOTAL CHARGES FOR
CHARGES CHARGES SERVICE
------------------------------------------------------------------------------
DESCRIPTION OF ITEMS (Dollars in Thousands) DIRECT INDIRECT DIRECT INDIRECT DIRECT INDIRECT
COST COST TOTAL COST COST TOTAL COST COST TOTAL
----------------------------------------------------------- ---------- --------------------------- ------ --------- -----------
901 SUPERVISION CUSTOMER ACCOUNTING $1,774 $107 $1,881 - - - $1,774 $107 $1,881
902 METER READING 2,827 191 3,018 - - - 2,827 191 3,018
903 CUSTOMER RECORDS AND COLLECTIONS 20,731 1,086 21,817 - - - 20,731 1,086 21,817
905 MISCELLANEOUS CUSTOMER ACCOUNTS 890 11 901 - - - 890 11 901
907 SUPERVISION CUSTOMER SERVICE 159 15 174 - - - 159 15 174
908 CUSTOMER ASSISTANCE 1,484 68 1,552 - - - 1,484 68 1,552
909 INFORMATIONAL AND INSTRUCTIONAL
ADVERTISING 11 - 11 - - - 11 - 11
910 MISCELLANEOUS CUSTOMER SERVICE 413 38 451 - - - 413 38 451
911 SUPERVISION SALES ACTIVITIES 488 48 536 - - - 488 48 536
912 DEMONSTRATING AND SELLING 3,619 159 3,778 - - - 3,619 159 3,778
913 ADVERTISING 84 - 84 - - - 84 - 84
916 MISCELLANEOUS SALES 621 2 623 - - - 621 2 623
920 SALARIES AND WAGES 33,000 1,506 34,506 - - - 33,000 1,506 34,506
921 OFFICE SUPPLIES AND EXPENSES 28,106 (1,024) 27,082 - - - 28,106 (1,024) 27,082
922 ADMINISTRATIVE EXPENSE TRANSFERRED -
CREDIT - - - - - - - - -
923 OUTSIDE SERVICES EMPLOYED 16,074 (266) 15,808 - - - 16,074 (266) 15,808
924 PROPERTY INSURANCE 1 - 1 - - - 1 - 1
925 INJURIES AND DAMAGES 2,670 (1) 2,669 - - - 2,670 (1) 2,669
926 EMPLOYEE PENSIONS AND BENEFITS 13,390 (109) 13,281 - - - 13,390 (109) 13,281
927 FRANCHISE REQUIREMENTS - - - - - - - - -
928 REGULATORY COMMISSION EXPENSE 526 6 532 - - - 526 6 532
929 DUPLICATE CHARGES-CREDIT (7) - (7) - - - (7) - (7)
930.1 GENERAL ADVERTISING EXPENSE 1,308 15 1,323 - - - 1,308 15 1,323
930.2 MISCELLANEOUS GENERAL EXPENSES 3,778 (120) 3,658 - - - 3,778 (120) 3,658
931 RENTS 8,483 (230) 8,253 - - - 8,483 (230) 8,253
932 MAINTENANCE OF STRUCTURES AND - - -
EQUIPMENT 418 - 418 - - - 418 - 418
----------------------------------------------------------- ----------- ------------------------------------- --------- -----------
---------------------------------------------- -------------------------------- ---------------------------------------------------
ASSOCIATE COMPANY NONASSOCIATE COMPANY TOTAL CHARGES FOR
CHARGES CHARGES SERVICE
-----------------------------------------------------------------------------
DESCRIPTION OF ITEMS DIRECT INDIRECT DIRECT INDIRECT DIRECT INDIRECT
COST COST TOTAL COST COST TOTAL COST COST TOTAL
---------------------------------------------- ---------- -------- --------- ------- ------- -------- -------- -------- --------
935 MAINTENANCE OF GENERAL PLANT $2,634 $(90) $2,544 - - - $2,634 $(90) $2,544
403 DEPRECIATION AND AMORTIZATION EXPENSE - - - - - - - - -
408 TAXES OTHER THAN INCOME TAXES 4,489 31 4,520 - - - 4,489 31 4,520
409 INCOME TAXES (81) - (81) - - - (81) - (81)
410 PROVISION FOR DEFERRED INCOME TAXES 81 - 81 - - - 81 - 81
411 PROVISION FOR DEFERRED INCOME TAXES -
CREDIT - - - - - - - - -
411.5 INVESTMENT TAX CREDIT - - - - - - - - -
426.1 DONATIONS 1,359 - 1,359 - - - 1,359 - 1,359
426.2 LIFE INSURANCE (1,420) - (1,420) - - - (1,420) - (1,420)
426.4 CIVIC, POLITIC AND RELATED ACCOUNTS 978 11 989 - - - 978 11 989
426.5 OTHER DEDUCTIONS 1,831 746 2,577 - - - 1,831 746 2,577
427 INTEREST ON LONG-TERM DEBT - - - - - - - - -
431 OTHER INTEREST EXPENSE 150 - 150 - - - 150 - 150
- - -
----------------------------------------------
INSTRUCTION: Total cost of service will equal for associate and nonassociate
companies the total amount billed under their separate analysis of billing
schedules.
