ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

All financial instruments described in this section are held for purposes other than trading.

Interest Rate Risk

The tables below provide information about long-term debt issued by the Company and Consolidated SCE&G and other financial instruments that are sensitive to changes in interest rates. For debt obligations, the tables present principal cash flows and related weighted average interest rates by expected maturity dates. For interest rate swaps, the figures shown reflect notional amounts, weighted average interest rates and related maturities. Fair values for debt represent quoted market prices. Interest rate swap agreements are valued using discounted cash flow models with independently sourced data.



The Company
December 31, 2016	Expected Maturity Date
Millions of dollars	2017	2018	2019	2020	2021	Thereafter	Total	Fair Value
Long-Term Debt:
Fixed Rate ($)	12.5	721.7	11.1	360.2	489.0	4,789.7	6,384.3	7,040.6
Average Fixed Interest Rate (%)	4.21	6.01	4.40	6.33	4.64	5.73	5.70	—
Variable Rate ($)	4.4	4.4	4.4	4.4	4.4	125.0	147.0	142.7
Average Variable Interest Rate (%)	1.63	1.63	1.63	1.63	1.63	1.16	1.23	—
Interest Rate Swaps:
Pay Fixed/Receive Variable ($)	554.4	704.4	4.4	4.4	4.4	128.6	1,400.6	12.3
Average Pay Interest Rate (%)	2.91	2.22	6.17	6.17	6.17	4.57	2.74	—
Average Receive Interest Rate (%)	1.00	1.00	1.63	1.63	1.63	1.08	1.02	—



December 31, 2015	Expected Maturity Date
Millions of dollars	2016	2017	2018	2019	2020	Thereafter	Total	Fair Value
Long-Term Debt:
Fixed Rate ($)	111.5	10.6	719.8	9.1	358.3	4,673.0	5,882.3	6,336.2
Average Fixed Interest Rate (%)	1.16	4.42	6.02	4.73	6.35	5.63	5.63	—
Variable Rate ($)	4.4	4.4	4.4	4.4	4.4	129.4	151.4	145.5
Average Variable Interest Rate (%)	1.11	1.11	1.11	1.11	1.11	0.55	0.63	—
Interest Rate Swaps:
Pay Fixed/Receive Variable ($)	654.4	554.4	4.4	4.4	4.4	133.0	1,355.0	(72.1	)
Average Pay Interest Rate (%)	2.89	2.91	6.17	6.17	6.17	4.62	3.10	—
Average Receive Interest Rate (%)	0.62	0.62	1.11	1.11	1.11	0.52	0.61	—



Consolidated SCE&G
December 31, 2016	Expected Maturity Date
Millions of dollars	2017	2018	2019	2020	2021	Thereafter	Total	Fair Value
Long-Term Debt:
Fixed Rate ($)	12.0	721.7	11.1	10.2	39.0	4,339.7	5,133.7	5,687.3
Average Fixed Interest Rate (%)	4.27	6.01	4.40	4.54	3.60	5.75	5.76	—
Variable Rate ($)	—	—	—	—	—	67.8	67.8	64.9
Average Variable Interest Rate (%)	—	—	—	—	—	0.76	0.76	—
Interest Rate Swaps:
Pay Fixed/Receive Variable ($)	550.0	700.0	—	—	—	71.4	1,321.4	31.7
Average Pay Interest Rate (%)	2.88	2.19	—	—	—	3.29	2.54	—
Average Receive Interest Rate (%)	1.00	1.00	—	—	—	0.64	0.98	—



December 31, 2015	Expected Maturity Date
Millions of dollars	2016	2017	2018	2019	2020	Thereafter	Total	Fair Value
Long-Term Debt:
Fixed Rate ($)	110.4	10.1	719.8	9.1	8.3	3,873.0	4,730.7	5,095.0
Average Fixed Interest Rate (%)	1.13	4.50	6.02	4.73	4.94	5.71	5.64	—
Variable Rate ($)	—	—	—	—	—	67.8	67.8	63.7
Average Variable Interest Rate (%)	—	—	—	—	—	0.03	0.03	—
Interest Rate Swaps:
Pay Fixed/Receive Variable ($)	650.0	550.0	—	—	—	71.4	1,271.4	(49.8	)
Average Pay Interest Rate (%)	2.87	2.88	—	—	—	3.28	2.90	—
Average Receive Interest Rate (%)	0.61	0.61	—	—	—	0.01	0.58	—

While a decrease in interest rates would increase the fair value of debt, it is unlikely that events which would result in a realized loss will occur.

For further discussion of long-term debt and interest rate derivatives, see the Liquidity and Capital Resources section in Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations and Notes 4 and 6 to the consolidated financial statements.

Commodity Price Risk

The following table provides information about the Company’s financial instruments, which are limited to financial positions of Energy Marketing and PSNC Energy, that are sensitive to changes in natural gas prices. Weighted average settlement prices are per 10,000 MMBTU. Fair value represents quoted market prices.



Expected Maturity	2017	2018	2019
Futures - Long
Settlement Price (a)	3.65	3.43	—
Contract Amount (b)	92.6	15.4	—
Fair Value (b)	102.3	16.5	—

Futures - Short
Settlement Price (a)	3.65	3.43	—
Contract Amount (b)	49.7	8.0	—
Fair Value (b)	51.6	8.3	—

Options - Purchased Call (Long)
Strike Price (a)	1.95	—	—
Contract Amount (b)	13.7	—	—
Fair Value (b)	2.6	—	—

Swaps - Commodity
Pay fixed/receive variable (b)	13.9	8.0	1.0
Average pay rate (a)	3.4075	3.4326	2.9667
Average received rate (a)	3.6240	3.2042	3.0954
Fair Value (b)	14.8	7.5	1.1
Pay variable/receive fixed (b)	30.4	11.3	0.8
Average pay rate (a)	3.6234	3.2431	3.1277
Average received rate (a)	3.2387	3.3488	2.9851
Fair Value (b)	27.1	11.7	0.8

Swaps - Basis
Pay variable/receive variable (b)	1.5	0.8	0.3
Average pay rate (a)	3.7218	3.4697	3.1904
Average received rate (a)	3.6529	3.4218	3.1234
Fair Value (b)	1.5	0.8	0.3

(a)Weighted average, in dollars

(b)Millions of dollars

The Company uses derivative instruments to hedge forward purchases and sales of natural gas, which create market risks of different types. See Note 6 to the consolidated financial statements.

PSNC Energy utilizes futures, options and swaps to hedge gas purchasing activities. PSNC Energy’s tariffs include a provision for the recovery of actual gas costs incurred. PSNC Energy defers premiums, transaction fees, margin requirements and any realized gains or losses from its hedging program for subsequent recovery from customers.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders of

SCANA Corporation

Cayce, South Carolina

We have audited the accompanying consolidated balance sheets of SCANA Corporation and subsidiaries (the "Company") as of December 31, 2016 and 2015, and the related consolidated statements of income, comprehensive income, cash flows, and changes in common equity for each of the three years in the period ended December 31, 2016. Our audits also included the financial statement schedule listed in Part IV at Item 15. These financial statements and the financial statement schedule are the responsibility of the Company's management. Our responsibility is to express an opinion on the financial statements and financial statement schedule based on our audits.

In our opinion, such consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2016 and 2015, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2016, in conformity with accounting principles generally accepted in the United States of America. Also, in our opinion, such financial statement schedule, when considered in relation to the basic consolidated financial statements taken as a whole, presents fairly, in all material respects, the information set forth therein.

We have also audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the Company's internal control over financial reporting as of December 31, 2016, based on the criteria established in Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission and our report dated February 24, 2017 expressed an unqualified opinion on the Company's internal control over financial reporting.



/s/DELOITTE & TOUCHE LLP
Charlotte, North Carolina
February 24, 2017

SCANA Corporation and Subsidiaries

Consolidated Balance Sheets



December 31, (Millions of dollars)	2016			2015
Assets
Utility Plant In Service	$	13,444		$	12,883
Accumulated Depreciation and Amortization	(4,446		)	(4,307		)
Construction Work in Progress	4,845			4,051
Nuclear Fuel, Net of Accumulated Amortization	271			308
Goodwill	210			210
Utility Plant, Net	14,324			13,145
Nonutility Property and Investments:
Nonutility property, net of accumulated depreciation of $138 and $124	276			280
Assets held in trust, net-nuclear decommissioning	123			115
Other investments	76			71
Nonutility Property and Investments, Net	475			466
Current Assets:
Cash and cash equivalents	208			176
Receivables:
Customer, net of allowance for uncollectible accounts of $6 and $5	616			505
Income taxes	142			—
Other	127			227
Inventories:
Fuel	136			164
Materials and supplies	155			148
Prepayments	105			115
Other current assets	17			43
Total Current Assets	1,506			1,378
Deferred Debits and Other Assets:
Regulatory assets	2,130			1,937
Other	272			220
Total Deferred Debits and Other Assets	2,402			2,157
Total	$	18,707		$	17,146

See Notes to Consolidated Financial Statements.



December 31, (Millions of dollars)	2016			2015
Capitalization and Liabilities
Common Stock - no par value, 142.9 million shares outstanding for all periods presented	$	2,390		$	2,390
Retained Earnings	3,384			3,118
Accumulated Other Comprehensive Loss	(49		)	(65		)
Total Common Equity	5,725			5,443
Long-Term Debt, Net	6,473			5,882
Total Capitalization	12,198			11,325
Current Liabilities:
Short-term borrowings	941			531
Current portion of long-term debt	17			116
Accounts payable	404			590
Customer deposits and customer prepayments	168			137
Taxes accrued	201			242
Interest accrued	84			83
Dividends declared	80			76
Derivative financial instruments	35			50
Other	135			127
Total Current Liabilities	2,065			1,952
Deferred Credits and Other Liabilities:
Deferred income taxes, net	2,159			1,907
Asset retirement obligations	558			520
Pension and postretirement benefits	373			315
Unrecognized tax benefits	219			44
Regulatory liabilities	930			855
Other	205			228
Total Deferred Credits and Other Liabilities	4,444			3,869
Commitments and Contingencies (Note 10)	—			—
Total	$	18,707		$	17,146

See Notes to Consolidated Financial Statements.

SCANA Corporation and Subsidiaries

Consolidated Statements of Income



Years Ended December 31, (Millions of dollars, except per share amounts)	2016			2015			2014
Operating Revenues:
Electric	$	2,614		$	2,551		$	2,622
Gas-regulated	788			811			1,028
Gas-nonregulated	825			1,018			1,301
Total Operating Revenues	4,227			4,380			4,951

Operating Expenses:
Fuel used in electric generation	576			660			793
Purchased power	64			52			81
Gas purchased for resale	1,054			1,287			1,729
Other operation and maintenance	755			715			728
Depreciation and amortization	371			358			384
Other taxes	254			234			229
Total Operating Expenses	3,074			3,306			3,944
Gain on sale of CGT, net of transaction costs	—			234			—
Operating Income	1,153			1,308			1,007

Other Income (Expense):
Other income	64			75			122
Other expense	(38		)	(60		)	(64		)
Gain on sale of SCI, net of transaction costs	—			107			—
Interest charges, net of allowance for borrowed funds used during construction of $19, $15 and $16	(342		)	(318		)	(312		)
Allowance for equity funds used during construction	29			27			33
Total Other Expense	(287		)	(169		)	(221		)

Income Before Income Tax Expense	866			1,139			786
Income Tax Expense	271			393			248
Net Income	$	595		$	746		$	538

Earnings Per Share of Common Stock	$	4.16		$	5.22		$	3.79
Weighted Average Common Shares Outstanding (millions)	142.9			142.9			141.9
Dividends Declared Per Share of Common Stock	$	2.30		$	2.18		$	2.10

See Notes to Consolidated Financial Statements.

SCANA Corporation and Subsidiaries

Consolidated Statements of Comprehensive Income



Years Ended December 31, (Millions of dollars)	2016			2015			2014
Net Income	$	595		$	746		$	538
Other Comprehensive Income (Loss), net of tax:
Unrealized Losses on Cash Flow Hedging Activities:
Unrealized gains (losses) on cash flow hedging activities arising during period, net of tax of $2, $(7) and $(9)	4			(12		)	(14		)
Cash flow hedging activities reclassified to interest expense, net of tax of $4, $4 and $4	7			7			7
Cash flow hedging activities reclassified to gas purchased for resale, net of tax of $4, $9 and $(2)	6			15			(4		)
Net unrealized gains (losses) on cash flow hedging activities	17			10			(11		)
Deferred Costs of Employee Benefit Plans:
Deferred costs of employee benefit plans, net of tax of $-, $- and $(3)	—			—			(5		)
Amortization of deferred employee benefit plan costs reclassified to net income (see Note 8), net of tax of $-, $- and $-	(1		)	—			1
Net deferred costs of employee benefit plans	(1		)	—			(4		)
Other Comprehensive Income (Loss)	16			10			(15		)
Total Comprehensive Income	$	611		$	756		$	523

See Notes to Consolidated Financial Statements.

SCANA Corporation and Subsidiaries

Consolidated Statements of Cash Flows



For the Years Ended December 31, (Millions of dollars)	2016			2015			2014
Cash Flows From Operating Activities:
Net Income	$	595		$	746		$	538
Adjustments to reconcile net income to net cash provided from operating activities:
Gain on sale of subsidiaries	—			(355		)	—
Deferred income taxes, net	242			(31		)	235
Depreciation and amortization	389			368			403
Amortization of nuclear fuel	57			46			45
Allowance for equity funds used during construction	(29		)	(27		)	(33		)
Carrying cost recovery	(17		)	(12		)	(9		)
Changes in certain assets and liabilities:
Receivables	(112		)	188			(33		)
Income tax receivable	(142		)	—			—
Inventories	(43		)	(16		)	(62		)
Prepayments	11			211			(235		)
Regulatory assets	(114		)	(31		)	(138		)
Regulatory liabilities	(2		)	(1		)	(104		)
Accounts payable	44			(78		)	36
Unrecognized tax benefits	175			31			10
Taxes accrued	(41		)	61			(24		)
Pension and other postretirement benefits	51			(6		)	133
Derivative financial instruments	(9		)	(9		)	18
Other assets	(44		)	(3		)	(35		)
Other liabilities	81			(23		)	(15		)
Net Cash Provided From Operating Activities	1,092			1,059			730
Cash Flows From Investing Activities:
Property additions and construction expenditures	(1,579		)	(1,153		)	(1,092		)
Proceeds from sale of subsidiaries	—			647			—
Proceeds from investments (including derivative collateral returned)	860			1,117			347
Purchase of investments (including derivative collateral posted)	(788		)	(1,018		)	(475		)
Payments upon interest rate derivative contract settlement	(113		)	(263		)	(95		)
Proceeds from interest rate derivative contract settlement	—			10			—
Net Cash Used For Investing Activities	(1,620		)	(660		)	(1,315		)
Cash Flows From Financing Activities:
Proceeds from issuance of common stock	—			14			98
Proceeds from issuance of long-term debt	592			491			294
Repayments of long-term debt	(117		)	(166		)	(54		)
Dividends	(325		)	(309		)	(294		)
Short-term borrowings, net	410			(387		)	542
Deferred financing costs	—			(3		)	—
Net Cash Provided From (Used For) Financing Activities	560			(360		)	586
Net Increase in Cash and Cash Equivalents	32			39			1
Cash and Cash Equivalents, January 1	176			137			136
Cash and Cash Equivalents, December 31	$	208		$	176		$	137
Supplemental Cash Flow Information:
Cash for—Interest paid (net of capitalized interest of $19, $15 and $16)	$	328		$	306		$	301
—Income taxes paid	229			184			299
—Income taxes received	166			—			—
Noncash Investing and Financing Activities:
Accrued construction expenditures	109			244			180
Capital leases	15			6			5

See Notes to Consolidated Financial Statements.

