Exhibit 99.1
PRESS RELEASE DATED FEBRUARY 13, 2004
For Immediate Release
Media Contact: Investor Contact:
Robin Montgomery John Winn
(803) 217-7701 (803) 217-9240
rmontgomery@scana.com jwinn@scana.com
SCANA Reports Results for Fourth Quarter and Full Year 2003,
Reaffirms 2004 Earnings Guidance
Columbia, SC, February 13, 2004...SCANA Corporation (NYSE: SCG) today reported
financial results for the fourth quarter and full year 2003 and reaffirmed the
earnings guidance previously provided for 2004.
YEAR-END RESULTS
For the year ended December 31, 2003, SCANA's reported earnings were $282
million, or $2.54 per share, compared to a reported loss of $142 million, or
$1.34 per share, for 2002. Excluding certain items listed in the table below,
SCANA's GAAP-adjusted net earnings from operations for 2003 were $278 million,
or $2.50 per share, compared to $253 million, or $2.38 per share, in 2002.
SCANA's reported earnings (loss) are prepared in accordance with Generally
Accepted Accounting Principles (GAAP). SCANA's management believes that, in
addition to reported earnings (loss) under GAAP, the GAAP-adjusted net earnings
from operations provides a meaningful representation of the Company's
fundamental earnings power and can aid in analysis of period-over-period
financial performance. A reconciliation of reported (GAAP) earnings (loss) per
share to GAAP-adjusted net earnings from operations per share for the three
months and twelve months ended December 31, 2003 and 2002 is provided in the
following table:
3 Months Ended 12 Months Ended
December 31, December 31,
2003 2002 2003 2002
---- ---- ---- ----
Reported (GAAP) Earnings (Loss) per Share $.36 $.38 $2.54 $(1.34)
Add:
Impairment Charge on Knology Investment .27 - .31 -
Impairment Charge on ITC^DeltaCom Investment - - - .07
Impairment Charge on Deutsche Telekom Investment - .21 - 1.72
Cumulative Effect of Accounting Change re: Goodwill - - - 2.17
Deduct:
Gain on Sale of ITC Holding Company Investment - - .35 -
Gain on Sale of Radio Network - - - .09
Gain on Sale of Deutsche Telekom Stock - .05 - .15
GAAP-Adjusted Net Earnings From Operations per Share $.63 $.54 $2.50 $2.38
"Our 2003 financial results were very solid, especially in light of the negative
impact that milder summer weather, a soft economy and volatile natural gas
prices had on our operations during the year," said Kevin Marsh, senior vice
president and chief financial officer. "SCANA's 2003 GAAP-adjusted net earnings
from operations of $2.50 per share were up 5 percent from the $2.38 per share
recorded in 2002 and were in-line with our earnings guidance."
The improvement in SCANA's 2003 GAAP-adjusted net earnings from operations per
share was primarily attributable to higher electric and natural gas margins,
which more than offset increases in operation and maintenance expense,
depreciation and property taxes, lower pension income, and share dilution
associated with the public sale of 6 million shares of common stock in October
2002. The higher electric margin was primarily attributable to the 5.8 percent
retail electric rate increase that was effective in February 2003 and to solid
customer growth, which offset the negative impact of milder weather compared to
2002. The year-over-year improvement in the consolidated natural gas margin was
attributable to improved sales margins in the Company's regulated and
non-regulated natural gas businesses.
Total kilowatt-hour (KWH) sales of electricity in 2003 were down 2.5 percent
compared to 2002, primarily reflecting milder summer weather across the
Company's electric service area. Residential sales were down 3.2 percent and
commercial sales declined about 1 percent. Industrial sales were up about 1
percent. Wholesale sales were down 13.6 percent, reflecting the milder weather
and soft economic conditions. The Company's electric customer base recorded
solid growth, increasing by nearly 2 percent to approximately 571,000 at
year-end 2003.
Total therm sales of natural gas in 2003 were down 7 percent compared to 2002.
Residential and commercial sales were up 7 percent and 11.6 percent,
respectively, reflecting more favorable winter weather and customer growth.
Those increases were more than offset by a 15 percent decline in industrial
sales due primarily to high natural gas prices, which resulted in lost load to
lower-priced alternative fuels in interruptible markets. The number of natural
gas customers in the Company's three-state service area increased 5.5 percent to
approximately 1.1 million at year-end 2003.
