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SOUTH CAROLINA ELECTRIC & GAS COMPANYCOLUMBIA, SOUTH CAROLINA
DEPRECIATION STUDY
CALCULATED ANNUAL DEPRECIATION ACCRUALS
RELATED TO ELECTRIC AND COMMON PLANT
AS OF DECEMBER 31, 2003
Harrisburg, Pennsylvania Calgary, Alberta Valley Forge, Pennsylvania
SOUTH CAROLINA ELECTRIC & GAS COMPANY
Columbia, South Carolina
DEPRECIATION STUDY
CALCULATED ANNUAL DEPRECIATION ACCRUALS
RELATED TO ELECTRIC AND COMMON PLANT
AS OF DECEMBER 31, 2003
GANNETT FLEMING, INC. - VALUATION AND RATE DIVISION
Harrisburg, Pennsylvania
GANNETT FLEMING, INC.P.O. Box 67100Harrisburg, PA 17106-7100Location:207 Senate AvenueCamp Hill, PA 17011
Office: (717) 763-7211Fax: (717) 763-4590www.gannettfleming.com
July 1, 2004
South Carolina Electric & Gas Company1426 Main StreetColumbia, SC 29201Attention Mr. Barry T. Burnette Director Corporate and Depreciation Taxes Plans and Payroll
Ladies & Gentlemen:
Pursuant to your request, we have conducted a depreciation study related to theelectric and common plant of South Carolina Electric & Gas Company as of December 31, 2003. The attached report presents a description of the methods used in theestimation of depreciation, the summary of annual and accrued depreciation, thestatistical support for the service life and net salvage estimates, and the detailedtabulations of annual and accrued depreciation.
Respectfully submitted,
GANNETT FLEMING, INC.
/s/
JOHN J. SPANOSVice PresidentValuation and Rate Division
JJS:krm
A Tradition of Excellence
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CONTENTS
PART I. INTRODUCTIONScope . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-2Plan of Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-2Basis of Study . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-3
Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-3Survivor Curve and Net Salvage Estimates . . . . . . . . . . . . . . . . . . . . . . . . . I-3Calculation of Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . I-4
PART II. METHODS USED IN THEESTIMATION OF DEPRECIATION
Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-2Service Life and Net Salvage Estimation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-3
Average Service Life . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-3 Survivor Curves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-3
Iowa Type Curves . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-5Retirement Rate Method of Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-10
Schedules of Annual Transactions in Plant Records . . . . . . . . . . . . II-11Schedule of Plant Exposed to Retirement . . . . . . . . . . . . . . . . . . . . . II-14Original Life Table . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-16Smoothing the Original Survivor Curve . . . . . . . . . . . . . . . . . . . . . . . II-18
Field Trips . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-19Service Life Considerations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-24Salvage Analysis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-27Net Salvage Considerations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-27
Calculation of Annual and Accrued Depreciation . . . . . . . . . . . . . . . . . . . . . . . . . II-30Single Unit of Property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-31Group Depreciation Procedures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-31
Remaining Life Annual Accruals . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-31Average Service Life Procedure . . . . . . . . . . . . . . . . . . . . . . . . . . . . II-31
Calculation of Annual and Accrued Amortization . . . . . . . . . . . . . . . . . . . . . . . . . II-32
PART III. RESULTS OF STUDYQualification of Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . III-2Description of Depreciation Tabulations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . III-2Summary of Estimated Survivor Curves, Net Salvage, Original Cost,
Book Depreciation Reserve and Calculated Annual DepreciationRates as of December 31, 2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . III-3
Estimated Survivor Curves, Net Salvage and Calculated AnnualDepreciation Accrual Rates for the Jasper Facility as ofCompleted Construction During 2004 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . III-9
PART I. INTRODUCTION
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SOUTH CAROLINA ELECTRIC & GAS COMPANY
DEPRECIATION STUDY
CALCULATED ANNUAL DEPRECIATION ACCRUALSRELATED TO ELECTRIC AND COMMON PLANT
AS OF DECEMBER 31, 2003
PART I. INTRODUCTION
SCOPE
This report presents the results of the depreciation study prepared for South
Carolina Electric & Gas Company (“Company”) as applied to electric and common plant
in service as of December 31, 2003. It relates to the concepts, methods and basic
judgments which underlie recommended annual depreciation accrual rates related to
current electric plant in service.
The service life and net salvage estimates resulting from the study were based on
informed judgment which incorporated analyses of historical plant retirement data as
recorded through 2003; a review of Company practice and outlook as they relate to plant
operation and retirement; and consideration of current practice in the electric industry,
including knowledge of service life and salvage estimates used for other electric properties.
PLAN OF REPORT
Part I includes brief statements of the scope and basis of the study. Part II presents
descriptions of the methods used in the service life and salvage studies and the methods
and procedures used in the calculation of depreciation. Part III presents the results of the
study, including depreciation rates, accruals and calculated remaining lives.
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BASIS OF STUDY
Depreciation
For most accounts, the annual depreciation was calculated by the straight line
method using the average service life procedure and the remaining life basis. For certain
General Plant accounts, the annual depreciation was based on amortization accounting.
The calculated remaining lives and annual depreciation accrual rates were based on
attained ages of plant in service and the estimated service life and salvage characteristics
of each depreciable group.
Survivor Curve and Net Salvage Estimates
The procedure for estimating survivor curves, which define service lives and
remaining lives, consisted of compiling historical service life data for the plant accounts or
other depreciable groups, analyzing the historical data base through the use of accepted
techniques, and forecasting the survivor characteristics for each depreciable account or
group. These forecasts were based on interpretations of the historical data analyses and
the probable future. The combination of the historical data and the estimated future trend
yields a complete pattern of life characteristics, i.e., a survivor curve, from which the
average service life and remaining service life are derived.
The historical data analyzed for life estimation purposes were compiled through
2003 from the Company’s plant accounting records. Such data included plant additions,
retirements, transfers and other activity recorded by the Company for each of its plant
accounts and subaccounts.
The estimates of net salvage by account incorporated a review of experienced costs
of removal and salvage related to plant retirements by function, and consideration of trends
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exhibited by the historical data. Each component of net salvage, i.e., cost of removal and
salvage, was stated in dollars and as a percent of retirement.
An understanding of the function of the plant and information with respect to the
reasons for past retirements and the expected causes of future retirements was obtained
through field trips and discussions with operating and management personnel. The
supplemental information obtained in this manner was considered in the interpretation and
extrapolation of the statistical analyses.
Calculation of Depreciation
The depreciation accrual rates were calculated using the straight line method, the
remaining life basis and the average service life depreciation procedure. The life span
technique was used for certain facilities. In this technique, an average date of final
retirement was estimated for each such facility, and the estimated survivor curves applied
to each vintage were truncated at ages coinciding with the dates of final retirement.
The continuation of amortization accounting for certain accounts is recommended
because of the disproportionate plant accounting effort required when compared to the
minimal original cost of the large number of items in these accounts. An explanation of the
calculation of annual and accrued amortization is presented on page II-32 of the report.
PART II. METHODS USED INTHE ESTIMATION OF DEPRECIATION
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PART II. METHODS USED INTHE ESTIMATION OF DEPRECIATION
DEPRECIATION
Depreciation, as defined in the Uniform System of Accounts, is the loss in service
value not restored by current maintenance, incurred in connection with the consumption
or prospective retirement of electric plant in the course of service from causes which are
known to be in current operation and against which the utility is not protected by insurance.
Among the causes to be given consideration are wear and tear, decay, action of the
elements, inadequacy, obsolescence, changes in the art, changes in demand,
requirements of public authorities, and, in the case of natural electric companies, the
exhaustion of natural resources.
Depreciation, as used in accounting, is a method of distributing fixed capital costs,
less net salvage, over a period of time by allocating annual amounts to expense. Each
annual amount of such depreciation expense is part of that year's total cost of providing
utility service. Normally, the period of time over which the fixed capital cost is allocated to
the cost of service is equal to the period of time over which an item renders service, that
is, the item's service life. The most prevalent method of allocation is to distribute an equal
amount of cost to each year of service life. This method is known as the straight line
method of depreciation.
The calculation of annual depreciation based on the straight line method requires
the estimation of average life and salvage. These subjects are discussed in the sections
which follow.
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SERVICE LIFE AND NET SALVAGE ESTIMATION
Average Service Life
The use of an average service life for a property group implies that the various units
in the group have different lives. Thus, the average life may be obtained by determining
the separate lives of each of the units, or by constructing a survivor curve by plotting the
number of units which survive at successive ages. A discussion of the general concept of
survivor curves is presented. Also, the Iowa type survivor curves are reviewed.
Survivor Curves
The survivor curve graphically depicts the amount of property existing at each age
throughout the life of an original group. From the survivor curve, the average life of the
group, the remaining life expectancy, the probable life, and the frequency curve can be
calculated. In Figure 1, a typical smooth survivor curve and the derived curves are
illustrated. The average life is obtained by calculating the area under the survivor curve,
from age zero to the maximum age, and dividing this area by the ordinate at age zero. The
remaining life expectancy at any age can be calculated by obtaining the area under the
curve, from the observation age to the maximum age, and dividing this area by the percent
surviving at the observation age. For example, in Figure 1, the remaining life at age 30 is
equal to the crosshatched area under the survivor curve divided by 29.5 percent surviving
at age 30. The probable life at any age is developed by adding the age and remaining life.
If the probable life of the property is calculated for each year of age, the probable life curve
shown in the chart can be developed. The frequency curve presents the number of units
retired in each age interval and is derived by obtaining the differences between the amount
of property surviving at the beginning and at the end of each interval.
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1Winfrey, Robley. Statistical Analyses of Industrial Property Retirements. IowaState College, Engineering Experiment Station, Bulletin 125. 1935.
II-5
Iowa Type Curves. The range of survivor characteristics usually experienced by
utility and industrial properties is encompassed by a system of generalized survivor curves
known as the Iowa type curves. There are four families in the Iowa system, labeled in
accordance with the location of the modes of the retirements in relationship to the average
life and the relative height of the modes. The left moded curves, presented in Figure 2, are
those in which the greatest frequency of retirement occurs to the left of, or prior to, average
service life. The symmetrical moded curves, presented in Figure 3, are those in which the
greatest frequency of retirement occurs at average service life. The right moded curves,
presented in Figure 4, are those in which the greatest frequency occurs to the right of, or
after, average service life. The origin moded curves, presented in Figure 5, are those in
which the greatest frequency of retirement occurs at the origin, or immediately after age
zero. The letter designation of each family of curves (L, S, R or O) represents the location
of the mode of the associated frequency curve with respect to the average service life. The
numbers represent the relative heights of the modes of the frequency curves within each
family.