------------------------------------------------------------
---------- --------- ------- ------ ----------- ---------- --------
TOTAL EXPENSES = 150,869 2,200 153,069 - - - 150,869 2,200 153,069
------------------ ----------- --------------- ---------- ----------- -----------
COMPENSATION FOR USE OF EQUITY CAPITAL = - - - - - - - - -
------------------ ----------- --------------- ---------- ----------- -----------
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES = - - - - - - - - -
------------------ ----------- --------------- ---------- ----------- -----------
TOTAL COST OF SERVICE = $150,869 $2,200 $153,069 $- $- $- $150,869 $2,200 $153,069
--------------------------------------------------------------- ------------- ------------------------------------------ -----------
ANNUAL REPORT OF SCANA Services, Inc.
For the Year Ended December 31, 2000
------------------------------------------------------------------------------------------------------------------------------------
SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION
BY
DEPARTMENT OR SERVICE FUNCTION
------------------------------------------------------------------------------------------------------------------------------------
DEPARTMENT OR SERVICE FUNCTION
-------------------------------------------------------------------------------
DESCRIPTION OF ITEMS TOTAL OVER- INFORMATION CUSTOMER MARKETING EMPLOYEE FINANCIAL
(Dollars in Thousands) AMOUNT HEAD SERVICES SERVICES AND SALES SERVICES PROCUREMENT SERVICES REGULATORY
-
---------------------------------------------------- ------------- ------- ------------------------------------------------
901 SUPERVISION CUSTOMER ACCOUNTING $1,881 - 74 1,806 $- $- $- $- $-
902 METER READING 3,018 - 86 2,931 - - - - -
903 CUSTOMER RECORDS AND COLLECTIONS 21,817 - 105 17,997 13 155 1 3,462 -
905 MISCELLANEOUS CUSTOMER ACCOUNTS 901 - - 874 1 24 - 2 -
907 SUPERVISION CUSTOMER SERVICE 174 - - 116 58 - - - -
908 CUSTOMER ASSISTANCE 1,552 - - 507 662 - - 2 -
909 INFORMATIONAL AND INSTRUCTIONAL
ADVERTISING 11 - - - - - - - -
910 MISCELLANEOUS CUSTOMER SERVICE 451 - - 412 37 - - 1 -
911 SUPERVISION SALES ACTIVITIES 536 - - 21 515 - - - -
912 DEMONSTRATING AND SELLING 3,778 - 1 40 3,735 - - 2 -
913 ADVERTISING 84 - - 6 76 - - 2 -
916 MISCELLANEOUS SALES 623 - - 2 192 - 6 20 -
920 SALES AND SALARIES 34,506 - 1,314 3,331 1,593 2,567 999 14,534 384
921 OFFICE SUPPLIES AND EXPENSES 27,082 - 672 4,596 359 1,296 160 7,593 73
922 ADMINISTRATIVE EXPENSE TRANSFERRED -
CREDIT - - - - - - - - -
923 OUTSIDE SERVICES EMPLOYED 15,808 - 2,145 118 74 2,154 1 2,098 -
924 PROPERTY INSURANCE 1 - - 1 - - - - -