"Despite significant challenges in all our businesses in 2003, we maintained our
strategic focus on growing our core businesses, strengthening our financial
position, providing high quality service to our customers and competitive
returns to our shareholders," said Marsh. "We are also committed to maintaining
the highest corporate governance standards in all our businesses."
As part of an ongoing effort to reduce leverage, the Company sold a portion of
its telecommunications investments in 2003 and used the cash proceeds to pay
down debt. "After the 875-megawatt, $450 million Jasper County Electric
Generating Plant is completed this spring, our plan is to use the additional
internal cash flow generated from operations and proceeds from continued sales
of these telecommunications investments to reduce our consolidated debt-to-total
capital ratio to 50-52% over the next several years," said Marsh.
"About 60 percent of the total estimated cost of the Jasper Plant is already
included in SCE&G's electric rates," said Marsh. "We will finalize our strategy
for recovering the remaining costs associated with this project after the plant
begins commercial operation."
In February 2003, SCANA's board of directors raised the annual cash dividend on
the Company's common stock by 6.2 percent. This action marked the 49th dividend
increase in the last 51 years and contributed to a 15 percent total return
(dividends plus price appreciation) on the Company's common stock in 2003.
"Building off these solid financial results in 2003, we believe we are
positioned to continue delivering a competitive total return to our shareholders
over the long-term," said Marsh.
Marsh noted that SCANA also had a successful year in 2003 from an operating
perspective. "Our electricity and natural gas delivery systems operated
efficiently and safely during the year, and we continued to receive national
recognition for customer satisfaction," said Marsh. "With respect to our major
capital projects, SCE&G's construction of the Jasper Plant and the $275 million
back-up dam at Lake Murray both continued on schedule and on budget. Those
projects are scheduled for completion in the spring of 2004 and the fall of
2005, respectively. Last fall, our SCG Pipeline subsidiary completed an 18-mile,
$30 million interstate transmission pipeline that will provide natural gas for
the Jasper Plant as well as providing a new source of natural gas for our
existing markets in South Carolina and Georgia. Also last fall, South Carolina
Pipeline began construction on a 38-mile, $25 million natural gas transmission
pipeline that, when it is completed in the spring of 2004, will link with the
new SCG pipeline. Efforts also remain on track for Nuclear Regulatory Commission
approval later this year of a 20-year extension of the operating license for
SCE&G's 1,000 megawatt V.C. Summer Nuclear Station."
The Company reported that in January 2004, it was notified by the Internal
Revenue Service that the IRS had completed and closed examinations of the
Company's consolidated federal income tax returns through tax years ending in
2000, with the exception of the Company's interest in the synthetic fuel
partnership, S. C. Coaltech No. 1 L.P., which operates the synfuel production
facilities at SCE&G's Wateree Electric Generating Station. The IRS notified the
Company that it is in the process of closing this partnership examination with
no changes being proposed, and that a formal closing letter is forthcoming. The
IRS audit report makes no challenge to the declaration that the synthetic fuel
facility was properly placed in service, and takes no issue with evidence
submitted demonstrating that the facility produces a qualifying fuel. The
Company continues to believe that all of its synthetic fuel tax credits have
been properly claimed.
FOURTH QUARTER RESULTS
For the fourth quarter of 2003, SCANA's reported earnings were $40 million, or
$.36 per share, compared to $42 million, or $.38 per share, for the fourth
quarter of 2002. GAAP-adjusted net earnings from operations for the fourth
quarter of 2003 were $70 million, or $.63 per share, compared to $60 million, or
$.54 per share, for the same quarter in 2002.
"The $.09 per share increase in GAAP-adjusted net earnings from operations in
the fourth quarter was attributable to improved margins on natural gas sales and
to higher electric margins at SCE&G related to customer growth and the retail
rate increase implemented in February 2003," said Marsh.
Total KWH sales of electricity in the fourth quarter of 2003 were down 3.0
percent compared to the same quarter in 2002, primarily as a result of weather
that was milder than the colder than normal weather experienced in the same
quarter last year. Total therm sales of natural gas declined 8.5 percent,
reflecting milder weather, a weak economy and intense price competition with
alternative fuels in industrial interruptible markets.
