UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 Form U-13-60 Amendment No. 1 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 6 SERVICE COMPANY PROPERTY Schedule II 8 ACCUMULATED PROVISION FOR DEPRECIATION AND AMORTIZATION OF SERVICE COMPANY PROPERTY Schedule III 10 INVESTMENTS Schedule IV 11 ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES Schedule V 12 FUEL STOCK EXPENSES UNDISTRIBUTED Schedule VI 13 STORES EXPENSE UNDISTRIBUTED Schedule VII 14 MISCELLANEOUS CURRENT AND ACCRUED ASSETS Schedule VIII 15 MISCELLANEOUS DEFERRED DEBITS Schedule IX 16 RESEARCH, DEVELOPMENT OR DEMONSTRATION EXPENDITURES Schedule X 17 PROPRIETARY CAPITAL Schedule XI 18 LONG-TERM DEBT Schedule XII 19 CURRENT AND ACCRUED LIABILITIES Schedule XIII 20 NOTES TO FINANCIAL STATEMENTS Schedule XIV 21 COMPARATIVE INCOME STATEMENT Schedule XV 22 ANALYSIS OF BILLING -ASSOCIATE COMPANIES Account 457 24 ANALYSIS OF BILLING - NONASSOCIATE COMPANIES Account 458 25 ANALYSIS OF CHARGES FOR SERVICE - ASSOCIATE AND NONASSOCIATE COMPANIES Schedule XVI 26 SCHEDULE OF EXPENSE BY DEPARTMENT OR SERVICE FUNCTION Schedule XVII 28 DEPARTMENTAL ANALYSIS OF SALARIES Account 920 32 OUTSIDE SERVICES EMPLOYED Account 923 33 EMPLOYEE PENSIONS AND BENEFITS Account 926 35 GENERAL ADVERTISING EXPENSES Account 930.1 36 MISCELLANEOUS GENERAL EXPENSES Account 930.2 37 RENTS Account 931 38 TAXES OTHER THAN INCOME TAXES Account 408 39 DONATIONS Account 426.1 40 OTHER DEDUCTIONS Account 426.5 42 NOTES TO STATEMENT OF INCOME Schedule XVIII 43 -------------------------------------------------------- ----------------------- ------------------------------------------------------------------- ------------ LISTING OF INSTRUCTIONAL FILING REQUIREMENTS ----------- Page Number ------------------------------------------------------------------- ------------ Description of Reports or Statements ------------------------------------------------------------------- ORGANIZATION CHART 44 METHODS OF ALLOCATION 44 ANNUAL STATEMENT OF COMPENSATION FOR USE OF CAPITAL BILLED 55 -------------------------------------------------------------------------------- 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) - - ---------------- ------------------------------------------------------- -------------------- ------------- ------------ Total Current and Accrued Assets 15,062 - ---------------- ------------------------------------------------------- -------------------- ------------- ------------ DEFERRED DEBITS 181 Unamortized debt expense - - 184 Clearing accounts 1,665 - 186 Miscellaneous deferred debits (Schedule IX) 3,694 - 188 Research, development or demonstration expenditures (Schedule X) - - 190 Accumulated deferred income taxes - - ---------------- ------------------------------------------------------- -------------------- ------------- ------------ Total Deferred Debits 5,359 - ---------------- ------------------------------------------------------- -------------------- ------------- ------------ 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 228 Accrued provision injuries and damages 16 - 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 (83) - 237 Interest accrued - - 238 Dividends declared - - 241 Tax collections payable 99 - 242 Miscellaneous current and accrued liabilities (Schedule XIII) 1,812 - ----------------- ---------------------------------------------------------------- ------------------- -------------- ------------ Total Current and Accrued Liabilities 9,593 - ----------------- ---------------------------------------------------------------- ------------------- -------------- ------------ DEFERRED CREDITS 253 Other deferred credits 3,547 - 255 Accumulated deferred investment tax credits - - ----------------- ---------------------------------------------------------------- ------------------- -------------- ------------ Total Deferred Credits 3,547 - ----------------- ---------------------------------------------------------------- ------------------- -------------- ------------ 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 - 559 - 473 1,032 304 LAND AND LAND RIGHTS - - - - - 305 STRUCTURES AND IMPROVEMENTS - 42 - 23 65 306 LEASEHOLD IMPROVEMENTS - - - - - 307 EQUIPMENT - 558 7 1,576 2,127 308 OFFICE FURNITURE AND FIXTURES - 138 - 86 224 309 AUTOMOBILES, OTHER VEHICLES AND RELATED GARAGE EQUIPMENT - 7 - 43 50 310 AIRCRAFT AND AIRPORT EQUIPMENT - 106 - 54 160 311 OTHER SERVICE COMPANY PROPERTY - - - 1 1 --------- ----------------------------------------------------------------------- --------------------------------- -------------- $- $1,410 $7 $2,256 $3,659 --------- ----------------------------------------------------------------------- --------------------------------- -------------- ---------------------------------------------------------------------------------------------------------------------------------- (1)PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL: The other changes reflect transfers of asset balances from other system companies upon the formation of the service company. NOTE:Depreciation expense is charged to clearing accounts and other expense accounts, as appropriate per the Federal Energy Regulatory Commission Uniform System of Accounts, instead of account 403. ----------------------------------------------------------------------------------------------------------------------------------- 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. UnderAccount 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 $- $- -------------------- -------------- TOTAL $- $- -------------------------------------------- -------------------- -------------- 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 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 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 $5,465 Supplemental capital contributions 30,485 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 BALANCE AT BALANCE NAME OF CLASS & SERIES DATE OF INTEREST AMOUNT BEGINNING AT CLOSE OF CREDITOR OF OBLIGATION MATURITY RATE AUTHORIZED OF YEAR ADDITIONS DUCTIONS (1) YEAR -------------------- --------------------------------------------------------------------------- ----------------------- ------------ ACCOUNT 223- ADVANCES FROM ASSOCIATE COMPANIES: ACCOUNT 224 - OTHER LONG- TERM DEBT: O/E Systems, Inc. master lease of from 6 to ranging - $- $1,401 $162 $1,239 computer equipment 36 months from 2.7% to 3.1% ---------------------------------------- ----------------------- ----------- TOTAL $- $1,401 $162 $1,239 ----------------------- -------------------- ---------------------------------------- ----------------------- ----------- (1) GIVE AN EXPLANATION OF DEDUCTIONS: Principal payments on capitalized lease. ------------------------------------------------------------------------------------------------------------------------------------ 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 the purchase of SCANA Services, Inc.'s common stock and the transfers of certain assets from SCANA system companies to SCANA Services, Inc. 2. The financial statements are presented using the accrual method of accounting. 3. Provisions for depreciation and amortization are recorded using the straight- line method and are based on the estimated service lives of the various classes of property. 4. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. --------------------------------------------------------------------------- ---- 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 415 Revenue from merchandise $7 $- 417.0 Other nonutility revenue 2,976 - 418.0 Non operating rent 88 - 419.0 Interest & dividends 181 - 419.1 AFUDC 65 - 421 Miscellaneous income or loss 1,375 - 453 Sales of water (1) - 454 Rent from electric property 187 - 456 Other electric revenue 493 - 457 Services rendered to associate companies 162,956 - 493 Rent from gas property 9 - -------------------- --------------- Total Income 168,336 - -------------------- --------------- EXPENSE 901 Supervision customer accounting 1,881 $- 902 Meter reading 3,025 - 903 Customer records and collections 22,071 - 905 Miscellaneous customer accounts 901 - 907 Supervision customer service 175 - 908 Customer assistance 1,580 - 909 Informational and instructional advertising 11 - 910 Miscellaneous customer service 455 - 911 Supervision sales activities 536 - 912 Demonstrating and selling 3,794 - 913 Advertising 84 - 916 Miscellaneous sales 624 - 920 Salaries and wages * 35,353 - 921 Office supplies and expenses 37,120 - 923 Outside services employed 16,136 - 924 Property insurance 1 - 925 Injuries and damages 2,670 - 926 Employee pensions and benefits 13,352 - 928 Regulatory commission expense 533 - 929 Duplicate charges-credit (8) - 930.1 General advertising expenses 1,326 - 930.2 Miscellaneous general expenses 3,561 - 931 Rents 3,075 - 932 Maintenance of structures and equipment 418 - 935 Maintenance of general plant 2,205 - 408 Taxes other