925 INJURIES AND DAMAGES 2,669 - - - - - - - -
926 EMPLOYEE PENSIONS AND BENEFITS 13,281 - 262 3,723 988 2,474 284 2,688 112
927 FRANCHISE REQUIREMENTS - - - - - - - - -
928 REGULATORY COMMISSION EXPENSE 532 - 4 1 - - - 267 116
929 DUPLICATE CHARGES-CREDIT (7) - (7) - - - - - -
930.1GENERAL ADVERTISING EXPENSE 1,323 - - 2 13 1 1 161 -
930.2MISCELLANEOUS GENERAL EXPENSES 3,658 - 9 55 522 58 - 274 -
931 RENTS 8,253 - 29 19 188 233 93 233 66
932 MAINTENANCE OF STRUCTURES AND
EQUIPMENT 418 - 98 12 - - - 10 -
----------------------------------------------------- ------------- ---------- -------- ------------- -------- ---------------------
------------------------------------------------------ -----------------------------------------------------------------------------
DEPARTMENT OR SERVICE FUNCTION
-----------------------------------------------------------------------------
DESCRIPTION OF ITEMS (Dollars in Thousands) TOTAL OVER- INFORMATION CUSTOMER MARKETING EMPLOYEE FINANC`AL
AMOUNT HEAD SERVICES SERVICES AND SALES SERVICES PROCUREMENT SERVICES REGULATORY
--------------------------------------------------- ------------- ---------- -------- --------- ----------- --------- -----------
935 MAINTENANCE OF GENERAL PLANT 2,544 - 81 49 - 7 22 12 -
403 DEPRECIATION AND AMORTIZATION EXPENSE - - - - - - - - -
408 TAXES OTHER THAN INCOME TAXES 4,520 - 114 1,126 306 208 78 1,741 30
409 INCOME TAXES - - - - - (81) -
(81)
410 PROVISION FOR DEFERRED INCOME TAXES 81 - - - - - - 81 -
411 PROVISION FOR DEFERRED INCOME TAXES -
CREDIT - - - - - - - - -
411.5INVESTMENT TAX CREDIT - - - - - - - - -
426.1DONATIONS 1,359 - 1 1 5 3 - 1 -
426.2LIFE INSURANCE (1,420) - - - - (1,664) - 243 -
426.4CIVIC, POLITIC AND RELATED ACCOUNTS 989 - - - - 17 - -
426.5OTHER DEDUCTIONS 2,577 - 42 101 12 449 15 209 2
427 INTEREST ON LONG-TERM DEBT - - - - - - - - -
430 INTEREST ON DEBT TO ASSOCIATE
COMPANIES - - - - - - - - -
431 OTHER INTEREST EXPENSE 150 - - - 27 123 - - -
------------------------------------------------
INSTRUCTION: Indicate each department or service
function. (see Instruction 01-3 General Structure
of Accounting System: Uniform System Account)
---------------------------------- ---------- ------- --------- -------- --------- ------------ ------------ ---------
TOTAL EXPENSES = $153,069 $5,030 $37,847 $9,376 $8,105 $1,660 $33,555 $783
---------------------------------- ---------- ------- --------- -------- --------- ------------ ------------ ---------
---------------------------------- ---------- ------- --------- -------- --------- ------------ ------------ ---------
ANNUAL REPORT OF SCANA Services, Inc.