The Iowa curves were developed at the Iowa State College Engineering Experiment
Station through an extensive process of observation and classification of the ages at which
industrial property had been retired. A report of the study which resulted in the
classification of property survivor characteristics into 18 type curves, which constitute three
of the four families, was published in 1935 in the form of the Experiment Station's Bulletin
125.1 These type curves have also been presented in subsequent Experiment Station
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2Marston, Anson, Robley Winfrey and Jean C. Hempstead. Engineering Valuationand Depreciation, 2nd Edition. New York, McGraw-Hill Book Company. 1953.
3Couch, Frank V. B., Jr. "Classification of Type O Retirement Characteristics ofIndustrial Property." Unpublished M.S. thesis (Engineering Valuation). Library, Iowa StateCollege, Ames, Iowa. 1957.
4Winfrey, Robley, Supra Note 1.
5Marston, Anson, Robley Winfrey, and Jean C. Hempstead, Supra Note 2.
6Wolf, Frank K. and W. Chester Fitch. Depreciation Systems. Iowa State UniversityPress. 1994
II-10
bulletins and in the text, "Engineering Valuation and Depreciation."2 In 1957, Frank V. B.
Couch, Jr., an Iowa State College graduate student, submitted a thesis3 presenting his
development of the fourth family consisting of the four O type survivor curves.
Retirement Rate Method of Analysis
The retirement rate method is an actuarial method of deriving survivor curves using
the average rates at which property of each age group is retired. The method relates to
property groups for which aged accounting experience is available or for which aged
accounting experience is developed by statistically aging unaged amounts and is the
method used to develop the original stub survivor curves in this study. The method (also
known as the annual rate method) is illustrated through the use of an example in the
following text, and is also explained in several publications, including "Statistical Analyses
of Industrial Property Retirements,"4 "Engineering Valuation and Depreciation,"5 and
"Depreciation Systems."6
The average rate of retirement used in the calculation of the percent surviving for
the survivor curve (life table) requires two sets of data: first, the property retired during a
period of observation, identified by the property's age at retirement; and second, the
property exposed to retirement at the beginnings of the age intervals during the same
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period. The period of observation is referred to as the experience band, and the band of
years which represent the installation dates of the property exposed to retirement during
the experience band is referred to as the placement band. An example of the calculations
used in the development of a life table follows. The example includes schedules of annual
aged property transactions, a schedule of plant exposed to retirement, a life table and
illustrations of smoothing the stub survivor curve.
Schedules of Annual Transactions in Plant Records. The property group used to
illustrate the retirement rate method is observed for the experience band 1994-2003 during
which there were placements during the years 1989-2003. In order to illustrate the
summation of the aged data by age interval, the data were compiled in the manner
presented in Tables 1 and 2 on pages II-12 and II-13. In Table 1, the year of installation
(year placed) and the year of retirement are shown. The age interval during which a
retirement occurred is determined from this information. In the example which follows,
$10,000 of the dollars invested in 1989 were retired in 1994. The $10,000 retirement
occurred during the age interval between 41⁄2 and 51⁄2 years on the basis that approximately
one-half of the amount of property was installed prior to and subsequent to July 1 of each
year. That is, on the average, property installed during a year is placed in service at the
midpoint of the year for the purpose of the analysis. All retirements also are stated as
occurring at the midpoint of a one-year age interval of time, except the first age interval
which encompasses only one-half year.
The total retirements occurring in each age interval in a band are determined by
summing the amounts for each transaction year-installation year combination for that age
TABLE 1. RETIREMENTS FOR EACH YEAR 1994-2003SUMMARIZED BY AGE INTERVAL
Experience Band 1994-2003 Placement Band 1989-2003
Retirements, Thousands of Dollars Year During Year Total During Age
Placed (1)
1994(2)
1995(3)
1996(4)
1997(5)
1998(6)
1999(7)
2000(8)
2001(9)
2002(10)
2003(11)
Age Interval(12)
Interval(13)
1989 10 11 12 13 14 16 23 24 25 26 26 131⁄2-141⁄21990 11 12 13 15 16 18 20 21 22 19 44 121⁄2-131⁄21991 11 12 13 14 16 17 19 21 22 18 64 111⁄2-121⁄21992 8 9 10 11 11 13 14 15 16 17 83 101⁄2-111⁄21993 9 10 11 12 13 14 16 17 19 20 93 91⁄2-101⁄21994 4 9 10 11 12 13 14 15 16 20 105 81⁄2-91⁄21995 5 11 12 13 14 15 16 18 20 113 71⁄2-81⁄21996 6 12 13 15 16 17 19 19 124 61⁄2-71⁄21997 6 13 15 16 17 19 19 131 51⁄2-61⁄21998 7 14 16 17 19 20 143 41⁄2-51⁄21999 8 18 20 22 23 146 31⁄2-41⁄22000 9 20 22 25 150 21⁄2-31⁄22001 11 23 25 151 11⁄2-21⁄22002 11 24 153 1⁄2-11⁄22003 13 80 0-1⁄2
Total 53 68 86 106 128 157 196 231 273 308 1,606
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TABLE 2. OTHER TRANSACTIONS FOR EACH YEAR 1994-2003SUMMARIZED BY AGE INTERVAL
Experience Band 1994-2003 Placement Band 1989-2003
Acquisitions, Transfers, and Sales, Thousands of Dollars Year During Year Total During Age
Placed(1)
1994(2)
1995(3)
1996(4)
1997(5)
1998(6)
1999(7)
2000(8)
2001(9)
2002(10)
2003(11)
Age Interval(12)
Interval(13)
1989 - - - - - - 60a - - - - 131⁄2-141⁄21990 - - - - - - - - - - - 121⁄2-131⁄21991 - - - - - - - - - - - 111⁄2-121⁄21992 - - - - - - - (5)b - - 60 101⁄2-111⁄21993 - - - - - - - 6 a - - - 91⁄2-101⁄21994 - - - - - - - - - (5) 81⁄2-91⁄21995 - - - - - - - - - 6 71⁄2-81⁄21996 - - - - - - - - - 61⁄2-71⁄21997 - - - - (12)b - - - 51⁄2-61⁄21998 - - - - 22a - - 41⁄2-51⁄21999 - - (19)b - - 10 31⁄2-41⁄22000 - - - - - 21⁄2-31⁄22001 - - (102)c (121) 11⁄2-21⁄22002 - - - 1⁄2-11⁄22003 - 0-1⁄2
Total - - - - - - 60 (30) 22 (102) ( 50)
a Transfer Affecting Exposures at Beginning of Year.b Transfer Affecting Exposures at End of Year.c Sale with Continued Use. Parentheses denote Credit amount.
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interval. For example, the total of $143,000 retired for age interval 41⁄2-51⁄2 is the sum of
the retirements entered on Table 1 immediately above the stairstep line drawn on the table
beginning with the 1994 retirements of 1989 installations and ending with the 2003
retirements of the 1998 installations. Thus, the total amount of 143 for age interval 41⁄2-51⁄2
equals the sum of:
10 + 12 + 13 + 11 + 13 + 13 + 15 + 17 + 19 + 20.
In Table 2, other transactions which affect the group are recorded in a similar
manner. The entries illustrated include transfers and sales. The entries which are credits
to the plant account are shown in parentheses. The items recorded on this schedule are
not totaled with the retirements, but are used in developing the exposures at the beginning
of each age interval.
Schedule of Plant Exposed to Retirement. The development of the amount of plant
exposed to retirement at the beginning of each age interval is illustrated in Table 3 on page
II-15.
The surviving plant at the beginning of each year from 1994 through 2003 is
recorded by year in the portion of the table headed "Annual Survivors at the Beginning of
the Year." The last amount entered in each column is the amount of new plant added to
the group during the year. The amounts entered in Table 3 for each successive year
following the beginning balance or addition are obtained by adding or subtracting the net
entries shown on Tables 1 and 2. For the purpose of determining the plant exposed to
retirement, transfers-in are considered as being exposed to retirement in this group at the
beginning of the year in which they occurred, and the sales and transfers-out are
considered to be removed from the plant exposed to retirement at the beginning of the
following year. Thus the amount of plant shown at the beginning of each year are the
TABLE 3. PLANT EXPOSED TO RETIREMENT JANUARY 1OF EACH YEAR 1994-2003 SUMMARIZED BY AGE INTERVAL
Experience Band 1994-2003 Placement Band 1989-2003
Year Exposures, Thousands of Dollars
Annual Survivors at the Beginning of the Year
Total at Beginning
of Age AgePlaced
(1) 1994 (2)
1995 (3)
1996 (4)
1997 (5)
1998 (6)
1999 (7)
2000 (8)
2001 (9)
2002 (10)
2003 (11)
Interval (12)
Interval (13)
1989 255 245 234 222 209 195 239 216 192 167 167 131⁄2-141⁄21990 279 268 256 243 228 212 194 174 153 131 323 121⁄2-131⁄21991 307 296 284 271 257 241 224 205 184 162 531 111⁄2-121⁄21992 338 330 321 311 300 289 276 262 242 226 823 101⁄2-111⁄21993 376 367 357 346 334 321 307 297 280 261 1,097 91⁄2-101⁄21994 420a 416 407 397 386 374 361 347 332 316 1,503 81⁄2-91⁄21995 460a 455 444 432 419 405 390 374 356 1,952 71⁄2-81⁄21996 510a 504 492 479 464 448 431 412 2,463 61⁄2-71⁄21997 580a 574 561 546 530 501 482 3,057 51⁄2-61⁄21998 660a 653 639 623 628 609 3,789 41⁄2-51⁄21999 750a 742 724 685 663 4,332 31⁄2-41⁄22000 850a 841 821 799 4,955 21⁄2-31⁄22001 960a 949 926 5,719 11⁄2-21⁄22002 1,080a 1,069 6,579 1⁄2-11⁄22003 1,220a 7,490 0-1⁄2
Total 1,975 2,382 2,824 3,318 3,872 4,494 5,247 6,017 6,852 7,799 44,780
a Additions during the year.