SCANA Corporation and Subsidiaries

Consolidated Statements of Changes in Common Equity



	Common Stock									Accumulated Other Comprehensive Income (Loss)
Millions	Shares	Outstanding Amount		Treasury Amount			Retained Earnings			Gains (Losses) Cash Flow Hedges			Deferred Employee Benefit Plans			Total AOCI			Total
Balance as of January 1, 2014	141	$	2,289	$	(9	)	$	2,444		$	(52	)	$	(8	)	$	(60	)	$	4,664
Net Income							538												538
Other Comprehensive Income (Loss)
Losses arising during the period										(14		)	(5		)	(19		)	(19		)
Losses/amortization reclassified from AOCI										3			1			4			4
Total Comprehensive Income (Loss)							538			(11		)	(4		)	(15		)	523
Issuance of Common Stock	2	99		(1		)													98
Dividends Declared							(298		)										(298		)
Balance as of December 31, 2014	143	$	2,388	(10		)	2,684			(63		)	(12		)	(75		)	4,987
Net Income							746												746
Other Comprehensive Income (Loss)
Losses arising during the period										(12		)	—			(12		)	(12		)
Losses/amortization reclassified from AOCI										22			—			22			22
Total Comprehensive Income							746			10			—			10			756
Issuance of Common Stock	—	14		(2		)													12
Dividends Declared							(312		)										(312		)
Balance as of December 31, 2015	143	$	2,402	(12		)	3,118			(53		)	(12		)	(65		)	5,443
Net Income							595												595
Other Comprehensive Income (Loss)
Losses arising during the period										4			(1		)	3			3
Losses/amortization reclassified from AOCI										13			—			13			13
Total Comprehensive Income (Loss)							595			17			(1		)	16			611
Issuance of Common Stock	—	—		—															—
Dividends Declared							(329		)										(329		)
Balance as of December 31, 2016	143	$	2,402	$	(12	)	$	3,384		$	(36	)	$	(13	)	$	(49	)	$	5,725

Dividends declared per share of common stock were $2.30, $2.18 and $2.10 for 2016, 2015 and 2014, respectively.

See Notes to Consolidated Financial Statements.

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholder of

South Carolina Electric & Gas Company

Cayce, South Carolina

We have audited the accompanying consolidated balance sheets of South Carolina Electric & Gas Company and affiliates (the "Company") as of December 31, 2016 and 2015, and the related consolidated statements of comprehensive income, cash flows, and changes in equity for each of the three years in the period ended December 31, 2016. Our audits also included the financial statement schedule listed in Part IV at Item 15. These financial statements and the financial statement schedule are the responsibility of the Company's management. Our responsibility is to express an opinion on the financial statements and financial statement schedule based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, such consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2016 and 2015, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2016, in conformity with accounting principles generally accepted in the United States of America. Also, in our opinion, such financial statement schedule, when considered in relation to the basic consolidated financial statements taken as a whole, presents fairly in all material respects the information set forth therein.

/s/DELOITTE & TOUCHE LLP

Charlotte, North Carolina

February 24, 2017

South Carolina Electric & Gas Company and Affiliates

Consolidated Balance Sheets



December 31, (Millions of dollars)	2016			2015
Assets
Utility Plant In Service	$	11,510		$	11,153
Accumulated Depreciation and Amortization	(3,991		)	(3,869		)
Construction Work in Progress	4,813			3,997
Nuclear Fuel, Net of Accumulated Amortization	271			308
Utility Plant, Net ($756 and $700 related to VIEs)	12,603			11,589
Nonutility Property and Investments:
Nonutility property, net of accumulated depreciation	69			68
Assets held in trust, net-nuclear decommissioning	123			115
Other investments	3			1
Nonutility Property and Investments, Net	195			184
Current Assets:
Cash and cash equivalents	164			130
Receivables:
Customer, net of allowance for uncollectible accounts of $3 and $3	378			324
Affiliated companies	16			22
Income taxes	53			—
Other	94			202
Inventories:
Fuel	83			98
Materials and supplies	143			136
Prepayments	88			92
Other current assets	1			15
Total Current Assets ($85 and $88 related to VIEs)	1,020			1,019
Deferred Debits and Other Assets:
Regulatory assets	2,030			1,857
Other	243			116
Total Deferred Debits and Other Assets ($52 and $53 related to VIEs)	2,273			1,973
Total	$	16,091		$	14,765

See Notes to Consolidated Financial Statements.



December 31, (Millions of dollars)	2016			2015
Capitalization and Liabilities
Common Stock - no par value, 40.3 million shares outstanding for all periods presented	$	2,860		$	2,760
Retained Earnings	2,481			2,265
Accumulated Other Comprehensive Loss	(3		)	(3		)
Total Common Equity	5,338			5,022
Noncontrolling interest	134			129
Total Equity	5,472			5,151
Long-Term Debt, net	5,154			4,659
Total Capitalization	10,626			9,810
Current Liabilities:
Short-term borrowings	804			420
Current portion of long-term debt	12			110
Accounts payable	247			469
Affiliated payables	122			113
Customer deposits and customer prepayments	126			93
Taxes accrued	195			299
Interest accrued	68			66
Dividends declared	79			75
Derivative financial instruments	28			34
Other	55			61
Total Current Liabilities	1,736			1,740
Deferred Credits and Other Liabilities:
Deferred income taxes, net	1,939			1,732
Asset retirement obligations	522			488
Pension and postretirement benefits	232			186
Unrecognized tax benefits	236			44
Regulatory liabilities	695			635
Other	89			113
Other - affiliate	16			17
Total Deferred Credits and Other Liabilities	3,729			3,215
Commitments and Contingencies (Note 10)	—			—
Total	$	16,091		$	14,765

See Notes to Consolidated Financial Statements.

South Carolina Electric & Gas Company and Affiliates

Consolidated Statements of Comprehensive Income



For the Years Ended December 31, (Millions of dollars)	2016			2015			2014
Operating Revenues:
Electric	$	2,614		$	2,551		$	2,621
Electric - nonconsolidated affiliate	5			6			8
Gas	366			372			461
Gas - nonconsolidated affiliate	1			1			1
Total Operating Revenues	2,986			2,930			3,091

Operating Expenses:
Fuel used in electric generation	472			559			644
Fuel used in electric generation - nonconsolidated affiliate	104			102			155
Purchased power	64			52			81
Gas purchased for resale	174			162			210
Gas purchased for resale - nonconsolidated affiliate	9			31			73
Other operation and maintenance	403			380			382
Other operation and maintenance - nonconsolidated affiliate	211			199			193
Depreciation and amortization	302			294			315
Other taxes	227			211			202
Other taxes - nonconsolidated affiliate	7			6			6
Total Operating Expenses	1,973			1,996			2,261
Operating Income	1,013			934			830

Other Income (Expense):
Other income	29			31			80
Other expenses	(24		)	(31		)	(34		)
Interest charges, net of allowance for borrowed funds used during construction of $18, $14 and $14	(270		)	(248		)	(228		)
Allowance for equity funds used during construction	26			25			28
Total Other Expense	(239		)	(223		)	(154		)

Income Before Income Tax Expense	774			711			676
Income Tax Expense	248			231			218
Net Income and Total Comprehensive Income	526			480			458
Less Net Income and Total Comprehensive Income Attributable to Noncontrolling Interest	13			14			12
Earnings and Comprehensive Income Available to Common Shareholder	$	513		$	466		$	446

Dividends Declared on Common Stock	$	305		$	285		$	272

See Notes to Consolidated Financial Statements.

South Carolina Electric & Gas Company and Affiliates

Consolidated Statements of Cash Flows



For the Years Ended December 31, (Millions of dollars)	2016			2015			2014
Cash Flows From Operating Activities:
Net income	$	526		$	480		$	458
Adjustments to reconcile net income to net cash provided from operating activities:
Deferred income taxes, net	207			8			187
Depreciation and amortization	310			294			318
Amortization of nuclear fuel	57			46			45
Allowance for equity funds used during construction	(26		)	(25		)	(28		)
Carrying cost recovery	(17		)	(12		)	(9		)
Changes in certain assets and liabilities:
Receivables	(47		)	85			51
Receivables - affiliate	(3		)	16			(90		)
Income tax receivable	(53		)	—			—
Inventories	(35		)	(24		)	(52		)
Prepayments	(4		)	70			(89		)
Regulatory assets	(94		)	(29		)	(116		)
Other regulatory liabilities	(5		)	(3		)	(103		)
Accounts payable	8			11			(49		)
Accounts payable - affiliate	13			(17		)	63
Unrecognized tax benefits	192			31			10
Taxes accrued	(104		)	129			(53		)
Pension and other postretirement benefits	39			(5		)	106
Other assets	(99		)	57			(15		)
Other liabilities	58			(28		)	16
Other liabilities - affiliate	(1		)	(6		)	(9		)
Net Cash Provided From Operating Activities	922			1,078			641
Cash Flows From Investing Activities:
Property additions and construction expenditures	(1,399		)	(1,008		)	(934		)
Proceeds from investments and sales of assets (including derivative collateral returned)	794			975			275
Purchase of investments (including derivative collateral posted)	(740		)	(887		)	(381		)
Payments upon interest rate derivative contract settlement	(113		)	(263		)	(95		)
Proceeds from interest rate derivative contract settlement	—			10			—
Proceeds from investment in affiliate	9			71			—
Investment in affiliate	—			—			(80		)
Net Cash Used For Investing Activities	(1,449		)	(1,102		)	(1,215		)
Cash Flows From Financing Activities:
Proceeds from issuance of long-term debt	494			491			294
Repayment of long-term debt	(112		)	(11		)	(48		)
Dividends	(301		)	(285		)	(260		)
Short-term borrowings, net	384			(289		)	458
Short-term borrowings-nonconsolidated affiliate, net	(4		)	(50		)	56
Contribution from parent	100			204			89
Return of capital to parent	—			(4		)	(7		)
Deferred financing costs	—			(2		)	—
Net Cash Provided From Financing Activities	561			54			582
Net Increase in Cash and Cash Equivalents	34			30			8
Cash and Cash Equivalents, January 1	130			100			92
Cash and Cash Equivalents, December 31	$	164		$	130		$	100
Supplemental Cash Flow Information:
Cash for—Interest paid (net of capitalized interest of $18, $14 and $14)	$	251		$	228		$	210
—Income taxes paid	289			89			177
—Income taxes received	189			84			—
Noncash Investing and Financing Activities:
Accrued construction expenditures	95			230			151
Capital leases	14			6			5

See Notes to Consolidated Financial Statements.

South Carolina Electric & Gas Company and Affiliates

Consolidated Statements of Changes in Equity



	Common Stock
Millions	Shares	Amount		Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Non-controlling Interest			Total Equity
Balance at January 1, 2014	40	$	2,479	$	1,896		$	(3	)	$	117		$	4,489
Earnings available for common shareholder				446						12			458
Deferred cost of employee benefit plans, net of tax $-							—						—
Total Comprehensive Income				446			—			12			458
Capital contributions from parent		81								1			82
Cash dividends declared				(265		)				(7		)	(272		)
Balance at December 31, 2014	40	2,560		2,077			(3		)	123			4,757
Earnings Available for Common Shareholder				466						14			480
Deferred Cost of Employee Benefit Plans, net of tax $-							—						—
Total Comprehensive Income				466			—			14			480
Capital contributions from parent		200								—			200
Cash dividends declared				(278		)				(8		)	(286		)
Balance at December 31, 2015	40	2,760		2,265			(3		)	129			5,151
Earnings Available for Common Shareholder				513						13			526
Deferred Cost of Employee Benefit Plans, net of tax $-							—						—
Total Comprehensive Income				513			—			13			526
Capital contributions from parent		100								—			100
Cash dividends declared				(297		)				(8		)	(305		)
Balance at December 31, 2016	40	$	2,860	$	2,481		$	(3	)	$	134		$	5,472

See Notes to Consolidated Financial Statements.

SCANA Corporation and Subsidiaries

South Carolina Electric & Gas Company and Affiliates

Notes to Consolidated Financial Statements

The following notes to the consolidated financial statements are a combined presentation. Except as otherwise indicated herein, each note applies to the Company and Consolidated SCE&G; however, Consolidated SCE&G makes no representation as to information relating solely to SCANA Corporation or its subsidiaries (other than Consolidated SCE&G).

1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Organization and Principles of Consolidation

The Company

SCANA, a South Carolina corporation, is a holding company. The Company engages predominantly in the generation and sale of electricity to wholesale and retail customers in South Carolina, the purchase, sale and transportation of natural gas to wholesale and retail customers in South Carolina, North Carolina and Georgia and conducts other energy-related business.

The accompanying consolidated financial statements reflect the accounts of SCANA, the following wholly-owned subsidiaries, and subsidiaries that formerly were wholly-owned during the periods presented.



Regulated businesses		Nonregulated businesses
South Carolina Electric & Gas Company		SCANA Energy Marketing, Inc.
South Carolina Fuel Company, Inc.		ServiceCare, Inc.
South Carolina Generating Company, Inc.		SCANA Services, Inc.
Public Service Company of North Carolina, Incorporated		SCANA Corporate Security Services, Inc.
		SCANA Communications Holdings, Inc.

SCANA reports certain investments using the cost or equity method of accounting, as appropriate. Intercompany balances and transactions have been eliminated in consolidation, with the exception of profits on intercompany sales to regulated affiliates if the sales price is reasonable and the future recovery of the sales price through the rate-making process is probable, as permitted by accounting guidance. Discussions regarding the Company's financial results necessarily include the results of Consolidated SCE&G.