For the Year Ended December 31, 2000
------------------------------------------------------------------------------------------------------------------------------------
SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION
BY
DEPARTMENT OR SERVICE FUNCTION
------------------------------------------------------------------------------------------------------------------------------------
DEPARTMENT OR SERVICE FUNCTION
-----------------------------------------------------------------------------------------------------------------
LAND AND
ACCOUNT PUBLIC INVESTOR FACILITIES STRATEGIC EXECUTIVE OPERATIONAL
NUMBER AFFAIRS LEGAL RELATIONS MANAGEMENT ENVIRONMENTAL PLANNING SERVICES SUPPORT
------------------------------- ---------- -----------------------------------------------------------------------------------------
(Dollars in Thousands)
901 $1 $- $- $- $- $- $- $-
902 - - - - - - - 1
903 - - - - - - - 84
905 - - - - - - - -
907 - - - - - - - -
908 - - - - - - 381 -
909 1 - - 10 - - - -
910 - - - - 1 - - -
911 - - - - - - - -
912 - - - - - - - -
913 - - - - - - - -
916 75 - - - - - 328 -
920 1,666 2,837 364 132 415 415 2,404 1,551
921 1,749 1,994 172 155 137 170 3,004 4,952
922 - - - - - - - -
923 160 8,297 172 14 196 54 162 163
924 - - - - - - - -
925 - 2,669 - - - - - -
926 456 818 98 106 204 122 549 397
927 - - - - - - - -
928 - 137 - - - - 7 -
929 - - - - - - - -
930.1 1,122 - - - - - - 23
930.2 1 903 332 - - 1,112 377 15
931 362 375 1 5,593 63 169 689 140
932 - - - - - - - 298
935 - 13 - 1,285 238 - - 837
403 - - - - - - - -
------------------------ ---------- -------------- ------------- ----------------- -------------- --------------- -----------------
------------------------------------------------------------------------------------------------------------------------------------
DEPARTMENT OR SERVICE FUNCTION
-----------------------------------------------------------------------------------------------------------------------
LAND AND
ACCOUNT PUBLIC INVESTOR FACILITIES STRATEGIC EXECUTIVE OPERATIONAL
NUMBER AFFAIRS LEGAL RELATIONS MANAGEMENT ENVIRONMENTAL PLANNING SERVICES SUPPORT
-------------------- --------- --------- ------------- ---------------- ----------- -------------- ----------------
408 154 228 29 39 58 34 187 188
409 - - - - - - - -
410 - - - - - - - -
411 - - - - - - - -
411.5 - - - - - - - -
426.1 980 - - 1 - - 367 -
426.2 - - - - - - 1 -
426.4 938 1 - - - - 33 -
426.5 472 141 70 353 15 21 602 73
427 - - - - - - - -
430 - - - - - - - -
431 - - - - - - - -
------------ --------- --------- ------------- ---------------- ------------ -------------- -----------------
$8,137 $18,413 $1,238 $7,688 $1,327 $2,097 $9,091 $8,722
-------------------- --------- --------- ------------- ---------------- ---------------- -------------- -----------------
ANNUAL REPORT OF SCANA Services, Inc.
For the Year Ended December 31, 2000
------------------------------------------------------------------------------------------------------------------------------------
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
------------------------------------------------------------ -------------------- -------------------- -----------------------------
Information Services $1,314 $- $1,314 $- 403
Customer Services 3,331 - 3,331 - 637
Marketing and Sales 1,593 - 1,593 - 112
Employee Services 2,567 - 2,567 - 97
Procurement 999 - 999 - 51
Financial Services 14,534 - 14,534 - 236
Regulatory 384 - 384 - 11
Public Affairs 1,666 - 1,666 - 48
Legal 2,837 - 2,837 - 93
Investor Relations 364 - 364 - 14
Land and Facilities Management 132 - 132 - 66
Environmental 415 - 415 - 24
Strategic Planning 415 - 415 - 10
Executive Services 2,404 - 2,404 - 35
Operational Support 1,551 - 1,551 - 70
----------
---------- -------------------- ------------- ---------------------------------
TOTAL $34,506 $- $34,506 $- 1,907
--------------------------------------------- -------------- ------------------------- ------------- -------------------------------
ANNUAL REPORT OF SCANA Services, Inc.