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amounts of plant from each placement year considered to be exposed to retirement at the
beginning of each successive transaction year. For example, the exposures for the
installation year 1998 are calculated in the following manner:
Exposures at age 0 = amount of addition = $750,000 Exposures at age 1⁄2 = $750,000 - $ 8,000 = $742,000 Exposures at age 11⁄2 = $742,000 - $18,000 = $724,000 Exposures at age 21⁄2 = $724,000 - $20,000 - $19,000 = $685,000 Exposures at age 31⁄2 = $685,000 - $22,000 = $663,000
For the entire experience band 1994-2003, the total exposures at the beginning of
an age interval are obtained by summing diagonally in a manner similar to the summing
of the retirements during an age interval (Table 1). For example, the figure of 3,789, shown
as the total exposures at the beginning of age interval 41⁄2-51⁄2, is obtained by summing:
255 + 268 + 284 + 311 + 334 + 374 + 405 + 448 + 501 + 609.
Original Life Table. The original life table, illustrated in Table 4 on page II-17, is
developed from the totals shown on the schedules of retirements and exposures, Tables
1 and 3, respectively. The exposures at the beginning of the age interval are obtained from
the corresponding age interval of the exposure schedule, and the retirements during the
age interval are obtained from the corresponding age interval of the retirement schedule.
The retirement ratio is the result of dividing the retirements during the age interval by the
exposures at the beginning of the age interval. The percent surviving at the beginning of
each age interval is derived from survivor ratios, each of which equals one minus the retire-
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TABLE 4. ORIGINAL LIFE TABLECALCULATED BY THE RETIREMENT RATE METHOD
Experience Band 1994-2003 Placement Band 1989-2003
(Exposure and Retirement Amounts are in Thousands of Dollars)
Age atBeginning of
Interval (1)
Exposures atBeginning of Age Interval
(2)
RetirementsDuring Age Interval
(3)
Retirement Ratio
(4)
Survivor Ratio
(5)
PercentSurviving atBeginning of Age Interval
(6)
0.0 7,490 80 0.0107 0.9893 100.00 0.5 6,579 153 0.0233 0.9767 98.93 1.5 5,719 151 0.0264 0.9736 96.62 2.5 4,955 150 0.0303 0.9697 94.07 3.5 4,332 146 0.0337 0.9663 91.22 4.5 3,789 143 0.0377 0.9623 88.15 5.5 3,057 131 0.0429 0.9571 84.83 6.5 2,463 124 0.0503 0.9497 81.19 7.5 1,952 113 0.0579 0.9421 77.11 8.5 1,503 105 0.0699 0.9301 72.65 9.5 1,097 93 0.0848 0.9152 67.5710.5 823 83 0.1009 0.8991 61.8411.5 531 64 0.1205 0.8795 55.6012.5 323 44 0.1362 0.8638 48.9013.5 167 26 0.1557 0.8443 42.24
35.66
Total 44,780 1,606
Column 2 from Table 3, Column 12, Plant Exposed to Retirement.Column 3 from Table 1, Column 12, Retirements for Each Year.Column 4 = Column 3 divided by Column 2.Column 5 = 1.0000 minus Column 4.Column 6 = Column 5 multiplied by Column 6 as of the Preceding Age Interval.
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ment ratio. The percent surviving is developed by starting with 100% at age zero and
successively multiplying the percent surviving at the beginning of each interval by the
survivor ratio, i.e., one minus the retirement ratio for that age interval. The calculations
necessary to determine the percent surviving at age 51⁄2 are as follows:
Percent surviving at age 41⁄2 = 88.15Exposures at age 41⁄2 = 3,789,000 Retirements from age 41⁄2 to 51⁄2 = 143,000 Retirement Ratio = 143,000 ÷ 3,789,000 = 0.0377Survivor Ratio = 1.000 - 0.0377 = 0.9623 Percent surviving at age 51⁄2 = (88.15) x (0.9623) = 84.83
The totals of the exposures and retirements (columns 2 and 3) are shown for the
purpose of checking with the respective totals in Tables 1 and 3. The ratio of the total
retirements to the total exposures, other than for each age interval, is meaningless.
The original survivor curve is plotted from the original life table (column 6, Table 4).
When the curve terminates at a percent surviving greater than zero, it is called a stub
survivor curve. Survivor curves developed from retirement rate studies generally are stub
curves.
Smoothing the Original Survivor Curve. The smoothing of the original survivor curve
eliminates any irregularities and serves as the basis for the preliminary extrapolation to
zero percent surviving of the original stub curve. Even if the original survivor curve is
complete from 100% to zero percent, it is desirable to eliminate any irregularities, as there
is still an extrapolation for the vintages which have not yet lived to the age at which the
curve reaches zero percent. In this study, the smoothing of the original curve with estab-
lished type curves was used to eliminate irregularities in the original curve.
The Iowa type curves are used in this study to smooth those original stub curves
which are expressed as percents surviving at ages in years. Each original survivor curve
II-19
was compared to the Iowa curves using visual and mathematical matching in order to
determine the better fitting smooth curves. In Figures 6, 7, and 8, the original curve
developed in Table 4 is compared with the L, S, and R Iowa type curves which most nearly
fit the original survivor curve. In Figure 6, the L1 curve with an average life between 12 and
13 years appears to be the best fit. In Figure 7, the S0 type curve with a 12-year average
life appears to be the best fit and appears to be better than the L1 fitting. In Figure 8, the
R1 type curve with a 12-year average life appears to be the best fit and appears to be
better than either the L1 or the S0. In Figure 9, the three fittings, 12-L1, 12-S0 and 12-R1
are drawn for comparison purposes. It is probable that the 12-R1 Iowa curve would be
selected as the most representative of the plotted survivor characteristics of the group,
assuming no contrary relevant factors external to the analysis of historical data.
Field Trips
In order to be familiar with the operation of the Company and to observe
representative portions of the plant, a field trip was conducted. A general understanding
of the function of the plant and information with respect to the reasons for past retirements
and the expected future causes of retirements was obtained during this trip. This
knowledge and information were incorporated in the interpretation and extrapolation of the
statistical analyses.
The plant facilities visited on March 30 and 31, 2004, are as follows:
March 30, 2004Cope Generating StationWilliams Generating StationHagood CT Turbine Station
II-20
II-21
II-22
II-23
II-24
March 31, 2004Coit Gas Turbine StationWateree Generating StationMcMeekin Generating StationCentral LabSaluda Hydro Plant
Service Life Considerations
The service life estimates were based on judgment which considered a number of
factors. The primary factors were the statistical analyses of data; current Company policies
and outlook as determined during conversations with management; and the survivor curve
estimates from previous studies of this company and other electric utility companies.
For 25 of the plant accounts and subaccounts for which survivor curves were
estimated, the statistical analyses using the retirement rate method resulted in good to
excellent indications of the survivor patterns experienced. These accounts represent 64
percent of depreciable plant. Generally, the information external to the statistics led to no
significant departure from the indicated survivor curves for the accounts listed below.
STEAM PRODUCTION PLANT311.00 Structures and Improvements312.00 Boiler Plant Equipment314.00 Turbogenerator Units315.00 Accessory Electric Equipment316.00 Miscellaneous Plant Equipment
HYDRAULIC PRODUCTION PLANT331.00 Structures and Improvements332.00 Reservoirs, Dams and Waterways333.00 Waterwheels, Turbines and Generators335.00 Miscellaneous Power Plant Equipment
OTHER PRODUCTION PLANT342.00 Fuel Holders, Producers & Accessories345.00 Accessory Electric Equipment
TRANSMISSION PLANT352.00 Structures and Improvements353.00 Station Equipment355.00 Poles and Fixtures
II-25
DISTRIBUTION PLANT361.00 Structures and Improvements362.00 Station Equipment364.00 Poles, Towers and Fixtures365.00 Overhead Conductors and Devices366.00 Underground Conduit367.00 Underground Conductors and Devices368.00 Line Transformers369.00 Services - Overhead370.00 Meters373.00 Street Lighting and Signal Systems
GENERAL PLANT390.00 Structures and Improvements
Account 368.00, Line Transformers, is used to illustrate the manner in which the
study was conducted for the groups in the preceding list. Aged plant accounting data for
line transformers have been compiled for the years 1991 through 2003. These data have
been coded in the course of the Company’s normal record keeping according to account
or property group, type of transaction, year in which the transaction took place, and year
in which the electric plant was placed in service. The retirements, other plant transactions,
and plant additions were analyzed by the retirement rate method.
The survivor curve estimate is based on the statistical indications for the period
1991 through 2003. The Iowa 40-S0.5 is a reasonable fit of the original survivor curve.
The 40-year service life is within the typical service life range of 25 to 50 years for line
transformers. The 40-year life reflects the Company’s plans to continue current practices
of replacement for newer technology or high load needs.
For Production Plant, which consists of large generating units, the life span
technique was employed in conjunction with the use of interim survivor curves which reflect
interim retirements that occur prior to the ultimate retirement of the major unit. An interim
survivor curve was estimated for each plant account, inasmuch as the rate of interim
II-26
retirements differ from account to account. The interim survivor curves estimated for
steam, nuclear, hydraulic, and other production plant were based on the retirement rate
method of life analysis which incorporated experienced aged retirements through the
period 2003.
The life span estimates for power generating stations were the result of considering
experienced life spans of similar generating units, the age of surviving units, general
operating characteristics of the units, major refurbishing and discussions with management
personnel concerning the probable long-term outlook for the units.
The life span estimate for the steam units is 40 to 70 years, which is within the
typical range of life spans for such units. The 60-year lifespan for the nuclear facilities
include the relicense agreement through 2002. The 96 to 131-year lifespan for the
hydraulic production facilities is at the upper end of the typical range. The life span of each
facility is determined by condition and Company plans. Life spans of 20 and 55 years
were estimated for the combustion turbines. These life span estimates are typical for
combustion turbines which are used primarily as peaking units.