Consolidated SCE&G

SCE&G, a public utility, is a South Carolina corporation organized in 1924 and a wholly-owned subsidiary of SCANA, a South Carolina corporation. Consolidated SCE&G engages predominantly in the generation and sale of electricity to wholesale and retail customers in South Carolina and in the purchase, sale and transportation of natural gas to retail customers in South Carolina.

SCE&G has determined that it has a controlling financial interest in GENCO and Fuel Company (which are considered to be VIEs) and accordingly, Consolidated SCE&G's consolidated financial statements include the accounts of SCE&G, GENCO and Fuel Company. The equity interests in GENCO and Fuel Company are held solely by SCANA, SCE&G’s parent. As a result, GENCO’s and Fuel Company’s equity and results of operations are reflected as noncontrolling interest in Consolidated SCE&G’s consolidated financial statements. Intercompany balances and transactions between SCE&G, Fuel Company and GENCO have been eliminated in consolidation.

GENCO owns a coal-fired electric generating station with a 605 MW net generating capacity (summer rating). GENCO’s electricity is sold, pursuant to a FERC-approved tariff, solely to SCE&G under the terms of a power purchase agreement and related operating agreement. The effects of these transactions are eliminated in consolidation. Substantially all of GENCO’s property (carrying value of approximately $485 million) serves as collateral for its long-term borrowings. Fuel Company acquires, owns and provides financing for SCE&G’s nuclear fuel, certain fossil fuels and emission and other environmental allowances. See also Note 4.

Dispositions

In the first quarter of 2015, SCANA sold CGT and SCI. CGT was an interstate natural gas pipeline regulated by FERC that transported natural gas in South Carolina and southeastern Georgia, and it was sold to Dominion Resources, Inc. SCI provided fiber optic communications and other services and built, managed and leased communications towers in several southeastern states, and it was sold to Spirit Communications. These sales resulted in recognition of pre-tax gains totaling approximately $342 million. The pre-tax gain from the sale of CGT is included within Operating Income and the pre-tax gain from the sale of SCI is included within Other Income (Expense) on the Company's consolidated statement of income.

CGT and SCI operated principally in wholesale markets, whereas the Company's primary focus is the delivery of energy-related products and services to retail markets. In addition, neither CGT nor SCI met accounting criteria for disclosure as a reportable segment and were included within All Other in Note 12. The sales of CGT and SCI did not represent a strategic shift that had a major effect on the Company's operations; therefore, these sales did not meet the criteria for classification as discontinued operations.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent 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.

Reclassifications

Certain prior period amounts have been reclassified to conform to the current presentation, as follows:

Statements of Cash Flows - For the Company and Consolidated SCE&G, non-cash changes in fair value of interest rate swaps were reclassified as an offset to the changes in certain assets and liabilities section within the reconciliations of Net Income to Net Cash Provided From Operating Activities as follows:



	December 31,
Millions of dollars	2015			2014
Derivative financial instruments	$	(174	)	$	207
Regulatory assets	179			(234		)
Regulatory liabilities	4			(29		)
Other assets	(15		)	32
Other liabilities	6			24

In addition, due to insignificance, the caption for Losses from equity method investments has been eliminated, and the amounts have been reclassified and included within the caption of Changes in Other assets.

The reclassifications above had no effect on Net Cash Provided From Operating Activities or on any other subtotal in the consolidated statements of cash flows.

Statements of Comprehensive Income - For Consolidated SCE&G, operating revenues and operating expenses from transactions with nonconsolidated affiliates are presented separately. A detail of such transactions are included in Note 11.

Segment of Business Information Disclosure - For the Company, the Gas Marketing segment includes the information formerly reported in two separate marketing segments. See Note 12 for the required disclosures.

Utility Plant

Utility plant is stated at original cost. The costs of additions, replacements and betterments to utility plant, including direct labor, material and indirect charges for engineering, supervision and AFC, are added to utility plant accounts. The original cost of utility property retired or otherwise disposed of is removed from utility plant accounts and generally charged to accumulated depreciation. The costs of repairs and replacements of items of property determined to be less than a unit of property or that do not increase the asset’s life or functionality are charged to expense.

AFC is a noncash item that reflects the period cost of capital devoted to plant under construction. This accounting practice results in the inclusion of, as a component of construction cost, the costs of debt and equity capital dedicated to construction investment. AFC is included in rate base investment and depreciated as a component of plant cost in establishing rates for utility services. The Company’s regulated subsidiaries calculated AFC using average composite rates of 5.3% for 2016, 6.1% for 2015, and 7.2% for 2014. Consolidated SCE&G calculated AFC using average composite rates of 4.7% for 2016, 5.6% for 2015, and 6.5% for 2014. These rates do not exceed the maximum rates allowed in the various regulatory jurisdictions. SCE&G capitalizes interest on nuclear fuel in process at the actual interest cost incurred.

Provisions for depreciation and amortization are recorded using the straight-line method based on the estimated service lives of the various classes of property. In 2015, SCE&G adopted lower depreciation rates for electric and common plant, as approved by the SCPSC and further described in Note 2. In addition, CGT was sold in the first quarter of 2015 (see Dispositions herein) and excluded from the 2015 calculation of composite weighted average depreciation rates. The composite weighted average depreciation rates for utility plant assets were as follows:



	2016		2015		2014
SCE&G	2.56	%	2.55	%	2.85	%
GENCO	2.66	%	2.66	%	2.66	%
CGT	—		—		2.11	%
PSNC Energy	2.90	%	2.94	%	2.98	%
Weighted average of above	2.61	%	2.61	%	2.84	%
Consolidated SCE&G	2.56	%	2.56	%	2.84	%

SCE&G records nuclear fuel amortization using the units-of-production method. Nuclear fuel amortization is included in Fuel used in electric generation and recovered through the fuel cost component of retail electric rates. Provisions for amortization of nuclear fuel include amounts necessary to satisfy obligations to the DOE under a contract for disposal of spent nuclear fuel.

Jointly Owned Utility Plant

SCE&G jointly owns and is the operator of Unit 1. In addition, SCE&G will jointly own and will be the operator of the New Units being designed and constructed at the site of Summer Station. Each joint owner provides its own financing and shares the direct expenses and generation output in proportion to its ownership of a unit. SCE&G’s share of the direct expenses is included in the corresponding operating expenses on its income statement.



As of December 31,	2016						2015
	Unit 1			New Units			Unit 1			New Units
Percent owned	66.7%			55.0%			66.7%			55.0%
Plant in service	$	1.3	billion	—			$	1.2	billion	—
Accumulated depreciation	$	634.4	million	—			$	620.4	million	—
Construction work in progress	$	167.7	million	$	4.2	billion	$	214.6	million	$	3.4	billion

For a discussion of expected cash outlays and expected in-service dates for the New Units and a description of SCE&G's agreement to acquire an additional 5% ownership in the New Units, see Note 10.

Included within other receivables on the balance sheet were amounts due to SCE&G from Santee Cooper for its share of direct expenses and construction costs for Unit 1 and the New Units. These amounts totaled $76.2 million at December 31, 2016 and $178.8 million at December 31, 2015.

Major Maintenance

Planned major maintenance costs related to certain fossil fuel turbine equipment and nuclear refueling outages are accrued in periods other than when incurred in accordance with approval by the SCPSC for such accounting treatment and rate recovery of expenses accrued thereunder. The difference between such cumulative major maintenance costs and cumulative collections is classified as a regulatory asset or regulatory liability on the consolidated balance sheet. Other planned major maintenance is expensed when incurred.

SCE&G is authorized to collect $18.4 million annually through electric rates to offset certain turbine maintenance expenditures. For the years ended December 31, 2016, and 2015, SCE&G incurred $23.8 million and $16.5 million, respectively, for turbine maintenance.

Nuclear refueling outages are scheduled 18 months apart. As approved by the SCPSC, SCE&G accrues $17.2 million annually for its portion of the nuclear refueling outages scheduled from the spring of 2014 through the spring of 2020. Refueling outage costs incurred for which SCE&G was responsible totaled $26.8 million for the Fall 2015 outage and $1.8 million in 2016 in preparation for the Spring 2017 outage.

Goodwill

The Company considers certain amounts categorized by FERC as acquisition adjustments to be goodwill. The Company tests goodwill for impairment annually as of January 1, unless indicators, events or circumstances require interim testing to be performed. Accounting guidance adopted by the Company gives it the option to perform a qualitative assessment of impairment ("step zero"). Based on this qualitative assessment, if the Company determines that it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, the Company is not required to proceed with a two-step quantitative assessment. If the quantitative assessment becomes necessary, step one requires estimation of the fair value of the reporting unit and the comparison of that amount to its carrying value. If this step indicates an impairment (a carrying value in excess of fair value), then step two, measurement of the amount of the goodwill impairment (if any), is required. Should a write-down be required, such a charge would be treated as an operating expense.

For each period presented, assets with a carrying value of $210 million for PSNC Energy (Gas Distribution segment), net of a writedown of $230 million taken in 2002, were classified as goodwill. The Company utilized the step zero qualitative assessment in its evaluation as of January 1, 2017 and was not required to use the two-step quantitative assessment. In evaluations for preceding periods, the Company's step one assessment utilized the assistance of an independent appraisal in determining its estimate of fair value. In such evaluations, step one indicated no impairment, and no impairment charges were recorded.

Nuclear Decommissioning

Based on a decommissioning cost study, SCE&G’s two-thirds share of estimated site-specific nuclear decommissioning costs for Unit 1, including the cost of decommissioning plant components both subject to and not subject to radioactive contamination, totals $786.4 million, stated in 2016 dollars. Santee Cooper is responsible for decommissioning costs related to its one-third ownership interest in Unit 1. The cost estimate assumes that the site will be maintained over a period of approximately 60 years in such a manner as to allow for subsequent decontamination that would permit release for unrestricted use.

Under SCE&G’s method of funding decommissioning costs, SCE&G transfers to an external trust fund the amounts collected through rates ($3.2 million pre-tax in each period presented), less expenses. The trust invests the amounts transferred into insurance policies on the lives of certain company personnel. Insurance proceeds are reinvested in insurance policies. The trusteed asset balance reflects the net cash surrender value of the insurance policies and cash held by the trust. Management intends for the fund, including earnings thereon, to provide for all eventual decommissioning expenditures for Unit 1 on an after-tax basis.

Cash and Cash Equivalents

~~The Company considers temporary~~Temporary cash investments having original maturities of three months or less at time of purchase are considered to be cash equivalents. These cash equivalents are generally in the form of commercial paper, certificates of deposit, repurchase agreements and treasury bills.

~~Accounts Receivable~~Receivables

~~Accounts receivable~~Customer receivables reflect amounts due from customers arising from the delivery of energy or related services and include ~~revenues~~both billed and unbilled amounts earned pursuant to revenue recognition practices described below. ~~These~~Customer receivables ~~include both billed and unbilled amounts. Receivables~~ are generally due within one month of receipt of invoices which are presented on a monthly cycle basis.

Other receivables consist primarily of amounts due from Santee Cooper related to the construction and operation of jointly owned nuclear generating facilities at Summer Station.

~~Inventory~~

Inventories

Materials and supplies include the average cost of transmission, distribution, and generating plant materials. Materials are charged to inventory when purchased and then expensed or capitalized to plant, as appropriate, at weighted average cost when used. Fuel inventory includes the average cost of coal, natural gas, fuel oil and ~~fuel oil.~~emission allowances. Fuel is charged to inventory when purchased and is expensed, at weighted average cost, as used and recovered through fuel cost recovery rates approved by the SCPSC or NCUC, as applicable. ~~Emission allowances are included in inventory at average cost. Emission allowances are expensed at weighted average cost as used and recovered through fuel cost recovery rates approved by the SCPSC.~~

~~Asset Management and Supply Service Agreements~~

PSNC Energy utilizes an asset management and supply service ~~agreements~~agreement with ~~counterparties~~a counterparty for certain natural gas storage facilities. ~~Such counterparties~~The counterparty held, ~~48%~~through an agency relationship, 40% and ~~44%~~46% of PSNC Energy’s natural gas inventory at December 31, ~~2013~~2016 and December 31, ~~2012,~~2015, respectively, with a carrying value of ~~$22.8~~$9.8 million and ~~$19.6~~$17.7 million,~~, respectively, through either capacity release or agency relationships.~~ respectively. Under the terms of ~~the asset management agreements,~~this agreement, PSNC Energy receives storage asset management ~~fees. No~~ fees of which 75% are ~~received under supply service agreements. The agreements expire~~credited to rate payers. PSNC Energy expects to replace this agreement when it expires on March 31, ~~2015.~~2017.

Income Taxes

~~The Company~~SCANA files a consolidated federal income tax ~~return.~~returns. Under a joint consolidated income tax allocation agreement, each subsidiary’s current and deferred tax expense is computed on a stand-alone basis. Deferred tax assets and liabilities are recorded for the tax effects of all significant temporary differences between the book basis and tax basis of assets and liabilities at currently enacted tax rates. Deferred tax assets and liabilities are adjusted for changes in such tax rates through charges or credits to regulatory assets or liabilities if they are expected to be recovered from, or passed through to, customers of the Company’s regulated subsidiaries; otherwise, they are charged or credited to income tax expense.

Consolidated SCE&G is included in the consolidated federal income tax returns of SCANA. Also under provisions of the income tax allocation agreement, certain tax benefits of the parent holding company are distributed in cash to tax paying affiliates, including Consolidated SCE&G, in the form of capital contributions.

Regulatory Assets and Regulatory Liabilities

The Company’s rate-regulated utilities, including Consolidated SCE&G, record costs that have been or are expected to be allowed in the ratemaking process in ~~a period~~periods different from the ~~period~~periods in which the costs would be charged to expense, or record revenues in periods different from the periods in which the revenues would be ~~recognized~~recorded, by a nonregulated enterprise. These ~~regulatory assets and liabilities represent~~ expenses deferred for future recovery from customers or obligations ~~to be refunded~~for refunds to customers ~~and~~ are primarily classified in the balance sheet as regulatory assets and regulatory liabilities (see Note 2) and are amortized consistent with the treatment of the related costs or revenues in the ratemaking process. Deferred amounts expected to be recovered or repaid within 12 months are classified in the balance sheet as Receivables - Customer or Customer deposits and customer prepayments, respectively.

Debt ~~Premium, Discount~~Issuance Premiums, Discounts and ~~Expense, Unamortized Loss on Reacquired Debt~~Other Costs

~~The Company records long-term~~Premiums, discounts and debt ~~premium and discount~~issuance costs are presented within long-term debt and ~~amortizes them~~are amortized as components of interest charges over the terms of the respective debt issues. For regulated subsidiaries, ~~other issuance expense and~~ gains or losses on reacquired debt that is refinanced are recorded in other deferred debits or credits and are amortized over the term of the replacement debt, also as interest charges.