RESULTS BY BUSINESS SEGMENT
Regulated Operations:
South Carolina Electric & Gas Company
In 2003, SCANA's principal subsidiary reported earnings of $221 million, or
$1.99 per share, compared to $218 million, or $2.05 per share, in 2002. The $.06
per share earnings decline was the result of lower KWH sales due primarily to
milder summer weather, higher operation and maintenance expenses, lower pension
income, increases in depreciation expense, property taxes and interest expense
and share dilution. These factors more than offset the favorable impact of the
retail electric rate increase, customer growth and a slightly higher margin on
natural gas sales.
For the fourth quarter of 2003, SCE&G reported earnings of $46 million, or $.42
per share, compared to $42 million, or $.37 per share in the same quarter of
2002. That $.05 per share improvement stemmed from the favorable impact of
customer growth and higher retail electric rates, which more than offset the
negative impact of lower KWH sales due to milder weather, and increased
depreciation expense, interest expense and property taxes.
PSNC Energy
SCANA's North Carolina-based natural gas distribution business reported earnings
in 2003 of $31 million, or $.28 per share compared to a reported loss of $208
million, or $1.96 per share in 2002. Excluding the after-tax, non-cash goodwill
impairment charge of $230 million, or $2.17 per share, recorded in 2002, PSNC
Energy's GAAP-adjusted net earnings from operations in 2002 were $23 million, or
$.21 per share. The $.07 per share improvement in GAAP-adjusted net earnings
from operations was primarily the result of a higher natural gas sales margin
reflecting customer growth and more favorable winter weather.
PSNC Energy's reported earnings in the fourth quarter of 2003 were $15 million,
or $.14 per share, compared to $9 million, or $.09 per share, in the fourth
quarter of 2002. That $.05 per share improvement reflected a higher sales margin
and lower operating expenses.
South Carolina Pipeline Corporation
The Company's intrastate natural gas transmission business reported earnings in
2003 of $7 million, or $.06 per share, compared to $4 million, or $.04 per share
in 2002. That $.02 per share improvement principally reflects better margins on
competitive sales of natural gas to industrial interruptible customers early in
the year.
In the fourth quarter of 2003, South Carolina Pipeline reported earnings of $2
million, or $.02 per share, unchanged compared to results in the fourth quarter
2002.
Non-Regulated Operations:
SCANA Energy - Georgia
In 2003, SCANA's retail natural gas business in Georgia reported earnings of $20
million, or $.18 per share, compared to $14 million, or $.13 per share, in 2002.
Improved sales margins reflecting customer growth and more favorable market
conditions accounted for that $.05 per share improvement in earnings.
In the fourth quarter of 2003, SCANA Energy's earnings were $3 million, or $.03
per share, compared to $4 million, or $.04 per share in the same quarter in
2002. Higher operating and customer service expenses more than offset slightly
higher sales margins.
In December 2003, SCANA Energy announced that it was the successful bidder to
acquire approximately 50,000 natural gas customers served by Energy America
following the latter company's decision earlier in the year to exit the Georgia
market. The request to transfer the customers was unanimously approved by the
Georgia Public Service Commission on January 29, 2004, and the transaction is on
schedule to close March 1, 2004. With the addition of these new customers, SCANA
Energy will have more than 450,000 customers in Georgia representing about a 30%
market share. Financially, this transaction is expected to be break-even to
SCANA Energy's earnings in 2004 and accretive thereafter.
Corporate and Other Non-Regulated
In 2003, reported earnings for SCANA's other non-regulated businesses, which
include Primesouth, SCANA Communications, ServiceCare, SCANA Energy Marketing
and the holding company, were a combined $3 million, or $.03 per share, compared
to a combined loss of $170 million, or $1.60 per share, in 2002. Excluding from
reported earnings the impact of the monetization and valuation of the Company's
telecommunications investments, this group recorded a GAAP-adjusted net loss
from operations in 2003 of $1 million, or $.01 per share, compared to
GAAP-adjusted net loss from operations of $5 million, or $.05 per share, in
2002. Lower interest expense was the major factor contributing to that $.04 per
share improvement.
For the fourth quarter of 2003, SCANA's other non-regulated businesses reported
a loss of $27 million, or $.25 per share, compared to a reported loss of $16
million, or $.14 per share, in the same quarter in 2002. Excluding from reported
earnings the impact of the monetization and valuation of the Company's
telecommunications investments, this group recorded GAAP-adjusted net earnings
from operations in the fourth quarter of 2003 of $3 million, or $.02 per share,
relatively unchanged compared to GAAP-adjusted net earnings from operations of
$2 million, or $.02 per share, in 2002.