A summary of the year in service, life span and probable retirement year for each
power production unit follows:
Depreciable Group
MajorYear inService
ProbableRetirement Year Life Span
Steam Production PlantCanadys 1962 2022 60McMeekin and Central Lab 1958 2025 67Cope 1996 2036 40Urquhart 3 1954 2024 70Wateree 1970 2023 53
Nuclear Production PlantV.C. Summer 1982 2042 60
Depreciable Group
MajorYear inService
ProbableRetirement Year Life Span
II-27
Hydraulic Production PlantFairfield 1878 78 100Neal Shoals 1805 36 131Parr 1914 20 106Saluda 1932 32 100Stevens Creek 1929 25 96
Other Production PlantBurton 1970 2015 45Coit 1969 2012 43Faber Place 1961 2015 54Hagood 1991 2025 34Hardeeville 1968 2020 52Parr 1970 2022 52Urquhart 1 and 2 1972 2027 55Urquhart 3 1969 2012 43Urquhart 4 1999 2019 20Urquhart 5 and 6 2002 2027 25Williams - Bushy Park 1997 2022 25
The survivor curve estimates for the remaining accounts were based on judgment
incorporating the statistical analyses and previous studies for this and other electric utilities.
Salvage Analysis
The estimates of net salvage by account were based in part on historical data
compiled through 2003. Cost of removal and salvage were expressed as percents of the
original cost of plant retired, both on annual and three-year moving average bases. The
most recent five-year average also was calculated for consideration. The net salvage
estimates by account are expressed as a percent of the original cost of plant retired.
Net Salvage Considerations
The estimates of future net salvage are expressed as percentages of surviving plant
in service, i.e., all future retirements. In cases in which removal costs are expected to
exceed salvage receipts, a negative net salvage percentage is estimated. The net salvage
II-28
estimates were based on judgment which incorporated analyses of historical cost of
removal and salvage data, expectations with respect to future removal requirements and
markets for retired equipment and materials.
Statistical analyses of historical data for the period 1987 through 2003 for electric
plant were analyzed. The analyses contributed significantly toward the net salvage
estimates for 29 plant accounts, representing 88 percent of the depreciable plant, as
follows:Steam Production Plant
311.00 Structures and Improvements312.00 Boiler Plant Equipment314.00 Turbogenerator Units315.00 Accessory Electric Equipment316.00 Miscellaneous Power Plant Equipment
Nuclear Production Plant321.00 Structures and Improvements322.00 Reactor Plant Equipment323.00 Turbogenerator Units324.00 Accessory Electric Equipment325.00 Miscellaneous Power Plant Equipment
Other Production Plant342.00 Fuel Holders, Producers & Accessories343.00 Prime Movers344.00 Generators345.00 Accessory Electric Equipment346.00 Miscellaneous Power Plant Equipment
Transmission Plant352.00 Structures and Improvements353.00 Station Equipment
Distribution Plant361.00 Structures and Improvements362.00 Station Equipment364.00 Poles, Towers and Fixtures365.00 Overhead Conductors and Devices366.00 Underground Conduit367.00 Underground Conductors and Devices368.00 Line Transformers369.00 Services370.00 Meters373.00 Street Lighting and Signal Systems
II-29
General Plant390.00 Structures and Improvements
Common Plant690.00 Structures and Improvements
Account 364.00, Poles, Tower and Fixtures, is used to illustrate the manner in which
the study was conducted for the groups in the preceding list. Net salvage data for the
period 1987 through 2003 were analyzed for this account. The data include cost of
removal, gross salvage and net salvage amounts and each of these amounts is expressed
as a percent of the original cost of regular retirements. Three-year moving averages for
the 1987-1989 through 2001-2003 periods were computed to smooth the annual amounts.
Cost of removal has fluctuated throughout the seventeen-year period. The primary
cause of the fluctuations in cost of removal relates to the amount of poles removed by
contractors as compared to Company personnel. The large projects have contractors
assigned to remove. Cost of removal for the most recent five years averaged 55 percent.
Gross salvage has also varied widely throughout the period. The most recent five-
year average of 41 percent gross salvage reflects recent trends toward higher salvage
value which leads to reuse of poles and towers.
The net salvage percent based on the overall period 1987 through 2003 is 18
percent negative net salvage and based on the most recent five-year period is 14 percent.
The range of estimates made by other electric companies for Poles, Towers and Fixtures
is negative 20 to negative 50 percent. The net salvage estimate for poles is negative 20
percent, is within the range of other estimates and reflects movement toward more
negative net salvage than the last seventeen years indicate. This movement toward the
lower limit of other electric companies considers the fact that gross salvage is likely to be
reduced in the future.
II-30
Annual Accrual Rate, Percent = (100% � Net Salvage, Percent)Average Service Life
.
Ratio = (1 - Average Remaining Life ExpectancyAverage Service Life
) (1 - Net Salvage, Percent).
The net salvage percents for the remaining accounts representing 12 percent of
plant were based on judgment incorporating estimates of previous studies of this and other
electric utilities.
CALCULATION OF ANNUAL AND ACCRUED DEPRECIATION
After the survivor curve and salvage are estimated, the annual depreciation accrual
rate can be calculated. In the average service life procedure, the annual accrual rate is
computed by the following equation:
The calculated accrued depreciation for each depreciable property group represents that
portion of the depreciable cost of the group which will not be allocated to expense through
future depreciation accruals, if current forecasts of life characteristics are used as a basis
for straight line depreciation accounting.
The accrued depreciation calculation consists of applying an appropriate ratio to the
surviving original cost of each vintage of each account, based upon the attained age and
the estimated survivor curve. The accrued depreciation ratios are calculated as follows:
The application of these procedures is described for a single unit of property and
a group of property units. Salvage is omitted from the description for ease of application.
II-31
$1,000(4 + 6)
= $100 per year.
$1,000 (1 - 610
) = $400.
Single Unit of Property
The calculation of straight line depreciation for a single unit of property is
straightforward. For example, if a $1,000 unit of property attains an age of four years and
has a life expectancy of six years, the annual accrual over the total life is:
The accrued depreciation is:
Group Depreciation Procedures
When more than a single item of property is under consideration, a group procedure
for depreciation is appropriate because normally all of the items within a group do not have
identical service lives, but have lives that are dispersed over a range of time. There are
two primary group procedures, namely, average service life and equal life group.
Remaining Life Annual Accruals. For the purpose of calculating remaining life
accruals as of December 31, 2003, the depreciation reserve for each plant account is
allocated among vintages in proportion to the calculated accrued depreciation for the
account. Explanations of remaining life accruals and calculated accrued depreciation
follow.
Average Service Life Procedure. In the average service life procedure, the
remaining life annual accrual for each vintage is determined by dividing future book
accruals (original cost less book reserve) by the average remaining life of the vintage. The
average remaining life is a directly weighted average derived from the estimated future
survivor curve in accordance with the average service life procedure.
II-32
Ratio = 1 - Average Remaining LifeAverage Service Life
.
The calculated accrued depreciation for each depreciable property group represents
that portion of the depreciable cost of the group which would not be allocated to expense
through future depreciation accruals, if current forecasts of life characteristics are used as
the basis for such accruals. The accrued depreciation calculation consists of applying an
appropriate ratio to the surviving original cost of each vintage of each account, based upon
the attained age and service life. The straight lien accrued depreciation ratios are
calculated as follows for the average service life procedure:
CALCULATION OF ANNUAL AND ACCRUED AMORTIZATION
Amortization is the gradual extinguishment of an amount in an account by
distributing such amount over a fixed period over the life of the asset or liability to which
it applies, or over the period during which it is anticipated the benefit will be realized.
Normally, the distribution of the amount is in equal amounts to each year of the
amortization period.
The calculation of annual and accrued amortization requires the selection of an
amortization period. The amortization periods used in this report were based on judgment
which incorporated a consideration of the period during which the assets will render most
of their service, the amortization period and service lives used by other utilities and the
service life estimates previously used for the asset under depreciation accounting.
Amortization accounting is proposed for certain General and Common Plant
accounts that represent numerous units of property, but a very small portion of depreciable
electric plant in service. The accounts and their amortization periods are as follows:
II-33
Account
AmortizationPeriod,
Years
391.10 Office Furniture and Equipment - Furniture 20 391.20 Office Furniture and Equipment - EDP 5 391.30 Office Furniture and Equipment - Data Handling 20 393 Stores Equipment 25 394.10 Tools, Shop, Garage Equipment - Hand Tools 20 394.20 Tools, Shop, Garage Equipment - Line 20 394.30 Tools, Shop, Garage Equipment - Shop 20 394.40 Tools, Shop, Garage Equipment - Garage 20 395.10 Laboratory Equipment - Meter Test 20 395.20 Laboratory Equipment - Other Test 20 395.30 Laboratory Equipment - Field Test 20 397 Communication Equipment 8 398 Miscellaneous Equipment 20 691.10 Office Furniture and Equipment - Furniture 20 691.20 Office Furniture and Equipment - EDP 5 691.30 Data Handling Equipment 20 693 Stores Equipment 25 694.10 Tools, Shop, Garage Equipment - Power Tools 20 694.30 Tools, Shop, Garage Equipment - Shop Tools 20 694.40 Tools, Shop, Garage Equipment - Garage 20 695.20 Laboratory Equipment - Other Test 20 695.30 Laboratory Equipment - Field Test 20 697 Communication Equipment 8 698 Miscellaneous Equipment 20
The calculated accrued amortization is equal to the original cost multiplied by the
ratio of the vintage's age to its amortization period. The annual amortization amount is
determined by dividing the original cost by the period of amortization for the account.
PART III. RESULTS OF STUDY
PART III. RESULTS OF STUDY
QUALIFICATION OF RESULTS
The calculated annual depreciation accrual rates are the principal results of the
study. Continued surveillance and periodic revisions are normally required to maintain
continued use of appropriate annual depreciation accrual rates. An assumption that
accrual rates can remain unchanged over a long period of time implies a disregard for the
inherent variability in service lives and salvage and for the change of the composition of
property in service. The annual accrual rates were calculated in accordance with the
straight line remaining life method of depreciation using the average service life procedure
based on estimates which reflect considerations of current historical evidence and
expected future conditions.
The annual depreciation accrual rates are applicable specifically to the electric and
common plant in service as of December 31, 2003. For most plant accounts, the
application of such rates to future balances that reflect additions subsequent to December
31, 2003, is reasonable for a period of three to five years.