Environmental

~~The Company maintains an~~An environmental assessment program is maintained to identify and evaluate current and former operations sites that could require environmental clean-up. As site assessments are initiated, estimates are made of the amount of expenditures, if any, deemed necessary to investigate and remediate each site. Environmental remediation liabilities are accrued

when the criteria for loss contingencies are met. These estimates are refined as additional information becomes available; therefore, actual expenditures could differ significantly from the original estimates. Probable and estimable costs are accrued related to environmental sites on an undiscounted basis. Amounts estimated and accrued to date for site assessments and clean-up relate solely to regulated operations. Amounts expected to be recovered through rates are recorded in regulatory assets and, if applicable, amortized over approved amortization periods. Other environmental costs are ~~recorded to expense~~expensed as incurred.

Income Statement Presentation

~~In its consolidated statements of income, the Company presents the revenues~~Revenues and expenses ~~of its~~arising from regulated businesses and, ~~its~~in the case of the Company, retail natural gas marketing businesses (including those activities of segments described in Note 12) are presented within ~~operating income,~~Operating Income, and ~~it presents~~ all other

activities are presented within ~~other income (expense)~~Other Income (Expense). Consistent with this presentation, the Company presents the 2015 gain on the sale of CGT within Operating Income and the 2015 gain on the sale of SCI within Other Income (Expense).

Revenue Recognition

~~The Company records revenues~~Revenues are recorded during the accounting period in which ~~it provides~~ services are provided to customers and ~~includes~~include estimated amounts for electricity and natural gas delivered but not billed. Unbilled revenues totaled ~~$183.1~~$178.9 million at December 31, ~~2013~~2016 and ~~$189.8~~$129.1 million at December 31, ~~2012.~~2015 for the Company. Unbilled revenues totaled $117.6 million at December 31, 2016 and $101.5 million at December 31, 2015 for Consolidated SCE&G.

Fuel costs, emission allowances and certain environmental reagent costs for electric generation are collected through the fuel cost component in retail electric rates. ~~This~~The SCPSC establishes this component ~~is established by the SCPSC~~ during fuel cost hearings. Any difference between actual fuel costs and amounts contained in the fuel cost component is adjusted through revenue and is deferred and included when determining the fuel cost component during subsequent hearings.

SCE&G customers subject to a PGA are billed based on a cost of gas factor calculated in accordance with a gas cost recovery procedure approved by the SCPSC and subject to adjustment monthly. Any difference between actual gas costs and amounts contained in rates is adjusted through revenue and is deferred and included when making the next adjustment to the cost of gas factor. PSNC Energy’s PGA mechanism authorized by the NCUC allows the recovery of all prudently incurred gas costs, including the results of its hedging program, from customers. Any difference between actual gas costs and amounts contained in rates is deferred and included when establishing gas costs during subsequent PGA filings or in annual prudence reviews.

SCE&G’s gas rate schedules for residential, small commercial and small industrial customers include a WNA which minimizes fluctuations in gas revenues due to abnormal weather conditions. ~~In August 2010, SCE&G implemented an eWNA on a pilot basis for its electric customers; effective with the first billing cycle of 2014, the eWNA was discontinued as approved by the SCPSC. See Note 2.~~

PSNC Energy is authorized by the NCUC to utilize a CUT which allows it to adjust base rates semi-annually for residential and commercial customers based on average per customer consumption, whether impacted by weather or other factors.

Taxes ~~that are~~ billed to and collected from customers are recorded as liabilities until they are remitted to the respective taxing authority. Such taxes are not included in revenues or expenses in the statements of income.

Earnings Per Share

~~The Company computes basic~~Basic earnings per share are computed by dividing net income by the weighted average number of common shares outstanding for the period. ~~The Company computes~~When applicable, diluted earnings per share are computed using this same formula, after giving effect to securities considered to be dilutive potential common stock utilizing the treasury stock method.

New Accounting Matters

In May 2014, the FASB issued accounting guidance for revenue arising from contracts with customers that supersedes most earlier revenue recognition guidance, including industry-specific guidance. This new revenue recognition model provides a five-step analysis in determining when and how revenue is recognized, and will require revenue recognition to depict the transfer of promised goods or services to customers in an amount that reflects the consideration a company expects to receive in exchange for those goods or services. The Company ~~has issued no securities that would~~and Consolidated SCE&G expect to adopt this guidance when required in the first quarter of 2018. The guidance permits adoption using a retrospective method, with options to elect certain practical expedients, or recognition of a cumulative effect in the year of initial adoption. The Company and Consolidated SCE&G have ~~an antidilutive effect~~not determined which method of adoption will be employed or what practical expedients may be elected. The Company and Consolidated SCE&G have not determined the impact this guidance will have on ~~earnings per share.~~

~~A reconciliation~~their respective financial statements. However, the identification of implementation project team members and the analysis of contracts with customers to which the guidance might be applicable, particularly large customer contracts, have begun. In addition, activities of the ~~weighted average number~~FASB's Transition Resource Group for Revenue Recognition are being monitored, particularly as they relate to the required treatment under the standard of contributions in aid of construction, alternative revenue programs and the collectibility of revenue of utilities subject to rate regulation.

In May 2015, the FASB issued accounting guidance removing the requirement to categorize within the fair value hierarchy investments for which fair values are estimated using the NAV practical expedient. Disclosures about investments in

certain entities that calculate NAV per share are limited under this guidance to those investments for which the entity has elected to estimate the fair value using the NAV practical expedient. The Company and Consolidated SCE&G elected to adopt this guidance on a retrospective basis. The adoption resulted in the reclassification of fair value related to the pension plan’s investment in the common ~~shares~~collective trust, joint venture interest, and limited partnership as of December 31, 2015. See Note 8.

In July 2015, the FASB issued accounting guidance intended to simplify the measurement of inventory cost by requiring most inventory to be measured at the lower of cost and net realizable value. The Company and Consolidated SCE&G expect to adopt this guidance in the first quarter of 2017 and do not expect it to have a significant impact on their respective financial statements.

In January 2016, the FASB issued accounting guidance that will change how entities measure certain equity investments and financial liabilities, among other things. The Company and Consolidated SCE&G expect to adopt this guidance when required in the first quarter of 2018 and have determined adoption of this guidance will not have a significant impact on their respective financial statements.

In February 2016, the FASB issued accounting guidance related to the recognition, measurement and presentation of leases. The guidance applies a right-of-use model and, for ~~each~~lessees, requires all leases with a duration over 12 months to be recorded on the balance sheet, with the rights of use treated as assets and the payment obligations treated as liabilities. Further, and without consideration of any regulatory accounting requirements which may apply, depending primarily on the nature of the ~~three~~assets and the relative consumption of them, lease costs will be recognized either through the separate amortization of the right-of-use asset and the recognition of the interest cost related to the payment obligation, or through the recording of a combined straight-line rental expense. For lessors, the guidance calls for the recognition of income either through the derecognition of assets and subsequent recording of interest income on lease amounts receivable, or through the recognition of rental income on a straight line basis, also depending on the nature of the assets and relative consumption. The guidance will be effective for years ~~ended December 31, for basic~~beginning in 2019. The Company and ~~diluted purposes is as follows:~~

In Millions 2013 2012 2011
Weighted Average Shares Outstanding—Basic 138.7
131.1
128.8
Net effect of equity forward contracts 0.4
2.2
1.4
Weighted Average Shares Outstanding—Diluted 139.1
133.3
130.2
Consolidated SCE&G have not determined what impact this guidance will have on their respective financial statements. However, the identification of implementation project team members and the initial identification and analysis of leasing and related contracts to which the guidance might be applicable have begun. In addition, the Company and Consolidated SCE&G have begun evaluating certain third party software tools that may assist with this implementation and ongoing compliance.

59In March 2016, the FASB issued accounting guidance changing how companies account for certain aspects of share-based payments to employees. Entities are required to recognize the income tax effects of awards in the income statement when the awards vest or are settled. The Company and Consolidated SCE&G adopted this guidance in the fourth quarter of 2016 and, based on the nature of their share-based awards practices, the adoption had no impact on their respective financial statements.

In June 2016, the FASB issued accounting guidance requiring the use of a current expected credit loss impairment model for certain financial instruments. The new model is applicable to trade receivables and most debt instruments, among other financial instruments, and is intended to result in certain impairment losses being recognized earlier than under current guidance. The Company and Consolidated SCE&G must adopt this guidance beginning in 2020, including interim periods, though the guidance may be adopted in 2019. The Company and Consolidated SCE&G have not determined when this guidance will be adopted or what impact it will have on their respective financial statements.

In August 2016, the FASB issued accounting guidance to reduce diversity in cash flow classification related to certain transactions. The Company and Consolidated SCE&G expect to adopt this guidance when required in the first quarter of 2018 and do not anticipate that its adoption will impact their respective financial statements.

In October 2016, the FASB issued accounting guidance related to the tax effects of intra-entity asset transfers of assets other than inventory. An entity will be required to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. The Company and Consolidated SCE&G expect to adopt this guidance in the first quarter 2017 and it is not expected to have a material impact on their respective financial statements.

In November 2016, the FASB issued accounting guidance related to the presentation of restricted cash on the statement of cash flows. The guidance is effective for years beginning in 2018 and the Company and Consolidated SCE&G expect no impact on their respective financial statements.

In January 2017, the FASB issued accounting guidance to simplify the accounting for goodwill impairment. The guidance removes Step 2 of the goodwill impairment test. The same one-step impairment test will be applied to goodwill at all reporting units, even those with zero or negative carrying amounts. The guidance is effective for years beginning in 2020,

though early adoption after January 1, 2017 is allowed. The Company and Consolidated SCE&G have not determined when this guidance will be adopted but do not anticipate that adoption will have a material impact on their respective financial statements.

2. RATE AND OTHER REGULATORY MATTERS

Rate Matters

Electric - Cost of Fuel

SCE&G's retail electric rates include a cost of fuel component approved by the SCPSC which may be adjusted periodically to reflect changes in the price of fuel purchased by SCE&G. In

Pursuant to an April ~~2012, the~~2014 SCPSC ~~approved~~order, SCE~~&G's request to decrease the total~~&G increased its base fuel cost component ~~of its retail electric rates, and approved a settlement agreement among SCE&G,~~by approximately $10.3 million for the ~~ORS and SCEUC in which SCE&G agreed to recover an amount equal to its actual under-collected balance of base fuel and variable environmental costs as of April 30, 2012, or~~ ~~$80.6 million, over a twelve month~~12-month period beginning with the first billing cycle of May ~~2012.~~

~~This April 2012 order was superseded, in part, by a December 2012 rate order in which the SCPSC authorized SCE&G to reduce the~~2014. The base fuel cost ~~component of its retail electric rates and,~~increase was offset by a reduction in ~~doing so, stated that~~ SCE~~&G may not adjust its base fuel cost component prior~~&G's rate rider related to pension costs approved by the SCPSC in March 2014. In addition, pursuant to the ~~last billing cycle of~~ April 2014 except where necessary due to extraordinary unforeseen economic or financial conditions. In February 2013, in connection with its annual review of base rates for fuel costs, SCE&G requested authorization to reduce its environmental fuel cost component effective with the first billing cycle of May 2013. Consistent with the December 2012 rate order,SCE&G did not request any adjustment to its base fuel cost component. In March 2013, SCE&G, ORS and the SCEUC entered into a settlement agreement accepting the proposed lower environmental fuel cost component effective with the first billing cycle of May 2013, and providing for the accrual of certain debt-related carrying costs on a portion of the under-collected balance of fuel costs. The SCPSC issued an order dated April 30, 2013, adopting and approving the settlement agreement and approving SCE&G's total fuel cost component. A public hearing for the annual review of base rates for fuel costs has been scheduled for April 3, 2014.

~~Pursuant to a November 2013 SCPSC accounting order, the Company's~~ electric revenue for ~~2013~~2014 was reduced by approximately $46 million for adjustments to the fuel cost component and related under-collected fuel ~~balance of $41.6 million.~~balance. Such adjustments ~~are~~were fully offset by the recognition within other income ~~also pursuant to that accounting order,~~ of gains realized ~~upon~~from the late 2013 settlement of certain interest rate derivatives which had been entered into in anticipation of the issuance of long-term debt, which gains had been deferred as a regulatory liability. ~~See~~The order also ~~Note 6.~~provided for the accrual of certain debt-related carrying costs on its under-collected balance of base fuel costs from May 1, 2014 through April 30, 2015.

The cost of fuel includes amounts paid by SCE&G pursuant to the Nuclear Waste Act for the disposal of spent nuclear fuel. As a result of a November 2013 decision by the Court of Appeals, the DOE set the Nuclear Waste Act fee to zero effective May 16, 2014. The impact of changes to the Nuclear Waste Act fee is considered during annual fuel rate proceedings.

By order dated April 30, 2015, the SCPSC approved a settlement agreement among SCE&G and certain other parties in which SCE&G agreed to decrease the total fuel cost component of retail electric rates. Under this order, SCE&G is to recover an amount equal to its under-collected balance of base fuel and variable environmental costs as of April 30, 2015, over the subsequent 12-month period beginning with the first billing cycle of May 2015.

By order dated July 15, 2015, the SCPSC approved a settlement agreement among SCE&G, ORS, and certain other parties concerning SCE&G's petition for approval to participate in a DER program and to recover DER program costs as a separate component of SCE&G's overall fuel factor. Under this order, SCE&G will, among other things, implement programs to encourage the development of renewable energy facilities with a total nameplate capacity of at least approximately 84.5 MW by the end of 2020, of which half is to be customer-scale solar capacity and half is to be utility-scale solar capacity.

By order dated September 16, 2015, the SCPSC approved SCE&G's request to adopt lower depreciation rates for electric and common plant effective January 1, 2015. These rates were based on the results of a depreciation study conducted by SCE&G using utility plant balances as of December 31, 2014. In connection with the adoption of the revised depreciation rates, SCE&G recorded lower depreciation expense of approximately $29 million ($.12 per share) in 2015, and pursuant to the SCPSC order, SCE&G reduced its electric operating revenues by approximately $14.5 million ($.06 per share) with an offset to under-collected fuel included within Receivables in the balance sheet. Accordingly, SCE&G's net income for 2015 increased approximately $9.8 million as a result of this change in estimate.

By order dated April 29, 2016, the SCPSC approved a settlement agreement among SCE&G, ORS and certain other parties to decrease the total fuel cost component of retail electric rates. SCE&G reduced the total fuel cost component of retail electric rates to reflect lower projected fuel costs and to eliminate over-collected balances of approximately $61 million for base fuel and environmental costs over a 12-month period beginning with the first billing cycle of May 2016. SCE&G also began to recover projected DER program costs of approximately $6.9 million beginning with the first billing cycle of May 2016.

In October 2016, the SCPSC initiated its 2017 annual review of base rates for fuel costs. A public hearing for this annual review is scheduled for April 6, 2017.