EXPLANATION OF ITEMS INCLUDED IN REPORTED (GAAP) EARNINGS BUT EXCLUDED FROM
GAAP-ADJUSTED NET EARNINGS FROM OPERATIONS
During the fourth quarter of 2003, the Company recorded an after-tax, non-cash
impairment of $30 million, or $.27 per share, on its investment in Knology,
Inc., a provider of interactive voice, video and data services in the Southeast.
That write-down resulted from a re-evaluation of the market value of the
Company's investment following Knology's initial public offering of 6.9 million
shares of common stock in December 2003. At December 31, 2003, the Company's
investment in Knology, including the write-down, totaled approximately $92
million. Earlier in 2003, the Company had recorded an after-tax, non-cash
impairment of $5 million, or $.04 per share, related to its investment in
Knology, and a gain of $39 million, or $.35 per share, from the sale of the
Company's investment in ITC Holding Company.
Reported earnings for 2002 included a non-cash, after-tax goodwill impairment
charge of $230 million, or $2.17 per share, in accordance with the Company's
adoption of SFAS No. 142 on January 1, 2002. Also included in 2002 reported
earnings were non-cash impairments related to the Company's telecommunications
investments totaling $189 million, or $1.79 per share. These charges were
partially offset by gains from asset sales totaling $25 million, or $.24 per
share.
2004 EARNINGS OUTLOOK
For 2004, the Company reaffirms its previous guidance that it expects
GAAP-adjusted net earnings from operations to be in the range of $2.55 - $2.75
per share. The 2004 guidance assumes normal weather in the Company's electric
and natural gas service areas and excludes any potential gains or losses from
investing activities or sales of certain assets. Other factors that may impact
future earnings include changes in interest rates, the performance of the
Company's pension plan assets, wholesale natural gas prices and other factors
discussed in the Company's Securities and Exchange Commission filings. The
Company's long-term goal is to achieve average annual earnings growth of 4-6
percent over the next 3-5 years.
PROFILE
SCANA Corporation, a Fortune 500 company headquartered in Columbia, SC, is an
energy-based holding company principally engaged, through subsidiaries, in
electric and natural gas utility operations, telecommunications and other
energy-related businesses. Information about SCANA and its businesses is
available on the Company's website at www.scana.com.
CONFERENCE CALL NOTICE
SCANA will host its quarterly conference call for security analysts at 10:00
a.m. Eastern Time today. The call-in numbers for the conference call are
1-800-374-2396 (US/Canada) and 1-706-679-5430 (International). Participants
should call in 5 to 10 minutes prior to the scheduled start time. There is no
password or I.D. number required. A tape recording of the conference call will
be available approximately 2 hours after conclusion of the call through February
27, 2004. The telephone replay numbers are 1-800-642-1687 (US/Canada) and
1-706-645-9291 (International). The conference I.D. number for the telephone
replay is 4816159.
All interested persons, including investors, media and the general public, may
listen to a live web cast of the conference call at either of the following
internet web sites: www.scana.com or www.videonewswire.com/SCG/021304.
Participants should go to either of these web sites at least 10 minutes prior to
the call start time and follow the instructions. A replay of the conference call
will be available approximately 2 hours after conclusion of the call through
February 27, 2004 on either of these web sites.
SAFE HARBOR STATEMENT
This press release includes forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended. Those statements include statements
regarding the intent, belief or current expectations of the Company and its
management. Although SCANA Corporation believes that its expectations are based
on reasonable assumptions, it can give no assurance that its goals will be
achieved. Readers are cautioned that any such forward-looking statements are not
guarantees of future performance and involve a number of risks and
uncertainties, and that actual results could differ materially from those
indicated by such forward-looking statements. Important factors that could cause
actual results to differ materially from those indicated by such forward-looking
statements include, but are not limited to, the following: (1) that the
information is of a preliminary nature and may be subject to further and/or
continuing review and adjustment, (2) changes in the utility and non-utility
regulatory environment, (3) changes in the economy, especially in areas served
by the Company's subsidiaries, (4) the impact of competition from other energy
suppliers, including competition from alternative fuels in industrial
interruptible markets, (5) growth opportunities for the Company's regulated and
diversified subsidiaries, (6) the results of financing efforts, (7) changes in
the Company's accounting policies, (8) weather conditions, especially in areas
served by the Company's subsidiaries, (9) performance and marketability of the
Company's investments in telecommunications companies, (10) performance of the
Company's pension plan assets, (11) inflation, (12) changes in environmental
regulations, (13) volatility in commodity natural gas markets and (14) the other
risks and uncertainties described from time to time in the Company's periodic
reports filed with the Securities and Exchange Commission. The Company disclaims
any obligation to update any forward-looking statements.