than income taxes 4,596 - 409 Income taxes (85) - 410 Provision for deferred income taxes 85 - 416 Expense from merchandise 2,367 - 417.1 Other nonutility expenses 2,635 - 426.1 Donations 1,404 - 426.2 Life insurance (1,671) - 426.4 Civic, politic and related accounts 1,028 - 426.5 Other deductions 2,780 - 431 Other interest expense 530 - 432 AFUDC (345) - 500 Operation supervision and engineering steam 5 - 501 Fuel handling expense 89 - 506 Operation misc steam 507 - 510 Maint supervision and engineering 40 - 517 Operation supervision and engineering nuclear 132 - 519 Operation coolants and water 23 - 520 Operation steam expenses nuclear 57 - 524 Operation misc nuclear 964 - 528 Maint supervision and engineering 3 - 532 Maint misc nuclear 230 - 537 Operation expenses hydro 77 - 539 Operation misc hydraulic pwr gen 54 - 544 Maint electric plant hydro 1 - 546 Operation supervision and engineering 3 - 549 Operation misc other power generation 21 - 556 System control and load 99 - 560 Operation supervision and engineering 47 - 561 Operation load dispatching transmission 69 - 562 Operation station expenses transmission 32 - 563 Operation OH line expenses transmission 1 - 566 Operation misc transmission (64) - 568 Maint supervision and engineering 11 - 569 Maint structures transmission 19 - 570 Maint station equipment transmission 59 - 571 Maint overhead lines transmission 1 - 573 Maint misc transmission 49 - 580 Distribution operation supervision and engineering (11) - 581 Distribution operation load dispatch 2 - 582 Distribution operation station expenses 43 - 583 Distribution operation remove and reset 2 - 585 Distribution operation street light and sign 29 - 586 Distribution operation meter expenses 395 - 588 Distribution operation misc distribution 449 - 592 Distribution maint of station equipment 12 - 593 Distribution maint of OH Lines 90 - 594 Distribution maint underground lines 29 - 596 Distribution maint street light and signal 10 - 598 Distribution maint misc distribution plant 2 - 717 Operation liquid petroleum gas 1 - 735 Environmental amortization and misc 96 - 874 Mains and services natural gas distribution 47 - 878 Meter and house regulator 152 - 879 Customer installation 4 - 880 Other expenses natural gas 208 - 350 Superintendence operations 24 - 351 Superintendence maint 5 - 370 Administrative and general 15 - --------------------- --------------- Total Expense 168,336 - --------------------- --------------- --------------------- --------------- Net Income or (Loss) $- $- --------------- -------------------------------------------------------- --------------------- --------------- *Salary and wage amounts are charged to Account 920 and other expense accounts, as appropriate per the Federal Energy Regulatory Commission Uniform System of Accounts. --------------- -------------------------------------------------------- --------------------- --------------- ANNUAL REPORT OF SCANA Services, Inc. For the Year Ended December 31, 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 $54,971 $57,902 $- $112,873 South Carolina Fuel Company, Inc. 100 - - 100 South Carolina Pipeline Corporation 3,067 1,327 - 4,394 Public Service Company of North Carolina, Incorporated 21,122 4,224 - 25,346 SCANA Communications, Inc. 1,038 138 - 1,176 SCANA Energy Marketing, Inc. 13,832 1,305 - 15,137 ServiceCare, Inc. 1,558 157 - 1,715 SCANA Resources, Inc. 324 - - 324 SCANA Development Corporation 48 - - 48 SCANA Petroleum Resources, Inc. 10 - - 10 SCANA Propane Services, Inc. 1 - - 1 SCANA Propane Gas, Inc. 6 - - 6 South Carolina Generating Company, Inc. 504 702 - 1,206 Primesouth Inc. 197 423 - 620 -------------- -------------- -------------------- --------------- TOTAL $ 96,778 $66,178 $- $162,956 ------------------------------------------- -------------- -------------- -------------------- --------------- 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 CHARGES NONASSOCIATE COMPANY CHARGES TOTAL CHARGES FOR 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 $1,880 $1 $1,881 - - - $1,880 $1 $1,881 902 METER READING 3,025 - 3,025 - - - 3,025 - 3,025 903 CUSTOMER RECORDS AND COLLECTIONS 22,056 15 22,071 - - - 22,056 15 22,071 905 MISCELLANEOUS CUSTOMER ACCOUNTS 901 - 901 - - - 901 - 901 907 SUPERVISION CUSTOMER SERVICE 175 - 175 - - - 175 - 175 908 CUSTOMER ASSISTANCE 1,577 3 1,580 - - - 1,577 3 1,580 909 INFORMATIONAL AND INSTRUCTIONAL ADVERTISING 11 - 11 - - - 11 - 11 910 MISCELLANEOUS CUSTOMER