Electric - Base Rates

~~In October 2013,~~Pursuant to an SCPSC order, SCE&G ~~received an accounting order from the SCPSC directing it to remove~~removes from rate base certain deferred income tax assets arising from capital expenditures related to the New Units and ~~to accrue~~accrues carrying costs ~~(recorded as a regulatory asset)~~ on those amounts during periods in which they are not included in rate base. Such carrying costs are determined at SCE&G’s weighted average long-term debt borrowing rate and ~~during 2013, $2.9 million of such carrying costs were accrued within~~are

recorded as a regulatory asset and other income. Carrying costs totaled $14.0 million and $9.5 million during 2016 and 2015, respectively. SCE&G anticipates that when the New Units are placed in service and accelerated tax ~~deprecation~~depreciation is recognized on them, these deferred income tax assets will decline. When these deferred income tax assets are fully offset by related deferred income tax liabilities, the carrying cost accruals will cease, and the regulatory asset will begin to be amortized.

~~In December 2012, the~~The SCPSC has approved a ~~4.23%~~ ~~overall increase in~~suite of DSM Programs for development and implementation. SCE~~&G's~~&G offers to its retail electric ~~base rates, effective January 1, 2013, and authorized an allowed return on common equity of~~ ~~10.25%~~. The SCPSC also approved a mid-period reduction to the cost of fuel component in rates (as discussed above), a reduction in the DSM Programs component rider to retail rates, and the recovery of and a return on the net carrying value of certain retired generating plant assets described below. In February 2013, the SCPSC denied the SCEUC's petition for rehearing and the denial was not appealed.

~~The eWNA was~~customers several distinct programs designed to ~~mitigate the effects of abnormal weather on residential~~assist customers in reducing their demand for electricity and ~~commercial customers' bills and had been in use since August 2010. In connection with the December 2012 order,~~improving their energy efficiency. SCE&G agreed to perform a study of alternative structures for eWNA. On November 1, 2013, the ORS filed a report with the SCPSC recommending that the eWNA be terminated with the last billing cycle for December 2013. On November 26, 2013, SCE&G, ORS and certain other parties filed a joint petition with the SCPSC requesting, among other things, that the SCPSC discontinue the eWNA effective with bills rendered on or after the first billing cycle of January 2014. On December 20, 2013, the SCPSC granted the relief requested in the joint petition.

In connection with the above termination of the eWNA program effective December 31, 2013, electric revenues were reduced to reverse the prior accrual of an under-collected balance of $8.5 million. Pursuantsubmits annual filings to the SCPSC ~~accounting order granting the above relief~~related to these programs which include actual program costs, net lost revenues (both forecasted and ~~terminating the eWNA, such revenue reduction was fully offset by the recognition within~~actual), customer incentives, and net program benefits, among other

~~income of $8.5 million of gains realized upon the settlement of certain interest rate derivatives which had been entered into in anticipation of the issuance of long-term debt, which gains had been~~ things. As actual DSM Program costs are incurred, they are deferred as ~~a regulatory liability.~~

SCE&G files an IRP with the SCPSC annually which evaluates future electric generation needs based on a variety of factors, including customer energy demands, EPA regulations, reserve margins and fuel costs. SCE&G's 2012 IRP identified ~~six~~ coal-fired units that SCE&G has subsequently retired or intends to retire by 2018, subject to future developments in environmental regulations, among other matters. One of these units was retired in 2012, and two others were retired in the fourth quarter of 2013. The net carrying value of these retired units is recorded in regulatory assets ~~as unrecovered plant~~ and ~~is being amortized over the units' previously estimated remaining useful lives as~~recovered through a rate rider approved by the SCPSC. The ~~net carrying value of the remaining units is included in Plant to be Retired, Net in the consolidated financial statements. In connection with their retirement, SCE&G expects to be allowed a~~rate rider also provides for recovery of and a return on the net carrying value of these remaining units through rates. In the meantime, these units remain in rate base, and SCE&G continues to depreciate them using composite straight-line rates approved by the SCPSC.

~~In a July 2010 order, the SCPSC provided for a~~ ~~$48.7 million~~ ~~credit to SCE&G's customers over~~ ~~two~~ ~~years to be offset by accelerated recognition of previously deferred state income tax credits. These tax credits were fully amortized in 2012.~~

SCE&G's DSM Programs for electric customers provide for an annual rider, approved by the SCPSC, to allow recovery of the costs and lost net margin revenue associated with the DSM Programs, along with an incentive for investing in such programs. SCE&G submits annual filings regarding the DSM Programs, net lost revenues ~~program costs, incentives~~ and ~~net program benefits.~~for a shared savings incentive. The SCPSC ~~has~~ approved the following rate ~~changes~~riders pursuant to the annual DSM Programs filings, which went into effect as indicated below:



Year	Effective	Amount
~~2013~~2016	First billing cycle of May	$~~16.9~~37.6 million
~~2012~~2015	First billing cycle of May	$~~19.6~~32.0 million
~~2011~~2014	First billing cycle of ~~June~~May	$~~7.0~~15.4 million

~~Other activity related~~In April 2014, the SCPSC issued an order approving, among other things, SCE&G’s request to utilize approximately $17.8 million of the gains from the late 2013 settlement of certain interest rate derivative instruments, previously deferred as regulatory liabilities, to offset a portion of SCE&G’s DSM Programs ~~is as follows:~~rate rider. This order also allowed SCE&G to apply $5.0 million of its storm damage reserve and $5.0 million of the gains from the settlement of certain interest rate derivative instruments to offset previously deferred amounts.

~~In May 2013~~By order dated April 29, 2016, the SCPSC ~~ordered the deferral of one-half of the net lost revenues and provided for their recovery~~approved SCE&G’s request to increase its pension costs rider. The increased pension rider is designed to allow SCE&G to recover projected pension costs, including under-collections, over a 12~~-month~~12-month period, beginning with the first billing cycle in May ~~2014.~~

~~In November 2013 the SCPSC approved SCE&G’s continued use of DSM programs for another six years, including approval of the rate rider mechanism and a revised portfolio of DSM programs.~~2016.

In January ~~2014~~2017, SCE&G submitted its annual DSM Programs filing to the ~~SCPSC, which included, among other things, a request to (1) recover one-half~~SCPSC. If approved the filing would allow recovery of the balance of allowable costs beginning with bills rendered on and after the first billing cycle of May 2014 and to recover the remaining balance of allowable costs beginning with bills rendered on and after the first billing cycle of May 2015, (2) utilize approximately $17.8$37.0 million of ~~the gains from the recent settlement of certain interest rate derivative instruments to offset a portion of the~~costs and net lost revenues ~~component of SCE&G’s~~associated with the DSM Programs, ~~rider, and (3) apply $5 million of its storm damage reserve and a portion of the gains from the recent settlement of certain interest rate derivative instruments, currently estimated~~along with an incentive to ~~be $5.5 million, to the remaining balance of deferred net lost revenue as of April 30, 2014, deferred within regulatory assets resulting from the May 2013 order previously described.~~invest in such programs.

Electric - BLRA

~~In May 2011, the SCPSC approved an updated capital cost schedule sought by SCE&G that, among other matters, incorporated then-identifiable additional capital costs of~~ ~~$173.9 million~~ ~~(SCE&G's portion in 2007 dollars).~~

~~In November 2012, the SCPSC approved an updated construction schedule and additional updated capital costs of~~ ~~$278 million~~ ~~(SCE&G's portion in 2007 dollars). The November 2012 order approved additional identifiable capital costs of approximately~~ ~~$1 million~~ ~~(SCE&G's portion in 2007 dollars) related to new federal healthcare laws, information security measures, and certain minor design modifications; approximately~~ ~~$8 million~~ ~~(SCE&G's portion in 2007 dollars) related to transmission infrastructure; and approximately~~ ~~$132 million~~ (SCE&G's portion in 2007 dollars) related to additional labor for the oversight of the New Units during construction and for preparing to operate the New Units, and facilities and information technology systems required to support the New Units and their personnel. In addition, the order approved

revised substantial completion dates for the New Units based on the March 30, 2012 issuance of the COL and the amounts agreed upon by SCE&G and the Consortium in July 2012 to resolve claims for costs related to COL delays, design modifications of the shield building and certain pre-fabricated structural modules for the New Units and unanticipated rock conditions at the site. Thereafter, two parties filed separate petitions requesting that the SCPSC reconsider its November 2012 order. On December 12, 2012, the SCPSC denied both petitions. In March 2013, both parties appealed the SCPSC's order to the South Carolina Supreme Court. SCE&G is unable to predict the outcome of these appeals. For further discussion of new nuclear construction matters, see Note 9.

Under the BLRA, SCE&G ~~is allowed to~~may file revised rates with the SCPSC each year to incorporate the financing cost of any incremental construction work in progress incurred for new nuclear generation. ~~Requested rate~~Rate adjustments are based on SCE&G's updated cost of debt and capital structure and on an allowed ~~return on common equity of~~ ~~11.0%~~.ROE. The SCPSC has approved recovery of the following ~~rate changes~~amounts.



Year	Increase	Effective for bills rendered on and after	Amount	Allowed ROE
2016	2.7%	November 27	$64.4 million	10.50%	*
2015	2.6%	October 30	$64.5 million	11.00%
2014	2.8%	October 30	$66.2 million	11.00%

*Applied prospectively for purposes of calculating revised rates under the BLRA ~~effective for bills rendered~~ on and after January 1, 2016.

In May 2016, SCE&G petitioned the SCPSC for approval of updated construction and capital cost schedules for the New Units which were developed in connection with the October 302015 Amendment. On November 9, 2016, the SCPSC approved a settlement agreement among SCE&G, ORS and certain other parties concerning this petition. The SCPSC also approved SCE&G's election of the fixed price option.

The approved construction schedule designates contractual guaranteed substantial completion dates of August 31, 2019 and August 31, 2020 for Units 2 and 3, respectively. The approved capital cost schedule includes incremental capital costs that total $831 million. SCE&G’s total project capital cost is now estimated at approximately $6.8 billion including owner’s costs and transmission, or $7.7 billion with escalation and AFC. In addition, the SCPSC approved revising SCE&G’s allowed ROE for new nuclear construction from 10.5% to 10.25%. This revised ROE will be applied prospectively for the purpose of calculating revised rates sought by SCE&G under the BLRA on and after January 1, 2017. In addition, SCE&G may not file future requests to amend capital cost schedules prior to January 28, 2019, unless its annual revised rate request is

denied because SCE&G is out of compliance with its approved capital cost schedule or BLRA construction milestone schedule. In most circumstances, if the projected commercial operation date for Unit 2 is extended, the expiration of the January 28, 2019 moratorium will be extended by an equal amount of time. See also New Nuclear Construction in Note 10.

On December 14, 2016, the SCPSC denied Petitions for Rehearing filed by certain parties that were not included in the ~~following years:~~settlement. These parties may appeal this decision to the South Carolina Supreme Court once the SCPSC’s order has been issued. SCE&G cannot determine when the SCPSC will issue its order in this matter or if that order will be appealed.

Gas - SCE&G

Year Increase Amount
2013 2.90% $ 67.2 million
2012 2.30% $ 52.1 million
2011 2.40% $ 52.8 million

~~Gas~~

~~SCE&G~~

The RSA is designed to reduce the volatility of costs charged to customers by allowing for more timely recovery of the costs that regulated utilities incur related to natural gas infrastructure. The SCPSC has approved the following rate changes pursuant to annual RSA filings effective with the first billing cycle of November in the following years:

Year Action Amount
2013 No change
2012 2.10 % Increase $ 7.5 million
2011 2.10 % Increase $ 8.6 million



Year	Action			Amount
2016	1.2	%	Increase	$4.1 million
2015	No change			—
2014	0.6	%	Decrease	$2.6 million

SCE&G's natural gas tariffs include a PGA that provides for the recovery of actual gas costs ~~incurred.~~incurred, including transportation costs. SCE&G's gas rates are calculated using a methodology which may adjust the cost of gas monthly based on a 12~~-month~~12-month rolling average, and its gas purchasing policies and practices are reviewed annually by the SCPSC. The annual reviews conducted for each of the 12-month periods ended July 31, ~~2013~~2016, 2015 and ~~2012~~2014 resulted in the SCPSC issuing an order finding that SCE&G's gas purchasing policies and practices during each of the review ~~period~~periods were reasonable and prudent.

Gas - PSNC Energy

PSNC ~~Energy~~

~~PSNC Energy is subject to a~~Energy's Rider D rate mechanism ~~which~~ allows it to recover from customers all prudently incurred gas costs and certain related uncollectible expenses ~~related to gas cost. The Rider D rate mechanism also allows PSNC Energy to recover, in any manner authorized by the NCUC,~~as well as losses on negotiated gas and transportation sales.

PSNC ~~Energy's~~Energy establishes rates ~~are established~~ using a benchmark cost of gas approved by the NCUC, which may be periodically adjusted to reflect changes in the market price of natural gas. PSNC Energy revises its tariffs ~~with the NCUC~~ as necessary to track these changes and accounts for any over- or under-collection of the delivered cost of gas in its deferred accounts for subsequent rate consideration. The NCUC reviews PSNC ~~Energy's~~Energy’s gas purchasing practices annually. In addition, PSNC Energy utilizes a CUT which allows it to adjust its base rates semi-annually for residential and commercial customers based on average per customer consumption.

On October 28, 2016, the NCUC granted PSNC Energy a net annual increase of approximately $19.1 million, or 4.39%, in rates and charges to customers, and set PSNC Energy's authorized ROE at 9.7%. In addition, PSNC Energy was authorized to implement a tracker that provides for biannual rate adjustments to recover the revenue requirement associated with integrity management plant investment and associated costs resulting from prevailing federal standards for pipeline integrity and safety that are not otherwise included in current base rates. The new rates are effective for services rendered on or after November 1, 2016.

In ~~October 2013,~~November 2016, in connection with PSNC Energy's ~~2013~~2016 Annual Prudence Review, the NCUC ~~issued an order finding~~determined that PSNC Energy's gas costs, including all hedging transactions, were reasonable and prudently incurred during the 12 months ended March 31, ~~2013.~~

During the third quarter of 2013, the State of North Carolina passed legislation that makes changes to statutes covering gross receipts, sales and use, excise, franchise and income taxes. In the fourth quarter, in response to this legislation, the

NCUC initiated a proceeding to investigate how it should proceed in response to the enactment of such legislation. Because the investigation was not completed before January 1, 2014, the NCUC issued an order notifying utilities that the incremental revenue requirement impact associated with the change in the level of state income tax expense included in each utility’s cost of service would be deemed to be collected on a provisional basis (subject to refund) beginning January 1, 2014.2016.