DESCRIPTION OF DEPRECIATION TABULATIONS
A summary of the results of the study, as applied to the original cost of electric and
common plant as of December 31, 2003, is presented on pages III-3 through III-9 of this
report. The schedule sets forth the original cost, the book depreciation reserve, future
accruals, the calculated annual depreciation rate and amount, and the composite
remaining life related to electric plant.
III-2
SOUTH CAROLINA ELECTRIC & GAS COMPANYSUMMARY OF ESTIMATED SURVIVOR CURVES, NET SALVAGE, ORIGINAL COST, BOOK RESERVE AND CALCULATED
ANNUAL DEPRECIATION RATES AS OF DECEMBER 31, 2003
NET CALCULATED COMPOSITESURVIVOR SALVAGE ORIGINAL BOOK FUTURE ANNUAL ACCRUAL REMAINING
ACCOUNT CURVE PERCENT COST RESERVE ACCRUALS AMOUNT RATE LIFE(1) (2) (3) (4) (5) (6) (7) (8)=(7)/(4) (9)=(6)/(7)
STEAM PRODUCTION PLANT
CANADYS 311.00 STRUCTURES AND IMPROVEMENTS 75-R1.5 * (30) 25,970,688.48 13,094,844 20,667,051 1,161,809 4.47 17.8312.00 BOILER PLANT EQUIPMENT 40-S0 * (25) 123,430,866.14 43,284,432 111,004,148 6,858,812 5.56 16.2314.00 TURBOGENERATOR UNITS 50-R2 * (25) 51,922,804.60 26,817,655 38,085,849 2,242,307 4.32 17.0315.00 ACCESSORY ELECTRIC EQUIPMENT 55-R3 * (15) 10,877,247.98 6,895,066 5,613,768 321,730 2.96 17.4316.00 MISCELLANEOUS POWER PLANT EQUIPMENT 42-R0.5 * (5) 3,407,237.97 1,139,282 2,438,318 149,294 4.38 16.3
TOTAL CANADYS 215,608,845.17 91,231,279 177,809,134 10,733,952 4.98 16.6
CENTRAL LAB 311.00 STRUCTURES AND IMPROVEMENTS 75-R1.5 * (30) 3,028,137.87 1,179,067 2,757,512 133,904 4.42 20.6315.00 ACCESSORY ELECTRIC EQUIPMENT 55-R3 * (15) 58,757.43 29,337 38,234 1,873 3.19 20.4316.00 MISCELLANEOUS POWER PLANT EQUIPMENT 42-R0.5 * (5) 1,435,018.27 190,512 1,316,258 69,487 4.84 18.9
TOTAL CENTRAL LAB 4,521,913.57 1,398,916 4,112,004 205,264 4.54 20.0
COPE 311.00 STRUCTURES AND IMPROVEMENTS 75-R1.5 * (30) 61,135,855.54 14,926,136 64,550,476 2,114,782 3.46 30.5312.00 BOILER PLANT EQUIPMENT 40-S0 * (25) 257,806,956.57 57,357,818 264,900,878 10,365,892 4.02 25.6314.00 TURBOGENERATOR UNITS 50-R2 * (25) 83,762,737.49 20,456,433 84,246,988 2,877,655 3.44 29.3315.00 ACCESSORY ELECTRIC EQUIPMENT 55-R3 * (15) 22,268,111.05 5,516,802 20,091,526 650,196 2.92 30.9316.00 MISCELLANEOUS POWER PLANT EQUIPMENT 42-R0.5 * (5) 6,589,331.85 1,455,801 5,462,997 207,701 3.15 26.3
TOTAL COPE 431,562,992.50 99,712,990 439,252,865 16,216,226 3.76 27.1
MCMEEKIN 311.00 STRUCTURES AND IMPROVEMENTS 75-R1.5 * (30) 13,120,559.69 5,660,076 11,396,648 556,840 4.24 20.5312.00 BOILER PLANT EQUIPMENT 40-S0 * (25) 94,381,697.39 25,817,164 92,159,958 5,097,084 5.40 18.1314.00 TURBOGENERATOR UNITS 50-R2 * (25) 15,615,916.49 11,179,500 8,340,396 469,565 3.01 17.8315.00 ACCESSORY ELECTRIC EQUIPMENT 55-R3 * (15) 4,618,389.67 2,160,061 3,151,089 159,481 3.45 19.8316.00 MISCELLANEOUS POWER PLANT EQUIPMENT 42-R0.5 * (5) 3,202,949.91 1,039,650 2,323,448 126,429 3.95 18.4
TOTAL MCMEEKIN 130,939,513.15 45,856,451 117,371,539 6,409,399 4.89 18.3
URQUHART 3 311.00 STRUCTURES AND IMPROVEMENTS 75-R1.5 * (30) 15,169,974.36 11,696,415 8,024,551 415,491 2.74 19.3312.00 BOILER PLANT EQUIPMENT 40-S0 * (25) 18,691,501.73 4,297,464 19,066,914 1,200,924 6.42 15.9314.00 TURBOGENERATOR UNITS 50-R2 * (25) 39,054,718.26 16,668,930 32,149,465 1,717,474 4.40 18.7315.00 ACCESSORY ELECTRIC EQUIPMENT 55-R3 * (15) 7,809,715.60 4,453,299 4,527,874 235,686 3.02 19.2316.00 MISCELLANEOUS POWER PLANT EQUIPMENT 42-R0.5 * (5) 2,149,158.63 744,377 1,512,239 84,609 3.94 17.9
TOTAL URQUHART 3 82,875,068.58 37,860,485 65,281,043 3,654,184 4.41 17.9
WATEREE 311.00 STRUCTURES AND IMPROVEMENTS 75-R1.5 * (30) 27,271,930.81 10,927,878 24,525,632 1,315,979 4.83 18.6312.00 BOILER PLANT EQUIPMENT 40-S0 * (25) 276,455,693.52 37,379,776 308,189,838 17,710,073 6.41 17.4314.00 TURBOGENERATOR UNITS 50-R2 * (25) 57,212,610.50 20,783,739 50,732,023 2,846,362 4.98 17.8315.00 ACCESSORY ELECTRIC EQUIPMENT 55-R3 * (15) 12,297,181.97 7,465,293 6,676,467 375,390 3.05 17.8316.00 MISCELLANEOUS POWER PLANT EQUIPMENT 42-R0.5 * (5) 2,806,015.15 919,025 2,027,294 121,036 4.31 16.7
TOTAL WATEREE 376,043,431.95 77,475,711 392,151,254 22,368,840 5.95 17.5
TOTAL STEAM PRODUCTION PLANT 1,241,551,764.92 353,535,832 1,195,977,839 59,587,865 4.80 20.1
III-3
SOUTH CAROLINA ELECTRIC & GAS COMPANYSUMMARY OF ESTIMATED SURVIVOR CURVES, NET SALVAGE, ORIGINAL COST, BOOK RESERVE AND CALCULATED
ANNUAL DEPRECIATION RATES AS OF DECEMBER 31, 2003
NET CALCULATED COMPOSITESURVIVOR SALVAGE ORIGINAL BOOK FUTURE ANNUAL ACCRUAL REMAINING
ACCOUNT CURVE PERCENT COST RESERVE ACCRUALS AMOUNT RATE LIFE(1) (2) (3) (4) (5) (6) (7) (8)=(7)/(4) (9)=(6)/(7)
NUCLEAR PRODUCTION PLANT
321.00 STRUCTURES AND IMPROVEMENTS 75-S1 * 0 242,212,762.50 126,535,823 115,676,938 3,384,065 1.40 34.2322.00 REACTOR PLANT EQUIPMENT 50-S2 * (3) 424,017,431.85 183,275,626 253,462,328 8,412,361 1.98 30.1323.00 TURBOGENERATOR UNITS 50-S1.5 * (5) 85,015,708.83 31,518,335 57,748,159 1,891,400 2.22 30.5324.00 ACCESSORY ELECTRIC EQUIPMENT 40-S2.5 * 0 95,458,483.07 50,452,097 45,006,386 2,097,562 2.20 21.5325.00 MISCELLANEOUS POWER PLANT EQUIPMENT 35-L1.5 * (5) 76,438,736.80 25,460,408 54,800,267 2,448,155 3.20 22.4
TOTAL NUCLEAR PRODUCTION PLANT 923,143,123.05 417,242,289 526,694,078 18,233,543 1.98 28.9
HYDRAULIC PRODUCTION PLANTFAIRFIELD
331.00 STRUCTURES AND IMPROVEMENTS 125-R2 * (5) 35,298,467.02 12,657,178 24,406,216 363,487 1.03 67.1332.00 RESERVOIRS, DAMS & WATERWAYS 125-R2.5 * (5) 75,638,932.24 27,543,964 51,876,916 759,895 1.00 68.3333.00 WATER WHEELS, TURBINES & GENERATORS 80-R2 * (5) 64,247,657.26 15,510,780 51,949,260 906,080 1.41 57.3334.00 ACCESSORY ELECTRIC EQUIPMENT 48-R1 * (5) 5,997,302.48 2,021,689 4,275,476 135,778 2.26 31.5335.00 MISCELLANEOUS POWER PLANT EQUIPMENT 60-R1 * (5) 4,666,253.93 1,226,545 3,673,021 81,783 1.75 44.9336.00 ROADS, RAIL ROADS & BRIDGES 60-R4 * (5) 1,328,336.30 483,206 911,547 26,065 1.96 35.0
TOTAL FAIRFIELD 187,176,949.23 59,443,362 137,092,436 2,273,088 1.21 60.3