SERVICE 455 - 455 - - - 455 - 455 911 SUPERVISION SALES ACTIVITIES 536 - 536 - - - 536 - 536 912 DEMONSTRATING AND SELLING 3,531 263 3,794 - - - 3,531 263 3,794 913 ADVERTISING 82 2 84 - - - 82 2 84 916 MISCELLANEOUS SALES 624 - 624 - - - 624 - 624 920 SALARIES AND WAGES 29,101 6,252 35,353 - - - 29,101 6,252 35,353 921 OFFICE SUPPLIES AND EXPENSES 31,790 5,330 37,120 - - - 31,790 5,330 37,120 923 OUTSIDE SERVICES EMPLOYED 11,493 4,643 16,136 - - - 11,493 4,643 16,136 924 PROPERTY INSURANCE 1 - 1 - - - 1 - 1 925 INJURIES AND DAMAGES 2,655 15 2,670 - - - 2,655 15 2,670 926 EMPLOYEE PENSIONS AND BENEFITS 11,466 1,886 13,352 - - - 11,466 1,886 13,352 928 REGULATORY COMMISSION EXPENSE 533 - 533 - - - 533 - 533 929 DUPLICATE CHARGES-CREDIT (8) - (8) - - - (8) - (8) 930.1 GENERAL ADVERTISING EXPENSES 1,254 72 1,326 - - - 1,254 72 1,326 930.2 MISCELLANEOUS GENERAL EXPENSES 1,508 2,053 3,561 - - - 1,508 2,053 3,561 931 RENTS 1,841 1,234 3,075 - - - 1,841 1,234 3,075 932 MAINTENANCE OF STRUCTURES AND EQUIPMENT 418 - 418 - - - 418 - 418 935 MAINTENANCE OF GENERAL PLANT 2,151 54 2,205 - - - 2,151 54 2,205 408 TAXES OTHER THAN INCOME TAXES 3,308 1,288 4,596 - - - 3,308 1,288 4,596 409 INCOME TAXES (85) - (85) - - - (85) - (85) 410 PROVISION FOR DEFERRED INCOME TAXES 85 - 85 - - - 85 - 85 416 EXPENSES FROM MERCHANDISE 2,367 - 2,367 - - - 2,367 - 2,367 417.1 OTHER NONUTILITY EXPENSES 1,922 713 2,635 - - - 1,922 713 2,635 426.1 DONATIONS 499 905 1,404 - - - 499 905 1,404 426.2 LIFE INSURANCE (1,671) - (1,671) - - - (1,671) - (1,671) 426.4 CIVIC, POLITIC AND RELATED ACCOUNTS 215 813 1,028 - - - 215 813 1,028 426.5 OTHER DEDUCTIONS 366 2,414 2,780 - - - 366 2,414 2,780 431 OTHER INTEREST EXPENSE 530 - 530 - - - 530 - 530 ----------------------------------------------------- ---------------------- ------------------------------- ----------------------- ASSOCIATE COMPANY CHARGES NONASSOCIATE COMPANY TOTAL CHARGES FOR -------------------------------------------------------------- DESCRIPTION OF ITEMS DIRECT INDIRECT DIRECT INDIRECT DIRECT INDIRECT COST COST TOTAL COST COST TOTAL COST COST TOTAL ------------------------------------------------------------------------------------------------------------------------------------ 432 AFUDC (16) (329) (345) - - - (16) (329) (345) 500 OPERATION SUPERVISION AND ENGINEERING STEAM 5 - 5 - - - 5 - 5 501 FUEL HANDLING EXPENSE 89 - 89 - - - 89 - 89 506 OPERATION MISC STEAM 507 - 507 - - - 507 - 507 510 MAINT SUPERVISION AND ENGINEERING 40 - 40 - - - 40 - 40 517 OPERATION SUPERVISION AND ENGINEERING NUCLEAR 132 - 132 - - - 132 - 132 519 OPERATION COOLANTS AND WATER 23 - 23 - - - 23 - 23 520 OPERATION STEAM EXPENSES NUCLEAR 57 - 57 - - - 57 - 57 524 OPERATION MISC NUCLEAR 964 - 964 - - - 964 - 964 528 MAINT SUPERVISION AND ENGINEERING 3 - 3 - - - 3 - 3 532 MAINT MISC NUCLEAR 230 - 230 - - - 230 - 230 537 OPERATION EXPENSES HYDRO 77 - 77 - - - 77 - 77 539 OPERATION MISC HYDRAULIC PWR GEN 54 - 54 - - - 54 - 54 544 MAINT ELECTRIC PLANT HYDRO 1 - 1 - - - 1 - 1 546 OPERATION SUPERVISION AND ENGINEERING 3 - 3 - - - 3 - 3 549 OPERATION MISC OTHER POWER GENERATION 21 - 21 - - - 21 - 21 556 SYSTEM CONTROL AND LOAD 99 - 99 - - - 99 - 99 560 OPERATION SUPERVISION AND ENGINEERING 47 - 47 - - - 47 - 47 561 OPERATION LOAD DISPATCHING TRANSMISSION 69 - 69 - - - 69 - 69 562 OPERATION STATION EXPENSES TRANSMISSION 32 - 32 - - - 32 - 32 563 OPERATION OH LINE EXPENSES TRANSMISSION 1 - 1 - - - 1 - 1 566 OPERATION MISC TRANSMISSION (64) - (64) - - - (64) - (64) 568 MAINT SUPERVISION AND ENGINEERING 11 - 11 - - - 11 - 11 569 MAINT STRUCTURES TRANSMISSION 19 - 19 - - - 19 - 19 570 MAINT STATION EQUIPMENT TRANSMISSION 59 - 59 - - - 59 - 59 571 MAINT OVERHEAD LINES TRANSMISSION 1 - 1 - - - 1 - 1 573 MAINT MISC TRANSMISSION 49 - 49 - - - 49 - 49 580 DISTRIBUTION OPER SUPERVISION AND ENGINEERING (11) - (11) - - - (11) - (11) 581 DISTRIBUTION OPER LOAD DISPATCH 2 - 2 - - - 2 - 2 582 DISTRIBUTION OPER STATION EXPENSES 43 - 43 - - - 43 - 43 583 DISTRIBUTION OPER REMOVE AND RESET 2 - 2 - - - 2 - 2 585 DISTRIBUTION OPER STREET LIGHT AND SIGNAL 29 - 29 - - - 29 - 29 586 DISTRIBUTION OPER METER EXPENSES 395 - 395 - - - 395 - 395 588 DISTRIBUTION OPER MISC DISTRIBUTION 449 - 449 - - - 449 - 449 592 DISTRIBUTION MAINT OF STATION EQUIPMENT 12 - 12 - - - 12 - 12 593 DISTRIBUTION MAINT OF OH LINES 90 - 90 - - - 90 - 90 594 DISTRIBUTION MAINT UNDERGROUND LINES 29 - 29 - - - 29 - 29 596 DISTRIBUTION MAINT STREET LIGHT AND