Regulatory Assets and Regulatory Liabilities

~~The Company's cost-based, rate-regulated~~Rate-regulated utilities recognize in their financial statements certain revenues and expenses in different ~~time~~ periods than do ~~enterprises that are not rate-regulated.~~other enterprises. As a result, the Company ~~has~~and Consolidated SCE&G have recorded regulatory assets and regulatory liabilities which are summarized in the following tables. Other than unrecovered plant, substantially all ~~of our~~ regulatory assets are either explicitly excluded from rate base or are effectively excluded from rate base due to their being offset by related liabilities.


					The Company				Consolidated SCE&G
	December 31,				December 31,				December 31,
Millions of dollars	2013		2012		2016		2015		2016		2015
Regulatory Assets:
Accumulated deferred income taxes	$	259	$	254	$	316	$	298	$	307	$	291
Under-collections—electric fuel adjustment clause	18		66
AROs and related funding					425		405		403		384
Deferred employee benefit plan costs					342		325		309		295
Deferred losses on interest rate derivatives					620		535		620		535
Unrecovered plant					117		127		117		127
Environmental remediation costs	41		44		32		42		26		35
AROs and related funding	368		319
Franchise agreements	31		36
Deferred employee benefit plan costs	238		460
Planned major maintenance	—		6
Deferred losses on interest rate derivatives	124		151
Deferred pollution control costs	37		38
Unrecovered plant	145		20
DSM Programs	51		27		59		61		59		61
Pipeline integrity management costs					33		19		6		4
Carrying costs on deferred tax assets related to nuclear construction					32		18		32		18
Deferred storm damage costs					20		—		20		—
Deferred costs related to uncertain tax position					15		—		15		—
Other	48		43		119		107		116		107
Total Regulatory Assets	$	1,360	$	1,464	$	2,130	$	1,937	$	2,030	$	1,857


Regulatory Liabilities:
Accumulated deferred income taxes	$	24	$	21
Asset removal costs	695		692		$	755	$	732	$	529	$	519
Storm damage reserve	27		27
Monetization of bankruptcy claim	29		32
Deferred gains on interest rate derivatives	181		110		151		96		151		96
Planned major maintenance	10		—
Other					24		27		15		20
Total Regulatory Liabilities	$	966	$	882	$	930	$	855	$	695	$	635

ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

(a)The following documents are filed or furnished as a part of this Form 10-K:

(1)Financial Statements and Schedules:

The Report of Independent Registered Public Accounting Firm on the financial statements for each of SCANA and SCE&G is listed under Item 8 herein.

The financial statements and supplementary financial data filed as part of this report for SCANA and SCE&G are listed under Item 8 herein.

The financial statement schedules "Schedule II - Valuation and Qualifying Accounts" filed as part of this report for SCANA and SCE&G are included below.

(2)Exhibits

Exhibits required to be filed or furnished with this Annual Report on Form 10-K are listed in the Exhibit Index following the signature page. Certain of such exhibits which have heretofore been filed with the SEC and which are designated by reference to their exhibit number in prior filings are incorporated herein by reference and made a part hereof.

Pursuant to Rule 15d-21 promulgated under the Securities Exchange Act of 1934, the annual report for SCANA’s employee stock purchase plan will be furnished under cover of Form 11-K to the SEC when the information becomes available.

As permitted under Item 601(b)(4)(iii) of Regulation S-K, instruments defining the rights of holders of long-term debt of less than 10% of the total consolidated assets of SCANA, for itself and its subsidiaries and of SCE&G, for itself and its consolidated affiliates, have been omitted and SCANA and SCE&G agree to furnish a copy of such instruments to the SEC upon request.

~~156~~

Schedule II—Valuation and Qualifying Accounts

~~(in millions)~~

Additions
Description
Beginning
Balance

Charged to
Income

Charged to
Other
Accounts

Deductions
from
Reserves

Ending
Balance
SCANA:

Reserves deducted from related assets on the balance sheet:

Uncollectible accounts

2013 $ 7
$ 13
—
$ 14
$ 6
2012 6
14
—
13
7
2011 9
17
—
20
6
Reserves other than those deducted from assets on the balance sheet:

Reserve for injuries and damages

2013 $ 6
$ 4
—
$ 4
$ 6
2012 6
4
—
4
6
2011 5
4
—
3
6

SCE&G:

Reserves deducted from related assets on the balance sheet:

Uncollectible accounts

2013 $ 3
$ 7
—
$ 7
$ 3
2012 3
6
—
6
3
2011 3
6
—
6
3
Reserves other than those deducted from assets on the balance sheet:

Reserve for injuries and damages

2013 $ 5
$ 3
—
$ 3
$ 5
2012 4
3
—
2
5
2011 4
2
—
2
4



			Additions
Description (in millions)	Beginning Balance		Charged to Income		Charged to Other Accounts	Deductions from Reserves		Ending Balance
SCANA:
Reserves deducted from related assets on the balance sheet:
Uncollectible accounts
2016	$	5	$	12	—	$	11	$	6
2015	7		12		—	14		5
2014	6		16		—	15		7
Reserves other than those deducted from assets on the balance sheet:
Reserve for injuries and damages
2016	$	6	$	5	—	$	2	$	9
2015	5		11		—	10		6
2014	6		7		—	8		5

SCE&G:
Reserves deducted from related assets on the balance sheet:
Uncollectible accounts
2016	$	3	$	6	—	$	6	$	3
2015	4		6		—	7		3
2014	3		8		—	7		4
Reserves other than those deducted from assets on the balance sheet:
Reserve for injuries and damages
2016	$	5	$	5	—	$	2	$	8
2015	3		11		—	9		5
2014	5		1		—	3		3

~~157~~

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. The signature of the undersigned company shall be deemed to relate only to matters having reference to such company and any subsidiaries thereof.

SCANA CORPORATION



BY:	/s/ K. B. Marsh
	K. B. Marsh, Chairman of the Board, President, Chief Executive Officer, Chief Operating Officer and Director

DATE:	February ~~28, 2014~~24, 2017

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. The signatures of the undersigned shall be deemed to relate only to matters having reference to the registrant and any subsidiaries thereof.



/s/ K. B. Marsh
K. B. Marsh, Chairman of the Board, President, Chief Executive Officer, Chief Operating Officer and Director
(Principal Executive Officer)


/s/ J. E. Addison
J. E. Addison Executive Vice President and Chief Financial Officer
(Principal Financial Officer)


/s/ J. E. Swan, IV
J. E. Swan, IV Vice President and Controller
(Principal Accounting Officer)

Other Directors*:
G. E. Aliff	J. M. Micali
J. A. Bennett	L. M. Miller
J. F. A. V. Cecil	J. W. Roquemore
~~D. M. Hagood~~S. A. Decker	M. K. Sloan
~~J. W. Martin, III~~	~~H. C. Stowe~~
J.D. M. ~~Micali~~Hagood	A. Trujillo

* Signed on behalf of each of these persons by Ronald T. Lindsay, Attorney-in-Fact

DATE: February ~~28, 2014~~24, 2017

~~158~~

SIGNATURES



SOUTH CAROLINA ELECTRIC & GAS COMPANY


BY:	/s/ K. B. Marsh
	K. B. Marsh, Chairman of the Board, Chief Executive Officer and Director

DATE:	February ~~28, 2014~~24, 2017



/s/ K. B. Marsh
K. B. Marsh Chairman of the Board, Chief Executive Officer and Director
(Principal Executive Officer)


/s/ J. E. Addison
J. E. Addison Executive Vice President and Chief Financial Officer
(Principal Financial Officer)


/s/ J. E. Swan, IV
J. E. Swan, IV Vice President and Controller
(Principal Accounting Officer)

Other Directors*:
G. E. Aliff	J. M. Micali
J. A. Bennett	L. M. Miller
J. F. A. V. Cecil	J. W. Roquemore
~~D. M. Hagood~~S. A. Decker	M. K. Sloan
J.D. M. ~~Micali~~Hagood	~~H. C. Stowe~~A. Trujillo
~~L. M. Miller~~

* Signed on behalf of each of these persons by Ronald T. Lindsay, Attorney-in-Fact

DATE: February ~~28, 2014~~24, 2017

~~159~~

EXHIBIT INDEX



Exhibit	Applicable to Form 10-K of
No.	SCANA	SCE&G	Description
3.01	X		Restated Articles of Incorporation of SCANA, as adopted on April 26, 1989 (Filed as Exhibit 3-A to Registration Statement No. 33-49145 and incorporated by reference herein)
3.02	X		Articles of Amendment dated April 27, 1995 (Filed as Exhibit 4-B to Registration Statement No. 33-62421 and incorporated by reference herein)
3.03	X		Articles of Amendment effective April 25, 2011 (Filed as Exhibit 4.03 to Registration Statement No. 333-174796 and incorporated by reference herein)
3.04		X	Restated Articles of Incorporation of SCE&G, as adopted on December 30, 2009 (Filed as Exhibit 1 to Form 8-A (File No. 000-53860) and incorporated by reference herein)
3.05	X		By-Laws of SCANA as amended and restated as of ~~February 19, 2009~~December 30, 2016 (Filed ~~as Exhibit 4.04 to Registration Statement No. 333-174796 and incorporated by reference herein)~~herewith)
3.06		X	By-Laws of SCE&G as revised and amended on February 22, 2001 (Filed as Exhibit 3.05 to Registration Statement No. 333-65460 and incorporated by reference herein)
4.01	X	X	Articles of Exchange of SCE&G and SCANA (Filed as Exhibit 4-A to Post-Effective Amendment No. 1 to Registration Statement No. 2-90438 and incorporated by reference herein)
4.02	X		Indenture dated as of November 1, 1989 between SCANA and The Bank of New York Mellon Trust Company, N. A. (successor to The Bank of New York), as Trustee (Filed as Exhibit 4-A to Registration No. 33-32107 and incorporated by reference herein)
4.03	X		First Supplemental Indenture dated as of November 1, 2009 to Indenture dated as of November 1, 1989 between SCANA and The Bank of New York Mellon Trust Company, N.A. (successor to The Bank of New York), as Trustee (Filed as Exhibit 99.01 to Registration Statement No. 333-174796 and incorporated by reference herein)
4.04	X		Junior Subordinated Indenture dated as of November 1, 2009 between SCANA and U.S. Bank National Association, as Trustee (Filed as Exhibit 99.02 to Registration Statement No. 333-174796 and incorporated by reference herein)
~~4.05~~	X		First Supplemental Indenture to Junior Subordinated Indenture referred to in Exhibit 4.04 dated as of November 1, 2009 (Filed as Exhibit 99.03 to Registration Statement No. 333-174796 and incorporated by reference herein)
~~4.06~~		X	Indenture dated as of April 1, 1993 from SCE&G to The Bank of New York Mellon Trust Company, N. A. (as successor to NationsBank of Georgia, National Association), as Trustee (Filed as Exhibit 4-F to Registration Statement No. 33-49421 and incorporated by reference herein)
~~4.07~~4.05		X	First Supplemental Indenture to Indenture referred to in Exhibit ~~4.06~~4.04 dated as of June 1, 1993 (Filed as Exhibit 4-G to Registration Statement No. 33-49421 and incorporated by reference herein)
~~4.08~~4.06		X	Second Supplemental Indenture to Indenture referred to in Exhibit ~~4.06~~4.04 dated as of June 15, 1993 (Filed as Exhibit 4-G to Registration Statement No. 33-57955 and incorporated by reference herein)
~~4.09~~4.07		X	Third Supplemental Indenture to Indenture referred to in Exhibit ~~4.06~~4.04 dated as of September 1, 2013 (Filed as Exhibit 4.12 to Post-Effective Amendment to Registration Statement No. 333-184426-01 and incorporated by reference herein)

~~160~~



10.01	X	X	Engineering, Procurement and Construction Agreement, dated May 23, 2008, between SCE&G, for itself and as Agent for the South Carolina Public Service Authority and a Consortium consisting of Westinghouse Electric Company LLC and Stone & Webster, Inc. (portions of the exhibit have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended) (Filed as Exhibit 10.01 to Form 10-Q/A for the quarter ended June 30, 2008 (File No. 001-08809 (SCANA); File No. 001-03375 (SCE&G)) and incorporated by reference herein)
10.02	X	X	Contract for AP1000 Fuel Fabrication and Related Services between Westinghouse Electric Company LLC and SCE&G for V. C. Summer AP1000 Nuclear Plant Units 2 & 3 (portions of the exhibit have been omitted and filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended) (Filed as Exhibit 10.01 to Form 10-Q/A for the quarter ended June 30, 2011 (File No. 001-08809 (SCANA); (File No. 001-03375 (SCE&G)) and incorporated by reference herein)
10.03	X	X	Amendment to EPC Contract referred to in Exhibit 10.01 dated October 27, 2015 (Filed as Exhibit 10.05 to Form 10-Q for the quarter ended September 30, 2015 (File No. 001-08809 (SCANA); (File No. 001-03375 (SCE&G)) and incorporated by reference herein)