NEAL SHOALS 331.00 STRUCTURES AND IMPROVEMENTS 125-R2 * (5) 571,071.57 329,554 270,072 8,512 1.49 31.7332.00 RESERVOIRS, DAMS & WATERWAYS 125-R2.5 * (5) 1,284,395.84 1,125,136 223,479 6,970 0.54 32.1333.00 WATER WHEELS, TURBINES & GENERATORS 80-R2 * (5) 1,819,372.68 1,287,977 622,363 20,345 1.12 30.6334.00 ACCESSORY ELECTRIC EQUIPMENT 48-R1 * (5) 205,897.01 127,321 88,871 3,306 1.61 26.9335.00 MISCELLANEOUS POWER PLANT EQUIPMENT 60-R1 * (5) 157,957.60 72,316 93,541 3,252 2.06 28.8336.00 ROADS, RAIL ROADS & BRIDGES 60-R4 * (5) 2,645.06 1,444 1,333 43 1.63 31.0
TOTAL NEAL SHOALS 4,041,339.76 2,943,748 1,299,659 42,428 1.05 30.6
PARR 331.00 STRUCTURES AND IMPROVEMENTS 125-R2 * (5) 1,294,971.42 511,652 848,068 52,207 4.03 16.2332.00 RESERVOIRS, DAMS & WATERWAYS 125-R2.5 * (5) 1,927,939.06 1,693,039 331,298 20,430 1.06 16.2333.00 WATER WHEELS, TURBINES & GENERATORS 80-R2 * (5) 930,286.80 484,465 492,338 31,948 3.43 15.4334.00 ACCESSORY ELECTRIC EQUIPMENT 48-R1 * (5) 1,236,909.30 345,338 953,416 68,043 5.50 14.0335.00 MISCELLANEOUS POWER PLANT EQUIPMENT 60-R1 * (5) 90,610.52 28,031 67,109 4,534 5.00 14.8336.00 ROADS, RAIL ROADS & BRIDGES 60-R4 * (5) 104,411.88 30,601 79,031 6,807 6.52 11.6
TOTAL PARR 5,585,128.98 3,093,126 2,771,260 183,969 3.29 15.1
SALUDA 331.00 STRUCTURES AND IMPROVEMENTS 125-R2 * (5) 4,119,068.95 1,681,242 2,643,782 96,049 2.33 27.5332.00 RESERVOIRS, DAMS & WATERWAYS 125-R2.5 * (5) 20,582,132.50 11,929,345 9,681,896 353,223 1.72 27.4333.00 WATER WHEELS, TURBINES & GENERATORS 80-R2 * (5) 9,420,584.05 3,018,859 6,872,756 263,521 2.80 26.1334.00 ACCESSORY ELECTRIC EQUIPMENT 48-R1 * (5) 1,361,785.02 321,803 1,108,072 53,311 3.91 20.8335.00 MISCELLANEOUS POWER PLANT EQUIPMENT 60-R1 * (5) 610,456.63 90,796 550,179 21,829 3.58 25.2336.00 ROADS, RAIL ROADS & BRIDGES 60-R4 * (5) 916,687.37 28,275 934,246 35,483 3.87 26.3
TOTAL SALUDA 37,010,714.52 17,070,320 21,790,931 823,416 2.22 26.5
STEVENS CREEK 331.00 STRUCTURES AND IMPROVEMENTS 125-R2 * (5) 1,804,527.57 862,500 1,032,256 48,814 2.71 21.1332.00 RESERVOIRS, DAMS & WATERWAYS 125-R2.5 * (5) 4,694,339.12 1,726,893 3,202,161 150,358 3.20 21.3333.00 WATER WHEELS, TURBINES & GENERATORS 80-R2 * (5) 1,335,588.20 824,820 577,548 28,882 2.16 20.0334.00 ACCESSORY ELECTRIC EQUIPMENT 48-R1 * (5) 1,863,238.61 482,361 1,474,040 76,619 4.11 19.2335.00 MISCELLANEOUS POWER PLANT EQUIPMENT 60-R1 * (5) 777,316.94 184,773 631,409 31,818 4.09 19.8
TOTAL STEVENS CREEK 10,475,010.44 4,081,347 6,917,414 336,491 3.21 20.6
TOTAL HYDRAULIC PRODUCTION PLANT 244,289,142.93 86,631,903 169,871,700 3,659,392 1.50 46.4
III-4
SOUTH CAROLINA ELECTRIC & GAS COMPANYSUMMARY OF ESTIMATED SURVIVOR CURVES, NET SALVAGE, ORIGINAL COST, BOOK RESERVE AND CALCULATED
ANNUAL DEPRECIATION RATES AS OF DECEMBER 31, 2003
NET CALCULATED COMPOSITESURVIVOR SALVAGE ORIGINAL BOOK FUTURE ANNUAL ACCRUAL REMAINING
ACCOUNT CURVE PERCENT COST RESERVE ACCRUALS AMOUNT RATE LIFE(1) (2) (3) (4) (5) (6) (7) (8)=(7)/(4) (9)=(6)/(7)
OTHER PRODUCTION PLANT
BURTON 341.00 STRUCTURES AND IMPROVEMENTS SQUARE * 0 284,883.57 45,338 239,546 20,830 7.31 11.5342.00 FUEL HOLDERS, PRODUCERS & ACCESSORIES 28-S1.5 * (20) 120,765.88 95,792 49,127 5,980 4.95 8.2343.00 PRIME MOVERS 30-R2.5 * (10) 984,330.87 550,914 531,852 50,881 5.17 10.5344.00 GENERATORS 65-R3 * (5) 3,109,417.12 3,124,762 140,126 12,958 0.42 10.8345.00 ACCESSORY ELECTRIC EQUIPMENT 38-R3 * (10) 73,980.24 28,383 52,995 4,731 6.39 11.2346.00 MISCELLANEOUS POWER PLANT EQUIPMENT 35-R2.5 * 0 3,524.39 2,925 600 58 1.65 10.3
TOTAL BURTON 4,576,902.07 3,848,114 1,014,246 95,438 2.09 10.6
COIT 341.00 STRUCTURES AND IMPROVEMENTS SQUARE * 0 97,408.00 46,591 50,816 5,977 6.14 8.5342.00 FUEL HOLDERS, PRODUCERS & ACCESSORIES 28-S1.5 * (20) 477,349.31 382,007 190,812 25,589 5.36 7.5343.00 PRIME MOVERS 30-R2.5 * (10) 916,078.26 362,278 645,409 78,482 8.57 8.2344.00 GENERATORS 65-R3 * (5) 3,635,499.95 3,532,348 284,927 34,222 0.94 8.3345.00 ACCESSORY ELECTRIC EQUIPMENT 38-R3 * (10) 149,155.04 60,698 103,373 12,905 8.65 8.0346.00 MISCELLANEOUS POWER PLANT EQUIPMENT 35-R2.5 * 0 73,409.71 38,503 34,906 4,222 5.75 8.3
TOTAL COIT 5,348,900.27 4,422,425 1,310,243 161,397 3.02 8.1
FABER PLACE 341.00 STRUCTURES AND IMPROVEMENTS SQUARE * 0 85,925.04 7,645 78,280 6,807 7.92 11.5343.00 PRIME MOVERS 30-R2.5 * (10) 78,432.37 15,848 70,427 6,583 8.39 10.7344.00 GENERATORS 65-R3 * (5) 980,699.22 978,871 50,862 4,733 0.48 10.7345.00 ACCESSORY ELECTRIC EQUIPMENT 38-R3 * (10) 44,490.43 1,384 47,555 4,184 9.40 11.4346.00 MISCELLANEOUS POWER PLANT EQUIPMENT 35-R2.5 * 0 4,871.40 4,510 361 44 0.90 8.2
TOTAL FABER PLACE 1,194,418.46 1,008,258 247,485 22,351 1.87 11.1
HAGOOD 341.00 STRUCTURES AND IMPROVEMENTS SQUARE * 0 3,311,814.55 1,585,982 1,725,833 80,271 2.42 21.5342.00 FUEL HOLDERS, PRODUCERS & ACCESSORIES 28-S1.5 * (20) 2,358,887.34 1,107,206 1,723,459 113,036 4.79 15.2343.00 PRIME MOVERS 30-R2.5 * (10) 23,842,854.40 11,736,607 14,490,533 867,602 3.64 16.7344.00 GENERATORS 65-R3 * (5) 6,029,195.70 2,999,998 3,330,658 158,224 2.62 21.1345.00 ACCESSORY ELECTRIC EQUIPMENT 38-R3 * (10) 3,898,214.66 1,914,355 2,373,681 122,847 3.15 19.3346.00 MISCELLANEOUS POWER PLANT EQUIPMENT 35-R2.5 * 0 51,102.99 14,357 36,747 1,881 3.68 19.5
TOTAL HAGOOD 39,492,069.64 19,358,505 23,680,911 1,343,861 3.40 17.6
HARDEEVILLE 341.00 STRUCTURES AND IMPROVEMENTS SQUARE * 0 24,190.37 4,269 19,922 1,207 4.99 16.5342.00 FUEL HOLDERS, PRODUCERS & ACCESSORIES 28-S1.5 * (20) 121,795.73 72,582 73,572 6,063 4.98 12.1343.00 PRIME MOVERS 30-R2.5 * (10) 798,792.01 60,112 818,559 52,432 6.56 15.6344.00 GENERATORS 65-R3 * (5) 1,156,829.16 1,159,640 55,031 3,580 0.31 15.4345.00 ACCESSORY ELECTRIC EQUIPMENT 38-R3 * (10) 129,105.36 101,125 40,890 2,909 2.25 14.1346.00 MISCELLANEOUS POWER PLANT EQUIPMENT 35-R2.5 * 0 3,521.67 3,312 210 15 0.43 14.0
TOTAL HARDEEVILLE 2,234,234.30 1,401,040 1,008,184 66,206 2.96 15.2
PARR 341.00 STRUCTURES AND IMPROVEMENTS SQUARE * 0 672,792.54 80,120 592,673 32,037 4.76 18.5342.00 FUEL HOLDERS, PRODUCERS & ACCESSORIES 28-S1.5 * (20) 609,848.39 447,571 284,247 29,611 4.86 9.6343.00 PRIME MOVERS 30-R2.5 * (10) 2,073,507.76 107,367 2,173,492 130,677 6.30 16.6344.00 GENERATORS 65-R3 * (5) 3,277,695.64 2,850,694 590,888 33,020 1.01 17.9345.00 ACCESSORY ELECTRIC EQUIPMENT 38-R3 * (10) 187,320.77 66,556 139,496 8,309 4.44 16.8346.00 MISCELLANEOUS POWER PLANT EQUIPMENT 35-R2.5 * 0 104,813.24 49,404 55,409 3,483 3.32 15.9
TOTAL PARR 6,925,978.34 3,601,712 3,836,205 237,137 3.42 16.2
III-5