For the Year Ended December 31, 2000
--------------------------------------------------------------------------------
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)
--------------------------------------------------------------------------------- ------------------------
Leadership Training:
Centacs NA $62
Clemson University NA 40
-------
-------
102
-------
-------
Accounting & Auditing Services:
Deloitte & Touche NA 774
Arthur Andersen LLP - Carolinas NA 93
Pricewaterhouse NA 200
-------
-------
1,067
-------
-------
Banking Services:
Bank of America NA 107
Branch Banking & Trust NA 53
Chase Manhattan NA 111
First Union Bank NA 98
National Bank NA 50
The Bank of New York NA 65
Wachovia NA 184
-------
-------
668
-------
-------
Payroll and Benefits Administration &
Maintenance:
ADP, Inc. NA 135
Towers Perrin NA 771
Allsup, Inc. NA 45
Levi Ray & Shoup, Inc. NA 33
Capital Resource Advisors NA 42
LCG Associates, Inc. NA 40
William M. Mercer, Inc. NA 45
-------
-------
1,111
-------
-------
Computer Services:
AVAYA, Inc. NA 47
Ciber, Inc. NA 89
Deborah Bass & Associates, Inc. NA 146
Digiterra, Inc. NA 309
Keane Pittsburg Inc. NA 149
Premier Alliance Group Inc. NA 48
Support Technologies, Inc. NA 50
Trupoint Technologies NA 141
Pelican Technology Partners NA 37
Blencowe Computers NA 32
-------
-------
1,048
-------
-------
Consulting:
The Norton Group NA 31
Titan Technology NA 864
Van Rickland Clary - CDP NA 48
Hewitt Associates LLC NA 249
J A Wright NA 432
Jordan Consulting NA 35
Weltner Communications NA 149
The Ruffin Group NA 40
Boyce C Morrow Jr. NA 50
Consultis of Charlotte NA 156
Leader Institute NA 71
Manpower Temporary Service NA 75
-------
-------
2,200
-------
-------
Waste Disposal:
Safety-Kleen NA 45
-------
-------
Employment Services:
Adecco Employment Services NA 223
Korn/Ferry International NA 70
John Shell Associates NA 26
-------
-------
319
-------
-------
Engineering Services:
General Engineering NA 42
-------
-------
Insurance Services:
South Carolina Second Injury Fund NA 185
-------
-------
Legal Services:
Cameron McKenna LLP NA 841
Carter, Ledyard & Milburn NA 174
Gignilliat Savitz & Bettis NA 62
Jones Day Reavis & Pogue NA 500
Kilpatrick Stockton LLP NA 411
LeBoeuf, Lamb, Greene & Macrae NA 279
McDermott, Will & Emery NA 491
McDonald, McKenzie, Rubin, Miller, Lybran NA 29
McNair Law Firm NA 283
Moore & Van Allen PLLC NA 89
Nelson Mullins Riley & Scarborough NA 305
Nexsen Pruet Jacobs & Pollard NA 46
Patricia T Smith NA 254
Richardson & Birdsong NA 42
Sinkler & Boyd NA 103
Smith, Galloway, Lyndall & Fuchs, LLP NA 49
The Regulatory Law Group NA 108
Thelen Reid & Priest LLP NA 71
Webb Stuckey & Lindsay LLC NA 466
Willoughby & Hoefer PA NA 196
Winston & Strawn NA 33
Womble Carlyle Sandridge & Rice NA 106
-------
-------
4,938
-------
-------
Parking Facility Services:
City of Columbia NA 103
-------
-------
Printing Services:
R L Bryan Company NA 174
-------
-------
Rating Services:
Moody's Investor NA 64
Standard & Poor NA 94
-------
-------
158
-------
-------
Security Services:
Coastal International NA 1,876
-------
-------
All Others less than $25,000 (546 items) NA 1,772
-------
-------
---------------------------------------------------------------------------------
---------------------------------------------------------------------------------
TOTAL $15,808
---------------------------------------------- ------------ ------------------------------
ANNUAL REPORT OF SCANA Services, Inc.
For the Year Ended December 31, 2000
-------------------------------------------------------------------------
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 $2,086
Key Employee Retention Program 1,185
Group Insurance 6,634
Stock Purchase Plan 2,554
Disability 151
Education and Tuition Assistance 93
Recreational Clubs 94
Employee Assistance Program 29
Parking 47
Others 408
--------------------------
TOTAL $13,281
------------------------------------------- --------------------------
ANNUAL REPORT OF SCANA Services, Inc.
For the Year Ended December 31, 2000
--------------------------------------------------------------------------------
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)
-------------------------------- -------------------------------- --------------
Media Campaign 360 Inc. $20
Media Campaign Chernoff/Silver 135
Project Management Chernoff/Silver 91
Media Buys Chernoff/Silver 581
Convention Marketing FBS Card Service 4
Employment Advertising JWG Associates 4
Print Media Advertising SouthComm 3
Print Media Advertising Thomas McCants 5
Hurricane Brochure WCSC, Inc 20
Print Media Advertising Wray Ward Laseter 153
Media Research Wray Ward Laseter 92
Project Management Wray Ward Laseter 11
Customer Retention Study Arbor Inc 21
Web Site Evaluation Burke CSA 21
Print Media Advertising Black Pages USA 20
Radio Advertising Thomas McCants 12
Radio Advertising SC Sea Grant Consortium 10
Others 105
-------------------------------- ---------------- ---------------
TOTAL $1,308
-------------------------------- ----------------------- ---------------
ANNUAL REPORT OF SCANA Services, Inc.