SIGNAL 10 - 10 - - - 10 - 10 598 DISTRIBUTION MAINT MISC DISTRIBUTION PLANT 2 - 2 - - - 2 - 2 717 OPERATION LIQUID PETROLEUM GAS 1 - 1 - - - 1 - 1 735 ENVIRONMENTAL AMORTIZATION AND MISC 96 - 96 - - - 96 - 96 874 MAINS AND SERVICE NATURAL GAS DISTRIBUTION 47 - 47 - - - 47 - 47 878 METER AND HOUSE REGULATOR 152 - 152 - - - 152 - 152 879 CUSTOMER INSTALLATION 4 - 4 - - - 4 - 4 880 OTHER EXPENSES NATURAL GAS 208 - 208 - - - 208 - 208 350 SUPERINTENDENCE OPERATIONS 24 - 24 - - - 24 - 24 351 SUPERINTENDENCE MAINT 5 - 5 - - - 5 - 5 370 ADMINISTRATIVE AND GENERAL 15 - 15 - - - 15 - 15 ------------------------------------------------------------ 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 = $140,709 $27,627 $168,336 $- $- $- $140,709 $27,627 $168,336 ---------- --------- -------------- --------------------------------------- COMPENSATION FOR USE OF EQUITY CAPITAL = - - - - - - - - - ---------- --------- -------------- --------------------------------------- 430 INTEREST ON DEBT TO ASSOCIATE COMPANIES = - - - - - - - - - ---------- --------- -------------- --------------------------------------- TOTAL COST OF SERVICE = $140,709 $27,627 $168,336 $- $- $- $140,709 $27,627 $168,336 ------------------------------------------------------------------- --------- -------------- --------------------------------------- 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 (Dollars in Thousands) AMOUNT HEAD SERVICES SERVICES AND SALES SERVICES - ---------------------------------------------------------------- --------- --------- ---------- ----------- ---------- --- ---------------------------------------------------------------- --------- --------- ---------- ----------- ---------- --- 901 SUPERVISION CUSTOMER ACCOUNTING $1,881 - 74 1,806 $- $- 902 METER READING 3,025 - 91 2,931 - - 903 CUSTOMER RECORDS AND COLLECTIONS 22,071 - 355 17,997 13 155 905 MISCELLANEOUS CUSTOMER ACCOUNTS 901 - (3) 874 1 24 907 SUPERVISION CUSTOMER SERVICE 175 - - 116 58 - 908 CUSTOMER ASSISTANCE 1,580 - 18 507 662 - 909 INFORMATIONAL AND INSTRUCTIONAL ADVERTISING 11 - - - - - 910 MISCELLANEOUS CUSTOMER SERVICE 455 - (2) 412 37 - 911 SUPERVISION SALES ACTIVITIES 536 - - 21 515 - 912 DEMONSTRATING AND SELLING 3,794 - 4 40 3,747 - 913 ADVERTISING 84 - - 6 76 - 916 MISCELLANEOUS SALES 624 - - 2 204 - 920 SALES AND SALARIES 35,353 - 1,321 3,344 1,626 2,567 921 OFFICE SUPPLIES AND EXPENSES 37,120 - 7,036 4,599 367 1,296 923 OUTSIDE SERVICES EMPLOYED 16,136 - 2,197 118 79 2,154 924 PROPERTY INSURANCE 1 - - 1 - - 925 INJURIES AND DAMAGES 2,670 - - - - - 926 EMPLOYEE PENSIONS AND BENEFITS 13,352 13,352 - - - - 928 REGULATORY COMMISSION EXPENSE 533 - 4 1 - - 929 DUPLICATE CHARGES-CREDIT - (8) - - - (8) 930.1 GENERAL ADVERTISING EXPENSE 1,326 - - 2 13 1 930.2 MISCELLANEOUS GENERAL EXPENSES 3,561 - 10 55 544 61 931 RENTS 3,075 - 69 19 199 260 932 MAINTENANCE OF STRUCTURES AND EQUIPMENT 418 - 98 12 - - 935 MAINTENANCE OF GENERAL PLANT 2,205 - 85 49 - 8 408 TAXES OTHER THAN INCOME TAXES 4,596 3,883 83 190 50 45 409 INCOME TAXES - - - (85) - - 410 PROVISION FOR DEFERRED INCOME TAXES 85 - - - - - 416 EXPENSES FROM MERCHANDISE 2,367 - - - 2,367 - 417.1 OTHER NONUTILITY EXPENSES 2,635 - 69 2 1,334 2 426.1 DONATIONS 1,404 - 1 1 5 3 426.2 LIFE INSURANCE (1,671) - - - (1,914) - 426.4 CIVIC, POLITIC AND RELATED ACCOUNTS 1,028 - - - 17 - 426.5 OTHER DEDUCTIONS 2,780 - 42 115 8 498 431 OTHER INTEREST EXPENSE 530 - - 29 501 - 432 AFUDC (345) - - - - (345) 500 OPERATION SUPERVISION AND ENGINEERING STEAM 5 - - - - - 501 FUEL HANDLING EXPENSE 89 - - - - - ---------------------------------------------------------------- --------- --------- ---------- ----------- ---------- --- DEPARTMENT OR SERVICE FUNCTION ----------------------------------------------------------- INFOR- MARKETING DESCRIPTION OF ITEMS (Dollars in Thousands) MATION CUSTOMER AND EMPLOYEE PROCURE- FINANCIAL REGULA- PUBLIC INVESTOR TOTAL 0VER- SER- SER- SER- AMOUNT HEAD VICES VICES SALES VICES MENT SERVICES TORY AFFAIRS RELATIONS ----------------------------------------------------- ------ --------- --------- ----------- --------- ------------- --------------- 506 OPERATION MISC STEAM 507 - 280 - - - 2 - - - - 510 MAINT SUPERVISION AND ENGINEERING 40 - - - - - - - - - - 517 OPERATION SUPERVISION AND ENGINEERING NUCLEAR 132 - 125 1 - 1 3 - - - - 519 OPERATION COOLANTS AND WATER 23 - 23 - - - - - - - - 520 OPERATION STEAM EXPENSES NUCLEAR 57 - 57 - - - - - - - - 524 OPERATION MISC NUCLEAR 964 - (19) - - 1 7 6 - 3 - 528 MAINT SUPERVISION AND ENGINEERING 3 - - - - 3 - - - - - 532 MAINT MISC NUCLEAR 230 - 224 - - - - - - - - 537 OPERERATION EXPENSES HYDRO 77 - 2 - - - - - - - - 539 OPERATION MISC HYDRAULIC PWR GEN 54 - 33 - - - - - - - - 544 MAINT ELECTRIC PLANT HYDRO 1 - - - - - - - - - - 546 OPERATION SUPERVISION AND ENGINEERING 3 - 2 - - - - - - - - 549 OPERATION MISC OTHER POWER GENERATION 21 - 3 - - - - - - - - 556 SYSTEM CONTROL AND LOAD 99 - 40 - - - - - - - - 560 OPERATION SUPERVISION AND ENGINEERING 47 - 7 - - - - - - - - 561 OPERATION LOAD DISPATCHING TRANSMISSION 69 - 18 - - - - - - - - 562 OPERATION STATION EXPENSES TRANSMISSION 32 - 30 - 2 - - - - - - 563 OPERATION OH LINE EXPENSES TRANSMISSION 1 - 1 - - - - - - - - 566 OPERATION MISC TRANSMISSION (64) - (87) - - - - - - - - 568 MAINT SUPERVISION AND ENGINEERING 11 - 6 - - - - - - - - 569 MAINT STRUCTURES TRANSMISSION 19 - - - - - - - - - - 570 MAINT STATION EQUIPMENT TRANSMISSION 59 - 49 - - - - - - - - 571 MAINT OVERHEAD LINES TRANSMISSION 1 - 1 - - - - - - - - 573 MAINT MISC TRANSMISSION 49 - 49 - - - - - - - - 580 DISTRIBUTION OPER SUPERVISION AND ENGINEERING (11) - (13) - - - - - - - - 581 DISTRIBUTION OPER LOAD DISPATCH 2 - 2 - - - - - - - - 582 DISTRIBUTION OPER STATION EXPENSES 43 - 30 - - - - - - - - 583 DIST RIBUTION OPER REMOVE AND RESET 2 - 1 - - - - - - - - 585 DISTRIBUTION OPER STREET LIGHT AND SIGNAL 29 - 26 - - - - - - - - 586 DISTRIBUTION OPER METER EXPENSES 395 - (3) 396 - - - - - - - 588 DISTRIBUTION OPER MISC DISTRIBUTION 449 - 270 18 - - - 1 - - - 592 DISTRIBUTION MAINT OF STATION EQUIPMENT 12 - 8 - - - - - - - - 593 DISTRIBUTION MAINT OF OH LINES 90 - 60 13 - 88 - (76) - 1 - 594 DISTRIBUTION MAINT UNDERGROUND LINES 29 - 28 1 - - - - - - - 596 DISTRIBUTION MAINT STREET LIGHT AND SIGNAL 10 - 9 - - - - - - - - 598 DISTRIBUTION MAINT MISC DISTRIBUTION PLANT 2 - - - - - - - - - - 717 OPERATION LIQUID PETROLEUM GAS 1 - - - - - - - - - - 735 ENVIRONMENAL AMORTIZATION AND MISC 96 - - - - 1 (2,153) - 874 MAINS AND SERVICES NATURAL GAS 47 - 47 - - - - - - - - 878 METER AND HOUSE REGULATOR 152 - 1 151 - - - - - - - 879 CUST OMER INSTALLATION NATURAL GAS 4 - - 3 - - - - - - - 880 OTHER EXPENSES NATURAL GAS 208 - 182 - - - - 5 - - - 350 SUPERINTENDENCE OPERATIONS 24 - 10 - - - - - - - - 351 SUPERINTENDENCE MAINT 5 - 4 - - - - - - - - 370 ADMINISTRATIVE AND GENERAL 15 - 13 - - - - (140) - 1 - --------------------------------------------------- INSTRUCTION: Indicate each department or service function. (see Instruction 01-3 General Structure of Accounting System: Uniform System Account) -------------------------------------------- ----------------------------------- ---------- --- -------------- ------- TOTAL EXPENSES = $168,336 $17,235 $13,063 $33,803 $11,936 $5,632 $1,771 $28,078 $655 $7,973 $1,169 -------------------------------------------- --------------------------------------------------------------------------------------- -------------------------------------------- --------------------------------------------------------------------------------------- ANNUAL REPORT OF SCANA Services, Inc. For the Year Ended December 31, 2000 ----------------------------------------------------------------------------------------------------------------------------------- SCHEDULE XVII SCHEDULE OF EXPENSE DISTRIBUTION BY DEPARTMENT OR SERVICE FUNCTION ------------------------------------------------------------------------------------------------------------------------------------ LANDAND DEPARTMENT OR SERVICE FUNCTION FACILITIES STRATEGIC EXECUTIVE OPERATIONAL DESCRIPTION OF ITEMS (Dollars in Thousands) LEGAL MANAGEMENT ENVIRONMENTAL PLANNING SERVICES SUPPORT ------------------------------------------------------------- ------------------------------- ------------------------- ------------ 901 SUPERVISION CUSTOMER ACCOUNTING $- $- $- $- $- $- 902 METER READING - - - - - 3 903 CUSTOMER RECORDS AND COLLECTIONS - - - - - 88 905 MISCELLANEOUS CUSTOMER ACCOUNTS - - - - - 3 907 SUPERVISION CUSTOMER SERVICE - 1 - - - - 908 CUSTOMER ASSISTANCE - 2 - - 382 7 909 INFORMATIONAL AND INSTRUCTIONAL ADVERTISING - 10 - - - - 910 MISCELLANEOUS CUSTOMER SERVICE - 5 1 - - 1 911 SUPERVISION SALES ACTIVITIES - - - - - - 912 DEMONSTRATING AND SELLING - - - - - 1 913 ADVERTISING - - - - - - 916 MISCELLANEOUS SALES - - - - 328 - 920 SALARIES AND WAGES 2,938 139 436 432 2,458 1,586 921 OFFICE SUPPLIES AND EXPENSES 2,138 2,442 148 176 3,111 5,738 