*~~10.03~~10.04	X	X	SCANA Executive Deferred Compensation Plan (including amendments through ~~December 31, 2009)~~November 25, 2014) (Filed as Exhibit ~~99.04~~10.03 to ~~Registration Statement~~Form 10-K for the year ended December 31, 2014 (File No. ~~333-174796~~001-08809 (SCANA); (File No. 001-03375 (SCE&G)) and incorporated by reference herein)
*~~10.04~~10.05	X	X	SCANA Supplemental Executive Retirement Plan (including amendments through December 31, 2009) (Filed as Exhibit 99.05 to Registration Statement No. 333-174796 and incorporated by reference herein)
*~~10.05~~10.06	X	X	SCANA Director Compensation and Deferral Plan (including amendments through ~~April 21, 2011)~~November 30, 2014) (Filed as Exhibit ~~4.05~~10.05 to ~~Registration Statement~~Form 10-K for the year ended December 31, 2014 (File No. ~~333-174796~~001-08809 (SCANA); (File No. 001-03375 (SCE&G)) and incorporated by reference herein)
*~~10.06~~10.07	X	X	SCANA Long-Term Equity Compensation Plan ~~as amended and restated (including amendments through December 31, 2009)~~effective February 19, 2015 (Filed as Exhibit ~~99.06~~4.05 to Registration Statement No. ~~333-174796~~333-204218 and incorporated by reference herein)
*~~10.07~~10.08	X	X	SCANA Supplementary Executive Benefit Plan (including amendments through December 31, 2009) (Filed as Exhibit 99.07 to Registration Statement No. 333-174796 and incorporated by reference herein)
*~~10.08~~10.09	X	X	SCANA Short-Term Annual Incentive Plan (including amendments through December 31, 2009) (Filed as Exhibit 99.08 to Registration Statement No. 333-174796 and incorporated by reference herein)
*~~10.09~~10.10	X	X	SCANA Supplementary Key Executive Severance Benefits Plan (including amendments through December 31, 2009) (Filed as Exhibit 99.09 to Registration Statement No. 333-174796 and incorporated by reference herein)
*~~10.10~~10.11	X	X	Description of SCANA Whole Life Option (Filed as Exhibit 10-F for the year ended December 31, 1991, under cover of Form SE (File No. 001-08809 (SCANA); (File No. 001-03375 (SCE&G)) and incorporated by reference herein)
~~10.11~~10.12		X	Service Agreement between SCE&G and SCANA Services, Inc., effective January 1, 2004 (Filed as Exhibit 99.10 to Registration Statement No. 333-174796 and incorporated by reference herein)
~~10.12~~10.13	X		Form of Indemnification Agreement (Filed as Exhibit 10.01 to Form 10-Q dated June 30, 2012 (File No. 001-08809) and incorporated by reference herein)
~~10.13~~10.14	X		Second Amended and Restated Five-Year Credit Agreement dated as of ~~October 25, 2012,~~December 17, 2015, by and among SCANA; the lenders identified therein; Wells Fargo Bank, National Association, as Issuing Bank, Swingline Lender and Agent; Morgan Stanley Bank, N.A., as Issuing Bank; Bank of America, N.A. and Morgan Stanley Senior Funding, Inc., as Co-Syndication ~~Agents~~Agents; and Branch Banking and Trust Company, Credit Suisse AG, Cayman Islands Branch, JPMorgan Chase Bank, N.A., Mizuho ~~Corporation~~ Bank, LTD. ~~and~~, MUFG Union Bank, N.A., TD Bank N.A., and UBS Securities, LLC, as Documentation Agents (Filed as Exhibit 99.1 to Form 8-K on ~~October 30, 2012~~December 22, 2015 (File No. 001-08809) and incorporated by reference herein)
~~10.14~~10.15	X	X	Second Amended and Restated Five-Year Credit Agreement dated as of ~~October 25, 2012,~~December 17, 2015, by and among SCE&G; the lenders identified therein; Wells Fargo Bank, National Association, as Issuing Bank, Swingline Lender and Agent; Bank of America, N.A., as Issuing Bank and Co-Syndication Agent; Morgan Stanley Senior Funding, Inc., as Co-Syndication ~~Agents;~~Agent; and Branch Banking and Trust Company, Credit Suisse AG, Cayman Islands Branch, JPMorgan Chase Bank, N.A., Mizuho Bank, LTD., MUFG Union Bank, N.A., TD Bank N.A. and UBS ~~Loan Finance~~Securities, LLC, as Documentation Agents (Filed as Exhibit 99.2 to Form 8-K on ~~October 30, 2012 (File No. 001-08809 (SCANA); File No. 001-00375 (SCE&G)) and incorporated by reference herein)~~

~~161~~



~~10.15~~	X	X	Three-Year Credit Agreement dated as of October 25, 2012, by and among SCE&G; the lenders identified therein; Wells Fargo Bank, National Association, as Issuing Bank, Swingline Lender and Agent; Bank of America, N.A. and Morgan Stanley Senior Funding, Inc., as Co-Syndication Agents; and Credit Suisse AG, Cayman Islands Branch and UBS Loan Finance LLC, as Documentation Agents (Filed as Exhibit 99.3 to Form 8-K on October 30, 2012December 22, 2015 (File No. 001-08809 (SCANA); File No. 001-03375 (SCE&G)) and incorporated by reference herein)
10.16	X	X	Amended and Restated Three-Year Credit Agreement dated as of December 17, 2015, by and among SCE&G; the lenders identified therein; Wells Fargo Bank, National Association, as Swingline Lender and Agent; Morgan Stanley Bank, N.A., as Issuing Bank; Bank of America, N.A. as Issuing Bank and Co-Syndication Agent; Morgan Stanley Senior Funding, Inc., as Co-Syndication Agent; and Branch Banking and Trust Company, Credit Suisse AG, Cayman Islands Branch, JPMorgan Chase Bank, N.A., Mizuho Bank, LTD., MUFG Union Bank, N.A., TD Bank N.A. and UBS Securities, LLC, as Documentation Agents (Filed as Exhibit 99.3 to Form 8-K on December 22, 2015 (File No. 001-08809 (SCANA); File No. 001-03375 (SCE&G)) and incorporated by reference herein)



10.17	X	X	Second Amended and Restated Five-Year Credit Agreement dated as of ~~October 25, 2012,~~December 17, 2015, by and among Fuel Company; the lenders identified therein; Wells Fargo Bank, National Association, as Swingline Lender and Agent; Bank of America, N.A. and Morgan Stanley Senior Funding, Inc., as Co-Syndication Agents; and Branch Banking and Trust Company, Credit Suisse AG, Cayman Islands Branch, JPMorgan Chase Bank, N.A., Mizuho ~~Corporation~~ Bank, LTD. ~~and~~, MUFG Union Bank, N.A., TD Bank N.A., and UBS Securities, LLC, as Documentation Agents (Filed as Exhibit 99.4 to Form 8-K on ~~October 30, 2012~~December 22, 2015 (File No. 001-08809 (SCANA); (File No. 001-03375 (SCE&G)) and incorporated by reference herein)
~~10.17~~10.18	X		Second Amended and Restated Five-Year Credit Agreement dated as of ~~October 25, 2012,~~December 17, 2015, by and among PSNC Energy; the lenders identified therein; Wells Fargo Bank, National Association, as Issuing Bank, Swingline Lender and Agent; Bank of America, N.A. and Morgan Stanley Senior Funding, Inc., as Co-Syndication Agents; and Branch Banking and Trust Company, Credit Suisse AG, Cayman Islands Branch, JPMorgan Chase Bank, N.A., Mizuho ~~Corporate~~ Bank, LTD. ~~and~~, MUFG Union Bank, N.A., TD Bank N.A., and UBS Securities, LLC, as Documentation Agents (Filed as Exhibit 99.5 to Form 8-K on ~~October 30, 2012~~December 22, 2015 (File No. 001-08809) and incorporated by reference herein)
12.01	X	X	Statement Re Computation of Ratios (Filed herewith)
21.01	X		Subsidiaries of the registrant (Filed ~~herewith under the heading “Corporate Structure and Organization” in Part I, Item I of this Form 10-K and incorporated by reference herein)~~herewith)
23.01	X		Consents of Experts and Counsel (Consent of Independent Registered Public Accounting Firm) (Filed herewith)
23.02		X	Consents of Experts and Counsel (Consent of Independent Registered Public Accounting Firm) (Filed herewith)
24.01	X		Power of Attorney (Filed herewith)
24.02		X	Power of Attorney (Filed herewith)
31.01	X		Certification of Principal Executive Officer Required by Rule 13a-14 (Filed herewith)
31.02	X		Certification of Principal Financial Officer Required by Rule 13a-14 (Filed herewith)
31.03		X	Certification of Principal Executive Officer Required by Rule 13a-14 (Filed herewith)
31.04		X	Certification of Principal Financial Officer Required by Rule 13a-14 (Filed herewith)
32.01	X		Certification of Principal Executive Officer ~~Pursuant to 18 U.S.C. Section 1350 (Furnished herewith)~~
~~32.02~~	X		~~Certification of~~and Principal Financial Officer Pursuant to 18 U.S.C. Section 1350 (Furnished herewith)
~~32.03~~32.02		X	Certification of Principal Executive Officer ~~Pursuant to 18 U.S.C. Section 1350 (Furnished herewith)~~
~~32.04~~		X	~~Certification of~~and Principal Financial Officer Pursuant to 18 U.S.C. Section 1350 (Furnished herewith)
101. INS**	X	X	XBRL Instance Document
101. SCH**	X	X	XBRL Taxonomy Extension Schema
101. CAL**	X	X	XBRL Taxonomy Extension Calculation Linkbase

~~162~~



101. DEF**	X	X	XBRL Taxonomy Extension Definition Linkbase
101. LAB**	X	X	XBRL Taxonomy Extension Label Linkbase
101. PRE**	X	X	XBRL Taxonomy Extension Presentation Linkbase



*									Management Contract or Compensatory Plan or Arrangement
**									Pursuant to Rule 406T of Regulation S-T, this interactive data file is deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, and otherwise is not subject to liability under these sections.

~~163~~108



Commission File Number	Registrant, State of Incorporation, Address and Telephone Number	I.R.S. Employer Identification No.
1-8809 1-3375	SCANA Corporation (a South Carolina corporation) South Carolina Electric & Gas Company (a South Carolina corporation) 100 SCANA Parkway, Cayce, South Carolina 29033 (803) 217-9000	57-0784499 57-0248695



SCANA Corporation	Large accelerated filer x	Accelerated filer o	Non-accelerated filer o	Smaller reporting company o
South Carolina Electric & Gas Company	Large accelerated filer o	Accelerated filer o	Non-accelerated filer x	Smaller reporting company o



Registrant	Description of Common Stock	Shares Outstanding at February 20, ~~2014~~2017
SCANA Corporation	Without Par Value	~~141,144,841~~142,916,917
South Carolina Electric & Gas Company	Without Par Value	40,296,147



			Page
~~CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION~~ Cautionary Statement Regarding Forward-Looking Information			3

~~DEFINITIONS~~ Definitions		4

PART I
Item 1.	Business		5
Item 1A.	Risk Factors		12
Item 1B.	Unresolved Staff Comments		20
Item 2.	Properties		20
Item 3.	Legal Proceedings		20
Item 4.	Mine Safety Disclosures		20
Executive Officers of SCANA Corporation			2120

PART II
Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities		2221
Item 6.	Selected Financial Data		2322

~~SCANA Corporation~~		24
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		2523
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk		4641
Item 8.	Financial Statements and Supplementary Data		4844
	SCANA Corporation and Subsidiaries		44
		Report of Independent Registered Public Accounting Firm
		Consolidated Balance Sheets
		Consolidated Statements of Income
		Consolidated Statements of Comprehensive Income
		Consolidated Statements of Cash Flows
		Consolidated Statements of Changes in Common Equity
	South Carolina Electric & Gas Company and Affiliates		9251
~~Item 7.~~		Report of Independent Registered Public Accounting Firm
		Consolidated Balance Sheets
		Consolidated Statements of Comprehensive Income
		Consolidated Statements of Cash Flows
		Consolidated Statements of Changes in Common Equity
	Notes to Consolidated Financial Statements		~~Management’s Discussion and Analysis of Financial Condition and Results of Operations~~57	93
~~Item 7A.~~	~~Quantitative and Qualitative Disclosures About Market Risk~~	~~111~~
~~Item 8.~~	~~Financial Statements and Supplementary Data~~	~~112~~

Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure		~~151~~98
Item 9A.	Controls and Procedures		~~151~~98
Item 9B.	Other Information		100

PART III
Item 10.	Directors, Executive Officers and Corporate Governance		~~154~~101
Item 11.	Executive Compensation		~~154~~101
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters		~~154~~101
Item 13.	Certain Relationships and Related Transactions, and Director Independence		~~155~~102
Item 14.	Principal Accounting Fees and Services		~~155~~102

PART IV
Item 15.	Exhibits, Financial Statement Schedules		~~156~~103

~~SIGNATURES~~ Signatures			~~158~~104

Exhibit Index			~~160~~106



TERM		MEANING
AFC		Allowance for Funds Used During Construction
ANI		American Nuclear Insurers
AOCI		Accumulated Other Comprehensive Income (Loss)
ARO		Asset Retirement Obligation
BACT		Best Available Control Technology
BLRA		Base Load Review Act
CAA		Clean Air Act, as amended
CAIR		Clean Air Interstate Rule
CB&I		Chicago Bridge & Iron Company N.V.
CCR		Coal Combustion Residuals
CEO		Chief Executive Officer
CFO		Chief Financial Officer
CFTC		Commodity Futures Trading Commission
CERCLA		Comprehensive Environmental Response, Compensation and Liability Act
CGT		Carolina Gas Transmission Corporation
CO₂		Carbon Dioxide
COL		Combined Construction and Operating License
Company		SCANA, together with its consolidated subsidiaries
Consolidated SCE&G		SCE&G and its consolidated affiliates
Consortium		A consortium consisting of ~~Westinghouse Electric Company LLC~~WEC and Stone and Webster ~~Inc., a subsidiary~~
Court of ~~Chicago Bridge & Iron Company N. V.~~Appeals		United States Court of Appeals for the District of Columbia
CSAPR		Cross-State Air Pollution Rule
CUT		Customer Usage Tracker (decoupling mechanism)
CWA		Clean Water Act
DCGT		Dominion Carolina Gas Transmission LLC
DER		Distributed Energy Resource
DHEC		South Carolina Department of Health and Environmental Control
Dodd-Frank		Dodd-Frank Wall Street Reform and Consumer Protection Act
DOE		United States Department of Energy
DOJ		United States Department of Justice
DOT		United States Department of Transportation
DRB		Dispute Resolution Board
DSM Programs		Demand Side Management Programs
~~EIZ Credits~~		~~South Carolina Capital Investment Tax Credits (formerly known as Economic Impact Zone Income Tax Credits)~~
ELG Rule		~~New federal~~Federal effluent limitation guidelines for steam electric generating units
~~Energy Marketing~~EMANI		~~The divisions of SEMI, excluding SCANA Energy~~European Mutual Association for Nuclear Insurance
EPA		United States Environmental Protection Agency
EPC Contract		Engineering, Procurement and Construction Agreement dated May 23, 2008
~~eWNA~~FASB		~~Pilot Electric WNA~~Financial Accounting Standards Board
FERC		United States Federal Energy Regulatory Commission
Fluor		Fluor Corporation
Fuel Company		South Carolina Fuel Company, Inc.
GAAP		Accounting principles generally accepted in the United States of America
GENCO		South Carolina Generating Company, Inc.
GHG		Greenhouse Gas
GPSC		Georgia Public Service Commission
GWh		Gigawatt hour
~~IRP~~IRC		~~Integrated Resource Plan~~Internal Revenue Code
IRS		United States Internal Revenue Service
~~JEDA~~		~~South Carolina Jobs-Economic Development Authority~~
KVA		Kilovolt ampere
kWh		Kilowatt-hour


(1)	the information is of a preliminary nature and may be subject to further and/or continuing review and adjustment;


(2)	legislative and regulatory actions, particularly changes inrelated to electric and gas services, rate regulation, regulations governing electric grid reliability and pipeline integrity, environmental regulations, and actions affecting the construction of new nuclear units;


(4)	changes in the economy, especially in areas served by subsidiaries of SCANA;


(5)	the impact of competition from other energy suppliers, including competition from alternate fuels in industrial markets;


(6)	the impact of conservation and demand side management efforts and/or technological advances on customer usage;


(7)	the loss of sales to distributed generation, such as solar photovoltaic systems or energy storage systems;