For the Year Ended December 31, 2000
-----------------------------------------------------------------------------
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 $1,142
Board of Directors expenses 817
Miscellaneous labor 26
Computer systems expenses 303
Travel expenses (including meals) 111
Postage 90
Utilities 11
Equipment leasing 60
Annual meeting of shareholders expenses 93
Credit evaluation services 165
Investment services 91
Focus groups 235
Liability insurance 9
Licensing and permits 40
Advertising 15
Servicing securities 265
Non-charitable contributions 19
Education 2
Other miscellaneous expenses 164
------------------------------------------------------
TOTAL $3,658
----------------------------------------------------------- ------------
ANNUAL REPORT OF SCANA Services, Inc.
For the Year Ended December 31, 2000
-------------------------------------------------------------------
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 $8,091
Communications towers 36
Communications equipment 25
Computers 80
Equipment 21
---------------------
TOTAL $8,253
---------------------------------------- -------------------------
ANNUAL REPORT OF SCANA Services, Inc.
For the Year Ended December 31, 2000
---------------------------------------------------------------------------
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 $782
State Unemployment Tax 38
820
U. S. Government Taxes:
Social Security and Medicare Tax 3,648
Unemployment Tax 52
3,700
-------------------------
TOTAL $4,520
------------------------------------- -------------------------
ANNUAL REPORT OF SCANA Services, Inc.
For the Year Ended December 31, 2000
--------------------------------------------------------------------------------
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)
---------------------------------------------------------------------------------------------------
Alston Wilkes Society Capital Campaign $10
Benedict College Sponsorship 5
Carolinas Minority Supplier Development Council Sponsorship 5
Celebrate Freedom Celebration Sponsorship 5
Columbia Chamber of Commerce Sponsorship 10
South Carolina Chamber of Commerce Sponsorship 70
S. C. Black Chamber of Commerce Sponsorship 4
Charleston Southern University Sponsorship 5
Charleston Stage Company, Inc. Sponsorship 7
Children's Chance Corporate Contribution 3
Clemson University Foundation Corporate Contribution 110
College of Charleston Scholarship sponsorship 3
Columbia City Ballet Sponsorship 9
Columbia College Sponsorship 10
Committee for Growth Management Sponsorship 25
Columbia Communities in Schools Corporate Contribution 4
Congaree Girl Scout Council Sponsorship 4
Congaree Land Trust Sponsorship 3
Cystic Fibrosis Foundation Sponsorship 5
EdVenture Sponsorship 20
Charleston First Night Sponsorship 3
First Steps Sponsorship 100
George Rogers Foundation Sponsorship 5
Town of Harleyville Corporate Contribution 5
Historic Ricefields Association Sponsorship 5
Independent Colleges & Universities Scholarship Sponsorship 15
March of Dimes Sponsorship 3
SC Conference of NAACP Branches Corporate Contribution 4
New Horizon Family Care Center Sponsorship 5
Nuturing Center Corporate Contribution 5
Palmetto Health Alliance Sponsorship 20
SC Attorney General's Father of the Year Award Sponsorship 4
SC Business Center for Excellence in Education Sponsorship 3
SC Center for Family Policy Sponsorship 5
SC District Export Council Sponsorship 5
SC Law Enforcement Officers Association Sponsorship 5
SC Philharmonic Orchestra Sponsorship 5
Spoleto Festival USA Sponsorship 25
Wayne Sterling Sponsorship 4
The McKay Urology Research Endowment Sponsorship 6
Trident Community Foundation Sponsorship 10
United Way of the Midlands Corporate Contribution 113
Trident United Way Corporate Contribution 54
Columbia Urban League Sponsorship 5
University of South Carolina Scholarship sponsorship 3
USC Educational Foundation Corporate Contribution 150
Port Royal YMCA Corporate Contribution 6
Advantage West North Carolina Corporate Contribution 5
City of Gastonia Corporate Contribution 5
Exploris Corporate Contribution 10
Forestview High School PTA Corporate Contribution 10
Gardner Webb University Corporate Contribution 5
Gaston County Education Corporate Contribution 5
Gaston County Family YMCA Corporate Contribution 5
Gaston County Schools Corporate Contribution 10
Greater Gastonia Development Council Corporate Contribution 8
March of Dimes Corporate Contribution 7
NC Center for Public Policy Research Inc. Corporate Contribution 5
North Carolina Citizens for Business and IndustryCorporate Contribution 69
North Carolina State Education Corporate Contribution 19
North Carolinians for Educational Opportunity Corporate Contribution 5
Partnership for Tomorrow Corporate Contribution 6
Research Triangle Regional Partnership Corporate Contribution 10
Gaston County Salvation Army Corporate Contribution 5
The Community Foundation Corporate Contribution 50
The Salvation Army Heat Care Corporate Contribution 44
United Arts Council Corporate Contribution 4
West Gastonia Youth Board Corporate Contribution 5
YMCA Asheville Corporate Contribution 5
Others less than $3,000 (214 items) Corporate Contribution 172
---------------------------------------------------------------------------------- --------
TOTAL $1,359
---------------------------------------------------------------------------------------- --
ANNUAL REPORT OF SCANA Services, Inc.