# # #
FINANCIAL AND OPERATING INFORMATION
Consolidated Statements of Operations
(Millions, except per share amounts) (Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2003 2002 2003 2002
Operating Revenues:
Electric $345 $304 $1,466 $1,380
Gas-Regulated 311 291 1,086 878
Gas-Non-regulated 214 193 864 696
--- --- --- ---
Total Operating Revenues 870 788 3,416 2,954
--- --- ----- -----
Operating Expenses:
Fuel and purchased power 101 72 398 372
Gas purchased for resale 404 371 1,532 1,199
Other operation and maintenance 138 138 558 522
Depreciation and amortization 58 56 238 220
Other taxes 36 32 139 127
-- ---- --- ---
Total Operating Expenses 737 669 2,865 2,440
--- --- ----- -----
Operating Income 133 119 551 514
--- --- --- ---
Other Income (Expense), Net (26) (10) 75 (180)
Interest Charges, Net 50 48 200 199
Income Tax Expense 15 16 135 36
Preferred Dividend Requirement
of SCE&G - Mandatorily Redeemable
Preferred Securities - 1 2 4
Preferred Stock Cash Dividends
of SCE&G 2 2 7 7
- -- - -
Income Before Cumulative
Effect of Accounting Change 40 42 282 88
Cumulative Effect of Accounting Change,
Net of Taxes - - - (230)
- - - -----
Net Income (Loss) $ 40 $ 42 $ 282 $ (142)
----- --- ---- ----
Common Stock Data:
Earnings Per Share Before
Cumulative Effect of Accounting Change $.36 $ .38 $ 2.54 $ .83
Cumulative Effect of Accounting Change - - - (2.17)
----- --- ---- --------
Reported Earnings (Loss) Per Share $.36 $ .38 $ 2.54 $(1.34)
---- --- ---- -------
Wtg. Avg. Common Shares Outstanding 110.8 109.8 110.8 106.0
Consolidated Condensed Balance Sheets
(Millions) (Unaudited)
December 31,
2003 2002
ASSETS
Utility Plant, Net $6,417 $5,474
Other Property and Investments 274 326
Current Assets 901 1,146
Regulatory Assets and Deferred Debits 857 809
--- ---
Total Assets $8,449 $7,755
----- -----
CAPITALIZATION AND LIABILITIES
Capitalization:
Common Equity $2,306 $2,177
Preferred Stock 115 115
SCE&G Obligated Mandatorily Redeemable Preferred Securities - 50
Long-term Debt, Net 3,225 2,834
----- -----
Total Capitalization 5,646 5,176
------- -----
Current Liabilities:
Short-Term Borrowings 195 209
Current Portion of Long-Term Debt 202 413
Other Current Liabilities 620 660
--- ---
Total Current Liabilities 1,017 1,282
----- -----
Regulatory Liabilities and Deferred Credits 1,786 1,297
----- -----
Total Capitalization and Liabilities $8,449 $7,755
----- -----
Reported (GAAP) Earnings (Loss) per Share by Company:
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
2003 2002 2003 2002
SC Electric & Gas $.42 $.37 $1.99 $2.05
PSNC Energy .14 .09 .28 (1.96)
SC Pipeline .02 .02 .06 .04
SCANA Energy-Georgia (1) .03 .04 .18 .13
Corporate and Other Non-regulated, Net (1) (.25) (.14) .03 (1.60)
---- ----- ------- ------
Reported (GAAP) Earnings (Loss) per Share $.36 $.38 $2.54 $(1.34)
---- ---- ---- -------
GAAP-Adjusted Net Earnings (Loss) From Operations per Share by Company:
(Unaudited)
Three Months Ended Twelve Months Ended
December 31, December 30,
2002 2003 2002 2003
SC Electric & Gas $.42 $.37 $1.99 $2.05
PSNC Energy .14 .09 .28 .21
SC Pipeline .02 .02 .06 .04
SCANA Energy-Georgia (1) .03 .04 .18 .13
Corporate and Other Non-regulated, Net (1) .02 .02 (.01) (.05)
--- --- ----- -----
GAAP-Adjusted Net Earnings from Operations per Share $.63 $.54 $2.50 $2.38