(8)	growth opportunities for SCANA’s regulated and ~~diversified~~other subsidiaries;


(9)	the results of short- and long-term financing efforts, including prospects for obtaining access to capital markets and other sources of liquidity;


(10)	the effects of weather, especially in areas where the generation and transmission facilities of SCANA and its subsidiaries (the Company) are located and in areas served by SCANA’s subsidiaries;


(11)	changes in SCANA’s or its subsidiaries’ accounting rules and accounting policies;


~~(18)~~(20)	the availability of skilled, licensed and experienced human resources to properly manage, operate, and grow the Company’s businesses;


~~(19)~~(21)	labor disputes;


~~(20)~~(22)	performance of SCANA’s pension plan ~~assets;~~assets and the effect(s) of associated discount rates;


~~(22)~~(24)	inflation or deflation;


(12)	payment and performance by counterparties and customers as contracted and when due;


(13)	the results of efforts to license, site, construct and finance facilities for electric generation and ~~transmission;~~transmission, including nuclear generating facilities;


(14)	the results of efforts to operate the Company's electric and gas systems and assets in accordance with acceptable performance standards, including the impact of additional distributed generation and nuclear generation;


(15)	maintaining creditworthy joint owners for SCE&G’s new nuclear generation project;


~~(15)~~(16)	the creditworthiness and/or financial stability of contractors for SCE&G's new nuclear generation project, particularly in light of adverse financial developments disclosed by Toshiba;


(17)	the ability of suppliers, both domestic and international, to timely provide the labor, secure processes, components, parts, tools, equipment and other supplies needed, at agreed upon quality and prices, for our construction program, operations and maintenance;


~~(16)~~(18)	the results of efforts to ensure the physical and cyber security of key assets and processes;


~~(17)~~(19)	the availability of fuels such as coal, natural gas and enriched uranium used to produce electricity; the availability of purchased power and natural gas for distribution; the level and volatility of future market prices for such fuels and purchased power; and the ability to recover the costs for such fuels and purchased power;


~~(21)~~(23)	changes in ~~taxes;~~tax laws and realization of tax benefits and credits, including production tax credits for new nuclear units, and the ability or inability to realize credits and deductions;


~~(24)~~(27)	natural disasters and man-made mishaps that directly affect our operations or the regulations governing them; and


~~(25)~~(28)	the other risks and uncertainties described from time to time in the ~~periodic~~ reports filed by SCANA or SCE&G with the SEC.



~~TERM~~		~~MEANING~~
Level 1		A fair value measurement using unadjusted quoted prices in active markets for identical assets or liabilities
Level 2		A fair value measurement using observable inputs other than those for Level 1, including quoted prices for similar (not identical) assets or liabilities or inputs that are derived from observable market data by correlation or other means
Level 3		A fair value measurement using unobservable inputs, including situations where there is little, if any, market activity for the asset or liability
LNG		Liquefied Natural Gas
LOC		Lines of Credit
LTECP		SCANA Long-Term Equity Compensation Plan
MATS		Mercury and Air Toxics Standards
MCF ~~or MMCF~~		Thousand ~~Cubic Feet or Million~~ Cubic Feet
MGP		Manufactured Gas Plant
MMBTU		Million British Thermal Units
MW or MWh		Megawatt or Megawatt-hour
NAAQS		National Ambient Air Quality Standard
NASDAQ		The NASDAQ Stock Market, Inc.
NAV		Net Asset Value
NCUC		North Carolina Utilities Commission
NEIL		Nuclear Electric Insurance Limited
NERC		North American Electric Reliability Corporation
New Units		Nuclear Units 2 and 3 under construction at Summer Station
NO_X		Nitrogen Oxide
NPDES		National Permit Discharge Elimination System
NRC		United States Nuclear Regulatory Commission
NSPS		New Source Performance Standards
NSR		New Source Review
Nuclear Waste Act		Nuclear Waste Policy Act of 1982
NYMEX		New York Mercantile Exchange
NYSE		The New York Stock Exchange
OCI		Other Comprehensive Income
October 2015 Amendment		Amendment, dated October 27, 2015, to the EPC Contract
ORS		South Carolina Office of Regulatory Staff
PGA		Purchased Gas Adjustment
PHMSA		United States Pipeline Hazardous Materials Safety Administration
Price-Anderson		Price-Anderson Indemnification Act
~~PRP~~		~~Potentially Responsible Party~~
PSNC Energy		Public Service Company of North Carolina, Incorporated
~~RCC~~ROE		~~Replacement Capital Covenant~~Return on Common Equity
RSA		Natural Gas Rate Stabilization Act
RTO/ISO		Regional Transmission Organization/Independent System Operator
Santee Cooper		South Carolina Public Service Authority
SCANA		SCANA Corporation, the parent company
SCANA Energy		~~A division of SEMI which markets natural gas in Georgia~~SCANA Energy Marketing, Inc.
SCANA Services		SCANA Services, Inc.
SCE&G		South Carolina Electric & Gas Company
~~SCEUC~~		~~South Carolina Energy Users Committee~~
SCI		SCANA Communications, Inc.
SCPSC		Public Service Commission of South Carolina
SEC		United States Securities and Exchange Commission
~~SEMI~~		~~SCANA Energy Marketing, Inc.~~
SERC		SERC Reliability Corporation
SIP		State Implementation Plan
SO₂		Sulfur Dioxide
Southern Natural		Southern Natural Gas Company
Spirit Communications		SCTG, LLC and its wholly-owned subsidiary SCTG Communications, Inc.
Stone & Webster		Prior to December 31, 2015, CB&I Stone & Webster, a subsidiary of CB&I. Effective December 31, 2015, Stone & Webster, a subsidiary of WECTEC, LLC, a wholly-owned subsidiary of WEC
Summer Station		~~V. C.~~V.C. Summer Nuclear Station
Supreme Court		United States Supreme Court
Toshiba
~~TERM~~		~~MEANING~~Toshiba Corporation, parent company of WEC
Transco		Transcontinental Gas Pipeline Corporation
TSR		Total Shareholder Return
Unit 1		Nuclear Unit 1 at Summer Station
VACAR		Virginia-Carolinas Reliability Group
VIE		Variable Interest Entity
~~Westinghouse~~WEC		Westinghouse Electric Company LLC
Williams Station		A.M. Williams Generating Station, owned by GENCO
WNA		Weather Normalization Adjustment



~~SCE&G~~	~~Engaged in the generation, transmission, distribution and sale of electricity to retail and wholesale customers and the purchase, sale and transportation of natural gas to retail customers~~
~~GENCO~~	~~Owns Williams Station and sells electricity solely to SCE&G~~
~~Fuel Company~~	~~Acquires, owns and provides financing for SCE&G’s nuclear fuel, certain fossil fuels and emission allowances~~
~~PSNC Energy~~	~~Purchases, sells and transports natural gas to retail customers~~
~~CGT~~	~~Transports natural gas in South Carolina and southeastern Georgia~~
~~SCI~~	~~Provides fiber optic communications, ethernet services and data center facilities and builds, manages and leases communications towers in South Carolina, North Carolina and Georgia~~
~~SEMI~~	~~Markets natural gas, primarily in the Southeast, and provides energy‑related risk management services. SCANA Energy, a division of SEMI, markets natural gas in Georgia’s retail market.~~
~~ServiceCare, Inc.~~	~~Provides service contracts on home appliances and heating and air conditioning units~~
~~SCANA Services, Inc.~~	~~Provides administrative, management and other services to SCANA’s subsidiaries and business units~~


	Sales				Margins				Sales				Margins
Customer Classification	2012		2013		2012		2013		2016		2015		2016		2015
Residential	43	%	44	%	50	%	50	%	46	%	45	%	50	%	50	%
Commercial	32	%	33	%	33	%	33	%	33	%	33	%	33	%	33	%
Industrial	17	%	18	%	13	%	14	%	17	%	17	%	14	%	14	%
Sales for resale	6	%	2	%	2	%	1	%	2	%	2	%	1	%	1	%
Other	2	%	3	%	2	%	2	%	2	%	3	%	2	%	2	%
Total	100	%	100	%	100	%	100	%	100	%	100	%	100	%	100	%


	Cost of Fuel Used						Cost of Fuel Used
	2011		2012		2013		2016		2015		2014
Per MMBTU:
Nuclear	$	0.88	$	0.94	$	1.11	$	0.98	$	0.95	$	1.01
Coal	4.47		4.49		4.28		3.41		3.81		3.90
Natural Gas	4.86		3.71		4.63		3.02		3.26		5.19
All Fuels (weighted average)	3.80		3.56		3.53		2.41		3.01		3.62
Per Ton: Coal	109.91		111.72		104.63		84.62		95.69		96.74
Per MCF: Gas	5.01		3.80		4.69		3.11		3.35		5.30



	% of Total MWh Generated
	Actual						Estimated
	2011		2012		2013		2014		2015		2016
Coal	50	%	50	%	45	%	50	%	49	%	45	%
Nuclear	19	%	19	%	24	%	21	%	21	%	24	%
Hydro	3	%	3	%	4	%	4	%	4	%	4	%
Natural Gas & Oil	28	%	28	%	26	%	24	%	25	%	26	%
Biomass	—		—		1	%	1	%	1	%	1	%
Total	100	%	100	%	100	%	100	%	100	%	100	%



Project		License Expiration
Saluda (Lake Murray)		~~2014~~*
Fairfield Pumped Storage/Parr Shoals		2020
Stevens Creek		2025
Neal Shoals		2036


		Net Generating Capacity			Net Generating Capacity
	In-Service	Summer		In-Service	Summer
	Date	(MW)		Date	(MW)
Coal-Fired Steam:
McMeekin - Near Irmo, SC	1958	250	*
Wateree - Eastover, SC	1970	684		1970	684
Williams - Goose Creek, SC	1973	605		1973	605
Cope - Cope, SC	1996	415		1996	415
Kapstone - Charleston, SC	1999	85		1999	85

Gas-Fired Steam - Urquhart Unit 3 - Beech Island, SC	1953	95	*
Gas-Fired Steam:
McMeekin - Irmo, SC				1958	250
Urquhart Unit 3 - Beech Island, SC				1953	95

Nuclear - V. C. Summer - Parr, SC (reflects SCE&G's 66.7% ownership share)	1984	647
Nuclear:
Summer Station Unit 1 - Parr, SC (reflects SCE&G's 66.7% ownership share)				1984	647
Summer Station Unit 2 and Unit 3 - Parr, SC					*

Internal Combustion Turbines:
Jasper Combined Cycle - Jasper, SC				2004	852
Urquhart Combined Cycle - Beech Island, SC				2002	458
Peaking units - various locations in SC	1968-1999	352		1968-2010	348
Urquhart Combined Cycle - Beech Island, SC	2002	458
Jasper Combined Cycle - Jasper, SC	2004	852

Hydro:
Fairfield Pumped Storage - Parr, SC				1978	576
Saluda - Irmo, SC	1930	200		1930	200
Other hydro units - various locations in or bordering SC	1905-1914	18
Fairfield Pumped Storage - Parr, SC	1978	576
Other - various locations in or bordering SC				1905-1914	18



Name	Age	Positions Held During Past Five Years	Dates
Kevin B. Marsh	5861	Chairman of the Board and Chief Executive Officer President and Chief Operating Officer-SCANA ~~President and Chief Operating Officer-SCE&G~~	~~2011-present~~ ~~2011-present~~-present ~~-2011~~ -present
Jimmy E. Addison	5356	Executive Vice ~~President~~President-SCANA Chief Financial Officer ~~Senior Vice~~ President and Chief Operating Officer-SCANA Energy	~~2012-present~~-present -present *-20122014-present
Jeffrey B. Archie	5659	Senior Vice President and Chief Nuclear Officer-SCE&G Senior Vice President-SCANA ~~Vice President of Nuclear Operations-SCE&G~~	~~2009-present~~ ~~2010-present~~ *-2009
~~George J. Bullwinkel~~	65	~~President and Chief Operating Officer-SEMI, SCI and ServiceCare~~ ~~Senior Vice President-SCANA~~	-present -present
Sarena D. Burch	5659	Senior Vice President-Risk Management and Corporate Compliance Senior Vice President-Fuel Procurement and Asset ~~Management-SCE~~Management-SCANA, SCE&G and PSNC Energy ~~Senior Vice President-SCANA~~	2016-present ~~-present~~ -present-2015
Stephen A. Byrne	5457	~~President of Generation~~President-Generation and Transmission and Chief Operating Officer-SCE&G Executive Vice President-SCANA ~~Executive Vice President-Generation and Transmission -SCE&G~~ ~~Executive Vice President-Generation, Nuclear and Fossil Hydro-SCE&G~~ ~~Senior Vice President-Generation, Nuclear and Fossil Hydro-SCE&G~~	~~2011-present~~ ~~2009-present~~ ~~2011~~ ~~2009-2011~~ *-2009
~~Paul V. Fant~~	60	~~President and Chief Operating Officer-CGT~~ ~~Senior Vice President-SCANA~~	-present -present
D. Russell Harris	4952	~~President of Gas~~President-Gas Operations-SCE&G President and Chief Operating Officer-PSNC Energy Senior Vice President-Gas Distribution-SCANA Senior Vice President-SCANA	2013-present *-present 2013-present 2012-2013
Kenneth R. Jackson	60	Senior Vice President-Economic Development, Governmental and Regulatory Affairs Vice President-Rates and Regulatory Services	2014-present *-2014
W. Keller Kissam	4750	~~President of Retail~~President-Retail Operations-SCE&G Senior Vice President-SCANA ~~Senior Vice President-Retail Electric-SCE&G~~ ~~Vice President-Electric Operations-SCE&G~~	~~2011-present~~ ~~2011-present~~ ~~2011~~-present ~~-2011~~-present
Ronald T. Lindsay	6366	Senior Vice President, General Counsel and Assistant Secretary	*-present
~~Charles B. McFadden~~Randal M. Senn	69	~~Senior Vice President-Governmental Affairs and Economic Development-~~ ~~SCANA Services~~ ~~Senior Vice President-SCANA~~	-present -present
~~Martin K. Phalen~~	5960	Senior Vice President-Administration-SCANA Vice ~~President-Gas Operations-SCE&G~~President and Chief Information Officer Chief Information Officer	~~2012-present~~2016-present 2016 *~~-2012~~-2016



Issuer Purchases of Equity Securities
	(a)	(b)		(c)	(d)
Period	Total number of shares (or units) purchased	Average price paid per share (or unit)		Total number of shares (or units) purchased as part of publicly announced plans or programs	Maximum number (or approximate dollar value) of shares (or units) that may yet be purchased under the plans or programs
October 1-31, 2016	7,583	$	69.29	7,583
November 1-30, 2016	—	—		—
December 1-31, 2016	—	—		—
Total	7,583			7,583	*