SOUTH CAROLINA ELECTRIC & GAS COMPANYSUMMARY OF ESTIMATED SURVIVOR CURVES, NET SALVAGE, ORIGINAL COST, BOOK RESERVE AND CALCULATED
ANNUAL DEPRECIATION RATES AS OF DECEMBER 31, 2003
NET CALCULATED COMPOSITESURVIVOR SALVAGE ORIGINAL BOOK FUTURE ANNUAL ACCRUAL REMAINING
ACCOUNT CURVE PERCENT COST RESERVE ACCRUALS AMOUNT RATE LIFE(1) (2) (3) (4) (5) (6) (7) (8)=(7)/(4) (9)=(6)/(7)
URQUHART 1 AND 2
341.00 STRUCTURES AND IMPROVEMENTS SQUARE * 0 103,372.10 2,113 101,258 4,308 4.17 23.5342.00 FUEL HOLDERS, PRODUCERS & ACCESSORIES 28-S1.5 * (20) 137,180.93 29,384 135,234 8,246 6.01 16.4343.00 PRIME MOVERS 30-R2.5 * (10) 135,481.17 19,837 129,192 6,613 4.88 19.5344.00 GENERATORS 65-R3 * (5) 3,112,409.91 2,276,002 992,028 47,125 1.51 21.1345.00 ACCESSORY ELECTRIC EQUIPMENT 38-R3 * (10) 81,795.30 31,031 58,944 3,074 3.76 19.2346.00 MISCELLANEOUS POWER PLANT EQUIPMENT 35-R2.5 * 0 15,874.18 3,527 12,346 625 3.94 19.8
TOTAL URQUHART 1 AND 2 3,586,113.59 2,361,894 1,429,002 69,991 1.95 20.4
URQUHART 3 341.00 STRUCTURES AND IMPROVEMENTS SQUARE * 0 10,069.76 10,070 1,185 11.77 8.5344.00 GENERATORS 65-R3 * (5) 1,386,796.55 1,372,423 83,713 10,091 0.73 8.3345.00 ACCESSORY ELECTRIC EQUIPMENT 38-R3 * (10) 9,893.31 10,883 1,286 13.00 8.5
TOTAL URQUHART 3 1,406,759.62 1,372,423 104,666 12,562 0.89 8.3
URQUHART 4 341.00 STRUCTURES AND IMPROVEMENTS SQUARE * 0 316,053.48 152,562 163,492 10,548 3.34 15.5342.00 FUEL HOLDERS, PRODUCERS & ACCESSORIES 28-S1.5 * (20) 914,543.07 684,061 413,391 28,745 3.14 14.4343.00 PRIME MOVERS 30-R2.5 * (10) 195,030.81 9,735 204,798 13,788 7.07 14.9344.00 GENERATORS 65-R3 * (5) 20,840,374.27 2,951,883 18,930,510 1,228,440 5.89 15.4345.00 ACCESSORY ELECTRIC EQUIPMENT 38-R3 * (10) 216,446.55 37,648 200,443 13,204 6.10 15.2346.00 MISCELLANEOUS POWER PLANT EQUIPMENT 35-R2.5 * 0 2,596.43 208 2,388 159 6.12 15.0
TOTAL URQUHART 4 22,485,044.61 3,836,097 19,915,022 1,294,884 5.76 15.4
URQUHART 5 AND 6 341.00 STRUCTURES AND IMPROVEMENTS SQUARE * 0 4,428,068.77 337,463 4,090,606 174,068 3.93 23.5342.00 FUEL HOLDERS, PRODUCERS & ACCESSORIES 28-S1.5 * (20) 3,766,056.38 372,467 4,146,801 199,270 5.29 20.8343.00 PRIME MOVERS 30-R2.5 * (10) 241,199,590.91 14,365,150 250,954,400 11,676,531 4.84 21.5345.00 ACCESSORY ELECTRIC EQUIPMENT 38-R3 * (10) 15,361,463.12 1,139,550 15,758,059 694,188 4.52 22.7
TOTAL URQUHART 5 AND 6 264,755,179.18 16,214,630 274,949,866 12,744,057 4.81 21.6
WILLIAMS - BUSHY PARK 341.00 STRUCTURES AND IMPROVEMENTS SQUARE * 0 312,611.13 46,228 266,383 14,399 4.61 18.5342.00 FUEL HOLDERS, PRODUCERS & ACCESSORIES 28-S1.5 * (20) 97,688.20 79,150 38,077 2,709 2.77 14.1343.00 PRIME MOVERS 30-R2.5 * (10) 5,121,168.01 2,739,515 2,893,769 175,718 3.43 16.5344.00 GENERATORS 65-R3 * (5) 65,544.83 71,071 (2,249) 0 - -345.00 ACCESSORY ELECTRIC EQUIPMENT 38-R3 * (10) 77,567.52 58,213 27,110 1,573 2.03 17.2346.00 MISCELLANEOUS POWER PLANT EQUIPMENT 35-R2.5 * 0 3,790.58 4,110 (320) 0 - -
TOTAL WILLIAMS - BUSHY PARK 5,678,370.27 2,998,287 3,222,770 194,399
TOTAL OTHER PRODUCTION PLANT 357,683,970.35 60,423,385 330,718,600 16,242,283 4.54 20.4
TRANSMISSION PLANT 352.00 STRUCTURES AND IMPROVEMENTS
V.C. SUMMER - NUCLEAR 60-R2.5 * (5) 605,051.07 343,697 291,607 8,826 1.46 33.0 OTHER LOCATIONS 60-R2.5 (5) 2,364,566.62 515,024 1,967,769 39,582 1.67 49.7
TOTAL STRUCTURES AND IMPROVEMENTS 2,969,617.69 858,721 2,259,376 48,408 1.63 46.7
III-6
SOUTH CAROLINA ELECTRIC & GAS COMPANYSUMMARY OF ESTIMATED SURVIVOR CURVES, NET SALVAGE, ORIGINAL COST, BOOK RESERVE AND CALCULATED
ANNUAL DEPRECIATION RATES AS OF DECEMBER 31, 2003
NET CALCULATED COMPOSITESURVIVOR SALVAGE ORIGINAL BOOK FUTURE ANNUAL ACCRUAL REMAINING
ACCOUNT CURVE PERCENT COST RESERVE ACCRUALS AMOUNT RATE LIFE(1) (2) (3) (4) (5) (6) (7) (8)=(7)/(4) (9)=(6)/(7)
353.00 STATION EQUIPMENT
V.C. SUMMER - NUCLEAR 65-R2 * (20) 6,558,968.80 3,725,922 4,144,841 123,395 1.88 33.6 PARR - HYDRO 65-R2 * (20) 375,936.02 80,037 371,087 11,914 3.17 31.1 FAIRFIELD PUMPED STORAGE 65-R2 * (20) 1,009,312.40 1,015,034 196,140 3,618 0.36 54.2 SALUDA - HYDRO 65-R2 * (20) 5,582,475.12 2,525,372 4,173,600 103,917 1.86 40.2 STEVENS CREEK - HYDRO 65-R2 * (20) 3,308,777.25 121,865 3,848,668 143,372 4.33 26.8 NEAL SHOALS - HYDRO 65-R2 * (20) 26,922.21 0 32,307 1,286 4.78 25.1 OTHER LOCATIONS 65-R2 (20) 165,426,058.68 62,354,733 136,156,531 2,573,630 1.56 52.9
TOTAL STATION EQUIPMENT 182,288,450.48 69,822,963 148,923,174 2,961,132 1.62 50.3
353.10 STATION EQUIPMENT - STEP UP TRANSFORMERS V.C SUMMER - NUCLEAR 60-R3 * (20) 6,360,413.02 3,599,218 4,033,278 120,432 1.89 33.5 PARR - HYDRO 60-R3 * (20) 223,125.80 123,530 144,220 5,082 2.28 28.4 FAIRFIELD PUMPED STORAGE 60-R3 * (20) 3,468,542.43 1,784,982 2,377,269 56,694 1.63 41.9 SALUDA - HYDRO 60-R3 * (20) 595,189.21 337,485 376,741 14,475 2.43 26.0 WATEREE - STEAM 60-R3 * (20) 1,210,511.24 873,330 579,284 21,399 1.77 27.1 MCMEEKIN - STEAM 60-R3 * (20) 564,678.97 516,546 161,069 8,650 1.53 18.6 URQUHART - STEAM 60-R3 * (20) 1,016,542.70 991,168 228,684 15,028 1.48 15.2 CANADYS - STEAM 60-R3 * (20) 930,901.46 693,655 423,427 28,199 3.03 15.0 WILLIAMS - STEAM 60-R3 * (20) 946,881.74 632,843 503,415 16,848 1.78 29.9 COPE - STEAM 60-R3 * (20) 6,020,025.00 1,034,203 6,189,827 128,874 2.14 48.0 WILLIAMS GT 60-R3 * (20) 150,417.37 103,768 76,733 3,978 2.64 19.3 FABER PLACE GT 60-R3 * (20) 236,237.34 120,652 162,833 7,142 3.02 22.8 BURTON GT 60-R3 * (20) 87,054.40 75,619 28,847 3,601 4.14 8.0 HARDEEVILLE GT 60-R3 * (20) 47,492.16 36,417 20,574 750 1.58 27.4 COIT GT 60-R3 * (20) 118,154.04 86,672 55,113 4,686 3.97 11.8 URQUHART GT 60-R3 * (20) 71,582.51 68,911 16,988 1,725 2.41 9.8
TOTAL STATION EQUIPMENT - STEP UP TRANSFORMERS 22,047,749.39 11,078,999 15,378,302 437,563 1.98 35.1
354.00 TOWERS AND FIXTURES 65-R4 (20) 5,453,094.50 4,164,607 2,379,108 64,302 1.18 37.0355.00 POLES AND FIXTURES 52-R2.5 (75) 143,486,692.04 44,787,354 206,314,359 5,262,324 3.67 39.2356.00 OVERHEAD CONDUCTORS AND DEVICES 55-R3 (30) 124,496,666.17 42,496,833 119,348,832 2,880,080 2.31 41.4357.00 UNDERGROUND CONDUIT 50-R4 0 2,160,642.90 813,725 1,346,917 38,129 1.76 35.3358.00 UNDERGROUND CONDUCTORS & DEVICES 45-R3 0 7,257,192.85 2,498,674 4,758,518 150,066 2.07 31.7359.00 ROADS AND TRAILS 55-S3 0 8,761.58 7,580 1,182 50 0.57 23.6