---- ---- ----- -----
(1) Current and prior period results reflect a reclassification of certain
interruptible operations from SCANA Energy-Georgia to SCANA Energy Marketing
Variances in Reported (GAAP) Earnings (Loss) per Share:
(Unaudited)
Three Months Ended Twelve Months Ended
December 31 December 31
2002 Reported (GAAP) Earnings (Loss) Per Share $.38 $(1.34)
Variances:
Electric Margin:
Retail Rate Increase (Eff. 02/01/03) .05 .37
Growth/Other .05 .14
Weather (.04) (.16)
----- ----
Total Electric Margin .06 .35
Gas Margin .04 .25
O&M Expense .00 (.21)
Depreciation Expense (.01) (.11)
Property Taxes (.01) (.07)
Interest Expense (net of AFC) (.01) .00
Additional Shares Outstanding (Dilution) .00 (.11)
Other, Net .02 .02
--- ---
Variance in GAAP-Adjusted Net Earnings From Operations per Share .09 .12
--- ---
Gain on Sale of ITC Holding Company Investment - .35
Impairment Charges on Knology Investment (.27) (.31)
Gain on Sale of Radio Network - (.09)
Impairment Charge on ITC^DeltaCom Investment - .07
Cumulative Effect of Accounting Change re: Goodwill - 2.17
Impairment Charge on Deutsche Telekom Investment .21 1.72
Gain on Sale of Deutsche Telekom Stock (.05) (.15)
------- -----
Variance in Reported (GAAP) Earnings per Share (.02) 3.88
------ ----
2003 Reported (GAAP) Earnings Per Share $.36 $2.54
---- ----
Consolidated Operating Statistics
Three Months Ended December 31, Twelve Months Ended December 31,
2003 2002 % Change 2003 2002 % Change
Electric Operations:
Sales (Million KWH):
Residential 1,615 1,732 (6.8) 6,998 7,230 (3.2)
Commercial 1,574 1,577 (0.2) 6,607 6,658 (0.8)
Industrial 1,610 1,595 0.9 6,548 6,505 0.7
Other 118 121 (2.5) 500 535 (6.5)
--- --- --- ---
Total Retail 4,917 5,025 (2.1) 20,653 20,928 (1.3)
Wholesale 399 457 (12.7) 1,863 2,157 (13.6)
--- --- ----- -----
Total Sales 5,316 5,482 (3.0) 22,516 23,085 (2.5)
----- ----- ------ ------
Customers (Period-End) 570,940 560,224 1.9
Natural Gas Operations:
Sales (MillionTherms):
Residential 215 233 (7.7) 655 612 7.0
Commercial 124 127 (2.4) 403 361 11.6
Industrial 261 300 (13.0) 1,102 1,296 (15.0)
--- --- ----- -----
Total Retail 600 660 (9.1) 2,160 2,269 (4.8)
Sales for Resale 24 60 (60.0) 138 276 (50.0)
Transportation Volumes 108 80 35.0 362 315 14.9
--- -- --- ---
Total Sales 732 800 (8.5) 2,660 2,860 (7.0)
--- --- ----- -----
Customers (Period-End) (2) 1,087,255 1,030,993 5.5
(2) Current and prior period-end natural gas customers reflects a
reclassification of customers at PSNC Energy implemented during 2002.
Weather Data - Electric Service Territory:
Three Months Ended December 31, Twelve Months Ended December 31,
Actual Percent Change Actual Percent Change
2003 vs 2002 vs Normal 2003 vs 2002 vs Normal
Heating Degree Days 865 (7.7) 5.1 2,255 4.7 4.6
Cooling Degree Days 120 (33.3) (20.5) 2,106 (16.3) (9.7)
Security Credit Ratings (as of 02/13/04):
Standard & Poor's Moody's
Rating Outlook Rating Outlook
SCANA Corporation:
Corporate / Issuer Rating A- Stable A3 Stable
Senior Unsecured BBB+ Stable A3 Stable
South Carolina
Electric & Gas Company:
Corporate / Issuer Rating A- Stable A2 Stable
Senior Secured A- Stable A1 Stable
Commercial Paper A-2 Stable P-1 Stable
PSNC Energy:
Senior Unsecured A- Stable A2 Stable
Commercial Paper A-2 Stable P-1 Stable