For the Year Ended December 31, 2000
--------------------------------------------------------------------------------
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 $1,186
Contributions and sponsorships 272
Customer and employee family events 77
Facility maintenance 75
Utilities 52
Land sales expense 166
Survey and construction costs 75
Consulting 84
Legal 23
Computer leases 26
Vehicle expenses 38
Travel and meal expenses 29
Printing 12
Computer resources 56
Non-deductible lobbying 42
Other 364
---------------------------------------------------------- -------------------
TOTAL $2,577
---------------------------------------------------------- -------------------
ANNUAL REPORT OF SCANA Services, Inc.
For the Year Ended December 31, 2000
--------------------------------------------------------------------------------
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
Deputy General Counsel
Secretary
Treasurer
Controller
Executive for South Carolina Retail Utility Operations
Executive for Communications Operations and Governmental
Affairs
Senior Vice President for Human Resources
Executive for Marketing
Vice President for Information Services and Technology
Officer for Corporate Compliance and Internal Affairs
Vice President for Governmental Affairs and Economic Development
Vice President for Market Development and Delivery
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 Service Company, a South Carolina
corporation ("SCANA Service").
WHEREAS, SCANA Service is a direct or indirect wholly owned subsidiary of
SCANA Corporation;
WHEREAS, SCANA Service 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 Service;
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 Service 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 Service.
II. PERSONNEL. SCANA Service 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 Service, 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 Service 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 Service acknowledge that as a result of the agreements
contained in Sections IV(A)(1) and (A)(3), PSNC will not accept services from
SCANA Service 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 Service. SCANA
Service 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 Service will prepare a Service
Request on or before _____________ of each year listing services to be provided
to the Company by SCANA Service 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 Service may supplement the Service
Request during the year to reflect any additional or special services that the
Company wishes to obtain from SCANA Service, and the arrangements relating
thereto.
VII. BILLING AND PAYMENT. Unless otherwise set forth in a Service Request,
payment for services provided by SCANA Service shall be by making remittance of
the amount billed or by making appropriate accounting entries on the books of
the Company and SCANA Service. 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:
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2. To SCANA Service:
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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 SERVICE COMPANY
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 Service Company ("SCANA Service") and to assign or
allocate such costs to other subsidiaries and business units within SCANA
Corporation ("Client Entities").
Cost of Services Performed
SCANA Service 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 Service 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 Service 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. 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.
7. 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 Service, 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.
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 Number of
Employees Ratio.
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 services. Costs of a general nature are
allocated using the Three-Factor Formula.
8. Risk Management - Provides insurance, claims, security, environmental
and safety services. Costs of a general nature are allocated using the
Three-Factor Formula.
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.
10. Legal Services - Provides various legal services and general legal
oversight; handles claims. Costs of a general nature are allocated using the
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 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 Three- Factor Formula.
15. Executive - Provides executive and general administrative services.
Costs of a general nature are allocated using the 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.
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(Name of Reporting Company)
By: s/M. R. Cannon
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(Signature of Signing Officer)
Controller
(Printed Name and Title of Signing Officer)
Date: April 27, 2001
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