TOTAL TRANSMISSION PLANT 490,168,867.60 176,529,456 500,709,768 11,842,054 2.42 42.3
DISTRIBUTION PLANT 361.00 STRUCTURES AND IMPROVEMENTS 60-R2.5 (5) 3,304,495.60 330,957 3,138,763 60,525 1.83 51.9362.00 STATION EQUIPMENT 65-R2 (15) 198,593,284.19 25,353,140 203,029,138 3,938,514 1.98 51.5364.00 POLES, TOWERS & FIXTURES 44-R1.5 (20) 228,130,262.03 89,944,352 183,811,962 5,114,206 2.24 35.9365.00 OVERHEAD CONDUCTORS AND DEVICES 50-R2.5 (25) 265,302,888.01 114,727,197 216,901,417 5,539,595 2.09 39.2366.00 UNDERGROUND CONDUIT 42-R3 (15) 77,697,064.07 22,878,352 66,473,273 2,001,963 2.58 33.2367.00 UNDERGROUND CONDUCTORS & DEVICES 34-R3 (20) 198,532,644.48 61,926,901 176,312,277 7,362,406 3.71 23.9368.00 LINE TRANSFORMER 40-S0.5 (5) 271,118,475.69 114,031,685 170,642,713 5,498,555 2.03 31.0369.00 SERVICES - OVERHEAD 55-R2.5 (70) 76,620,364.38 36,509,572 93,745,048 2,275,131 2.97 41.2369.10 SERVICES - UNDERGROUND 60-R3 (40) 91,492,850.96 30,970,151 97,119,836 1,937,183 2.12 50.1370.00 METERS 45-R1.5 0 92,556,947.26 36,081,695 56,475,250 1,507,630 1.63 37.5373.00 STREET LIGHTING & SIGNAL SYSTEMS 29-S1.5 (20) 140,901,418.69 38,513,453 130,568,249 6,467,263 4.59 20.2
TOTAL DISTRIBUTION PLANT 1,644,250,695.36 571,267,455 1,398,217,926 41,702,971 2.54 33.5
III-7
SOUTH CAROLINA ELECTRIC & GAS COMPANYSUMMARY OF ESTIMATED SURVIVOR CURVES, NET SALVAGE, ORIGINAL COST, BOOK RESERVE AND CALCULATED
ANNUAL DEPRECIATION RATES AS OF DECEMBER 31, 2003
NET CALCULATED COMPOSITESURVIVOR SALVAGE ORIGINAL BOOK FUTURE ANNUAL ACCRUAL REMAINING
ACCOUNT CURVE PERCENT COST RESERVE ACCRUALS AMOUNT RATE LIFE(1) (2) (3) (4) (5) (6) (7) (8)=(7)/(4) (9)=(6)/(7)
GENERAL PLANT
390.10 STRUCTURES AND IMPROVEMENTS 35-S0.5 (5) 28,211,058.39 9,209,996 20,411,616 727,841 2.58 28.0390.20 STRUCTURES AND IMPROVEMENTS - WAREHOUSE 20-S2 (5) 2,467,688.52 1,879,853 711,220 64,679 2.62 11.0391.10 OFFICE FURNITURE AND EQUIPMENT 20-SQ 0 2,050,911.58 1,517,888 533,025 46,804 2.28 11.4391.20 OFFICE FURNITURE AND EQUIPMENT - EDP 5-SQ 0 5,490,638.65 1,253,809 4,236,829 847,366 ** 15.43 5.0391.21 OFFICE FURNITURE AND EQUIPMENT - EDP (2004 & SUB.) 5-SQ 0 ***391.30 OFFICE FURNITURE AND EQUIPMENT - DATA HANDLING 20-SQ 0 491,923.10 339,786 152,138 14,051 2.86 10.8393.00 STORES EQUIPMENT 25-SQ 0 289,684.19 192,352 97,333 7,573 2.61 12.9394.10 TOOL, SHOP AND GARAGE EQUIPMENT - HAND TOOLS 20-SQ 0 225,144.16 87,347 137,796 10,038 4.46 13.7394.20 TOOL, SHOP AND GARAGE EQUIPMENT - LINE 20-SQ 0 2,714,242.29 2,032,290 681,953 56,287 2.07 12.1394.30 TOOL, SHOP AND GARAGE EQUIPMENT - SHOP 20-SQ 0 273,051.39 171,319 101,734 10,271 3.76 9.9394.40 TOOL, SHOP AND GARAGE EQUIPMENT - GARAGE 20-SQ 0 299,123.73 188,263 110,861 11,198 3.74 9.9395.10 LABORATORY EQUIPMENT - METER TEST 20-SQ 0 1,618,239.31 927,500 690,738 64,327 3.98 10.7395.20 LABORATORY EQUIPMENT - OTHER TEST 20-SQ 0 2,150,040.77 1,945,402 204,638 30,270 1.41 6.8395.30 LABORATORY EQUIPMENT - FIELD TEST 20-SQ 0 2,147,850.04 933,995 1,213,857 92,777 4.32 13.1397.00 COMMUNICATION EQUIPMENT 8-SQ 0 21,997,500.37 14,412,126 7,585,375 3,633,399 16.52 2.1398.00 MISCELLANEOUS EQUIPMENT 20-SQ 0 2,803,678.48 1,061,295 1,742,385 121,994 4.35 14.3
TOTAL GENERAL PLANT 73,230,774.97 36,153,221 38,611,498 5,738,875 7.84 6.7
COMMON PLANT690.10 STRUCTURES AND IMPROVEMENTS - OFFICE 35-S0.5 (5) 33,857,517.51 5,773,445 29,776,950 1,135,571 3.35 26.2690.20 STRUCTURES AND IMPROVEMENTS - WAREHOUSE 20-S2 (5) 1,542,547.52 500,516 1,119,160 105,795 6.86 10.6691.10 OFFICE FURNITURE AND EQUIPMENT 20-SQ 0 8,437,699.68 2,381,102 6,056,597 1,074,040 12.73 5.6691.20 EDP EQUIPMENT 5-SQ 0 9,937,453.07 (11,620,094) 21,557,547 4,311,509 *** 43.39 5.0691.21 EDP EQUIPMENT (2004 & SUB.) 5-SQ 0 ****691.30 DATA HANDLING EQUIPMENT 20-SQ 0 2,448,349.27 581,192 1,867,157 269,140 10.99 6.9693.00 STORES EQUIPMENT 25-SQ 0 460,604.30 170,715 289,889 63,495 13.79 4.6694.10 TOOL, SHOP AND GARAGE EQUIPMENT - POWER TOOLS 20-SQ 0 11,175.19 1,958 9,217 725 6.49 12.7694.30 TOOL, SHOP AND GARAGE EQUIPMENT - SHOP TOOLS 20-SQ 0 227,894.87 31,469 196,426 13,820 6.06 14.2694.40 TOOL, SHOP AND GARAGE EQUIPMENT - GARAGE 20-SQ 0 865,186.12 168,665 696,520 86,203 9.96 8.1695.20 LABORATORY EQUIPMENT - OTHER TEST 20-SQ 0 193,487.74 47,363 146,124 20,461 10.57 7.1695.30 LABORATORY EQUIPMENT - FIELD TEST 20-SQ 0 83,366.50 14,886 68,480 5,724 6.87 12.0697.00 COMMUNICATION EQUIPMENT 8-SQ 0 12,898,644.92 2,629,580 10,269,066 3,938,443 30.53 2.6698.00 MISCELLANEOUS EQUIPMENT 20-SQ 0 4,156,191.42 1,129,149 3,027,043 334,721 8.05 9.0
TOTAL COMMON PLANT 75,120,118.11 1,809,946 75,080,176 11,359,647 15.12 6.6
NONDEPRECIABLE PLANT301.00 ORGANIZATION 14,988.33 14,988302.00 FRANCHISES AND CONSENTS 4,643,673.29 1,474,910303.00 MISCELLANEOUS INTANGIBLE PLANT 14,399,551.37 5,749,231310.00 LAND OWNED IN FEE 9,601,101.15320.10 LAND OWNED IN FEE 600,145.01330.10 LAND OWNED IN FEE 28,640,000.32340.10 LAND OWNED IN FEE 215,144.49360.20 LAND RIGHTS AND EASEMENTS 21,895,483.00 26,274
TOTAL NONDEPRECIABLE PLANT 80,010,086.96 7,265,403
TOTAL ELECTRIC PLANT 5,129,448,544.25 1,710,858,891 4,235,881,586 168,366,630 3.28 25.2
* Curve shown is interim survivor curve. Each facility in the account is assigned an individual probable retirement year.**Annual accrual rate established for new assets being cnstructed*** Annual accrual amount is an amortization of the remaining future accruals over 5 years.**** Annual accrual rate for new additions is 20%
III-8
SOUTH CAROLINA ELECTRIC & GAS COMPANY
ESTIMATED SURVIVOR CURVES, NET SALVAGE AND CALCULATED ANNUAL DEPRECIATION ACCRUAL RATES FOR THE JASPER FACILITY
AS OF COMPLETED CONSTRUCTION DURING 2004
CALCULATEDNET ANNUAL
SURVIVOR SALVAGE ACCRUALACCOUNT CURVE PERCENT RATE
(1) (2) (3) (4)
OTHER PRODUCTION PLANT
JASPER
341.00 STRUCTURES AND IMPROVEMENTS SQUARE * 0 2.17
342.00 FUEL HOLDERS, PRODUCERS & ACCESSORIES 28-S1.5 * (20) 5.16
343.00 PRIME MOVERS 30-R2.5 * (10) 4.82
344.00 GENERATORS 65-R3 * (5) 2.51
345.00 ACCESSORY ELECTRIC EQUIPMENT 38-R3 * (10) 3.45
346.00 MISCELLANEOUS POWER PLANT EQUIPMENT 35-R2.5 * 0 3.81
* Indicates probable retirement date of 2050.
Based on the above estimates and probable retirement date the composite rate for the Jasper facility will approximate 4.00%
III-9