923 OUTSIDE SERVICES EMPLOYED 8,515 11 196 57 167 164 924 PROPERTY INSURANCE - - - - - - 925 INJURIES AND DAMAGES 2,671 - - - - - 926 EMPLOYEE PENSIONS AND BENEFITS - - - - - - 928 REGULATORY COMMISSION EXPENSE 137 - - - 7 - 929 DUPLICATE CHARGES-CREDIT - - - - - - 930.1 GENERAL ADVERTISING EXPENSE - - - - - 23 930.2 MISCELLANEOUS GENERAL EXPENSES 948 1 - 1,113 391 15 931 RENTS 403 196 71 177 723 143 932 MAINTENANCE OF STRUCTURES AND EQUIPMENT - - - - - 298 935 MAINTENANCE OF GENERAL PLANT 6 611 240 - - 913 408 TAXES OTHER THAN INCOME TAXES 8 10 1 - 52 128 409 INCOME TAXES - - - - - - 410 PROVISION FOR DEFERRED INCOME TAXES - - - - - - 416 EXPENSES FROM MERCHANDISE - - - - - - 417.1 OTHER NONUTILITY EXPENSES 16 196 5 - 59 (154) 426.1 DONATIONS - 1 - - 369 - 426.2 LIFE INSURANCE - - - - - - 426.4 CIVIC, POLITIC AND RELATED ACCOUNTS 2 - - - 35 - 426.5 OTHER DEDUCTIONS 141 389 16 21 635 74 431 OTHER INTEREST EXPENSE - - - - - - 432 AFUDC - - - - - - 500 OPERATION SUPERV ISION AND ENGINEERING - 2 3 - - - STEAM 501 FUEL HANDLING EXPENSE 59 1 - - - - ------------------------------------------------------------------- ---------------------------------------------------------------- LAND AND FACILITIES STRATEGIC EXECUTIVE OPERATIONAL DESCRIPTION OF ITEMS (Dollars in Thousands) LEGAL MANAGEMENT ENVIRONMENTAL PLANNING SERVICES SUPPORT ------------------------------------------------------------------- ---------------------------------------------------------------- 506 OPERATION MISC STEAM 51 - 70 - - 104 510 MAINT SUPERVISION AND ENGINEERING STEAM - - - 40 - - 517 OPERATION SUPERVISION AND ENGINEERING NUCLEAR - - - - - 2 519 OPERATION COOLANTS AND WATER - - - - - - 520 OPERATION STEAM EXPENSES NUCLEAR - - - - - - 524 OPERATION MISC NUCLEAR - 944 14 - - 8 528 MAINT SUPERVISION AND ENGINEERING - - - - - - 532 MAINT MISC NUCLEAR - - - - - 6 537 OPERATION EXPENSES HYDRO - 72 - - - 3 539 OPERATION MISC HYDRAULIC PWR GEN - - 7 - - 14 544 MAINT ELECTRIC PLANT HYDRO - - - - - 1 546 OPERATION SUPERVISION AND ENGINEERING - - - - - 1 549 OPERATION MISC OTHER POWER GENERATION - - 13 - - 5 556 SYSTEM CONTROL AND LOAD - 46 - - - 13 560 OPERATION SUPERVISION AND ENGINEERING - 40 - - - - 561 OPERATION LOAD DISPATCHING TRANSMISSION - 47 - - - 4 562 OPERATION STATION EXPENSES TRANSMISSION - - - - - - 563 OPERATION OH LINE EXPENSES TRANSMISSION - - - - - - 566 OPERATION MISC TRANSMISSION - 6 1 - - 16 568 MAINT SUPERVISION AND ENGINEERING - 5 - - - - 569 MAINT STRUCTURES TRANSMISSION - 19 - - - - 570 MAINT STATION EQUIPMENT TRANSMISSION - - - - - 10 571 MAINT OVERHEAD LINES TRANSMISSION - - - - - - 573 MAINT MISC TRANSMISSION - - - - - - 580 DISTRIBUTION OPER SUPERVISION AND ENGINEERING - 1 - - - 1 581 DISTRIBUTION OPER LOAD DISPATCH - - - - - - 582 DISTRIBUTION OPER STATION EXPENSES - 13 - - - - 583 DISTRIBUTION OPER REMOVE AND RESET - 1 - - - - 585 DISTRIBUTION OPER STREET LIGHT AND SIGNAL - 2 - - - 1 586 DISTRIBUTION OPER METER EXPENSES - - - - - 2 588 DISTRIBUTION OPER MISC DISTRIBUTION 2 6 103 - - 49 592 DISTRIBUTION MAINT OF STAT ION EQUIPMENT - 1 - - - 3 593 DISTRIBUTION MAINT OF OH LINES - 4 - - - - 594 DISTRIBUTION MAINT UNDERGROUND LINES - - - - - - 596 DISTRIBUTION MAINT STREET LIGHT AND SIGNAL - - - - - 1 598 DISTRIBUTION MAINT MISC DISTRIBUTION PLANT - 2 - - - - 717 OPERATION LIQUID PETROLEUM GAS - 1 - - - - 735 ENVIRONMENTAL AMORTIZATION AND MISC - - 2,248 - - - 874 MAINS AND SERVICES NATURAL GAS - - - - - - 878 METER AND HOUSE REGULATOR - - - - - - 879 CUSTOMER INSTALLATION NATURALGAS DISTRIBUTION - 1 - - - - 880 OTHER EXPENSES NATURAL GAS - - - - - 21 350 SUPERINTENDENCE OPERATIONS - 10 - - - 4 351 SUPERINTENDENCE MAINT - - - - - 1 370 ADMINISTRATIVE AND GENERAL 139 - - - - 2 ------------------------------------------------------------------- ---- ------------- ----------- ------------- ----------- $18,174 $5,238 $3,573 $2,016 $8,717 $9,303 ------------------------------------------------------------------- ---------- ------------- ----------- ------------------------- 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 ---------------------------------------------------------------------------------- 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 $1,321 $- $1,321 $- 403 Customer Services 3,344 - 3,344 - 637 Marketing and Sales 1,626 - 1,626 - 112 Employee Services 2,645 - 2,645 - 97 Procurement 1,040 - 1,040 - 51 Financial Services 14,884 - 14,884 - 236 Regulatory 384 - 384 - 11 Public Affairs 1,737 - 1,737 - 48 Legal 2,938 - 2,938 - 93 Investor Relations 383 - 383 - 14 Land and Facilities Management 139 - 139 - 66 Environmental 436 - 436 - 24 Strategic Planning 432 - 432 - 10 Executive Services 2,458 - 2,458 - 35 Operational Support 1,586 - 1,586 - 70 ------------------- ------------------- -------------------------------- --------------------------------- TOTAL $35,353 $- $35,353 $- 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 598 Arthur Andersen LLP - Carolinas NA 93 Pricewaterhouse NA 200 --------------------------- --------------------------- 891 --------------------------- --------------------------- 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 (548 items) NA 2,276 --------------------------- --------------------------- ---------------------------------------------- ------------------------- ----------------------------- --------------------------- ---------------------------------------------- ------------------------- ----------------------------- --------------------------- TOTAL $16,136 ---------------------------------------------- ------------------------- ----------------------------- --------------------------- 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 93 Employee Assistance Program 29 Parking 47 Others 480 -------------------------- TOTAL $13,352 ------------------------------------ -------------------------- 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 4 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 124 -------------------------------------- ----------- ------------------------- TOTAL $1,326 -------------------------------------- ----------- ------------------------ 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) 110 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 63 Non-charitable contributions 19 Education 2 Other miscellaneous expenses 270 ---------------------------------------- ------------------------- TOTAL $3,561 ---------------------------------------- ------------------------- 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 $2,914 Communications towers 36 Communications equipment 25 Computers 80 Equipment 20 ------------------- TOTAL $3,075 ---------------------------------------------------------------------- Note:Rent amounts are charged to Account 931 and other expense accounts, as appropriate per the Federal Energy Regulatory Commission Uniform System of Accounts. ANNUAL REPORT OF SCANA Services, Inc. For the Year Ended December 31, 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 $772 State Unemployment Tax 38 -------- -------- 810 -------- -------- U. S. Government Taxes: Social Security and Medicare Tax 3,734 Unemployment Tax 52 -------- -------- 3,786 -------- -------- ------------------------- TOTAL $4,596 ----------------------------------------- ------------------------- 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 3 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 8 Columbia College Sponsorship 10 Committee for Growth Management Sponsorship 25 Columbia Communities in Schools Corporate Contribution 4 Congaree Girl Scout Council Sponsorship 3 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 3 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 Industry Corporate 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 3 West Gastonia Youth Board Corporate Contribution 5 YMCA Asheville Corporate Contribution 5 Others less than $3,000 (216 items) Corporate Contribution 222 --------------------------------------------------------- ------------------------ ---------------------- TOTAL $1,404 --------------------------------------------------------- ------------------------ ----------------------------- 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 43 Other 566 ------------------------------------------------------------- TOTAL $2,780 ----------------------------------------------- ---------------------- 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: ==================== ==================== 2. To SCANA Service: ==================== ==================== 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. --------------------------------------------------- (Name of Reporting Company) By: s/Mark R. Cannon -------------------------------------------- (Signature of Signing Officer) Controller --------------------------------------------------- (Printed Name and Title of Signing Officer) Date: April 29, 2002 ------------------------------------------------